“I can’t afford an Ancestry DNA kit to learn about my relatives. So instead, I posted online that I had won the Powerball Lottery.” Speaking of news dissemination, Southwest Airlines sent out a press release about using chargers on its airplanes. Finally, in terms of spreading news, some love him, some say he’s little more than a frat boy, we have FHFA Director Bill Pulte. I was present at his Q&A in Manhattan where he basically said that releasing Freddie and Fannie from conservatorship was “not a priority” and that the process wouldn’t begin until 2026. This was changed by his boss, Donald Trump, within a day or two. Our housing finance system doesn’t need chaos for chaos’ sake. (My notes from Mr. Pulte’s stage time are below.) Speaking of the conference this week in New York, with its Naked Cowboy, on today’s episode of Last Word at 10am PT, the team will share their top takeaways from the MBA Secondary Conference in New York, including what people were really talking about on the ground. They'll also dig into the recent jump in mortgage rates and what it could mean for the market in the weeks ahead. (Today’s podcast can be found here and this week’s is sponsored by Xactus and its commitment to the continued transformation of the mortgage verification industry. Pioneering a new class of technology, “Intelligent Verification,” Xactus is redefining how the industry originates and services mortgages. Today’s has an interview with ALTA’s Elizabeth Blosser on the rising threat of real estate cybercrime, and how the title industry is fighting back with proactive strategies, technology, and consumer education to protect transactions and reduce fraud.)
Software, Products, and Services for Lenders and Brokers
CFPB rescinds dozens of guidance documents, creating uncertainty, state scrutiny Rises! At recent MBA meetings, regulatory uncertainty was front and center. Richard Horn, Co-Managing Partner at Garris Horn LLP and former CFPB attorney, noted the Bureau has rescinded 67 guidance documents, some over a decade old. “It may feel like a rollback,” Horn said, “but the analysis still exists, and plaintiffs and state regulators can still use it.” Garris Horn partner John Levonick pointed to growing state-level enforcement. “The CFPB’s rescission of its May 2022 interpretive rule has created conflicting views on whether states can enforce federal law under Section 1042 of the CFPA,” he said. “If they can, we could be looking at 50+ regulators with 50+ interpretations.” Their advice? Avoid creativity: Stick to the status quo. Federal rules may be in flux, but enforcement risk remains high. Contact Rich Horn or John Levonick for insight.
Jack and Laura from Colorado found their dream home for $625k, but all their equity was tied up in their existing home. With Flyhomes Buy Before You Sell with Instant Equity (a home equity loan on the departing residence) they unlocked $115K before selling the current home, fully covering their down payment and closing costs. It also helped reduce their DTI by excluding the departing residence’s debt, with no monthly payments due during the transition. As the simplest process in the industry, it requires no income docs, no asset docs, and no mortgage statements for loan approval. 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) Sign up for Flyhomes’ June 5 webinar to learn more about the product and its use scenarios, or book a call now to get started today.
Over 60 percent of homes are owned by those 65+, and most are aging in place because it’s the most affordable option. That’s where HomeSafe Second comes in: This second-lien solution lets them tap into their equity without new monthly mortgage payments or giving up their low-rate first mortgage. Freshen up your offerings and meet homeowners where they are. Finance of America is the industry-leading reverse mortgage lender. We can help you navigate these products with expert guidance and an expanding digital platform. Contact ss@financeofamerica.com today. The borrower must meet all loan obligations, including meeting all loan obligations under the first lien mortgage, living in the property as the principal residence and paying property charges, including property taxes, fees, hazard insurance. The borrower must maintain the home. If the homeowner does not meet these loan obligations, then the loan will need to be repaid. Finance of America | NMLS #2285
In The Hitchhiker’s Guide to the Galaxy, the Babel fish was the ultimate translation tool: pop it in your ear, and you could understand any language. Turns out, we’re getting close with these translator earbuds that don’t replace human connection, they enhance it. Tropos works the same way. It’s not just a digital lending portal; it’s a bridge between automation and authentic support. Borrowers can self-serve with confidence and connect with your team when they want guidance. It’s not about replacing the relationship, it’s about removing friction so the relationship actually works. Try the better way to connect!
