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Bloomberg News Key Insight: Fed Gov. Stephen Miran said emerging strains in the housing and private credit markets strengthen the case for a rate cut in December.Expert quote: "Barring new information that would alter my forecasts, I think 50 basis points is appropriate, as I've said in the past, but at a minimum 25." — Fed Gov. Stephen Miran.What's at stake: Miran's remarks come as views among voting members of the Fed's rate-setting committee are splitting ahead of the December meeting, with some officials warning that inflation remains a stubborn concern.Federal Reserve Governor Stephen Miran continues to push for a cut to short-term interest rates at the Federal Open Market Committee meeting scheduled for December, but appears to be softening on how large the reduction should be.Speaking Monday on CNBC, Miran said his forecasts still call for some type of reduction, even if it is 25 basis points."Nothing is certain," Miran said. "We could get data that would make me change my mind between now and then. But barring new information that would alter my forecasts, I think 50 basis points is appropriate, as I've said in the past but at a minimum 25."Since being confirmed to the Fed two months ago, Miran has consistently argued that the central bank should take a more dovish approach to monetary policy. He dissented in both the September and October FOMC meetings, favoring a 50 basis point cut rather than the 25 basis point move approved by the committee.Another dissenter at the October meeting was Federal Reserve Bank of Kansas City President Jeffrey Schmid, who preferred to keep rates unchanged, citing a healthy economy and labor market.During his CNBC interview, Miran said he disagreed with Schmid's assessment, noting that he "doesn't see the same thing" and pointing to financial conditions being tight in certain sectors including housing."Congress didn't tell us to make policy for financial conditions, but to make policy for maximum employment and stable prices," Miran said. "Financial conditions are a tool we work with to achieve those goals. There are parts of financial conditions that seem quite loose — you can look at valuations in some equity or credit markets — but there are other markets where they appear quite tight. You look at something like housing, and it looks like financial conditions are quite tight."He also highlighted stresses emerging in some private credit markets. "Those aren't going into the price indices, price indices that [Schmid's] looking at when he's quoting something like that," said Miran. "So I think the situation is much more nuanced, much more nuanced than what he described."Miran's comments come as views among voting members of the Fed's rate-setting committee ahead of the December meeting are beginning to diverge, with some officials warning that inflation remains a persistent concern. Additionally, the Fed has no official data to gauge the health of the economy amid the ongoing government shutdown.Miran, as has been the case in previous appearances, stressed the importance of being "forward looking" on how the inflation picture will pan out, reiterating his belief that there are "continuing declines in inflation based on the catch up of shelter inflation to actual market rents.""It seems to me like we're heading for a situation in which inflation is going to be coming down quickly in the labor markets," he said.The Fed official, one of the architects of the Trump administration's trade policy, once more swatted away the notion that tariffs would have a long-term impact on inflation."People have been worried about that all year long," he said. "People have been moving in my direction on tariff inflation all year long. And on top of that, if tariff inflation does materialize, it is the definition of the type of thing that the central bank should look through."Sara Eisen, one of the CNBC anchors interviewing Miran, asked whether his dovish monetary policy stance is motivated by a desire to support economic activity by lower-income consumers. Miran deflected the question, saying his motive is purely to maximize employment and keep prices stable."We weren't tasked with tackling inequality and other items like that," he said. "We were tasked with maximum employment and stable prices."

Mortgage credit availability hit its highest level in three years last month, driven by a significant growth in conventional mortgages.The Mortgage Bankers Association's Mortgage Credit Availability Index increased 2.3% to 106.8 in October, marking the fourth consecutive month of growth, following marginal gains of 0.2%, 0.1% and 0.4%, respectively. The score is also up from 99.2 year over year."Credit availability in October rose to its highest level since 2022 as investors broadened their loan offerings over the month," said Joel Kan, the MBA's vice president and deputy chief economist, in a press release Monday. "The increase was driven by growth in conventional mortgage credit availability, while government credit supply changed little."The conventional MCAI rose 4.1%, while the government MCAI, which measures federally-backed mortgage availability from the Federal Housing Administration, Department of Veterans Affairs and United States Department of Agriculture, increased 0.1%. The jumbo MCAI and conforming MCAI, which make up the conventional MCAI, each increased 5% and 2%, respectively, the report showed.The MCAI was benchmarked at 100 in March 2012, with growth meaning credit is loosening and drops indicating tightening. It is calculated using several factors, including credit score and loan-to-value ratio, but the number of ARM and cash-out refinance loan programs boosted the credit supply growth, although the programs were mostly limited to higher credit score borrowers, Kan said."A steeper yield curve, leading to a bigger differential between fixed-rate mortgage rates in comparison to ARM loan rates, has increased the popularity of ARMs in recent months," he said. "Additionally, more non-QM programs supplemented the increase in the jumbo index to its highest level since 2020."But the ARM share of mortgage applications decreased in each of the last two weeks to 8.7% after sitting at nearly 11%, as lower mortgage rates have prompted borrowers to use fixed-rate loans. The average contract interest rate for five-year ARMs also fell to 5.56% from 5.66% last week.

