While Robert Reffkin and Compass are touting their success while pushing for the repeal of the National Association of Realtors‘ (NAR) Clear Cooperation Policy, eXp Realty executives are claiming that the North American MLS system is helping to fuel their company’s strong international growth. “I was in Egypt last week with the team, and one of the most interesting things I noticed was the launch of Egypt MLS, which is being launched in conjunction with the government,” Glenn Sanford, the CEO of eXp World Holdings, told investors and analysts during the firm’s fourth-quarter and full year 2024 earnings call Thursday evening. “In the U.S., there is a big debate right now about private marketplaces, but the data shows that sellers generally can sell for a shorter period of time and for a higher dollar amount because of the MLS.” Sanford said that eXp’s own operation in Egypt is being set up in conjunction with an eXp agent who works in the U.S. but is originally from Egypt.“These findings really helped him validate the value of an MLS with his Middle Eastern counterparts,” Sanford said of the data. “Internationally, things are generally where they were in the U.S. 30 or 40 years ago. It is like real estate met the internet without the benefit of the MLS.”According to Sanford, this has resulted in a landscape that is populated by disparate listing portals that are all lobbying for advertising and promotions. They charge agents a significant amount of money for these, with little to no interest in the quality of the data they provide consumers. “So, what we’re seeing is, eXp is bringing kind of a professionalizing influence, and we’re being recognized as the company bringing this new way of working to other parts of the world,” Sanford said. But while eXp and its executives may be advocating for NAR’s Clear Cooperation Policy (CCP) to remain in place, eXp Realty CEO Leo Pareja noted that if the U.S. housing market “goes backward in time 50 years” to a model that relies on private listing networks, his firm — with its 80,000-plus agents and transaction count of more than 400,000 in 2024 — is well positioned to succeed. “We have more agents and we do more unit transactions than anybody else by a huge margin. We are, from a technology stack, completely operational and can do this at scale,” Pareja said on the earnings call. “We prefer to operate within the framework that exists today because we think it’s the best thing for the consumer, but if we go back in time, we will have an unfair advantage on everybody.” Looking ahead, eXp executives are hoping that their knowledge and usage of the North American MLS model under CCP will continue to fuel international growth. In 2024, the company reported a 63% annual increase in international revenue. The firm is now operating in 24 countries, with launches in Peru, Egypt and Türkiye coming online shortly. “We want to be in 60-plus countries in the next five years,” Sanford declared. “My goal is to invest in international and get us to scale, so that when we have these conversations five years from now, it will be the largest profit driver for the country, because we’ll have more than 50% of agents on the international side of the house.” But while growth is the name of the game at eXp, executives are focused on bringing in and retaining productive agents. While the firm’s count of 82,980 agents at the end of 2024 is impressive, it is down 5% annually.According to Pareja, 90% of the domestic agents who left the company recorded seven or fewer transactions in the past year, with 50% of these agents reporting no sales.“We’ve really focused on maintaining and attracting the highest productive individuals as well as team leaders,” Pareja said. “So, to me, 2025 looks like a win if our focus continues to be on productive agents.”Known previously for its recruiting efforts and revenue share model, Pareja said he wants the brokerage to be known as the place “where pros go to grow.” “I really describe the company as a platform that allows real estate entrepreneurs to build whatever size dream they want,” Pareja said. “Our focus is on operational excellence followed with world-class technology partnerships and really continuing to improve the value stack. So, in 2025, we’re just going to double down and actually increase our investments and what’s working for long-term growth.”But while eXp executives were pleased with the growth of their company, which recorded a 7% annual increase in revenue to $4.6 billion in 2024, eXp still failed to turn a profit. The company lost $21.3 million last year, more than double its $9.5 million net loss in 2023. Additionally, the amount of cash and cash equivalents the company has on hand also dropped from $125.9 million to $113.6 million during the year.But eXp executives are not fazed by this news. “​​On the international side, we’re definitely focused on opening up more countries, and that does add additional cost components to the overall mix, but that has offsetting benefits — two or three years out of revenues and then getting to scale,” Sanford said. “Now, eXp North America is the driving engine that is allowing us to expand around the world, and it is the profit center for our company right now.”

A U.S. District Court judge in Washington, D.C., cleared the way for mass layoffs of federal employees — including at the Consumer Financial Protection Bureau (CFPB) and the Department of Veterans Affairs (VA) — when he ruled Thursday that four labor unions that filed suit against the Trump administration needed to file a complaint with the Federal Labor Relations Authority instead.This is one of four lawsuits filed by the National Treasury Employees Union agains the Trump administration since Jan. 20. Last week, a judge blocked layoffs at the CFPB in one of the other cases until a hearing set for March 3.The ruling on Thursday sought to block the Trump administration from firing employees at eight federal agencies, including the CFPB and VA, following a raft of executive orders. According to reporting by Reuters, U.S. District Court Judge Christopher Cooper in Washington, D.C., said he did not have the power to hear the case.The mass layoffs come as President Donald Trump has tasked Elon Musk and his unofficial Department of Government Efficiency (DOGE) with slashing the size of the federal government. The CFPB has been a particular target, with a series of interim directors shutting down much of the bureau’s functions and closing its headquarters.More recently, former Federal Housing Finance Agency (FHFA) Director Mark Calabria was tapped for an interim role at the bureau, filling in while Trump’s pick for permanent director, Jonathan McKernan, awaits Senate confirmation. Calabria is also reportedly heading up an effort by Trump to bring all independent federal agencies under the control of the White House Office of Management and Budget (OMB).Thousands of federal employees have already received notice of layoffs or have been offered buyouts. The Trump administration announced it was cutting 50% of staff at the Department of Housing and Urban Development (HUD), and other reports claim that these cuts will include up to 40% of the staffers at the Federal Housing Administration (FHA).A former HUD official who spoke with HousingWire and was granted anonymity to discuss sensitive plans still taking shape said that the layoffs could affect key programs that mortgage lenders and investors rely on. These include project-based rental assistance, Section 202 programs for seniors and even financial losses to the national mortgage insurance fund.Read more:Updated list of all Trump actions that affect housingA timeline of what’s happening at the CFPB under Trump