“Scalable, AI-driven mortgage solutions! Moder is redefining mortgage servicing with scalable, AI-driven solutions that streamline operations, enhance borrower experiences, and deliver true efficiency. We lead the shift toward low-touch, high-impact delivery powered by automation, GenAI, machine learning, cloud technologies, and advanced analytics. Technology is at the heart of everything we do. Our digital strategy is built on three principles: automation first, data-driven decision-making, and a seamless customer experience. From intelligent agent-assist tools to predictive analytics, real-time process monitoring, and robotic process automation (RPA), we deliver faster, smarter, future-ready solutions. We work within your existing tech stack to optimize performance, fill in critical gaps, and ensure your technology delivers measurable, business-ready results. Moder’s Digital Centers of Excellence span software development, solution architecture, data and analytics, project management, and quality assurance ensuring delivery excellence at scale. At the center of this capability is our Digital Office, a distinct pillar of our delivery model, alongside that brings together our advanced technology services to support intelligent automation, data-driven operations, and CX transformation. It enables clients to unlock the full potential of their tech stack, improve agility, enhance resilience, and drive sustainable business growth. Partner with Moder to unlock the true potential of digital transformation… today and tomorrow. Know more.”
Do Acquisitions or Mergers Lead to Growth?
In a rapidly shifting economic environment, mergers and acquisitions are proving to be more than just boardroom strategies. They're becoming catalysts for long-term growth and stronger communities. In his latest piece, "Mergers and Acquisitions: A Springboard for Growth," Matt Beckwith, Executive Vice President of OVM Sales with AnnieMac Home Mortgage, shares how smart M&A moves, rooted in talent retention, cultural alignment, and strategic planning, can drive real value far beyond the deal itself. Read the full article on Chrisman Commentary to discover how lenders and real estate leaders can harness M&A to thrive in today’s market.
Bill Pulte, Freddie Mac, and Fannie Mae News
Going back to Pulte, my cat Myrtle would not have been a fan: just give it to her straight without pulling on anyone’s apron strings. Earlier this week Director Pulte indicated that going forward, the FHFA’s name would drop, and we can expect “US Federal Housing” or “Federal Housing.” (Someone should tell Bill that if F&F are privatized, there’s no “Federal” in them.) Pulte exclaimed that “if it’s not in the statutes and not in the laws, we’re not going to do it.” He will continue to use X to send out his Orders, not because it is owned by Elon Musk but because “people like immediate news, not waiting for a formal memo 2-7 days later.” (50 Orders have been done so far.)
Pulte believes that F&F are bloated in some instances, so by cutting “certain things” the earnings potential will go up. He made it clear that the decision for the privatization of F&F is “up to President Trump.” He is a strong believer in manufactured housing, saying it has made great strides, some of which are unrecognized by the general public. He also discussed the boards of F&F, and that they have a fiduciary duty to the conservatorship. Finally, he stressed that he doesn’t want to jeopardize the safety and soundness of the housing finance system in the United States. (Critics will say that this last point is subjective.)
Freddie Mac and Fannie Mae (the GSEs) announced the June 14, 2025, release of the refreshed Uniform Collateral Data Portal® (UCDP®) user interface (UI). The new UI is designed to enhance the overall user experience and streamline navigation within UCDP. This update introduces several improvements and removes some outdated features for a more intuitive and efficient experience.