If you recall during the campaigning leading up to the 2024 election, Donald Trump promised to return mortgage rates to 3%, or even lower.To anyone with an understanding of mortgage finance, or simply economics, it seemed far-fetched.It was actually the last thing we needed, and arguably the reason why home prices surged and for-sale inventory got wiped out.And the reason inflation surged as all those years of easy money came back to roost.Knowing this reality meant it was time to pivot, which is perhaps why Trump proposed a 50-year mortgage on Saturday.Trump Teases the 50-Year Mortgage. But It Isn’t Coming Soon…While Trump’s Truth Social post garnered a ton of views, and even more conversation, that’s about all it will ever do.In the now infamous post, he posted a picture of “Great American Presidents” with President Roosevelt alongside himself.Above Roosevelt’s photo was his “creation,” the 30-year mortgage, and above Trump’s the 50-year mortgage.For the record, the Roosevelt administration established the Home Owners’ Loan Corporation (HOLC) in 1933, which ultimately led to the 30-year fixed being created.Anyway, the message was clear; Trump is planning to bring a 50-year mortgage to the United States to solve another problem, horrendous housing affordability.And in doing so, he’s going to make America great again. Or something.In reality, it’s a poorly thought out post that reveals two main issues, at least for me personally.Has Trump Heard of the ATR/QM Rule?In the wake of the Great Financial Crisis (GFC), which was driven by shoddy mortgages and overinflated home prices, new rules were introduced to avoid another crisis.One of the biggest ones was the Ability-to-Repay/Qualified Mortgage rule (ATR/QM), implemented in January 2014.In short, it requires creditors to determine that a borrower can actually afford (has the documented ability to repay) the proposed housing payment put in front of them.The QM rule goes a step further and also eliminates many risky factors, which gives lenders a presumption of compliance with the ATR requirements.Simply put, lenders want to originate mostly QM loans because it gives them assurances and protects them from liability.One of the key requirements for a QM rule is no loan term longer than 30 years!So we’ve got President Trump proposing a 50-year mortgage, which is a full 20 years longer than the maximum loan term permitted under the QM rule.That would make them non-QM loans, which inherently carry higher interest rates and are harder to come by (not all lenders offer them).This leads me to believe that Trump has never even heard of the ATR/QM rule and that the plan is really not a plan. And just engagement bait.In other words, don’t expect the 50-year fixed to come to a lender near you anytime soon.For the record, even 40-year mortgages are rare post-GFC, though they do exist and I’ve seen some credit unions offer them lately.But the reason most lenders don’t offer them is because they barely move the dial on affordability and they result in a lot more interest charged over the loan term.The 50-Year Mortgage Idea Tells Me the Trump Admin Knows It Can’t Deliver a 3% Mortgage Rate AgainThe other thing that jumped out at me is that this proposal is likely an admission, in a roundabout way, that the Trump admin knows it’s can’t deliver on its promise to bring back 3% mortgage rates.On the road to the White House, Donald Trump told attendees at the Economic Club of New York that “we are going to get them back down to we think 3%, maybe even lower than that.”He added that, “Young people will be able to buy a home again and be a part of the American Dream.”A year later and the 30-year fixed is in fact lower, by about one percentage point, but nowhere close to 3%, let alone the 2s.That has helped more existing homeowners get payment relief via a rate and term refinance.But it hasn’t moved the dial much on monthly payments for prospective home buyers.So it feels like they’re saying, hey, we wanted to get mortgage rates a lot lower, but it’s just not going to happen.How about we give you a 50-year mortgage term instead? That can lower your monthly payments a little. Just ignore the fact that the total interest will more than double.And it will take forever to pay off the loan.I already compared 30-year and 50-year mortgages and the math wasn’t pretty.Perhaps the worst part was that on a hypothetical $400,000 home loan, the monthly payment was only $166 cheaper! Before creating this site, I worked as an account executive for a wholesale mortgage lender in Los Angeles. My hands-on experience in the early 2000s inspired me to begin writing about mortgages 19 years ago to help prospective (and existing) home buyers better navigate the home loan process. Follow me on X for hot takes.Latest posts by Colin Robertson (see all)

While the publicly traded title underwriters across the board reported improved third quarter results on a year-over-year comparison, helped by September's refinance activity that several mortgage lenders referred to in their results.The biggest news from the sector came after the quarter ended, with three of the companies announcing merger and acquisition deals.  