The Phoenix Association of Realtors (PAR) has blinked first in its game of chicken with the National Association of Realtors (NAR).The groups announced Thursday that they’ve come to an agreement that will pare down PAR’s membership option to agents who are not Realtors, bringing PAR into compliance with NAR’s bylaws.The deal eliminates PAR’s MLS Choice membership option that allowed agents to become members of PAR without becoming members of the Arizona Association of Realtors or NAR while also having access to the Arizona Regional MLS (ARMLS).In its place is “non-member MLS access” in which PAR will continue to offer ARMLS access to non-Realtors, as has been the case since 1996, and to also provide unspecified “products and services.” “This matter was never about MLS access, and NAR policy on this has not changed,” NAR said in a statement. “ARMLS is and has long been open to non-Realtors. MLSs have local discretion to determine individual participation requirements based on their market and applicable law.“We are pleased to have reached this resolution, which protects the rigorous standards of the Realtor brand. We look forward to continuing to work with Phoenix Realtors in service of Realtors and our shared mission.”Agents who take the non-member MLS access option are not allowed to use the Realtor name and are not members of local, state or national Realtor associations. They will not receive benefits related to these memberships.At the heart of the dispute is NAR’s requirement that Realtors be members of their local, state and national Realtor associations, commonly known as the “three-way agreement.” NAR has come under increasing fire of late because of the rule, which critics say is anticompetitive.In August 2024, a collection of Michigan real estate brokers filed an antitrust lawsuit against NAR over the rule, and brokers in other states have done the same. Defendants in the cases — Realtors associations and MLSs — have filed motions to dismiss.Late last year, PAR announced that it would allow non-Realtors to access ARMLS beginning in 2025. In response, NAR sent PAR a cease-and-desist letter. PAR balked, and NAR initiated the process of revoking PAR’s charter.“Phoenix Realtors remains committed to the Realtors brand, the three-way agreement, and the benefits made possible by the relationship between the Phoenix association, Arizona Association of Realtors and NAR,” PAR said in a statement. “This outcome supports both Phoenix Realtors and NAR’s ultimate goal of helping Realtors members succeed and the real estate industry at large thrive.”The announcement isn’t likely to end the debate over the three-way agreement. The Austin Board of Realtors (ABoR) made a similar move, announcing recently that it will allow non-Realtors to access Unlock MLS beginning on June 1.

The Attorney General of Massachusetts has filed suit against home equity contract provider Hometap, alleging that the company “pervasively and systematically violated the state’s consumer protection laws, including mortgage and foreclosure prevention laws, putting financially vulnerable homeowners at high risk of losing their homes.”The suit goes on to claim that Hometap’s primary product offerings — which give the company a share of a client’s future home value in exchange for what it calls “debt-free cash” — constitutes an offer of “illegal reverse mortgages that fail to comply with state consumer protection laws.”The allegation echoes criticisms levied against the home equity contract industry by other states and the Consumer Financial Protection Bureau (CFPB). For its part, Hometap told HousingWire’s Reverse Mortgage Daily (RMD) that its efforts to engage with the attorney general’s office have “not been reciprocated,” calling the lawsuit “unfounded” and “meritless.”The lawsuitAttorney General Andrea Joy Campbell filed the lawsuit this week in Suffolk County Superior Court. The suit alleges that Hometap has concealed the “high cost and nature” of its home equity contract products, which are also known as home equity investments (HEIs).“Amidst a growing affordability crisis, our lawsuit alleges that Hometap deliberately preyed upon financially vulnerable homeowners for profit, stripping them of their hard-earned home equity and putting them at unreasonably high risk of foreclosure,” Campbell said in an announcement of the filing.“Our lawsuit seeks to not only hold Hometap accountable for its unlawful practices, but also put other companies on notice that my office will continually seek to protect communities from predatory business practices.”Among the core issues, the AG alleges that Hometap charges “unlawfully high interest” and offers “fast cash” to its clients without “assessing financial factors such as income, employment, and assets other than their home.”The company “deliberately markets its product to ‘house rich, cash poor’ homeowners that have substantial home equity but insufficient income or other assets, including the elderly, retirees, those with low credit scores, and those with unpaid credit cards, student loans, or other debt,” Campbell alleges.‘Illegal reverse mortgage’ allegationHome equity contract products do not have a minimum age requirement, a chief difference between these offerings and reverse mortgages. In the U.S., the Federal Housing Administration (FHA)’s Home Equity Conversion Mortgage (HECM) program features a minimum age requirement of 62. Proprietary products offered directly by reverse mortgage lenders have age requirements that, in some cases, go down to 55.While Hometap asserts that its product offerings are an “investment” and do not constitute a loan, Campbell’s office instead contends that Hometap offers an “unlawful reverse mortgage,” which she says is supported by the product’s features.“A reverse mortgage is one or more advances of money secured only by a borrower’s primary residence, based on the property’s equity or future appreciation, that does not require any payments until the loan becomes due, all of which the [attorney general’s office (AGO)] asserts are features of Hometap’s HEI,” the office stated.Because of that, Hometap has failed to comply with Massachusetts requirements that govern reverse mortgage activity in the state, the office alleges. These requirements include (but are not limited to) reserving reverse mortgages for those at least 60 years old, a seven-day cancellation period and a third-party counseling requirement.“The AGO asserts that Hometap’s conduct deprives consumers of important protections against losing their homes, because the only lawful reverse mortgage loans available in the Commonwealth become due only when a borrower moves out, sells the home, defaults, or dies,” the office explained.The suit goes on to allege that Hometap has engaged in “deceptive” marketing practices, including “pervasively obscur[ing] its devaluation of homeowners’ equity throughout its marketing materials.” The AGO claims that “the product is actually far more costly to homeowners than its marketing suggests.”Hometap response, recent HEI scrutinyRMD reached out to Hometap for comment on the lawsuit.“Hometap firmly believes in the integrity of our products and the financial flexibility they provide to Massachusetts homeowners,” the company said in a statement. “We have pursued every possible avenue to engage in constructive dialogue with the Massachusetts attorney general’s office. Unfortunately, those efforts have not been reciprocated, and we believe they are pursuing an unfounded lawsuit predicated on meritless claims.”The home equity contract industry has been under intensifying scrutiny for the past few months. A lawsuit against another provider in Washington state similarly alleges that these products constitute a “a reverse mortgage stripped of the essential safeguards meant to protect homeowners,” according to perspective from an attorney representing the plaintiffs in that case.In January, the CFPB under the leadership of former director Rohit Chopra published a report that takes a closer look at home equity contracts and repeatedly compares their product features to reverse mortgages.The bureau also filed an amicus brief in a New Jersey lawsuit, stating its position that a home equity contract counts as a residential mortgage, and it often aimed to corroborate that perspective with comparisons to reverse mortgages.

