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With three of Donald Trump's adversaries now under investigation for occupancy fraud, the practice of misstating a home's intended use on mortgage applications is drawing fresh scrutiny. We asked experts how widespread the problem really is and what the renewed attention could mean for the industry.The type of fraud a government-sponsored enterprise regulator is focusing on has long been a concern for the mortgage industry, said Arthur Prieston, chairman of an industry consultancy and law firm."That misstatement has been around for decades, largely because it can lower the borrower's costs and down payment requirements and for less diligent lenders, can go undetected," the chairman of Prieston Capital and the American Mortgage Law Group said.The key risk this raises for lenders in the conforming market where many sell their loans are buyback requests."It's usually treated as a material misrepresentation, and the originating lender may face a repurchase demand. Those can be costly, which is why prevention and front-end diligence are so important — and why solutions like repurchase insurance have gained traction," Prieston said.The government-sponsored enterprises and other loan purchasers don't want mortgages with occupancy fraud because when a property gets mischaracterized as a primary home, the loan's terms and pricing don't properly account for its vulnerabilities. This is particularly concerning in soft markets."Investment properties carry greater risk, as they are more likely to face strategic default if home prices drop significantly," said Dawn Dlouhy, manager at LexisNexis Risk Solutions.What some numbers around occupancy fraud look like"Mortgage fraud is uncommon overall. However, when it does occur, occupancy fraud and income misrepresentation are among the most frequent forms," Dlouhy said.Overall, the estimated incidence of any type of fraud in mortgage applications was one in 116 or 0.86%, but it was up 6.1% compared to 12 months earlier and 1.4% on consecutive quarter basis, according to Cotality's second-quarter mortgage fraud brief.Occupancy fraud based on findings in loan applications shows an uptrend followed by a drop, which stabilized a bit this year. "From 2021 until 2023, we saw large increases year over year in the occupancy fraud risk. Since 2023, this risk seems to have plateaued and is even showing some signs of decline," said Matt Seguin, senior principal, mortgage fraud solutions at Cotality.Cotality's data shows a 30% rise in 2022 in this particular misrepresentation, followed by  a 10.1% increase in 2023.But in 2024, Cotality reported a 6% decrease, followed by a shallower 0.9% reduction in incidents for this year's second quarterEven so, occupancy fraud was the second most prevalent type of mortgage fraud in 2024, representing 29% of investigative findings related to misrepresentation, according to Fannie Mae data Seguin cited. Only income fraud, at 46%, was higher.Those numbers suggest occupancy fraud has risen from where it was in 2021, when it accounted for just 12% of investigative findings and was the third most common form of misrepresentation behind income and liabilities."We suspect they saw that increase until 2024 because their data, on closed loans, lags behind ours and it takes a while for the fraud to be found, potentially years," Seguin said.What typically defines a primary residenceSeguin said he generally defines occupancy fraud as a departure from standard language in a deed of trust that requires borrowers to "occupy, establish and use" a home as a primary residence within 60 days of the "execution of the security instrument" for at least one year.The language does contain the caveat that there can be exceptions for "extenuating circumstances" beyond the borrower's control. The lender also can agree to an exception in writing and should not "unreasonably" withhold to consent to do so."The agencies are very strict with regards to occupancy and primary residence," said Prieston. "If a borrower owns multiple homes, the others must be classified as second homes or investment properties, depending on use."Prieston said the only types of exceptions he would see to that rule would be a divorce or a job relocation during the 60-day period. Seguin said there historically have been challenges in detecting occupancy fraud at the time of application because "there is not a foolproof way to predict a borrower's future intent."How occupancy fraud can be prevented and detectedThere is data and document analysis lenders can do in order to help prevent occupancy misrepresentation in some cases, according to Seguin."If someone is refinancing a property worth $200,000 and also owns a property worth $2 million, and claims that they will be living primarily in the $200,000 property, that may raise a red flag," he said, citing one example.Renters' insurance or other coverage on a property or a seasonal location also could be a reason to request more information from a borrower, he said, noting there may be explanations for these but they should be questioned."In the case a borrower owns a home currently and doesn't need to sell their home to qualify for the loan, it's always possible that the borrower doesn't move into the new property they just purchased as they claimed and as required by the language in the deed of trust," Seguin added.In this case, detection may be more likely to occur later on in the servicing process by noticing discrepancies like a mailing address that doesn't match the collateral property or finding the property listed for rent online, he said.The GSEs have been working more closely together on fraud prevention with Palantir, a company with ties to a Trump ally that aims to proactively identify misrepresentation by analyzing patterns in relationships across different parties involved in mortgage transactions.