Fidelity National Financial is making a distribution of 16 million shares it owns in F&G Life & Annuities (12% of the latter's equity) to its own shareholders. The deal is structured as a taxable dividend.It made the announcement the day after it released earnings on Nov. 6 but before the conference call.Also on Nov. 7, a unit of Stewart Information Services agreed to buy Mortgage Contracting Services, a company which works in property perseveration.The purchase price is $330 million and Stewart will fund it with available company resources. It should close by year-end.Plus, as previously reported, Old Republic International will be acquiring Everett Cash Mutual Insurance and affiliated companies. An insurer of small farm owners and select commercial agricultural operations, ECM first must convert to the stock form of ownership in a sponsored demutualization transaction.Before the quarter ended, Radian Group, which acquired a title underwriter then-called Entitle Direct in March 2018, announced a business model shift, where it bought a specialty insurer. In a move related to that transaction, Radian put its other non-mortgage insurance businesses up for sale, including the title underwriter, along with an agency it also owned.The following is a roundup of the third quarter earnings from the four largest publicly traded companies as well as one other that is an underwriter. Other producers are owned by homebuilders or private mortgage insurers.Refis surge in September for FNFFNF's net earnings for the third quarter were $358 million, versus $278 million in the second quarter and $266 million one year prior.The drop in interest rates in September, which helped drive origination volume, also helped title insurer volume, including FNF.While for the quarter, refinance orders open per day averaged 1,600, up from 1,300 during the sequential period, said Mike Nolan, CEO, on the earnings call. But for September alone, this was 2,100 refi open orders per day."Our refinance orders open per day were up 15% over the third quarter of 2024, up 22% over the second quarter of 2025, and for the month of October, up 27% versus the prior year," Nolan said.Total orders open were 370,000. This was up from 366,000 in the second quarter and 352,000 year-over-year.As for the F&G distribution, FNF will still have a 70% equity stake. The public float in the life insurer grows to 30%, Nolan said during the call."This distribution reflects our confidence in F&G's long term prospects and is intended to unlock shareholder value by enhancing market liquidity and broadening investor access to F&G shares," Nolan said. "Additionally, we view this stock distribution as a tangible and meaningful return of value to FNF shareholders," along with an increase in the common stock dividend.First American reports profit in 3Q, unlike prior yearAt First American, while purchase related revenue was 2% higher from the prior year, refinance revenue grew by 28%, said Mark Seaton, CEO, during the earnings call. Still, refi volume remains at "historically low levels," Seaton said.Even with the increase, refi revenue "accounted for just 6% of our direct revenue this quarter and highlights how challenged this market continues to be," added Matthew Wajner, chief financial officer.First American swung to a profit of $189.6 million, compared with a year ago loss of $104 million. For the second quarter, it reported net income of $146.1 million.The company reported 191,300 open orders for the most recent period, compared with 179,500 in the second quarter and 166,100 one year ago.The refi share of open orders per day was 36% in the third quarter, compared with 25% three months prior and 26% year-over-year.Another acquisition for StewartStewart has been a serial acquirer, especially after the deal with FNF failed to get regulatory approval.This latest transaction, announced after it reported earnings, takes it into a new line of business.Stewart is looking forward to offering property preservation, which supports the default servicing function, said Fred Eppinger, its CEO in a press release. "This acquisition confirms our dedication to bettering our lender services and allows us to introduce our products and services to a broader audience of customers."Stewart's net income of $44.3 million compared with $31.9 million three months ago and $30.1 million in the prior year quarter.On the earnings call, Eppinger was not enamored of the refi market as his competitors were."While there is some softening of rates in the third quarter, we did not see rates quite as low as the quick dip we experienced in September of last year, where rates hovered momentarily right around 6% and caused a flurry in purchase and refinance activity to close out 2024," he said. "I am more confident in the market'sability to improve over the next 12 months this year than I was last year at this time."Unlike its larger competitors, open orders were flat year-over-year for Stewart, 87,403 in 2025 and 87,464 during 2024. In the second quarter it had 89,646.Open orders down at Old RepublicAt Old Republic, its title insurance business posted pretax operating income of $45.7 million, up from $40.2 million one year prior."The third quarter market story is a continuation of what we reported last quarter," said Carolyn Monroe, president and CEO of Old Republic National Title Holding during the earnings call. "We still see strong activity in the commercial sector, a modest uptick in refinance activity, and a softness in the residential purchase market driven by persistent price and affordability challenges."Revenues generated from agent business had an 80% share and made up 11% of the total.Direct orders opened slipped to 45,656 from 48,919 in the second quarter and 56,202 for the third quarter of 2024. More business leads to more expenses at InvestorsThe smallest of the publicly traded companies, Investors Title, reported net income of $12.2 million compared with $9.3 million for the prior year period. That was driven by an over 6% increase in revenue.Its net premiums written along with escrow and title-related fees grew by $1.8 million, primarily driven by higher real estate activity levels.But on the other hand, operating expenses also were higher, by 1.2% to $57.9 million, driven by agent commissions and other expenses from higher transaction volume."Our title insurance volumes continued to grow over the prior year and trailing quarter, reflecting the results of our efforts to grow market share and the benefit of improving market conditions, including a recent decline in mortgage rates that has helped to spur higher transaction activity," said J. Allen Fine, chairman, in a press release. Heading into the fourth quarter, our open order pipeline remains strong, which we believe positions us well for continued momentum."