While affordability challenges persist, Gen Z is proving resilient, carving out traditional and non-traditional paths to homeownership — particularly in the Midwest. New data from LendingTree and CoreLogic highlights the struggles and successes of young buyers in today’s real estate landscape.Young buyers still face an uphill battleAccording to a LendingTree analysis of anonymized credit reports, only 3.1 % of Americans under 30 currently hold a mortgage in the nation’s 50 largest metro areas. The disparity in homeownership rates across cities underscores affordability concerns.In Nashville, Tenn., 9.4% of under-30 residents have a mortgage, while in high-cost areas like San Jose, Calif., that figure drops to just 0.8%.Home prices and mortgage rates have surged since 2021, putting additional pressure on young buyers.Despite making up 20.3 % of the adult population in the nation’s 50 largest metros, people under 30 account for just 4.7% of mortgage holders. The highest concentrations of young mortgage holders are in Indianapolis (10.2%), Salt Lake City (9.4%), and Cincinnati (8.9%). Meanwhile, metros like New Orleans, Boston, and San Jose report less than 2.5% of mortgage holders under 30.Generational home-buying divideAnother striking conclusion from LendingTree is the stark difference in home values sought by younger buyers compared to older buyers. On average, under-30 buyers looked at homes priced at $92,332 — 74.9% lower than the $367,681 average sought by buyers 30 and older.“We’re currently trapped in a vicious cycle,” said Mark Bizzarro, CEO at New York-based Bizzarro Real Estate Agency. “Many people bought or refinanced at the bottom of the market after the 2006 subprime mortgage collapse, including boomers who are now ready to retire. Usually, retirees downsize and move to smaller homes or senior-living residences.“But many boomers are aging in place, not wanting to pay today’s interest rates to move into a smaller home. That means the larger homes they live in, which are ideal for raising families, aren’t coming on the market like they usually would. As older people begin to leave their larger homes, the housing shortage should ease for younger Gen Z buyers.”The biggest home price gaps between Gen Z and older buyers are in:Providence, R.I.: 88.0% lower than older buyersCharlotte, N.C.: 86.1% lowerSan Francisco: 84.1% lowerThe smallest price gaps occur in Buffalo, N.Y. (58.0% lower), Milwaukee (58.5% lower), and Salt Lake City (60.9% lower).“Gen Z will spend an average of $145,000 on rent by age 30,” said Bizzarro. “In expensive places like New York or San Francisco, that average jumps to over a quarter-million dollars. Where it gets interesting is that if they buy, Gen Z will spend $165,000 on housing by age 30, including mortgage, insurance, taxes and other expenses.“The difference is that in 15 or 30 years, the homeowner will have an asset they can sell or keep living in so they don’t have a monthly housing payment. The renter, on the other hand, will have to keep spending money and have nothing to show for it.”Midwest leads Gen Z homeownership growthAmid high costs, the Midwest has emerged as a stronghold for Gen Z homebuyers. According to CoreLogic’s Loan Application Database, Gen Z accounted for 13% of home purchase applications in 2024, a 3% increase from 2023.Cities like Des Moines, Iowa, and Omaha, Neb., saw Gen Z make up 21% of home purchase applications, the highest in the nation. Other top metros for young buyers include Youngstown, Ohio (20%), Dayton, Ohio (20%), and Grand Rapids, Mich. (20%).By contrast, Gen Z representation remains low in expensive coastal metros. In California, San Jose and San Francisco reported the lowest share of Gen Z homebuyers at just 4%, followed by Oxnard (5%). Los Angeles, urban Honolulu, and Bridgeport, Conn., each saw Gen Z account for only 6% of home purchase applications.Non-traditional homebuying strategiesBeyond location, co-ownership is becoming increasingly common among young buyers. While many Gen Zers purchase homes as single applicants, nearly 45 b % had co-applicants in 2024, according to CoreLogic.These co-buyers often include friends or family members, with some parents co-signing loans.“Gen Z is becoming more excited about home buying as renting has become more expensive,” said Bizzarro. “A lot of them are beginning to realize they’re much better off paying their own mortgage than someone else’s. Agents need to expose buyers to grant programs and other money-saving opportunities. There are lots of fantastic city, state and federal programs out there. Many banks are also bringing back closing credits for purchasers. Experienced agents will get Gen Z buyers tapped into the free money that’s available.”Looking aheadDespite economic obstacles, Gen Z’s presence in the housing market is expected to grow in the coming years. With interest rates remaining high and inventory limited, affordability will continue to be a challenge. However, experts believe demand will persist in budget-friendly regions.“Here in New York City and other large metro areas, the bottom line is that building or converting existing buildings to make new homes is exactly what we need,” Bizzarro said. “However, there’s not much land to build on anymore. We have to get more creative.“A lot of the new homebuilding happening now is on land that’s been rezoned. We need to continue projects like that and expand on them. Governments need to keep looking for more areas to rezone. Several places in New York City aren’t zoned for residential, and if we rezoned them, we could build new housing to help ease demand.”

