I don’t know where April went, but we’re at the end of it, and 2025 is 1/3 over. The future sure quickly becomes the past. In the book “1984” George Orwell observed, “Who controls the past controls the future. Who controls the present controls the past.” What does that have to with today, or with residential lending? There’s no problem if there’s no one to research it, report on it in the news, or write about it, right? Of course, weather, which is related to the world’s climate, impacts servicers, insurance companies, and lenders. In this case, the Trump Administration has fired the entire U.S. climate panel: What it means for future research? The recent decision of the Trump administration to dismiss 400 authors of the National Climate Assessment will impact climate research and sideline people from knowing the impacts of climate change. Don’t forget that, a few months ago, hundreds of federal NOAA employees, including weather forecasters, were fired as part of DOGE cuts, as reported by Fox. (Today’s podcast can be found here and this week is sponsored by CreditXpert, the credit optimization platform that helps today’s top mortgage originators and more than 60,000 mortgage professionals qualify more applicants, make more competitive offers, reduce LLPA premiums and close more loans. Hear an interview with LendingTree’s Matt Schulz on the most attractive states for out-of-state home shoppers.)

Software, Products, and Services for Lenders and Brokers

Down Payment Resource, the counter and keeper of all things DPA, shares exciting news from its Q1 Homeownership Program Index (HPI) report: During Q1, 43 programs were added to its database for a grand total of 2,509 programs nationwide, the most ever recorded. In addition to rising program numbers, DPR sifted through the data to uncover trends revealing additional programs for repeat buyers, programs without income restrictions, programs supporting the purchase of multi-family or manufactured housing, programs for first-generation homebuyers, and programs for specific occupations. There’s also more latitude for how funds are applied, not only for down payments, but for closing costs, interest rate buydowns, or other uses. At a time when other assistance is dwindling this is, indeed, welcome news. Find Q1 HPI report details here or contact DPR for more.

True partnerships don’t come with surprise fees. A true technology partner doesn’t nickel and dime you with endless Statements of Work (SOWs) and surprise fees. Unfortunately, that’s common in the tech world… but not with Usherpa. Usherpa believes in building genuine, long-term partnerships with mortgage professionals. That means transparent pricing, no hidden costs, and no unexpected SOWs just to get the support you need. When you work with Usherpa, you’re not just buying software. You’re gaining a dedicated partner who’s invested in your success. Its team is ready to assist, guide, and support without charging extra for every little thing. That’s the kind of partnership mortgage professionals deserve: one that is authentic and built on trust, value, and shared success. If you’re tired of unexpected fees and just want a technology partner that has your back, check out Usherpa.

New jumbo options are now available at Dart Bank Wholesale Lending, active in 43 states, with a powerful new 5/6, 7/6, and 10/6 Jumbo ARM product for loan amounts between $350,000 and $2 million. This joins Dart’s recently launched fixed-rate Jumbo loan, giving brokers even more flexibility when working with homebuyers. For Jumbo Fixed AUS loans, Dart now offers loan amounts up to $3.5 million on 1-unit primary residences. Two-unit primary properties and 1–2-unit investment properties are eligible up to $2 million. Cash-out options on 1-unit primary residences up to $2 million. Maximum loan-to-value (LTV) ratios to 89.99% for purchase and rate/term refinances with no mortgage insurance, and up to 80% for cash-out refinances. First-time homebuyers are eligible for up to 89.99% LTV with a maximum loan amount of $1.5 million. The team is also growing, with Shane DeSimone joining as National Business Development Manager, and Steve Bavaro (Northeast) and Doug Bland (Northern CA) as Regional Area Managers. They join Adelfo Emanuele (West) and Mary Johnson (Southeast) in supporting brokers nationwide. Contact your Dart Wholesale AE to learn more or click here to sign up!

“Exciting guideline enhancements are now live at Luxury Mortgage Corp.®! We’re thrilled to share two major updates that open new doors for your business and help more borrowers get approved! First, our loan amount guidelines have been expanded up to $4MM across several documentation types, including Full Doc, Bank Statements, 1099 Only, and DSCR. We will now accommodate loan requests over $4MM on an exception basis: We like BIG loans! We've really good at them. And we've been doing them for a really long time. Please contact your Account Executive for details. Second, our enhanced P&L Only Program now offers loans up to $1.5MM with 700+ FICO, up to 80% LTV, and accepts P&Ls prepared by licensed tax preparers. Ideal for purchases, refinances, and cash-outs across all occupancy types. Let’s keep growing; these updates are designed to help you win more business and serve more clients. Not an approved broker yet? Become an Approved Broker.