The number of homeowners who can reduce their monthly payments by refinancing hit a multi-year high as mortgage rates continue to weaken, new industry data found.The 30-year fixed-rate mortgage fell to 6.17% the last week of October, and as a result, the number of highly qualified refinance candidates, homeowners with at least a 720 credit score, 20% equity and potential savings of at least 75 basis points, rose to 1.7 million, the most in three and a half years, according to ICE Mortgage Technology's latest monthly analysis."The recent easing in mortgage rates has begun to open the refinance window for many borrowers, particularly those who originated loans in the past two years," said Andy Walden, head of mortgage and housing market research at ICE, in a press release Monday. "At the same time, homeowners still have near-record amounts of tappable equity, and the cost to access that equity continues to improve. Together, these trends are creating meaningful opportunities for borrowers to leverage rate-and-term refinances and second-lien home equity products."Additionally, 4.1 million borrowers were "in the money" for a refinance, meaning they could save at 75 basis points by doing so. Mortgage rates ticked back up to 6.22% last week after falling for all of October, but if rates eventually lower to 6.125%, the "in the money" pool could grow to nearly 5 million, the report said.In last month's report, around 3.1 million borrowers were "in the money" with a 6.38% 30-year rate. This month's report also found that home equity has become more accessible, supporting home equity lending. Borrowers entered the fourth quarter of this year with $17.3 trillion in home equity, of which $11.2 trillion can be accessed with a home equity loan while still maintaining a 20% equity stake in the property. While equity growth has slowed in recent months, the monthly cost to withdraw $50,000 in equity has dropped by more than $100 as the home equity line of credit interest rate fell to near 7% in the third quarter.This swing toward HELOC comes as banks are losing their share in the product to fintechs and other nonbanks, now holding just under two-thirds of HELOC debt.With flattening equity growth comes affordability for homebuyers. ICE's Home Price Index showed annual growth increased 0.9% in October, as affordability hit its best level in two and a half years, the report said. Single-family homes went up 1.2% last month, while condos dipped by 1.8%.The third quarter showed similar price gains, with single-family home prices growing 1.7% on an annual basis. The Northeast and Midwest saw the largest increases, while the South and West better adjusted to a buyer's market."As refinancing and equity-tapping become more favorable, lenders and servicers have an opportunity to proactively support borrowers," said Tim Bowler, president of ICE, in the release.Mortgage performance produces mixed resultsThe number of borrowers a single payment past due decreased by 11,000, dropping the delinquency rate by two basis points. Loans 90 or more days past due but not in foreclosure decreased 1% from August as well.Prepayment activity also improved to 0.74% as rates decreased, up almost 15% from a year ago.But foreclosures starts spiked 23% year over year in the third quarter, while loans in active foreclosure increased 18%. Still, both numbers remain comfortably below 2019 levels.

