Editor’s Note: The Mortgage Mix is RISMedia’s highlight reel of need-to-know mortgage-industry happenings. Watch for it every other Friday afternoon.
Midterm mortgage moves. With the midterm elections approaching fast, President Donald Trump signed an executive order Thursday aimed at cutting costs for title and mortgage insurance and manufactured housing.
Titled “Decreasing Housing Costs for the American People,” the order directs the Federal Housing Finance Agency (FHFA) to establish a pilot program “that periodically reviews single-family mortgage loans…for cancellation of mortgage insurance;” create a task force to increase the affordability of factory-built homes and form another program for waiving title insurance requirements for mortgage refinancings.
FHFA Director Bill Pulte said the directive by the president “will save thousands of dollars” for millions of Americans.
In a statement, MBA President and CEO Bob Broeksmit praised the effort, commenting, “MBA appreciates the Trump administration’s continued focus on lowering housing costs by reducing unnecessary regulatory burdens, streamlining mortgage processes, and promoting competition across the housing market.”
On the ROAD again…In a notice of proposed rulemaking this week, the Treasury Department revealed its plans for banning large, institutional investors from purchasing single-family homes, a provision in the 21st Century ROAD to Housing Act passed earlier this year.
The proposed regulations state that beginning Jan. 7, a large institutional investor is prohibited from purchasing a single-family home unless it falls under exceptions outlined in the ROAD to Housing Act. The legislation defines a large institutional investor as “an entity engaged in the business of investing in, owning, renting, managing, or holding single-family homes and has direct or indirect investment control over at least 350 such homes.” Exempt purchases include those for build-to-rent programs, renovate-to-rent programs and programs to boost homeownership, among others, according to a release by the Treasury Department.
Large investors in the U.S. have retreated since President Trump signed an executive order in January titled, “Stopping Wall Street From Competing With Main Street Homebuyers;” meanwhile small investors have hit the largest market share in 15 years.
What does it mean for lenders? According to National Mortgage News, it could result in more entry-level buyers having a fair shot at homeownership, but some remain skeptical.
“Institutional investors are the easy villain here, but I think we’re giving them too much credit for what’s wrong with the housing market,” said Lower CEO Dan Snyder in a recent article.
A wave of economic stressors steered investors into the safety of government bonds this week, driving the 10-year Treasury yield and mortgage rates down for the first time in two months.
Rates edged down from sitting two weeks at 7.40% to 7.32%, according to Freddie Mac’s benchmark weekly survey.
Realtor.com Senior Economist Anthony Smith cautioned that while the decrease offered a minor reprieve, a one-week dip is hardly a trend reversal.
“Mortgage rates edging down is welcome news, but we should not get carried away,” he said. “This fall’s surge saw rates climb 74 basis points in just over a month, so this week gives back barely a tenth of that, and the 10-year remains about 40 basis points above its late-August level even after backing off its recent highs.”
Buyers aren’t budging though. And neither are owners interested in refinancing. Loan application activity dropped again–5.3% this week, according to the Mortgage Bankers Association’s (MBA) weekly index, while its Refinance Index cooled 2%.
Joel Kan, MBA’s VP and deputy chief economist, said higher rates are pricing buyers out of the market. “It is very clear that the higher mortgage rate environment has cooled the housing market this fall.”
But sitting almost a full percentage point lower than the 30-year-fixed mortgage rate, adjustable rate mortgages (ARMs) are increasing in popularity, with Kan recently noting, “Borrowers continue to rely more on ARM loans to help lower their monthly payments. The ARM share at 10.5% was at its highest level since October 2025.”
Maxed out but property prioritized. A recent study by loan servicing company and lender Newrez shows that despite carrying credit card debt, homeowners are still confident in their own ability to meet their mortgage payments.
The report found that 51% of homeowners carry a credit card balance month-to-month. Despite 59% also saying that their debt negatively impacts their financial situation, the vast majority of respondents (89%) said that they are confident that they can keep up with their mortgage payments.
“More than eight in 10 homeowners who carry credit card debt agree that owning a home is one of the best ways to build wealth, and even more say homeownership offers a sense of stability,” said Newrez Chief Commercial Officer Leslie Gillin.
Out of the penalty box. National Mortgage Professional is reporting wholesale lender United Wholesale Mortgage (UWM) is waiving credit-score-based loan-level pricing adjustments on FHA and VA loans for borrowers with scores of 580 or higher.
According to the outlet, the opportunity for originators is to compare updated quotes for borrowers whose credit scores previously triggered additional costs, thereby improving the available rate-and-cost options without a change in the borrower’s credit profile.
“This means borrowers with scores at or above 580 won’t face the typical credit-based pricing penalties on these government loans,” explained a UWM spokesperson quoted in the article.