Freddie Mac announced automations to its underwriting to further reduce costs, create greater efficiency, and improve the origination process for both borrowers and lenders. Utilizing machine learning, this new technology is included in Loan Product Advisor® (LPA®) as the company is greenlighting on-hold innovation, cost reduction and delighting the customer as a result of the mandate to use technology from U.S. Federal Housing FHFA Director and Chairman of Fredd. Freddie Mac is also launching a new feature called Freddie Mac Income Calculator, a free online tool to help potential homebuyers in the gig economy by enabling lenders to more accurately and efficiently calculate wage earner and self-employed borrower income.
The update also drives cost savings through a wide range of additional enhancements, including early insights on the automated collateral evaluation (ACE) waivers that have already saved families more than $2 billion in appraisal costs since 2017. It also includes new tailored information about Freddie Mac’s purchase requirements in the form of actionable LPA Choice® feedback messages that save time, money and increase originations for lenders. LPA Choice has enabled lenders to qualify an additional 18,000 borrowers for a mortgage with a focus on safety and soundness.
Some of the group in NY for the Secondary Conference were told that Fannie Mae is in the early stages of a pilot program that allows for refinances without a lender’s title insurance policy or attorney opinion letter. This, of course, reduces closing costs for borrowers. The program was approved by the Federal Housing Finance Agency during the Biden administration and launched in late November. The pilot survived as the Trump administration ended a number of pilot programs at the GSEs since he took office.
Effective May 18, area median incomes (AMIs) for 2025 will be implemented in Desktop Underwriter® (DU®) and HomeReady® application programming interfaces, Loan Delivery, and the Area Median Income Lookup Tool. AMIs will continue to be applied in DU based on the casefile create date, while the Application Received Date provided in Loan Delivery will be used to determine which AMI limit to use when evaluating eligibility for the loan-level price adjustment waiver. View Fannie Mae Selling Announcement.
Introducing the new Freddie Mac Income Calculator to help you calculate borrower income and enhanced feedback certificate to indicate the minimum collateral assessment required for loan submission. Review the full list of May feedback message updates or visit the Technology Releases webpage.
Pennymac Announcement 25-55: Updates to Conventional LLPAs, effective Monday, May 19, 2025.
Capital Markets
The big news yesterday was that the House passed the reconciliation bill in a 215-214 party-line vote. The bill, among other things, raised the SALT deduction cap to $40,000 (from $10,000) and increased the debt ceiling by $4 trillion. The 10-year note yield briefly rose to as high as 4.63 percent, and the 30-year bond yield climbed to 5.15 percent due to some deficit angst, but buyers emerged at those levels and forced a reversal that was helped by short-covering activity and a disappointing Existing Home Sales Report for April.
Existing homes sales were weaker than expected in April, edging down 0.5 percent to a seasonally adjusted 4.0 million annual rate, the lowest annualized pace of sales for that month since 2009 and undershooting the consensus forecast for 4.1 million. Sales were down 2.0 percent from a year earlier. The median sale price rose a modest 1.8 percent from a year earlier to $414,000, slower than March’s 2.6 percent increase and marking the slowest gain since July 2023. Listings of existing homes rose to 1.45 million from 1.33 million in March and were equivalent to 4.4 months’ supply at the current sales pace, up from 4.0 months in March. This was the highest months’ supply for the existing market since the fall of 2020. But since the housing market is highly seasonal, a better comparison for April 2025 is against April in prior years. On that basis, months’ supply of listings is the highest since 2016. Both the number of sales and of listings are still below pre-pandemic levels.
Today’s early close ahead of the Memorial Day holiday contains just one data point, with new home sales due out later this morning. Expectations are for 700k versus 724k previously. The rest of the calendar is all Fed speakers, with remarks scheduled from St. Louis’ Musalem, Kansas City’s Schmid, and Fed Governor Cook. Ahead of Monday’s Memorial Day holiday, futures will settle at 1:00pm ET with cash closing, per SIFMA’s recommendation, at 2:00pm. We begin the day with Agency MBS prices better than Thursday evening by .125-.250, the 2-year yielding 3.95, and the 10-year yielding 4.49 after closing yesterday at 4.55 percent.
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