While the share of first-time homebuyers has declined across the country, Black homebuyers are bucking the trend and showing resilience in an increasingly difficult housing market.A recent Zillow survey found that 62% of all Black homebuyers in 2024 were first-timers, the same level as the previous year. In contrast, first-time buyers accounted for only 44% of the market, down from 50% in 2023.The rise comes after years of fluctuation. In 2019, 47% of Black homebuyers were purchasing for the first time, a figure that plunged to 35% in 2021 after the COVID-19 pandemic. The share rebounded to 55% in 2022 and reached a record 63% in 2023, outpacing other racial groups and the broader housing market.“Despite affordability challenges, Black first-time home buyers are demonstrating a strong commitment to homeownership, a key driver of generational wealth,” Zillow senior economist Orphe Divounguy said in a statement. “While income disparities and saving difficulties continue to delay home buying for Black households, programs like down payment assistance, first-time buyer tax credits and flexible lending options have helped increase access.”While more Black Americans are becoming homeowners, affordability remains a significant hurdle. Home prices have continued to rise in many metropolitan areas, and strict zoning laws in some regions further limit the availability of affordable homes. These factors disproportionately impact lower-income households and Black buyers in particular, Zillow said.A critical measure of affordability is the percentage of income spent on housing costs. Black households earn a median income of $54,896. This significantly below the $95,213 needed to purchase the typical U.S. home in 2024 without being cost-burdened — i.e., spending more than 30% of income on housing.As a result, only 17.6% of listings are affordable for a typical Black household, compared to 28.2% for Hispanic, 37.9% for white and 56.8% for Asian households.Certain cities remain more accessible for Black homebuyers.St. Louis ranks as the most affordable market for typical Black households, with 30.3% of listings within reach. Birmingham, Alabama (29.5%) and Memphis, Tennessee (29.0%) follow closely behind. Other affordable cities, according to Zillow, include Detroit (28.6%), Baltimore (25.8%), Pittsburgh (23.7%), Cleveland (22.8%), Indianapolis (22%), Atlanta (19.2%) and Oklahoma City (18.8%).Conversely, some of the least affordable housing markets for Black buyers are on the West Coast, particularly in California and Seattle, where home prices have surged beyond reach for many median-income households.Zillow data also points to the rise of remote work, which is providing some Black renters with new opportunities to become homeowners by allowing them to relocate to more affordable regions.Zillow research indicates that Black renters are 29% more likely than others to be in a position where remote work could make homeownership possible. But even with increased flexibility, high housing costs remain a barrier. The decline in affordable listings for Black households has been steeper than for other racial groups. Still, despite these obstacles, the Black homeownership rate increased more between 2019 and 2024 than the rate for whites, and only Hispanic households experienced a higher rate of growth, Zillow reported.

U.S. mortgage originations are projected to grow moderately in 2025, despite continued economic uncertainty and elevated interest rates, according to TransUnion’s newly released credit insights in the fourth quarter of 2024.After years of sluggish origination growth due to inflation, high borrowing costs, and a tight housing market, mortgage originations are expected to rise to 5.7 million in 2025 from approximately 4.6 million in 2024, with the bulk coming from purchase loans.“Consumers continue to live their lives—people are continuing to buy and sell their homes,” said Satyan Merchant, TransUnion SVP of Autos and Mortgage. “Even in 2024, despite higher interest rates, we saw some amount of refinance activity, and that will continue in 2025, whether it’s people changing terms, refinancing from an adjusted rate mortgage to a fixed-rate loan, or moving from [FHA] to [GSE] loans.”Market trends and delinquenciesPurchase originations accounted for 82% of all mortgage originations in Q3 2024, the most recent period with available data. That’s significantly higher than the pre-pandemic five-year average of 68%. Refinancing activity also surged, with rate and term refinance originations jumping 174% year-over-year. Homeowners who secured mortgages at higher rates in previous quarters have increasingly taken advantage of the lowest interest rates in two years.A swing to a four-to-one ratio of purchase versus refinance is primarily driven by the interest rate environment, Merchant added. “It’s been a long time since the industry has been in a higher interest rate environment like this,” he said. Rising non-mortgage debt among homeowners—up 7% year-over-year—could create financial strain in the coming quarters, the report said. FHA borrowers are the most likely to be under duress.“Year-over-year, we are seeing an uptick in expected mortgage delinquencies,” Merchant said. “However, we have to remember that we’re coming off historically low delinquency rates. Even with recent increases, we’re still at very low historical standards.”Lender caution, borrower behaviorLender caution remains a defining characteristic of the current mortgage landscape. While origination volumes are improving, underwriting standards have tightened in response to ongoing macroeconomic uncertainty. Borrowers are adjusting as well, with an increasing number opting for alternative mortgage products, including adjustable-rate mortgages, to navigate affordability constraints.Merchant said lenders with strong mortgage broker networks should fare well in 2025.“Consumers going through a purchase cycle often seek out experts for consultation, and in many cases, brokers help them through that process,” he said. “Some lenders that focus on the broker channel tend to do better in a purchase market.“We don’t have statistical correlation data on whether a higher purchase market directly leads to more broker activity, but we do know that lenders with strong broker networks are seeing success in the current environment.”The broader consumer credit market is showing signs of stabilization, with mortgage and auto originations seeing year-over-year increases. Meanwhile, credit card originations continued to decline in Q3 2024, though at a slower rate than in previous quarters. Delinquency rates across different credit products remain mixed, with credit cards showing the first year-over-year decline in serious delinquency rates since 2020, according to TransUnion. Housing market outlookDespite some positive signs, the housing market still faces significant affordability challenges. Elevated home prices and limited inventory continue to be barriers for many prospective buyers, particularly younger and first-time buyers. While mortgage originations are expected to increase, overall demand remains suppressed compared to historical norms.“(Buyers) swallow the pill and take the higher interest rate when they purchase their home, but that also means they’re in a population that will be in the market to refinance if rates drop—even if only moderately, to around 6% or 6.5%,” said Merchant. “Housing inventory continues to be a challenge across the country, and affordability remains a major issue. On the new home side, some builders are offering incentive rates or paying down points for buyers. That’s helping drive some purchase originations despite the affordability constraints.The Federal Reserve’s monetary policy decisions in 2025 will play a crucial role in determining the trajectory of mortgage rates. If rate cuts are delayed, affordability concerns may persist, potentially dampening the housing market’s recovery, Merchant added. This year “is shaping up to be a year of stability,” he said. “Lenders’ number one wish is lower interest rates, but number two is stable interest rates—not increasing rates. The Fed’s signals suggest nothing dramatic in either direction, which could provide a more predictable environment for originations.”

