- InGeniusly Speaking
- Posts
- Beauty - or a Beast?
Beauty - or a Beast?
By Jeff Walton & Kelly Guest
Whether you’re on the side that calls that “Big Bill” beautiful or ugly, it’ll be interesting to see what the bond market thinks of the new legislation that passed after market closing before the Independence Day holiday. We already saw an optimistic dip in rates last week according to Freddie Mac, but Bill Bodnar has more and what else to look out for this week in his latest Master the Markets segment. Be sure to check out the highlights from a recent NeighborWorks America survey below that found about the same number of potential buyers are aware of DPA programs as those who overestimate what’s required to buy a home. Looks like an opportunity for lenders to market and educate simultaneously.
Did the new terrace push Powell to the edge? FHFA/US Federal Housing Director Bill Pulte pummeled Fed Chair Jerome Powell again by calling for a Congressional investigation. Pulte focused on a $2.5B “building renovation scandal” that “stinks to high heaven.” Pulte accuses Powell of malfeasance for providing “factually inaccurate statements to a Senate committee about the Fed's new plush private dining room and elevator, skylights, water features, and roof terrace.” Pulte suggests Powell is worthy of being fired “for cause.”
CHATTER
Big, Beautiful Budget Buster? NMN Reports on CFPB Fund Cuts
The BBB introduces a new method of controlling the funding of the Consumer Financial Protection Bureau. The megabill caps the amount of funding that the CFPB can receive from the Federal Reserve's operating budget at 6.5% — down from 12% previously — representing a 46% reduction in the bureau's maximum funding level.
Naming Convention: Fairway Independent Becomes Fairway Home
Fairway Independent Mortgage Corporation is changing its name to Fairway Home Mortgage.
"Changing our name to Fairway Home Mortgage reflects a fresh look, a renewed perspective, and a future-forward vision. The change is more than cosmetic – it represents our evolution, and our commitment to innovation, all while staying rooted in the values that have always defined Fairway." - Fairway's founder and CEO Steve Jacobson
Capitol One Cans Discover Home Equity Loans
UWM sues Towne Mortgage for poaching. (NMN)
CFPB waived consent order against Fay Servicing. (NMN)
CopyCat Commission Suit: HousingWire Reports
NAR is not named as a defendant in the suit. Rather, the trade group along with “NAR MLSs, NAR-affiliated brokerages and Realtor associations” are named as co-conspirators. Additionally, the suit alleges that the defendants are all “heavily intertwined with NAR.”
According to the complaint, which was filed in U.S. District Court in Chicago, the brokerage defendants engaged in and facilitated “a conspiracy that has perpetuated anticompetitive measures in the real estate broker services market within Illinois and nationwide.”
Compass Confronts NAR: HousingWire
Compass informed local MLS and NAR leadership that it “does not consider the Clear Cooperation Policy or any national NAR MLS rule impacting clients as binding,” and that it “has not and will not adhere to CCP or any national NAR MLS rule.”
In an email sent to NAR and MLS leaders, Robert Reffkin wrote: “Since CCP’s inception, Compass has consistently acted to demonstrate its non-adherence to the policy’s consumer restrictions, utilizing Compass Private Exclusives and Compass Coming Soons to provide consumers with broader choices and options to market properties outside of NAR’s MLSs.”
MOVING & SHAKING
US Bank named Fred Bolstad as head of mortgage, and John Hummel as head of retail home lending.
Commercial bank and leading mortgage loan sub-servicer Cenlar announced that Ramesh Lakshminarayanan has been appointed Chief Enterprise Risk Officer. The company also announced that Jackie Torres joined as SVP of Loan Operations.
UWM appointed company veteran Allen Beydoun to the newly-created position of Chief Client Officer.
Title Transitions: Title Resources Group, the nation's fifth largest title insurance underwriter, the appointment of 30-year industry veteran Kevin Wall as Chief Executive Officer and member of the Board of Directors. Concurrently, J. Scott McCall, the company's current Chief Executive Officer, will assume the position of Vice Chairman of the Board of Directors. Wall was recently co-president at First American and departed just a couple of months after former CEO Kenneth DeGiorgio was ousted with a golden parachute after an embarrassing incident aboard a Virgin cruise ship.
Blend appointed Reva Rao as Head of Digital Transformation for Credit Unions.
AI-powered credit decisioning platform Ocrolus formed dedicated business units for Mortgage and Small Business (SMB) funding. Nadia Aziz was named General Manager of Mortgage and promoted David Snitkof to General Manager of SMB. Mortgage is the company's fastest-growing segment, while SMB funding continues to be the largest line of business at Ocrolus.
MARKET/INDUSTRY
MBA on Passage of Big Beautiful Bill:
“MBA is pleased that the final tax package preserves or strengthens – and makes permanent – numerous pro-housing and pro-economic growth tax provisions that were identified by our Board-level Tax Task Force.”