Glen Burnie Bancorp When Mark Hanna told his banker friends that the Maryland-based community bank he leads was planning to buy a mortgage lender, they "looked at me as if I had five eyes," he recalled this week.The underwhelming reaction came as little surprise, said Hanna, who is the president and CEO of Glen Burnie Bancorp. After all, with interest rates still stubbornly high, mortgage origination activity is at less than half of its 2021 peak, according to data from the Mortgage Bankers Association.And other banks continue to exit the mortgage market. Ally Financial in Detroit, Seattle-based WaFd and Blue Ridge Bankshares in Richmond, Virginia, all announced plans to quit residential lending this year.Bucking that trend, the $351 million-asset holding company for the Bank of Glen Burnie announced Monday that it had closed its planned acquisition of VA Wholesale Mortgage. Under the deal's terms, the bank agreed to pay $750,000, plus a share of profits over the next three years, Hanna said.  Mark Hanna For Bank of Glen Burnie, which has struggled to book loans in recent years, the acquisition "makes a lot of sense," Hanna said in an interview. Bank of Glen Burnie is "very much in a growth mode," and mortgage lending remains "a tremendous way to grow and retain relationships," Hanna told American Banker. "We're trying to bring as many new relationships to the bank as we can. We're also trying to retain all our existing clients." VA Wholesale, based in Virginia Beach, Virginia, closed about $125 million of home loans in 2024. It's well-versed in making loans to veterans, as well as Federal Housing Administration and first-time homebuyer transactions.Bank of Glen Burnie has historically offered mortgages, but its lending was previously confined largely to 30-year fixed-rate deals with relatively large down payments. Its loan-to-value ratios generally went no higher than 80%."There were people in our communities that needed mortgages, but we didn't have the products to serve them," Hanna said. "Now, we'll be able to help just about anybody who's interested in buying a home."For his part, VA Wholesale Mortgage CEO Eric Tan said his company, which will operate as a division inside of Bank of Glen Burnie, should be able to do more business as a bank subsidiary."Having a committed funding source will broaden our reach, allowing us to grow and meet the needs of our customers more readily, while also increasing lending volume," Tan said Monday in a press release. While VA Wholesale serves all homebuyers, it specializes in offering loans to active-duty military personnel and veterans. That focus should work well in Bank of Glen Burnie's footprint, which includes Fort Meade, one of the Army's largest bases, the National Security Agency's headquarters and the U.S. Naval Academy, according to Hanna."We think their business model translates nicely into the communities we serve," Hanna said.  Hanna started as CEO of Bank of Glen Burnie in October 2023. The 76-year-old company excelled at service, but its cupboard was bare in terms of products, according to Hanna. "We needed to get back to growing client relationships, and embedded in that is having the products to compete," he said. Over the past year, Bank of Glen Burnie has rolled out a suite of treasury management tools, as well as a high-yield money market account. The bank's loan and deposit portfolios, which had been trending down for several years, expanded in the second quarter. Hanna said he's hopeful the acquisition of VA Wholesale, as well as plans to launch a credit card product, will spur even more growth."That's really the path forward," Hanna said. "There's no secret sauce. We need to grow."