The Housing Authority of the City of Milwaukee (HACM), an independent agency in Wisconsin’s largest city that was already embattled following the discovery of millions of dollars in misappropriated federal funds, is facing further financial scrutiny this week after the city’s comptroller said it is owed more than $5 million in reimbursements to a city department. This is according to reporting by Wisconsin Public Radio (WPR).City officials said that HACM has reportedly failed to reimburse the city for employees housed in its Department of City Development. Some staff members who perform HACM functions are on that department’s staff under the terms of an agreement with the city, and the total of employees under this arrangement was as much as 150.Now, that figure has dropped severely to encompass only four employees, according to comptroller Bill Christianson. But at a meeting of the city’s Steering and Rules Committee held on Feb. 17, Christianson said HACM has failed to make any reimbursement payments to the city for these employees since 2021, with an estimated $3.6 million owed by HACM to the city for salaries and benefits.“It was a surprise, not only to myself, but several of my colleagues who weren’t sure […] how HACM owed the city that amount of money and for what,” said Milwaukee Common Council President Jose Perez according to WPR. “We wanted to get to the bottom of it.”The comptroller is investigating how the amount owed could have been allowed to run up to such a high figure, saying it was not immediately clear to him why the affected positions were “allowed to remain in the city’s budget.”Christianson added that he thinks the city should designate a department that would have responsibility over the financial arrangements between the city and HACM to ensure the housing authority’s compliance in paying what is owed.HACM itself is assessing how to move forward, according to a statement issued to WPR.“HACM’s new leadership team will conduct a thorough review and collaborate with the city to assess its current financial obligations,” it said. “Moving forward, HACM is committed to establishing a more transparent and efficient process to ensure financial clarity and accountability.”But the reportedly owed money doesn’t end there. Christianson added that HACM owes the city another $1 million from its Payment In Lieu of Taxes (PILOT) program, which is designed “for tax-exempt properties in Milwaukee that agree to a voluntary payment,” WPR said. On top of that, another $500,000 is owed to the city for legal, internet and data services the city provided to HACM.That brings the total money the city says it is owed by HACM to $5.1 million.Earlier this month, the agency’s new chief financial officer reportedly identified as much as $2.8 million in misappropriated federal funds that he said were used inappropriately by his predecessors. The source of the financial discrepancy reportedly came from the misallocation of funds tied to U.S. Department of Housing and Urban Development (HUD)’s Housing Choice Voucher (HCV) program for rental assistance.HACM addressed the misallocation in an announcement where it said it has partnered with HUD on a recovery plan. HACM is also in the middle of a search for a new director after its previous leader resigned effective Jan. 1, 2025.

The Trump administration wants to improve housing affordability and availability, as emphasized by an executive order signed by the president on his first day back in office. The order called upon the heads of all executive departments and agencies “to deliver emergency price relief, consistent with applicable law, to the American people.” Across the housing industry, it is widely acknowledged that there is not much the federal government can do to bring down housing costs, as many of the regulatory burdens that exist are on the state and local levels. But trade groups are getting creative in coming up with possible solutions that are within the scope of the federal government. While the Mortgage Bankers Association (MBA) is vocally advocating for a “reasonable reduction” in mortgage insurance premiums on Federal Housing Administration (FHA) loans, the National Association of Home Builders (NAHB) is now pushing for a reduction in permitting requirements, which it argues drives up housing costs. Data published in 2021 by the NAHB found that regulatory costs at the federal, state and local levels accounted for 24% of the final sales price of a new single-family home. Additionally, the trade group reported in 2024 that various upfront costs — including building permits, impact fees, water and sewer fees, and architecture and engineering approvals — made up 7.6% of the cost of constructing a home. Since 1998, building permit fees have doubled from 0.9% to 1.8% of total construction costs. The average newly constructed single-family home had a sales price of $665,298 last year. The trade group said this is the highest average sales price in the survey’s history, without accounting for inflation.“The permits and things are actually not a huge fraction of the overall cost of building a home, but the zoning and the regulations do make it prohibitive to build in some places, which contributes to the overall housing inventory crisis,” said Chen Zhao, the head of economics research at Redfin. “It is pretty straightforward. If we bring down the regulatory burden for building, that should obviously increase the housing supply, which would bring down prices.” Although most of the permitting and regulatory requirements are at the local or state level, the NAHB believes there are some meaningful changes the federal government could make to drive down the permitting burdens faced by builders and buyers of new homes.In prepared testimony given this week to the Senate Environment and Public Works Committee, NAHB Chairman Carl Harris said that “most land developers have been forced to step away from particular parcels of land due to the uncertainty of being able to obtain the necessary permits.”According to Harris, one of the biggest permitting roadblocks is the Clean Water Act. He said the law can be unclear about which parts of a land parcel may be considered “waters of the United States” (WOTUS), which requires a federal wetland permit before building can begin.“Obtaining a CWA Section 404 permit takes upwards of one year, and completing an Endangered Species Act (ESA) consultation when required can take several more,” Harris said. “When considering these implications, it’s clear why we need to make the unwieldy permitting process more straightforward for home builders.”The NAHB said it feels that the Environmental Protection Agency (EPA) and the Army Corps of Engineers have “blatantly overstepped their federal authority regarding the jurisdictional waters of the U.S.”Due to this, the NAHB is asking Congress to ensure that the agencies respond to requests about CWA Section 404 permits in a timely manner. It is also asking for assurance that regulatory changes to the definition of WOTUS do not invalidate prior approved jurisdictional determinations.Additionally, the NAHB is asking that the U.S. Fish and Wildlife Service or the National Oceanic and Atmospheric Administration (NOAA) act faster when builders contact them about a project that potentially impacts endangered species. “This process usually results in permitting delays, project reconfiguration, and possibly the loss of buildable lots,” the NAHB said in a statement. The strain that building permit delays puts on builders — as well as homeowners and prospective buyers — has been top of mind lately for many due to the wildfires in Los Angeles. But, as illustrated by the experiences of those looking to rebuild in LA, much of the regulatory burden is at the local level. In January, LA Mayor Karen Bass issued an executive order that directed city agencies to expedite the building permit process in wildfire-affected areas by having discretionary review procedures waived, with a goal of getting permit approvals within 30 days. According to permit management software firm PermitFlow, it typically takes two to six months to obtain a permit for a large construction project in LA.In inventory-strapped New Hampshire, even as the governor has yet to issue any executive orders on the matter, there are some state-led initiatives focused on reducing the barriers to new construction. Under one InvestNH Housing program, ​​municipalities receive $10,000 per unit to quickly issue permits for multifamily projects. Another program helps communities and developers pay for the costs to renovate or tear down dilapidated structures and replace them with housing.Unfortunately for those looking to make a difference at the federal level through the Trump administration’s executive order, solutions such as these are not the answer. But Zhao does see a way that the federal government could push forward some initiatives at the state and local levels.“I think the federal government could try to lean on local governments or create incentives for local governments to allow denser housing,” Zhao said. “I think that could make a huge difference in our coastal metro areas where we are seeing the greatest housing shortages.”Despite the challenges, the NAHB is determined to push forward with these reforms.“​​Enacting common sense regulatory reforms that will make compliance more efficient and less onerous will help home builders to better safeguard the environment and expand the availability of attainable, affordable housing for all Americans,” Harris said.