“If your borrowers are stuck behind a home sale contingency or hitting DTI limits, Flyhomes (the leading wholesale lender specializing in Buy Before You Sell solutions) offers a faster path forward. The Flyhomes Guaranteed Backup Contract, available in all 50 states, gives borrowers a bona fide purchase agreement on their departing residence, helping them exclude that mortgage from DTI calculations and remove the home sale contingency when buying their next home, all in under 24 hours. Your borrowers are then eligible for a down payment bridge loan from Flyhomes, which seamlessly complements your purchase mortgage.

For the past 10 years, Flyhomes has been a pioneer and leader in innovative financial products, helping 5,000+ buyers purchase their next home and enabling LOs to close 1.2 more loans per month on average. Now through Q2, get 25 bps off origination fees on any Flyhomes Bridge Loan! (Terms apply) Book a call to learn more, or send us a client scenario to get started today.”

Strategic Partnerships Could Equal Innovation

FirstHome IQ Partners with Crib Equity to Expand Homeownership Opportunities! FirstHome IQ, an industry-led financial literacy platform for aspiring homeowners, has announced a strategic partnership with Crib Equity, an innovative home co-investment company. Crib Equity contributes to homebuyers’ down payments as an equity investment rather than a loan. This approach allows first-time homebuyers to purchase homes sooner and reduce monthly payments by up to 25%. “This partnership directly addresses the two biggest barriers to homeownership for NextGen buyers: down payment challenges and financial knowledge gaps,” says Kristin Messerli, Executive Director at FirstHome IQ. FirstHome IQ will incorporate Crib Equity's co-investment model into their educational resources and offer Ambassadors additional resources to reach potential homebuyers.

Speaking of potential homebuyers, the 2025 NextGen Homebuyer Report by Kristin Messerli reveals how Gen Z and Millennials are transforming the path to homeownership. With trust in financial institutions sharply declining and affordability challenges rising, younger buyers are turning to creative strategies like co-buying and leveraging digital tools such as YouTube and AI. Backed by insights from 1,000 respondents, this report highlights the urgent need for industry professionals to adapt. Read the full article for key trends shaping the future of homeownership.

Natural Disaster Updates

Name a lender, servicer, or insurance company that doesn’t care about natural or manmade disasters. Weather, events, and regulatory moves in the United States are attracting the attention of those in the residential lending business. It is certainly attracting the attention of people whose livelihood is impacted. Or worse. The public has a short memory. Who thinks about the earthquake just a month ago in Myanmar? The death toll is approaching 4,000.

Whether manmade or natural, few disagree that extreme weather events are increasing. This paper is highly readable and still relevant, discussing extreme weather events in the context of climate change.

Man-made or natural, weather and climate happen. And the decisions made by investors in mortgages in the secondary markets, insurance companies, owners of servicing, or builders, all impact the price to your borrowers. Lenders and servicers wait for FEMA to declare portions of states disaster areas when events happen, triggering policy and procedure changes in those areas.

Climate impacts our weather, but recall that the FHFA (Federal Housing Finance Agency, overseer of Freddie and Fannie) rescinded an advisory bulletin (on X) that had directed the Federal Home Loan Banks to consider impacts from climate risks. FHFA’s order justified the change by stating that climate risk is a “transverse risk” that’s accounted for in existing risk types, including credit risk.

What happens after a disaster? To help facilitate recovery efforts from wildfires and straight-line wind damage in Los Angeles County, California this year, four federal financial institution regulatory agencies temporarily paused certain appraisal requirements for real estate-related transactions. This action is expected to allow banks and credit unions to work with families and businesses without obtaining an appraisal. Banks and credit unions will still be required to determine that the value of the real estate supports the institution’s decision to enter into the transaction.

As a result of this action, financial institutions will be better able to lend or modify loans in areas where wildfire and straight-line wind damage has made appraisals challenging to obtain. This action is also expected to reduce loan processing times, helping to facilitate recovery from the disaster. This action will expire on January 8, 2028. The agencies will monitor institutions’ real estate lending practices to ensure the transactions are being conducted in a safe and sound manner: Federal Register Notice.