While Jerome Powell made it known he wouldn’t be bullied into lowering rates, he indicated that deteriorating economic data may warrant cuts regardless.During a speech at Jackson Hole this morning, he laid out the risks the U.S. economy faces.It’s essentially a balance between rising unemployment and possible one-time shifts in prices due to tariffs.But given that really ugly July jobs report, it’s clear the labor issue is superseding the inflation battle going forward.As such, more Fed rate cuts appear to be on the way and bonds rallied on the news, meaning mortgage rates are also moving lower on the day.Bond Yields Drop as Powell Signals More Rate Cuts AheadWhile the Fed doesn’t set consumer mortgage rates, it does set monetary policy, which can have a trickle-down effect.Powell noted today that there’s been a slowing in GDP growth, a slowdown in consumer spending, and both a slowing supply and demand for workers.The clear takeaway is that the economy is slowing, and as such, restrictive monetary policy put in place in 2022 can begin to unwind some more.If you recall, the Fed raised rates 11 times in 2022 between before cutting three times late last year.More cuts were anticipated, but then we had the tariffs and the global trade war, along with some surprise jobs reports that indicated things may have been hotter than expected.The July job report put that to bed given how poor it was, especially the accompanying revisions for prior months.So much so that even Powell appears to be brushing aside the tariff price increases in favor of labor concerns.He seemed to conclude the tariffs will result in a “one-time shift in the price level” that is expected to be short-lived, though it may not happen “all at once.”Regardless, given monetary policy is still restrictive, he noted that “the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance.”In other words, expect more rate cuts, including a quarter-point at the September meeting in less than a month.Over at CME, the odds for a rate cut in September increased from 75% yesterday to 87.3% today.Bonds liked the news and accompanying bond yields fell substantially, with the 10-year yield falling about eight basis points to 4.25%.30-Year Fixed Mortgage Rates May Go Sub-6.5%The 30-year fixed will follow bond yields lower today and could be at or below 6.50% on the news.I’ve argued recently that mortgage rates below that key level could result in a psychological shift for prospective home buyers.While the monthly payment between say 6.75% and 6.50% isn’t much different, there’s a sentiment factor to consider.When rates are falling, home buyers gain confidence, especially the thought of being able to refinance to a lower rate in the future.This optimism can get a lot of the fence-sitters off the fence if they believe it’s the start of something bigger.However, I should point out that falling rates mean the economy is slowing, and with that could come more layoffs and job losses.That means some prospective home buyers could no longer be eligible for a mortgage, and home prices could continue to moderate as well.There’s also a need to temper one’s expectations on just how much mortgage rates could drop.While today’s speech basically solidified the upcoming rate cut, Powell did warn that, “Monetary policy is not on a preset course.”The FOMC will continue to monitor the data, and there are many important reports ahead, including the Fed’s preferred inflation gauge PCE on August 29th, followed by the jobs report on September 5th, then CPI on September 11th.All those reports can change things between now and the next Fed meeting.Which brings up an important point. The move lower in mortgage rates could be fully baked in already based on their rate cut expectation.And if any of those reports surprise to the upside, mortgage rates can certainly rebound higher.So you need to be careful attempting to time the market, or thinking mortgage rates will be lower on Fed cut day September 17th.Don’t be surprised if mortgage rates move higher between now and then, and/or rise on the day of the actual cut. It’s happened before and will happen again.(photo: Federalreserve) 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)

Federal Reserve Gov. Lisa Cook.Bloomberg News President Donald Trump said Friday morning that he would terminate Federal Reserve Gov. Lisa Cook from her post "if she doesn't resign" over allegations that she claimed a secondary home was her primary residence in a 2021 mortgage application."Yeah, I'll fire her if she doesn't resign, yeah," Trump said in response to a reporter's question fielded during a visit to the White House Historical Association exhibit in Washington Friday. "What she did was bad, so I'll fire her if she doesn't resign."Trump's comments come days after Federal Housing Finance Agency Director Bill Pulte posted a screenshot of a criminal referral of Cook to the Department of Justice over allegations that she had claimed primary residence in mortgage applications for homes in Michigan and Atlanta, the latter of which she allegedly rented out. Trump said on social media that "Cook must resign, now!!!" on Wednesday. Cook, who joined