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New Fed Era
By Jeff Walton & Kelly Guest
Table of Contents
Cheerio Chair: This week's Fed meeting will be the last with Jerome Powell as chair. He previously vowed to stay on until his term as a Fed governor ends January 31, 2028; however, the investigation into his handling of the $2.5B remodel of the Federal Reserve building was dropped last week with the stipulation that it could be reopened if evidence of wrongdoing came to light. Powell's vow to remain full term was tied to fighting the investigation. We'll see if he decides to remain a thorn in the Trump administration's side or chooses to ride off into the sunset – AND, if Kevin Warsh gets confirmed.
CHATTER
A “score” for consumers?
Credit Score Modernization - MBA Supports!
MBA's President and CEO Bob Broeksmit, CMB, released the following statement on the Federal Housing Finance Agency’s (FHFA) and Department of Housing and Urban Development’s (HUD) announcement on credit score modernization:
“MBA has long advocated for greater competition in the credit reporting and scoring space. Today’s announcement marks an important next step in modernizing the credit scoring framework used by Fannie Mae and Freddie Mac (the GSEs) and the Federal Housing Administration (FHA).
“MBA will also continue to press for reforms of the tri-merge credit reporting requirement, including implementing a single-score requirement for GSE borrowers with strong credit profiles, to encourage greater competition and lower costs for consumers.”
DREAMing big in IL
DREAM Big: Great Lakes CU & Partners Close First of its Kind Transaction
The first-ever DREAM (Discount for Real Estate Affordability and Mobility) transaction in U.S. history closed this month and it’s billed as the antidote to the rate-lock effect.
A Chicago couple became the first homeowners in the country to complete a DREAM closing, receiving a live check for more than $41,000 — a principal balance reduction on their existing mortgage that unlocked the trapped value of their low-rate loan and freed them to move forward with their next property purchase.
One of the borrowers explained it this way: “DREAM gets people out of unmovable rates and out of something on a balance sheet that’s not moving at all into something else that’s more beneficial.”
CFPB Shift: Final Rule Makes Changes to Enforcement Under ECOA
It amends provisions related to disparate impact, discouragement of applicants or prospective applicants, and special purpose credit programs under Regulation B, the regulation implementing the Equal Credit Opportunity Act (ECOA or Act).
The amendments facilitate compliance with ECOA by clarifying the obligations imposed by the statute: It removes the “Effects Test” and focus on disparate impact and narrows focus to intentional discrimination.
Reverse Needs to Speed Up: Counseling Group Says 20% of Seniors are Strapped
In 2025, 21.1% of GreenPath Financial Wellness' reverse mortgage clients had a monthly budget deficit. This is nearly double the rate of 12.2% in 2024.
Average budget deficits increased by nearly $300 to $1,793 per month.
The message to reverse originators is that HECMs are becoming more of an immediate fix than strategic tool.
LOs Front & Center: FSBO.com Launches “Loan Officer Portal”
From the release: “This innovative platform positions loan officers at the center of the transaction, enabling them to guide sellers and buyers with greater clarity, efficiency, and confidence from listing to closing.
Over 300 loan officers from NEXA Lending are already active within the platform, leveraging the portal to support sellers and engage earlier in the transaction lifecycle.”
Vets Need Ed: NewDay USA Releases 2026 Military Home Buyer Readiness Survey
Only 32% knew that a VA loan requires no down payment
30% incorrectly believed a down payment is required
38% said they were simply unsure
There was even more confusion when it came to private mortgage insurance (PMI):
Just 23% understood that VA loans do not require PMI regardless of down payment
30% believed PMI is required
47% said they had no idea either way
Mortgage of Champions? PennyMac
Launched “Welcome Home: Athlete Mortgage Program,” a first-of-its-kind initiative designed to provide Team USA athletes with specialized support and resources as they navigate their homeownership journey.
PennyMac partnered with the US Olympic/Paralympic Committee last year.
HEI-HO: Maine Puts Shared Equity Loans on a Leash
Maine the first state in the nation to create what it describes as “essential consumer protections for home equity investment (HEI) loans,” called shared appreciation mortgage loans in the new law. The new law, LD 1901, An Act to Regulate Shared Appreciation Agreements Relating to Residential Property, provides safeguards from this growing class of complicated, high-risk financial products, which lure homeowners with the promise of upfront cash and no monthly payments, hiding large, unknown lump-sum payments.
MOVING & SHAKING
How much is RE/MAX worth?
Real Deal: The Real Brokerage Inc. announced that they have entered into a definitive agreement under which Real will acquire RE/MAX Holdings to create a leading technology-enabled global real estate platform named Real REMAX Group. The transaction implies an enterprise value for RE/MAX Holdings of approximately $880M.
Christopher Griffith joined NEXA to "serve veterans while elevating loan officer performance across the TPO channel."