The record-breaking US government shutdown is nearing an end after a group of moderate Senate Democrats agreed to support a deal to reopen the government and fund some departments and agencies for the next year, people familiar with the talks said.Under the agreement, Congress would pass full-year funding for the departments of Agriculture, Veterans Affairs and Congress itself, while funding other agencies through Jan. 30. The bill would provide pay for furloughed government workers, resume withheld federal payments to states and localities and recall agency employees who were laid off during the shutdown.US stock-index futures jumped in early Asian trading.READ MORE: How some mortgage servicers have handled shutdown falloutThe Senate is set to hold a procedural test vote on Sunday. If that vote succeeds, the Senate will need the consent of all members to end the shutdown quickly. Any one senator can force days of delay and votes. The House would then need to pass the bill for the government to reopen and Speaker Mike Johnson has said he will give lawmakers two days notice to return."It looks like we're getting closer to the shutdown ending," President Donald Trump told reporters Sunday evening as he returned to the White House.Democratic Senator Tim Kaine, whose state of Virginia is home to many federal workers, signaled Sunday he would support the deal, citing the bill's ban on new federal layoffs through Jan. 30.House passage is not guaranteed. Democratic leaders have spoken out against any deal that doesn't include extending expiring Obamacare subsidies, which this bill does not do. Conservative Republican members want a bill that would fund the entire government until next Sept. 30. The face-saving accord also falls far short of the goals of House and Senate Democratic leaders, who had demanded an extension of expiring Obamacare premium subsidies and a repeal of Medicaid cuts passed by Republicans earlier this year.  READ MORE: How mortgage companies aim to aid borrowers amid shutdownDemocrats secured a pledge by Republicans to vote on a bill to renew the Affordable Care Act tax credits by mid-December, according to a person familiar with the talks.That promise, which Senate Majority Leader John Thune first offered weeks ago, was not satisfying to all Democrats."We will fight the GOP bill in the House of Representatives," House Democratic leader Hakeem Jeffries said in a statement Sunday night.The approaching resolution of the 40-day shutdown mirrors that of past showdowns where the party attempting to leverage a government closure for policy victories ends up without a victory. Trump failed to secure border wall funding through the 2018-2019 shutdown and Republicans failed to repeal Obamacare during the 2013 closure.Democrats this year voted 14 times to block a no-strings stopgap measure passed by the House on Sept. 19 that would have kept departments and agencies open through Nov. 21. On Wednesday, the shutdown became the longest in US history, exceeding the 35-day closure in 2018 and 2019 under the first Trump administration. Senate Democratic leader Chuck Schumer said late Sunday he would oppose the deal. On Friday, Schumer said Democrats would allow the government to reopen in exchange for a one-year extension of the expiring Obamacare tax credits. That offer was swiftly rejected by Republicans, many of whom are demanding a wholesale replacement of Obamacare with a yet-to-be unveiled GOP alternative.Republicans decided to stonewall Democrats on their demands for $1.5 trillion in new spending by keeping the House out of session since Sept. 19. The White House escalated the pressure by firing government employees en masse, threatening not to pay more than 600,000 furloughed federal workers, and working to defy court orders to pay food stamp benefits. As the busy Thanksgiving travel season neared, Transportation Secretary Sean Duffy ordered airlines to cancel flights, causing major headaches for travelers. On Sunday, he said it would only get worse in the holiday season.The tactics largely worked in getting enough Senate Democrats to fold under pressure. Republicans, despite controlling both houses of Congress, needed eight Democrats to go along with a stopgap spending bill to shut off debate in the Senate. Talks among a group of bipartisan senators accelerated after Democratic sweeps in the off-year elections in New York City, New Jersey, Virginia, California and elsewhere. Republicans said that Democrats appeared concerned that backing off their shutdown demands before voters went to the polls would depress turnout. It's unclear whether Congress will come to a deal on extending the Obamacare subsidies before they expire at the end of December. House Republican leaders say they are opposed to the extension and instead have floated a series of conservative priorities that include expanding short-term health insurance plans to compete with the Obamacare exchange plans and imposing abortion-related restrictions. Senate Republicans have said any extension would have to include major changes, such as income caps on who can receive subsidies and a requirement that recipients pay at least some premium. Some, however, are demanding a wholesale rewrite of the Affordable Care Act before agreeing to anything.The shutdown consequences are costing the US economy about $15 billion a week. And the Congressional Budget Office estimates that the shutdown will reduce annualized quarterly growth rate of real GDP by 1.5 percentage points by mid-November. Consumer sentiment hit a three-year low on Friday amid heightened anxiety about the shutdown, prices and the job market.It has led to a suspension of most government economic data, causing the Federal Reserve to fly blind as it navigates stubbornly high inflation and rising unemployment. The full year spending bills contain some wins for Democrats, including a rejection of international food aid cuts sought by the Trump administration and an increase for Capitol Police security spending to protect lawmakers. The bill would hand the beer industry a major win by restricting the sale of intoxicating hemp products. The hemp industry claims the provision threatens 325,000 jobs. 