the Fed in 2022 and was nominated by President Joe Biden, said in a statement earlier in the week that she has "no intention of being bullied to step down from my position because of some questions raised in a tweet," adding that she will "take any questions about my financial history seriously as a member of the Federal Reserve and so I am gathering the accurate information to answer any legitimate questions and provide the facts."Pulte has made similar accusations against other prominent Democrats in recent weeks, including Sen. Adam Schiff, D-Calif., and New York Attorney General Letitia James. Schiff had served on the Select Committee to Investigate the January 6 Attack on the Capitol, and James had prosecuted Trump and his business associates for fraud related to inflating asset values in order to secure more favorable loan terms.Members of the Federal Reserve Board of Governors serve staggered 14-year terms and are protected from removal by the president, except "for cause," a vague standard generally understood to relate to abuse of power or dereliction of duty. The President has never fired a Fed governor, so the precise contours of what qualifies as "cause" are unclear, but a Supreme Court's 1935 ruling in Humprey's Executor v. United States had long held that independent agency members cannot be removed for purely political reasons. But the second Trump administration has embraced unitary executive theory, which holds that all executive power rests with the president and thus all executive subordinates serve at their will. Under that pretext, Trump has fired dozens of Democratic members of independent regulatory agencies since Trump took office in January, including members of the National Labor Relations Board, Equal Employment Opportunity Commission, National Credit Union Administration and others. The Supreme Court has thus far been deferential to Trump's stance, finding that two fired Democrats on the NLRB and EEOC will remain off their posts pending the outcome of their appeals. In that statement, however, the high court also said that the circumstances of those officials' firing would not apply to the firing of a member of the Federal Reserve because the Fed "is a uniquely structured, quasi-private entity that follows in the distinct historical tradition of the First and Second Banks of the United States."Trump has exerted uncommon pressure on the Federal Reserve — and Fed chair Jerome Powell in particular — to set interest rates at his preferred level, insisting for months that the Fed should lower rates by several hundred basis points in part to save the government money on the interest it owes to its creditors. Trump and his lieutenants zeroed in on cost overruns related to ongoing renovations at the Federal Reserve headquarters as a possible premise for terminating Powell, leading the president to visit the Fed last month to inspect renovations. 

Home-purchase contracts in the US were canceled at a record rate for July as jittery buyers got cold feet. About 58,000 agreements fell through last month, equivalent to 15.3% of homes that went under contract, according to Redfin. It was the highest cancellation rate for a July in data going back to 2017, the brokerage reported. READ MORE: Half of largest housing markets record home price downturnsIt's not just that the housing market's expensive, with mortgage rates still elevated and home prices that have soared 50% since early 2020. Buyers are also pulling back more than usual now because of uncertainty over the economy. Plus, with more listings to choose from in many parts of the country, there's less urgency.Cancellations were especially high last month in construction-heavy areas where inventory has piled up. San Antonio, Texas, where almost 23% of purchases fell through, led the way, followed by Florida's Fort Lauderdale and Jacksonville, and Atlanta. Buyers "hold the negotiating power in many markets and often aren't in a rush," Redfin said in the report. "They may hold back during the inspection period if a better home comes up for sale or they discover an issue they don't want to fix."READ MORE: Homebuilders encounter credit, supply cost headwindsIn the Virginia Beach, Virginia, area, known for its military bases, the cancellation rate jumped to 16.1% from 12.5% a year earlier, the biggest annual increase among the metro areas in the brokerage's analysis. Jeremy Caleb Johnson, an associate broker with Long & Foster in Virginia Beach, said many people who scooped up homes during the post-pandemic buying frenzy are now trying to resell properties that need work. Many of those buyers waived inspections just to win bidding wars, he said. Now they're throwing on a coat of paint and focusing on the flower beds rather than making expensive repairs. Shoppers in the hunt now are no longer willing to look the other way, he said."Buyers are having economic nausea — they're feeling queasy about the market," Johnson said. "They want to buy a house but sometimes it's too overwhelming when they start to focus on all the moving parts and all the costs involved. Sometimes it's easier for them to cancel and get some fresh air and breathe."