SoFi launches HELOC product.
Another Twist: Two Harbors Shareholder Sues Over CrossCountry Deal - NMP
The plaintiff seeks to block the deal that knocked UWM out of contention.
Balerion AI Raised $6M in Seed Funding: Agentic AI Claims to Reduce Origination Time/Costs
“Mortgage lending was once a relationship business, but somewhere along the way it became an expensive operational gauntlet,” said Naren Krishna, Co-Founder and CEO of Balerion AI.
MARKET/INDUSTRY
Death cross coming?
We're in a weird holding pattern, but Bill Bodnar breaks down what to watch this week in his latest Master the Markets segment.
The 30-Year Fixed-Rate Mortgage Declines Further: Freddie 4-24-26
Mortgage Applications Increased 7.9% from One Week Earlier: MBA Survey for the week ending 4-17-26.
Slight Signs of Life: NAR March Pending Home Sales
Month Over Month
1.5% increase in pending home sales
Gains in the Northeast and South; declines in the Midwest and West
Year Over Year
1.1% decrease in pending home sales
Gains in the South; declines in the Northeast, Midwest and West
“Demand sensitivity to mortgage rates is greatest among first-time buyers, particularly younger buyers. As a result, boosting supply and new-home construction should focus on smaller, more affordable homes.” – NAR Chief Economist Dr. Lawrence Yun
Home Profits Hit Lowest in 5 Years: ATTOM Data's Q126 Home Sales Report
The data shows that profit margins on home sales dipped to 44.1%, the lowest level in five years, as rising mortgage rates and seasonal slowdowns cooled the market. While home prices held steady at $360,000 and remain up year-over-year, overall seller gains are trending down from their 2022 peak.
Average raw profit fell to $110,100, down both quarterly and annually in Q1 2026.
Profit margins decreased in 74% of metros quarter-over-quarter, with notable declines across Florida markets.
Midwest metros led gains, with cities like Flint, MI and Evansville, IN seeing rising margins.
BMO Puts a Name to a Longtime Practice: "Familia Mortgages"
From BMO’s Real Financial Progress Index: For many U.S. Latinos, the traditional idea of a "starter home" no longer applies, with 59% of non-homeowners agreeing that buying a home, only to upgrade a few years later, "makes no sense." Instead, they are opting for a more culturally rooted model: a "forever familia home" meant to serve as a central hub for multigenerational care and long-term stability, with 67% of U.S. Latinos expecting their first home purchase to be their last.
The Drive is Familial: The motivation to create this hub is strong, with 51% of all U.S. Latinos stating it's important to purchase a house to provide for their parents or grandparents in the future, compared to 42% of the general U.S. population. This figure rises to 66% for Millennials and Gen Z, and 71% for the Sandwich Generation – who are already managing the responsibility of caring for both children and aging parents.
Shared Living Becomes a Strategy: To make this a reality, 46% of U.S. Latinos would lower their housing expenses by living with family (such as grandparents, parents, or adult children) and splitting the rent or mortgage – a slightly higher rate than the general population (40%).
Family Care is the Financial Priority: But for many, financial commitment to family comes first. Over half (51%) of the U.S. Latino Sandwich Generation say financially providing for their parents, grandparents, or other family members is more of a priority than owning a home.
Reno vs. Refi or Relocate: Redfin
More than two in five (43%) Americans renovated their home in the last year, and another 33% plan to renovate in the next year.
Roughly two-thirds (65%) of homeowners who are recent renovators chose to upgrade their current home instead of moving. For homeowners who are planning to renovate in the next year, 71% say they’re remodeling instead of buying a new place.
Roughly a quarter (23%) of people who renovated their home in the last year spent between $10,000 and $20,000 on improvements; the next-most common price tags were $1,000 to $5,000 (21% of recent renovators) and $5,000 to $10,000 (20%). A sizable share (16%) spent between $20,000 and $50,000 on renovations.
Streamlining: Freddie Mac Launches “Conventional Small” Product
Freddie Mac Multifamily today announced the availability of an integrated, streamlined Conventional Small lending product under its core Conventional lending platform.
Loans under $10 million play a critical role in the affordable housing ecosystem, especially for workforce housing.
“Through Conventional Small, we remain committed to serving smaller, workforce housing properties around the country.” Meg McElgunn, VP Production/Sales
Foreclosure Activity Accelerates: ATTOM Data Q126 Foreclosure Report
Up 6% from Q425 and up 26% YoY.
“Foreclosure activity increased in the first quarter, with both starts and completed foreclosures posting solid year-over-year gains. While volumes remain below historical peaks, the continued rise, especially in starts and bank repossessions, suggests financial pressure may be building for some homeowners and could signal shifting housing market dynamics.” ATTOM CEO Rob Barber