By Oct. 1, the first day of the federal government shutdown, mortgage subservicer Loancare was already fielding calls from borrowers asking what it meant for them and whether forbearance or other relief options were available.Consumers may have been more optimistic then. By Nov. 7, the shutdown had entered Day 38, concern was growing. How servicers have responded"We had talking points ready on that first day of the month," said Brent Potter, Loancare's chief operating officer. "We also then developed internal reporting; reporting for our MSR owners, our clients; and a FAQ site that was dedicated to government shutdown that our customers could access."Loancare shaped its response based on what borrowers were saying. Many callers wanted to understand their options for forbearance or delayed payments, but initially decided to "ride it out," Potter said. Most made their October payments.That changed by the end of the month, when the next round of payments came due and the shutdown persisted. Call volumes doubled, with more borrowers asking for help. Many were living paycheck to paycheck, with little or no reserves, Potter said.Another company experiencing a surge in calls is DLS Servicing."The government shutdown has led to a 290% increase in requests for forbearance plans during the month of October, over the average of the previous two months," said Donna Schmidt, president and CEO.It's not only government workers feeling the pinch. "It also has hurt those who work for companies whose income is derived from the government directly or from government employee activities," Schmidt said. "During past shutdowns, the government employees are paid their back wages, but those working for other entities that are affected do not."Lessons from the pandemicLoancare is drawing on what it learned from the COVID-19 crisis. During that time, a larger share of calls led to forbearances. This time, the company initially saw fewer borrowers opting for that step — but the rate is climbing."Our take rate on forbearances is increasing by the day, because these customers just have an unknown feeling around what to expect," Potter said. "What is a little unique with this government shutdown than the pandemic, though, is that a majority of the customers we're talking to expect to get paid with back pay."During the pandemic, many borrowers who lost income didn't get that recovery. Loancare has customized scripts for borrowers affected by the shutdown and plans follow-up outreach when it ends "to say now that it's over, let me work with you to bring your account current," Potter said.The pandemic experience helped the company refine its approach to borrower communication, particularly around forbearance."In our process we have here, we are requiring our customers to speak to us and work with us so we can have a firm understanding of their hardship," Potter said. "It's really hard to get everything out there in a self-serve environment and make sure that the customer is fully educated and that we're matching them to the appropriate product."Growth in forbearance and processing delaysAt DLS Servicing, forbearance increases are most pronounced in government-insured portfolios. "We had marginal increases in forbearances in the conventional portfolio. But FHA bore the brunt of the increase," Schmidt said. "We are expecting a significant number of those requesting forbearance will need loss mitigation programs to reinstate their loans."For VA borrowers, the effect is still emerging. "The VA program does not permit issuing a forbearance plan until a loan is at least 61 days delinquent," Schmidt noted. "So it is too soon to understand the direct impact to Veteran borrowers, but one can imagine that they would be significantly affected."The shutdown is also slowing loan modifications. "USDA modifications requiring new approvals are facing significant delays until the shutdown ends," said Sapan Bafna, CEO of service provider Outamation. FHA and VA mods are continuing but with some processing lags, he said.Loancare's portfolio is primarily conforming or government-backed, but its smaller private-label segment follows similar guidance, Potter said. Some credit unions are offering short-term loans to help affected members.While reporting requirements haven't been interrupted, default reimbursements from federal agencies have. "No staff is available to work with a servicer like Loancare in these instances," Potter said.The cost to MSR ownersFor mortgage servicing rights owners, the shutdown is adding costs. Plaza Home Mortgage is an MSR owner that outsources servicing, is seeing heavier workloads for its contractor due to the flood of borrower questions, said Mike Fontaine, co-president and chief operating officer.That extra work could become more expensive if loans go delinquent. Plaza pays higher subservicing fees in those cases, Fontaine said, adding that it hasn't distinguished whether the borrower was furloughed by the government. Nor is it yet clear who will be responsible for advancing payments."It is rather early because it is the start of November and most borrowers are still in the grace period before they become formally delinquent," he said.Origination and housing market falloutThe shutdown has disrupted loan production. The suspension of the National Flood Insurance Program means homes in flood zones can't close without turning to private insurers — a pricier alternative, Fontaine said.Plaza also can't get USDA Rural