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- Drawn & Quartered
Drawn & Quartered
By Jeff Walton & Kelly Guest
Table of Contents
There sure seems to be a lot of pots calling kettles black lately when it comes to mortgage fraud, and one of the most outspoken on this topic finds himself under scrutiny. All eyes – and a lot of commentary have been on the Fed, and we got that quarter point rate cut. The fact that the board of governors unanimously voted to reappoint all regional presidents garnered notice though it’s usually a rubber stamp sort of deal…probably due to the clamor for a new chair and new policy.
CHATTER
President Trump’s Glass House Moment?
Big Optic Oops? President Trump Accused of Mortgage Fraud
From Pro Publica: In 1993, Trump signed a mortgage for a “Bermuda style” home in Palm Beach, Florida, pledging that it would be his principal residence. Just seven weeks later, he got another mortgage for a seven-bedroom, marble-floored neighboring property, attesting that it too would be his principal residence. In reality, Trump does not appear to have ever lived in either home. Instead, the two houses, which are next to his historic Mar-a-Lago estate, were used as investment properties and rented out.
Have Buyers Reached the 5th Stage of Grief?
Finally Acceptance? RE/MAX Finds Few Buyers Motivated by 5-6% Mortgage Rates
A recent RE/MAX survey found that 88% of home buyer respondents say they are “very” or “somewhat likely” to purchase a home in 2026, but ess than 10% of respondents said interest rates between 5-6% would speed up purchasing plans. MBA’s Chief Economist Mike Fratantoni spoke out on last week’s Fed rate cut and said, “Our forecast is for mortgage rates to stay within a fairly narrow range over the next few years.” If buyers aren’t jumping at sub-6% numbers, are they finally accepting that 3% is not coming back?
Not as Old as We Thought?
Fallacious 40: NMP’s Lew Sichelman Writes About Infamous Average Buyer Age
The National Association of Realtors (NAR) grabbed all the headlines when it reported recently that the median age of first-time home buyers has reached 40-years-old.
Citing numerous sources, the Mortgage Bankers Association (MBA) examined the topic of the nation’s first-time home buyers, noting that age and other profile factors “are incredibly important" to analysts and policymakers who are focused on housing. The commentary says, essentially, that NAR got it wrong, that its sample was so small as to be largely useless.
Data from Cotality, based on millions of mortgage applications, show that the median age has been essentially flat at 32.
Analysis from the Federal Reserve Bank of New York, using data from the Consumer Credit Panel/Equifax, the median age of rookie buyers in 2016, 2019, and 2024 was 32, 33, and 33, respectively.
Veterans United Home Loans Piled On: Company Says Gen Z Excelled in ‘25
VA lending rebounded in FY25, with total loan volume up 26.8% and purchase lending rising 8.5% after a decline the year before. In another knock on NAR’s “average first-time buyer age” bungle, Veterans United also says:
Generation Z led the VA purchase surge, posting a 38% year-over-year increase — far outpacing all other age groups.
Gen Z was the only demographic with FY24 purchase growth, and their acceleration in FY25 is reshaping the VA homebuying landscape.
Another Annoyance: Zillow Promotes Shopping for Mortgages
Zillow published the following:
Nearly 7 in 10 mortgage shoppers submit only one application.
A buyer can save $1,100 a year by reducing their mortgage rate 50 basis points when they purchase a typical U.S. home.
A savings of this size would have made 22,000 more homes on the market affordable for a median-income U.S. household.
The online giant saw a 36% increase in mortgage revenue in Q325, including a 57% in purchase originations for a total volume of $1.3B
Servicers Not Spectacular; Big Guys Fared Best: JD Power 2025 Mtg Servicer Digital Exp Survey
Bank of America ranks highest in overall satisfaction for mortgage servicer digital experience with a score of 784. Chase (762) ranks second and Wells Fargo Home Mortgage (754) ranks third.
“Many mortgage servicer apps are lagging top performers in other industries when it comes to these essentials. With just 44% of apps delivering a foundational user experience, there is a lot of room for improvement in this space.” Jon Sundberg, JD Power Director of Digital Solutions
Pyrrhic Victory?
Florida real estate broker Jeff Lichtenstein of Echo Fine Properties won a $24K commission in arbitration from buyers who were determined to have violated their contract. It’ll be interesting to see if such actions proliferate and what – if any – effects it has on companies and agents pursuing them.
HUD Launches Investigation into Boston Housing Policies – Alleges Discrimination Against Whites
The Department of Housing and Urban Development (HUD) announced Thursday an investigation into the city of Boston, Massachusetts, alleging its diversity, equity and inclusion (DEI) housing practices violate federal anti-discrimination laws.
Transient Climate Concern?
Zillow deleted climate risk assessments after complaints it was arbitrary and hurt sales. Now, Redfin found that users clicking on the climate risk section of their home listings spiked during disasters like the L.A. wildfires, but interest dropped off quickly and notably shortly after.
MOVING & SHAKING
Christy Moss joined FICO as VP,B2B scores mortgage and capital markets liaison at FICO - NMP.
Optimal Blue announced two promotions: Lanny Rogers III, CPA, to chief financial officer (CFO) and Jeremy Moreno to chief revenue officer (CRO).
West Capital Lending hired Kyle Fleeger to lead the development of the company’s new career growth platform - HW.
Class Valuation named Daniel Busch CFO.
MARKET/INDUSTRY
Channeling David Bowie
Ch-ch Changes: We got the rate cut with a side of pessimism about more in 2026; but what this version of the Fed says about the future could change drastically when we get a new chair in May. The Fed fired up a little QE on Friday and a lot of data hits this week. Bill Bodnar breaks it all down in his latest Master the Markets segment.
Mortgage Rates Remain Near 2025 Lows: Freddie 12-11-25
Mortgage Applications Increased 4.8% from One Week Earlier: Mortgage Applications Increased 4.8% from One Week Earlier: MBA's Weekly Survey for the week ending 12-5-25. These results included an adjustment for the Thanksgiving holiday.
Mortgage credit availability increased in November according to MBA’s Mortgage Credit Availability Index (MCAI).
FHA Increases HECM Limits: The increase is to $1,209,750 for single units and case numbers assigned on or after 1-1-25.
MoM is Meh, YoY Looks Better
Cotality October HPI
Home prices dipped .2% between September and October 2025, but were up 1.1% YoY
Forecast is for prices to eek up .02% from October to November of this year, and rise 4.3% from Oct 25 to Oct 26
Foreclosures Up 9th Straight Month: 11-25 Foreclosure Market Report ATTOM Data
Foreclosure activity continued its upward trend, with 35,651 properties receiving filings in November. Activity rose 21% year-over-year, marking the ninth consecutive month of increases.
Although numbers remain below historic highs, the data indicates a market still normalizing as homeowners face higher housing costs and shifting economic pressures.
Foreclosure activity dipped 3% from October but remained significantly higher than last year, driven by increases in both starts and completed foreclosures.
Flipping Continues to Flop: Q325 Home Flipping Report ATTOM Data
Home flipping activity continued to decline, with 72,217 properties flipped in the third quarter and flips representing 6.8% of all home sales.
Profitability also fell sharply, as the typical return on investment dropped to 23.1%, the lowest level since 2008, driven by rising home prices and shrinking margins.
Flips decreased both quarterly and annually, and the national ROI fell for the fifth straight quarter.
Median gross profit dropped to $60,000 as higher acquisition costs reduced investor spreads.