The HousingWire award spotlight series highlights the individuals and organizations that have been recognized through our Editors’ Choice Awards. Nominations for HousingWire’s 2025 Rising Stars Award are open now through February 28, 2025. Click here to nominate.The mortgage industry is undergoing rapid transformation, with rising competition pushing lenders to enhance borrower experiences and embrace new technologies. At the forefront of this evolution are young leaders like Melinda Maloney, who are driving meaningful change through innovation and strategic thinking. As Assistant Vice President of Business Line and Field Marketing at ServiceLink and a 2023 HousingWire Rising Star, Maloney has distinguished herself by bridging the gap between lenders and the technology they need to streamline the mortgage process. From her leadership journey to her insights on industry trends, Maloney exemplifies the qualities that the Rising Stars award celebrates. As nominations for the 2025 Rising Stars open, HousingWire sat down with Maloney to discuss her career path, advice for future leaders, and the innovations shaping the future of housing.HousingWire: Looking back at your career journey, what key moments or decisions helped you rise as a leader in the industry?Melinda Maloney: Volunteering at several nonprofits has helped me rise as a leader in the housing industry by allowing me to connect with and learn from experienced leaders across a wide spectrum of industries and apply the skills that I learn from them in my role. I serve as vice president of two boards – Kelly Strayhorn Theater and Respect Together – and am a member of United Way’s Women United of Southeastern Michigan. This is a great opportunity to provide meaningful contributions to these essential organizations, and I’m also learning to be a better leader from those around me.Additionally, my manager, Caitlin Green, has created a seat at the table for me more times than I can count. She’s given me many opportunities to participate in strategic discussions with other leaders at ServiceLink, moderate webinars, attend industry events and has nominated me for professional development programs, like ServiceLink’s Leadership Academy. Her mentorship has helped me rise as a leader in the housing industryHousingWire: The Rising Stars award recognizes young professionals making a major impact. What advice would you give to the next generation of industry leaders who are looking to stand out and drive meaningful change?Melinda Maloney: We’re all new to this industry at some point, and my advice is to embrace that. An outsider’s perspective is valuable! Know what unique point of view you bring to the table – and use it to challenge the status quo and elevate opportunities for your organization to evolve. At the same time, knowing when to ask for help and advice is important. Building a broad network of peers and mentors with whom you can discuss challenges, test ideas and ask questions will help you find opportunities to stand out and drive meaningful change.HousingWire: The mortgage and real estate industries are constantly evolving—what innovations or trends are you most excited about, and how do you see them shaping the future?Melinda Maloney: It’s no secret that today’s real estate lending market is highly competitive. In this challenging environment, lenders have had to find opportunities to stand out and because of this necessity, we’ve seen a shift in focus to hone in on the borrower experience throughout the origination process. This emphasis on the borrower means lenders are looking to optimize the few face-to-face (whether in person or virtual!) touch points of the origination process – like appraisal and closing – and realizing that those interactions are opportunities for them to stand out. Our annual ServiceLink State of Homebuying Report consistently shows that borrowers want more transparency, a speedier mortgage process and less paperwork, and we’re seeing lenders focus on delivering. Lenders are adopting borrower-centric technology, like remote online notarization and instant appraisal and closing scheduling. In the near-term, I think this focus will help lenders to stand out in a competitive market and also encourage them to adopt innovative technologies that accelerate their origination process, such as automated title. Both borrowers and lenders benefit from faster closing timelines, and I’m excited to see just how much we can shrink them.Click here to nominate a 2025 Rising Star.