Rocket Cos. President Bill Emerson will retire at the end of the year, the company announced. The longtime executive and CEO of Rocket Mortgage from 2002 to 2017 will retire but remain on the Board of Directors, according to a Securities and Exchange Commission filing this week. Emerson helped lead the lender and servicer through its enormous growth into an industry leader and its latest evolution as a financial technology player. "Bill is a champion of our culture and ISMs, helping shape the values that guide us," the company said in a statement, referring to Rocket's internal culture guidelines. "... We're deeply grateful for his impact and the legacy he continues to build."The statement described Emerson's career at Rocket, beginning 32 years as a mortgage banker when the business was known as Quicken Loans. He was interim CEO of Rocket Cos. from June to September 2023, and led the hiring of current CEO Varun Krishna, Emerson also was the vice chairman of parent company Rock Holdings from 2017 to 2023, and served in a leadership role at the Bedrock real estate development business from 2020 to 2023. There are currently no plans for someone to assume Bill's title as president of Rocket Cos., a spokesperson said.The lender grew into a household name during Emerson's tenure, while the CEO was a cheerleader for digital mortgage adoption. He notably defended Rocket's direct-to-consumer model, particularly after its Super Bowl commercial in 2015 when audiences were unfamiliar with emerging digital application processes. The departing president leaves the lender on strong footing, as it continually generates quarterly multi-billion dollar origination volume and frequent profits. Rocket has also spent heavily on artificial intelligence investments, which the company says led to a slightly reduced headcount this year at the 14,000-member business. The mortgage giant also closed its $1.75 billion acquisition of digital brokerage Redfin in July, and expects its blockbuster deal for Mr. Cooper to close in the fourth quarter this year. 

Federal Reserve Chair Jerome Powell at the Federal Reserve Bank of Kansas' Economic Symposium in Jackson Hole, Wyo., on Thursday. Bloomberg News Federal Reserve Chair Jerome Powell signaled that the central bank may soon adjust its monetary policy, potentially paving the way for a rate cut in September.In a highly anticipated Friday morning speech at the Federal Reserve Bank of Kansas City's Economic Symposium in Jackson Hole, Wyo., Powell said when he gave the same speech last year, interest rates were higher and the specter of inflation still very real. But he added that it might make sense for the Federal Open Market Committee to shift its focus to a softening labor market in light of weaker hiring statistics over the last few months. "Our policy rate is now 100 basis points closer to neutral than it was a year ago, and the stability of the unemployment rate and other labor market measures allows us to proceed carefully as we consider changes to our policy stance," said Powell. "Nonetheless, with policy in restrictive territory, the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance." Powell said that uncertainty is building in the labor market, particularly pointing to the July employment report, which revised the prior two months' reports downward to show an average monthly increase of only 35,000 jobs per month, as compared with an average of 168,000 jobs for the same period in 2024. The latest employment report showed that employers added just 73,000 jobs in July, falling short of the pace seen in recent months. The Bureau of Labor Statistics also revised down its May and June estimates by 258,000.While Powell said the employment picture in the United States remains strong overall, he said it is in a "curious kind of balance that results from a marked slowing in both the supply of and demand for workers.""This unusual situation suggests that downside risks to employment are rising. And if those risks materialize, they can do so quickly in the form of sharply higher layoffs and rising unemployment," Powell said. Regarding inflation, Powell said higher tariffs are starting to push up prices of goods, but added that there is a likelihood that the effect "will be relatively short lived.""We cannot take the stability of inflation expectations for granted," he said."Come what may, we will not allow a one-time increase in the price level to become an ongoing inflation problem."Powell's speech comes as the central bank has come under unprecedented and increasing pressure from the White House to lower interest rates. President Trump — who has long pilloried Powell from his social media accounts and mused about firing the Fed chair — has intensified his pressure campaign in recent months by suggesting that cost overruns related to a renovation project at the central bank headquarters could serve as grounds for Powell's termination. Trump, Senate Banking Committee chair Tim Scott, R-S.C. and several administration officials visited the Fed headquarters and Powell last month to investigate the overruns, leading to an awkward on-camera exchange between Trump and Powell about the costs of the renovations. Federal Housing Finance Agency Director Bill Pulte this week also called for an investigation into Fed Gov. Lisa Cook — who was appointed to the board by former President Joe Biden — and whether she improperly claimed a secondary residence as a primary residence on her mortgage application.