Housing conditional commitments, halting those loans altogether. Meanwhile, pay verification has become a barrier. "It's been over 30 days since a lot of people have had a pay stub," Fontaine said. "Most of the programs require you to have a pay stub within 30 days."Fannie Mae and Freddie Mac have issued temporary guidance allowing borrowers with two months' reserves to qualify starting Nov. 3, but "not everybody can always meet the larger reserve requirements," Fontaine said.That documentation gap threatens purchase timelines. "If the borrower can't provide the lender with the information in the pay stub, they're going to be blowing their purchase commitments on houses," Fontaine said. "Unless the seller is willing to continue to extend the contract out, you're going to have properties that are going to fall out because the financing contingency can't be met."The result could be more stalled home sales and damaged credit. "Shutdowns often hit the people who can least afford the uncertainty," said Jeremy Davis, president of mortgage at Southern Bancorp, a mission-based lender. "Many of our borrowers are rural, low-income, or first-generation buyers whose confidence in the process can be fragile to begin with."Processing delays are compounding the problem. FHA insurance endorsements are slowing, creating ripple effects for closings. The freeze on USDA lending "means every single rural home loan in process is frozen until further notice," Davis said. "For small-town borrowers, that isn't just a 'delay' — that's a dream put on pause, often at the worst possible time."Southern Bancorp's team is "working overtime to keep deals alive and spirits high," he said, maintaining daily communication with borrowers, builders and Realtors. "We know how important homeownership is to the underserved folks we serve — it's roofs over families' heads, an opportunity to build generational wealth, and the chance to own a piece of their community."

The range of fixed-rate mortgage terms and other outcomes possible through government-sponsored enterprise reform got a lot wider over the weekend.President Trump and Bill Pulte, the head of the GSEs' oversight agency, used the social media channels they often employ to float ideas in order to advocate for a 50-year mortgage, a concept at the opposite end of the spectrum from those who question even the current 30-year product's long term.The president introduced the idea through an image of himself supplanting the 30-year fixed rate mortgage that arose from Franklin D. Roosevelt's 1930s era New Deal. Pulte recirculated that post, calling it "a complete game changer."The move adds to a number of transformative strategies President Trump, Pulte and other officials have been considering for Fannie Mae and Freddie Mac, which buy a significant number of home loans made in the United States and are under conservatorship by the government.Precedents and tradeoffs in longer-term fixed rate mortgagesThe concept is not entirely new. The United States is known for being a pioneer in offering long-term fixed rate mortgages and did add a 40-year option for modifications in response to the pandemic. Fannie Mae experimented with a 40-year mortgage in 2005.Although there are reports of availability from lenders making non-mainstream loans outside of the qualified mortgage definition, the U.S. hasn't broadly offered a 50-year product like Japan has. The United Kingdom also has licensed a lender to make 50-year loans.The business downside to a 50-year mortgage, and the United State's typical prepayable fixed-rate loan, is that while they lower payment size for consumers, they create a risk management challenge for the lender while handing an advantage to borrowers.Borrowers with a long-term fixed rate product can refinance into a lower rate at virtually any time the market makes one available, with the exception of some Department of Veterans Affairs loans that have timing restrictions.That leaves mortgage companies with the risk of losing interest earned on the loan each time it prepays, which is why to this day some former officials and free-market advocates suggest rethinking even the current 30-year fixed rate mortgage.Other hurdles that would need to be addressedChallenges in a 50-year mortgage include not only this risk for businesses but also some for consumers, who would pay more over the life of the loan and potentially stay indebted for a longer period of time unless they get an opportunity to refinance."It will ultimately reward the banks, mortgage lenders. and home builders while people pay far more in interest over time and die before they ever pay off their home," Rep. Marjorie Taylor Greene, R-Ga.,wrote in an X post on the issue.Borrowers also accumulate equity more slowly in a 50-year mortgage, potentially delaying their ability to tap it for future expenses. This also delays the rate at which they accumulate "skin in the game" that makes them less willing to walk away from their mortgage due to distress.Lenders could require 50-year mortgages to have higher loan-to-value ratios to offset this risk, but that may impact the extent to which the product helps with affordability challenges at the qualification stage.From a secondary market perspective, if the 50-year were to become a loan the GSEs purchase, the enterprises would have to consider how it would be pooled in securitizations and how investors might respond. Ginnie Mae created special pools for 40-year modifications.