Mark Calabria is the latest addition to the leadership roster at the Consumer Financial Protection Bureau (CFPB), despite the bureau’s near shutdown. Calabria, director of the FHFA in President Trump’s first term, will be serving a key role at the CFPB until Jonathan McKernan is confirmed as the permanent director. That’s according to tweets from Andrew Ackerman of the Washington Post and Brendan Petersen from Punchbowl News on Wednesday afternoon.Ackerman tweeted that Calabria started today at the Office of Management and Budget (OMB) and that “He will be detailed to the Consumer Financial Protection Bureau until Jonathan McKernan is confirmed as the bureau’s new director.”Petersen confirmed the news, tweeting that Calabria “told an audience at the Exchequer Club today he will be detailed to the Consumer Financial Protection Bureau as part of OMB.”The addition of Calabria caps off several volatile weeks at the bureau. Trump fired CFPB Director Rohit Chopra on Feb. 1 and named Treasury Secretary Scott Bessent as interim director on Feb. 3. Five days later, Russell Vought took over that role and ordered staff to stop work, closing the headquarters and trying to shut off its funding. On Feb. 11, Trump named McKernan to the director role.Calabria’s OMB roleCalabria is currently senior advisor at the libertarian Cato Institute. In addition to his previous role at FHFA, Calabria also served as chief economist to Vice President Mike Pence, as senior professional staff for the Senate Committee on Banking, Housing and Urban Affairs, and as deputy assistant secretary for regulatory affairs at HUD.Calabria’s interim stint at CFPB could be part of a much bigger role he will play at OMB. Ackerman also tweeted that he had “heard [Calabria] has been charged with bringing all the independent agencies into the OMB.” That’s a reference to Trump’s executive order on Tuesday that seeks to “rein in” all the independent agencies under his more direct control.The executive order lists the Federal Trade Commission (FTC), Federal Communications Commission (FCC), Securities and Exchange Commission (SEC) and the Federal Reserve. “Now they will no longer impose rules on the American people without oversight or accountability,” the order reads.What Calabria envisions for the CFPBIn an interview with HousingWire Senior Reporter Flavia Nunes in July, Calabria spoke about how the CFPB might change under a Trump administration.“I don’t think the CFPB is going away — as much as that would be nice. But I do think you are going to see a difference in the stance, which will matter in the mortgage industry, in terms of enforcement and obligations. The Republicans’ approach to the CFPB is to say that there are wrongdoers; we will go after the bad guys. This [Biden] administration says the same thing, and that’s where the overlap is. The difference is this [Biden] administration also has the view that we’re going to use the CFPB to pick winners and losers to redistribute to our friends and engage in a lot of social engineering. And that’s a much different approach from just going after the bad guys,” Calabria said.“Writ large on compliance and regulatory costs, Trump’s CFPB will be considerably lower. Post Dodd-Frank, one of the problems has been that it costs so much more to originate loans. A tremendous amount of that is because of regulatory costs. It’s not like the bad guys get to run wild; you’d still see enforcement.”Bureau faces lawsuitsThe CFPB is currently facing two lawsuits over the Trump administration’s actions. A lawsuit brought by the City of Baltimore and the Economic Action Maryland Fund (EAMF) that was filed on Feb. 12 has stalled Vought’s efforts to cut off the bureau’s funding. On Feb. 13, the plaintiffs and defendants in the suit filed a joint motion stating that they’ve agreed to a preliminary injunction on any efforts by the CFPB or Vought to disrupt funding or shut down the department. The injunction expires on Feb. 28.In a separate lawsuit filed late last week, a federal district court judge temporarily prohibited the Bureau from laying off more staff until March 3 at the earliest. District Court Judge Amy Berman Jackson also barred the CFPB from “deleting” or “removing” data and from transferring money in its reserve fund.

The newest senior leaders of the Consumer Financial Protection Bureau (CFPB) might not be anticipating long-term employment.Jeffrey Clark was appointed as senior advisor to Mark Paoletta, the CFPB’s new chief legal officer. Both had a tenure at the Center for Renewing America, a conservative think-tank founded by Russell Vought that has advocated for the agency to be dissolved. American Banker first reported the news of Clark’s appointment over the weekend.Clark was a former acting assistant attorney general in the first Trump administration’s Department of Justice’s who allegedly helped Trump overturn the 2020 presidential election. He was indicted in Georgia and survived an effort to be disbarred in Washington, D.C. The indictment was later dropped. Vought is now the confirmed head of the Office of Management and Budget (OMB) and the acting head of the CFPB until Jonathan McKernan is confirmed by the Senate. Clark’s appointment comes at a tumultuous time for the agency, whose workers have been ordered by Vought not to work in any capacity. Vought also sought to shut off the bureau’s funding, but a lawsuit brought by the City of Baltimore and the Economic Action Maryland Fund (EAMF) that was filed on Feb. 12 has stalled that effort. On Feb. 13, the plaintiffs and defendants in the suit filed a joint motion stating that they’ve agreed to a preliminary injunction on any efforts by the CFPB or Vought to disrupt funding or shut down the department. The injunction expires on Feb. 28.In a separate lawsuit late last week, a federal district court judge temporarily prohibited the Bureau from laying off more staff until March 3 at the earliest. District Court Judge Amy Berman Jackson also barred the CFPB from “deleting” or “removing” data and from transferring money in its reserve fund. HousingWire looked looked at McKernan’s record and what kind of agency he would potentially lead.For a complete timeline of what’s happened at the CFPB since Trump’s inauguration, see here.