Antonio White built his career in high-level Washington-related posts he held at the Federal Housing Finance Agency, Treasury, Bank of America and the Bill and Melinda Gates Foundation. But he got there through the work and connections he built growing up around Route 480 in Cleveland.That's why White is starting a business called 480 Advisors, which allows him to share his knowledge of government policy and finance with local leaders so that they can chart their own course in their communities."I am a first-generation college graduate. When I got to Washington I had all of these questions. I got the equivalent of master classes from the leaders I worked with. I always thought, 'What if I could bring this knowledge back to the people who need it?" White said.In the following interview, the former director of the FHFA's Office of Congressional Affairs and Communications, deputy assistant secretary in Treasury's Office of Community Engagement and policy executive at B of A shares more about his past and how it informs his future.His remarks have been edited for length and clarity.

Real estate investors own almost 900,000 vacant properties nationwide, a share greater than the number of empty homes across the rest of the housing market, Attom reports. The vacancy rate nationwide is steady in the third quarter compared to past years, according to the property analytics firm's latest study. The number of homes that have been abandoned during the foreclosure process, referred to as "zombie foreclosures," meanwhile ticked up compared to the second quarter and year-ago periods. "While there remain some markets with worryingly high rates of vacancies, as a whole it appears that the nation's buyers are quickly filling homes that become available," said Rob Barber, CEO of Attom, in a press release. Once-tight inventory is loosening up nationwide, although home buyers still face steep affordability hurdles. In all, there are 1,385,901 empty residential properties across the country, or 1.3% of all homes, Attom said. Among the 24.9 million dwellings owned by investors, 882,336, or 3.6% of them are vacant. Midwestern states had the largest shares of empty investor-owned homes, led by Indiana with 7.2%, while rural states had the least amount, with just 0.9% of such properties in New Hampshire. Investors who devoured larger shares of home purchases during the refinance boom remain optimistic about their prospects despite current economic uncertainty. They're still feeling some strain, including realizing smaller profits on fix-and-flip projects. Zombie properties inch up but remain minisculeOf the over 222,000 properties currently in a foreclosure process, 3.38%, or 7,519 are unoccupied. The rate is up slightly from the second quarter, and greater than the 3.14% of zombie properties last fall, according to Attom. Smaller Midwestern cities had the largest shares of zombie properties, led by Wichita, Kansas where 12.7% of homes facing foreclosure have been abandoned. Other midsized cities across the nation touted ultra-low rates of empty, foreclosed homes, including zero in Nashville, Tennessee. Most states where zombie properties grew the most annually still had under 100 such homes statewide.The zip code with the highest zombie foreclosure rate was 91001 in Los Angeles, where 80% of homes have been abandoned. That area includes a large portion of Altadena, where the Eaton Fire in January razed numerous city blocks. A foreclosure moratorium for certain government-backed loans in that area expired in July. 