On 4/1/2025, with Amendment No. 4 to DR-4861, FEMA declared federal disaster aid with individual assistance to Raleigh county in West Virginia affected by severe storms, straight-line winds, flooding, landslides, and mudslides from 2/15/2025 to 2/18/2025. See AmeriHome 20250401-CL Disaster Announcement for inspection requirements.

Fannie Earnings are Solid

Fannie’s net worth continues to grow, and the company had $3.7 billion of first quarter 2025 net income, with net worth reaching $98.3 billion as of March 31, 2025. “$76 billion in liquidity provided in the first quarter of 2025, which enabled the financing of approximately 287,000 home purchases, refinancings, and rental units. Fannie acquired approximately 144,000 single-family purchase loans, of which approximately half were for first-time homebuyers, and approximately 50,000 single-family refinance loans during the first quarter of 2025. Financed approximately 93,000 units of multifamily rental housing in the first quarter of 2025; a significant majority were affordable to households earning at or below 120% of area median income, providing support for both workforce and affordable housing.

Capital Markets

Mortgage rates, and interest rates in general, are a product of supply and demand. It seems that foreign investors have significantly reduced purchases of U.S. assets, despite a recent market recovery, according to Deutsche Bank. George Saravelos, head of FX strategy, notes a "sharp stop" in inflows, particularly affecting exchange-traded funds and bonds. The trend, driven by President Trump's tariff plans, poses a challenge to the US dollar, which has slumped alongside stocks and Treasuries. Other countries may not be selling, but buying has decreased.

Despite several headwinds, including inflation concerns tied to President Trump’s trade policies and a sharp increase in government borrowing, markets have shown resilience, with investors appearing more focused on long-term impacts than short-term disruptions. Rather than reacting sharply to rising Treasury borrowing estimates from earlier this week, market participants are showing more concern about slowing economic growth and uncertainty in trade policy, prompting a wait-and-see approach. The Fed seems inclined to do the same.

Meanwhile, bond markets have remained relatively stable, with 10-year yields under 4.25 percent and real yields retreating from recent highs. As the Fed continues to normalize policy, a steeper yield curve is possible, though global growth fears could sustain demand for long-term bonds. Despite speculation about waning foreign interest in U.S. Treasuries, demand has remained solid.

Let’s turn to some actual economic data. The goods trade deficit widened to a record -$162 billion in March, adding pressure on Q1 GDP estimates, while wholesale inventories rose slightly less than expected. Despite elevated mortgage rates, home prices climbed 3.9 percent year-over-year, reflecting underlying strength in the housing market. Analysts suggest that as consumers continue shifting from spending to saving, housing could benefit once confidence stabilizes. Meanwhile, the Dallas Fed Manufacturing Report showed moderate growth, though new orders declined and price pressures persisted. Manufacturers are growing more cautious due to the ongoing trade war, with the general business conditions index dropping to its lowest level since mid-2020.

Consumer confidence weakened significantly in April, with the Conference Board’s index falling to the lowest level outside of pandemic months since 2014. Expectations plummeted to levels not seen since 2011, while the present situation remained relatively stable. On the labor front, job openings in the March JOLTS report dropped to 7.2 million, marking the lowest level since 2024, while the job-to-unemployed ratio slipped to its weakest since early 2021. Though quit rates rose slightly, hiring remained flat, and layoffs declined, suggesting businesses are cautious but not yet slashing jobs. Collectively, the data points underscore rising economic anxiety and have contributed to safe-haven demand in the bond market.

Today’s economic calendar, which has some serious market-moving potential, kicked off with mortgage applications decreasing 4.2 percent from one week earlier, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey. We have also received ADP employment for April (62k, lower than expected), the first release of Q1 GDP (-.3 percent annualized), employment cost index +.9 percent, PCE annualized +3.5 percent (inflationary), and the quarterly refunding announcement. Later today brings March PCE, Chicago PMI, and pending home sales for March. We begin the day with Agency MBS prices little changed from Tuesday’s close, the 2-year yielding 3.65, and the 10-year yielding 4.16 after closing yesterday at 4.17 percent based on slower growth.