Hurry Up & Wait: Fratantoni on the June Jobs Report
“The unemployment rate dropped back to 4.1%, but this was the result of more individuals leaving the labor force rather than gaining employment, as the labor force participation rate dropped again.
“Wage growth slowed again in June to a 3.7% rate over the last 12 months.”
“Taken together, these data indicate a job market that is holding up reasonably well given the uncertainties facing this economy. While there are certainly some signs of softening in the private sector, the report is likely to keep the Federal Reserve on hold for now. MBA is still forecasting two cuts from the Fed this year.”
“Potential homebuyers are likely to remain cautious unless, and until, the job market begins to improve again, or mortgage rates drop sufficiently to spur more activity.”
Mortgage Applications Increased 2.7% From One Week Earlier: MBA Weekly Survey for the week ending 6-27-25.
Frequent Fraud: Mortgage Scams up 407% Since 2022 (BackOfficePro)
Mortgage scams resulted in $1,380,053 in reported financial losses (2015–2025).
Monthly mortgage scam reports have grown 407% since 2022, jumping from 14 to 71 per month.
Only 12.24% of mortgage scam reports included financial losses—but the average financial hit was $16,829.
Phishing made up 53.3% of all reported cases.
Georgia had the highest financial losses: $423,550 from just 28 cases.
Florida had the most scam reports overall, with 49 in the past year.
State-by-State Flip ROI: ATTOM Data’s Q125 Home Flipping Report.
Returns vary significantly by location:
Top 6 ROI: MI – 61.6%, VA – 57.2%, WV – 57.1%, DC - 56.9%, TN – 54.1%, IL – 52.8%.
Worst ROI: MT – 2.1%, TX – 5.2%, UT – 6.2%, NM – 7.5%, ID/MS tie 8.9%.
Institutional Landlords Squeezing Regular Home Sellers: ATTOM Data/Parcl Labs
Institutional investors are highly concentrated: Large institutional investors (portfolios of 1,000+ single-family homes) hold over a third (36.8%) of their assets in just 6 U.S. housing markets: Atlanta, Phoenix, Dallas, Houston, Tampa, and Charlotte.
Worsening for-sale supply-demand conditions are creating new institutional competitors: accidental landlords. Parcl Labs’ data reveals increasing numbers of failed home-sellers shifting into rentals, up YoY in five of six institutional markets, led by Houston (+41.4%) and Dallas (+32.3%).
Institutions are responding by reducing exposure and capitalizing on home appreciation gains. Over the past year, large institutions became net sellers nationwide, with 76.7% of their net selling concentrated in these six core markets, led by Atlanta, Dallas, and Houston.
What’s next? One possibility: accidental landlords, worn down by rental market challenges, could shift from competitors to acquisition targets. Institutional investors, armed with cash from recent sales and anticipating home-price declines, are positioned to buy.
Down Payment Discouragement: NeighborWorks America Survey
Homeownership interest remains strong: 49% of U.S. adults are interested in buying a home, yet 31% believe it’s unattainable.
Younger generations are the most eager—and the most discouraged: 39% of GenZers and Millennials are actively searching for homes, but 38% of GenZers and 32% of Millennials say they don’t believe they’ll ever own one.
Top financial barriers stand in the way: Respondents cited low income (33%), high home prices (22%), credit challenges (22%) and saving for a down payment (21%) as key hurdles.
Would-be buyers are taking action: Among those planning to buy in the next year, 72% are saving for a down payment, 53% have reduced non-essential spending and 34% have taken on additional work.
Awareness doesn’t equal understanding: While 61% are aware of down payment assistance programs, nearly 60% overestimate what’s actually required to buy a home, suggesting that outdated beliefs are deterring otherwise ready buyers.
More Insurance Issues: Guardian Service Survey Reveals Risky Behavior
Survey finds that people are delaying needed maintenance AND avoiding claims they fear will trigger inspections:
In 2025, 71% of homeowners postponed renovations or repairs due to economic uncertainty. Millennials (74%) were the most likely generation to have done so.
Nearly a third of homeowners say they’re willing to wait another 1–2 years for major upgrades, while 15% are putting upgrades off indefinitely due to economic uncertainty.
Home improvement budgets dropped by 42% on average in 2025, and 62% of homeowners DIY’d critical repairs themselves to avoid the cost of hiring professionals.
Nearly 1 in 4 homeowners admit they’ve skipped filing an insurance claim because they’re worried the condition of their home could trigger an inspection or result in denial.
Insurance education is lacking: 71% of homeowners say no one told them upgrades could lower premiums.
49% of homeowners say delays in maintenance may have compromised their home’s safety in 2025.