The Community Home Lenders of America is calling for nonbank lender support as it emphasizes the importance of mortgage industry input in any federal decision-making regarding the future of Fannie Mae and Freddie Mac. The group representing small and mid-sized independent mortgage banks made its wishes known in a letter this week to Treasury Secretary Scott Bessent and Federal Housing Finance Agency Director Bill Pulte, whose office oversees both government-sponsored enterprises. CHLA came up with suggestions it said best protected IMBs, particularly smaller lenders, and invited nonbanks to add their names to the letter. "We write as independent mortgage banks  — nonbank mortgage loan originators — to identify essential elements of a Fannie Mae and Freddie Mac exit from conservatorship," the letter began. "We do so in the wake of reports that the Trump Administration plans a public offering of these two entities later this year."Five recommendations from CHLACHLA listed key policies it said ought to remain in place in recommendations to the Trump administration for carving any future path out of conservatorship for the GSEs, highlighting the effectiveness of the status quo in some instances. Notably, it pushed back against consolidation. Recent talk surrounding the GSEs have moved beyond just a conservatorship exit or public listings to suggestions of a possible merger. "Fannie and Freddie should not be combined into a market monopoly. Further, the GSEs should operate under a utility model," CHLA underscored.  The group also said Fannie Mae and Freddie Mac must retain "critical" mortgage loan products that support its mission to provide affordable homeownership opportunities across class and communities. Lower revenue potential of such loans could lead the GSEs to discontinue offering them altogether, CHLA said.As the Federal Reserve's pullback from purchases of mortgage-backed securities has helped fuel higher interest rates, CHLA called for a post-conservatorship model that would have Fannie Mae and Freddie Mac make "temporary, opportunistic" MBS purchases to drive housing costs lower. In a push against any favoritism toward large banks that might emerge, CHLA also explicitly came out against awarding any GSE charters to Wall Street, saying "competition should be at the mortgage origination level — and not at the level where a GSE guarantee is granted to a handful of megalenders"Nor should preferential treatment be given through mechanisms like up-front risk sharing or granting a few megalenders access to the Common Securitization platform," the letter said. Earlier this summer, Pulte renamed the joint-venture secondary trading platform operated by the GSEs from Common Securitization Solutions to U.S. Financial Technology. Furthermore, CHLA pointed to what it considered successful outcomes from decisions made during President Trump's first term and underscored the value of keeping related policies in place, including guarantee-fee parity among lenders and a competitive cash window. In 2020, CHLA led an initiative to turn an informal g-fee parity policy into a permanent requirement and pushed to keep such terms in place.The GSEs' exit from conservatorship exit could create a business environment leading to a return to practices favoring large lenders, it argued. "G-fee parity precludes one of the most pernicious pre-2008 housing crisis practices  — preferential pricing for large, reckless lenders," the letter stated. "A robust competitive cash window ensures that Fannie and Freddie purchase all qualified single-family loans from all approved seller-servicers, at rates that are competitive with lender securitizations."Potential hurdles to GSE changesWhile Director Pulte and President Trump have made strong public hints on social media and broadcast interviews of the changes they want to see, any of their suggested moves will receive heightened scrutiny for the effects on the housing market and the long-established mission of GSEs to provide liquidity for affordable homeownership. "The mission of a for-profit company is to fulfill the wants and needs of its shareholders through the board of directors. The mission of a government-sponsored enterprise is to comply with its mission. These are incredibly different things," said Mike Peretz, executive director of banking and payments at technology and management consultancy firm Capco. With private markets unlikely to prioritize today's home affordability challenges, "you need the GSEs more than ever," he added. Earlier this week Pulte posted a video spotlighting the proposed Great American Mortgage Corp. touted by the president, with the entity's banner strategically placed beneath logos of both Fannie Mae and Freddie Mac.  A merger of the GSEs would likely raise antitrust concerns, though, and many experts also see potential legal and political questions behind combining the two enterprises that have no clear answers yet.  "The complete lack of information on a major policy change/initiative introduces new unquantifiable risks for Fannie and Freddie, in our view," wrote Ed Groshans, senior policy and research analyst at Compass Point in a recent research note. "Our assessment is the risks cannot be analyzed or addressed until more information is provided by the Trump administration."