Bill Pulte said the government-sponsored enterprises will see partnerships emerge as he eyes their money-making potential, while also upping criticism of homebuilders and the Fed chair at a housing conference Friday.  In a call with attendees at the Residay 2025 conference in New York, the Federal Housing Finance Agency director pointed at the recent Trump administration decision to make federal investments in technology chips provider Intel as a model the government-sponsored enterprises should follow. "I look at it similarly but a little bit differently at Fannie and Freddie because it is actually a business. It is a private business," he said. "I think that Fannie and Freddie will probably take ownership in different companies by virtue of companies offering them equity in exchange for Fannie and Freddie doing smart business constructs with them. So yes, I do think that you're going to see that," he said.Pulte characterized potential partners as "upcoming, leading tech companies."  Earlier this year, Fannie Mae and Palantir had already signed a business agreement leading the two companies to cooperate on fraud detection efforts. Financial terms of that partnership were not disclosed. "I can tell you the name of one of the companies who wants to give us equity — one of many companies — and you'd be blown away with how much money is involved," Pulte continued Friday. The director did not reveal the entity but described it as "big." On the topic of conservatorship for the two GSEs, Pulte reiterated past statements deferring to President Trump but thought it would remain for the short term. "It'll be up to the president, whether he decides to do it or not, but I believe it will stay in conservatorship. I believe it will be very strong." A decision would likely come in the current quarter or early next year, as it would speed up any potential future initial public offering that the president has proposed. Homebuilders, Powell remain targets of Pulte criticismElsewhere in the conversation, Pulte called on homebuilders to do more to address affordability that has kept home purchases out of reach for many Americans, pointing at the liquidity the GSEs provide to them."The builders control a lot of this equation," he claimed. "I think people are going to stick out like a sore thumb who are not building. People are going to start to say, 'Well, why are you artificially constricting supply in order to keep prices high?'"For their part, some of the largest homebuilders had previously pushed back on similar assertions made by the Trump administration. "We're trying to work constructively with them, and our first preference is to work with them. But they need to lower their prices," Pulte said.The housing director also did not hesitate to throw barbs at Federal Reserve Chair Jerome Powell, ramping up his prior criticism despite recent softening of mortgage rates. Pulte has faulted Powell in the past for Fed monetary policy moves that led to declining affordability and a spike in interest rates and went as far as calling him a "maniac" on Friday."I wouldn't say those things if he wasn't hurting real people, but this hurts real people."

Russell Vought is the director of the Office of Management and Budget and acting director of the Consumer Financial Protection Bureau. Andrew Harrer/Bloomberg Key Insight: The five-year consent order that was settled in late 2023 was ended nearly three years early by the Trump administration. Supporting Data: TransUnion already paid a $5 million-dollar fine and $3 million in restitution to harmed consumers. What's at Stake: The bureau is not filing any enforcement actions or conducting oversight of nonbanks as it seeks to fire up to 90% of the agency's employees.  Russell Vought, the acting director of the Consumer Financial Protection Bureau, terminated a 2023 consent order three years early against TransUnion by stating that the credit bureau had already paid fines and restitution to harmed consumers. Vought waived part of a 2023 consent order that required years of ongoing monitoring of TransUnion. The Chicago-based credit bureau had failed to remove security freezes and locks on consumers' access to their credit reports in a timely manner— even though the company told consumers that freezes or locks had been placed or removed.  The consent order had been issued under former CFPB Director Rohit Chopra for violations of the Fair Credit Reporting Act and the federal prohibition against unfair, deceptive and abusive acts or practices. The CFPB filed the administrative order on Monday, though Vought signed it Oct. 31.The early exit from is in line with the Trump administration's ongoing efforts to neutralize the CFPB. Vought withdrawn and dismissed dozens of consent orders, settlements and pending enforcement actions inherited from the Biden administration. Since the Trump administration took over the bureau in February, the agency has halted all enforcement and supervision of nonbanks. The bureau has not filed any enforcement actions or entered into any consent orders in 10 months.CFPB employees are not working due to the federal government shutdown. But Vought also is locked in a bitter legal battle because he plans to fire more than 1,000 CFPB employees, claiming the agency that oversees 18 consumer protection laws only needs 200 employees to comply with statutory requirements. TransUnion said in a statement that it had "fully complied with all aspects of the security freeze consent order and is pleased the CFPB determined that an early termination of the order was warranted."TransUnion did not admit any wrongdoing but agreed to the settlement to resolve the matter, a company spokesman said. The credit bureau said that it has resolved "systems issues," related to the security freezes and locks, and is monitoring and addressing any issues going forward, the spokesman said. Vought said TransUnion had fulfilled some obligations under the consent order by paying a $5 million-dollar fine, making redress payments to consumers, and taking steps to implement injunctive relief to prevent future violations.