Staffing cuts at Ginnie Mae could table or delay the rollout of a complementary reverse mortgage securities program announced last year, according to an interview with a former Ginnie Mae official who requested anonymity out of fear of retaliation and reports of staff cuts by multiple outlets.But a source familiar with HUD’s plans disputed such reports, saying that suggestions of “drastic staffing cuts” at Ginnie Mae were false.One of Ginnie Mae’s core functions in the reverse mortgage industry is providing liquidity through its Home Equity Conversion Mortgage (HECM)-backed Securities (HMBS) program. After challenges caused by a major lender and HMBS issuer’s bankruptcy in 2022, the government-owned company aimed to remedy these issues by developing a complementary program dubbed “HMBS 2.0.”HMBS 2.0 is designed to bolster liquidity in the secondary reverse mortgage market, including through a reduction in the HMBS pool size to 95% of the loan’s total unpaid principal balance (UPB). The program was announced in January 2024 and a final term sheet was released in November.While major industry companies, including Finance of America (FOA) and Onity Group, have stated their high levels of anticipation for the program’s eventual rollout in recent earnings calls, the debut could be at risk due to reported staff cuts at Ginnie Mae, the former official suggested.More than 40% of the company’s staff may have been impacted by large-scale reductions in force, the source said. While Ginnie Mae has a lower level of staff compared to other entities under the purview of the U.S. Department of Housing and Urban Development (HUD), the company oversees key functions in managing the government’s mortgage-backed securities (MBS) portfolios.The cuts reportedly leave a staff of about 150 to manage a portfolio of 140 issuers and more than $2 trillion in guarantees, according to reporting by National Mortgage News, while Inside Mortgage Finance reported that 50 probationary staffers at the company were let go. The HMBS program is a smaller share of the company’s portfolio, but it provides liquidity for the commensurately smaller reverse mortgage industry’s most prominent product, the Federal Housing Administration (FHA)-backed HECM.A source familiar with HUD’s plans told HousingWire’s Reverse Mortgage Daily (RMD) that “suggestions that drastic staffing cuts will be made to Ginnie Mae are false” but did not elaborate further.A HUD spokesperson previously told HousingWire on Wednesday that the agency “is carrying out President Trump’s broader efforts to restructure and streamline the federal government to serve the American people at the highest standard.” The spokesperson said this will be done “while also ensuring the department continues to deliver on its critical functions, mission to serve rural, tribal and urban communities and statutory responsibilities.”Ginnie Mae’s late 2022 assumption of a sizable HMBS portfolio from an extinguished issuer put strain on its staff, leading company leadership at the time to request additional staffing and budgetary resources from Congress. These were ultimately approved, but the reported cuts are taking place at a time when only about 60% of these new resources have been deployed, according to the former official.Housing trade and advocacy groups have consistently described Ginnie Mae as underresourced. Groups including the Community Home Lenders of America (CHLA), the Mortgage Bankers Association (MBA) and the National Reverse Mortgage Lenders Association (NRMLA) successfully lobbied Congress to approve full funding for the company ahead of a budget vote.The former official relayed a sense of perplexion on a path forward for HMBS 2.0. Much of the staff handling the potential implementation, the source said, have been impacted either by cuts, retirements or the government’s deferred resignation program.The potential impacts of HMBS 2.0 on the reverse mortgage industry could be immediate. HMBS issuance has fallen dramatically since record levels of home-price appreciation, combined with historically low interest rates, drove issuance levels to record highs in 2022. Although it is smaller today, the HMBS market is still considered generally healthy, according to recent perspectives shared by Michael McCully, a partner at New View Advisors.Regarding the potential for HMBS 2.0, the program “could almost double current issuance levels,” McCully said earlier this month.Former Ginnie Mae President Ted Tozer also previously told RMD that insufficient staffing levels at Ginnie Mae could hamper the rollout of HMBS 2.0. While cuts to the agency were not being discussed at that time, Tozer suggested that a federal hiring freeze put in place by the White House could compound issues presented by the retirements of key officials.“The problem that I see right now — and I think it’s going to get worse — is Ginnie Mae’s inability to replace key people that I was able to hire when I was there 10 years ago,” Tozer said late last month. Tozer attributed some of his ability to hire “really good people” at that time to budget reductions at Fannie Mae and Freddie Mac due to their federal conservatorship status.He also said he had heard rumblings that the HMBS 2.0 policy is harder to implement than originally anticipated, which he took to mean the actual work that will go into operationalizing the program.

The U.S. Department of Housing and Urban Development (HUD) has announced its own DOGE Task Force this week, after Elon Musk’s team ravaged the Consumer Financial Protection Bureau (CFPB) last week. While American voters have little transparency into this undemocratic firing squad, we know that they intend to fire half of all HUD’s employees, including those who work on enforcing fair housing, compiling housing data, and administering disaster relief funding. All this is done under the guise of seeking to improve government efficiency and cutting the federal budget. Mind you, HUD has already been an extremely underfunded agency for years: time and again, members of Congress seem keen on proving government dysfunction by cutting out any possible resources for success. Dedicated HUD employees have for a long time worked with way too few resources to house Americans facing homelessness, connect renters with fair and affordable units, offer housing counseling to first-time homebuyers, and provide community development support, including after disasters. HUD staffers have done so without much support and on public sector salaries – a far cry from the salaries Elon Musk pays to tech bros – but with a dedication to making a difference for American families and communities.Now the Trump Administration seeks to further eviscerate this agency, in the middle of a deep housing crisis that they claim to care about. It is entirely unclear how cutting HUD in half will help lower rents, build more housing, or help a younger generation become homeowners too. Among the targets is the HUD team that helps communities impacted by disasters: staffers that administer the Community Development Block Grant Disaster Relief (CDBG-DR) program. In 2023 Congress appropriated $3 billion for this program and since its inception in 1998 this grant program has distributed almost $100 billion in total across the country. I recently visited one of these disaster-vulnerable communities, talking to people in Eastern Kentucky to study and write a report about local housing challenges. This rural Appalachian area experienced a devastating flash flood in 2022, when more than nine thousand Kentucky families lost their homes, and more than 40 Kentuckians lost their lives. As this was a once-in-a-thousand-year event, virtually no one had flood insurance. Families lost their life’s possessions overnight, many camped in FEMA trailers for months and years, and today many Kentuckians still watch long-familiar mountain creeks anxiously during storms. Sadly, just this weekend, yet another flash flood hit the town of Hazard in Eastern Kentucky. At least two people died and flooding damage in this town is reportedly even worse than two years ago. Last year, HUD approved $300 million in disaster relief funding for Eastern Kentucky. At the time, Kentucky Senator Mitch McConnell applauded this investment: “I made a commitment to stand by the side of Eastern Kentuckians and fight in Washington for big, real-dollar investments in disaster recovery. Today, I’m proud to see nearly $300 million in long-term recovery funding move closer toward rebuilding homes and communities, revitalizing the local economy, and supporting survivors who still need our help.” Today HUD support means that hundreds of new homes are being built in Eastern Kentucky for 2022 flood survivors. These modest two-to-three-bedroom homes are going up as we speak, most of them built on the flattened mountaintops of former strip mines, as high-ground “mountaintop communities” safe from flooding. Eastern Kentucky has few internal resources to pull itself up by its bootstraps – it has long been depleted by corporate exploitation and is further devastated by disasters. Federal HUD support has meant that thousands of Kentuckians have a home again. It is also helping to protect the future of the broader Eastern Kentucky community: the destruction of nine thousand homes has been an existential threat for the future of this entire region. Without rebuilding, rural communities such as those in Eastern Kentucky risk entering a downward spiral of no return, as too many families leave to sustain local economies and small businesses. So is HUD’s disaster relief wasteful? I urge you to talk to anyone in Eastern Kentucky, who will beg to differ. This is not a partisan issue, as climate disasters have no concern for party lines or Congressional district boundaries. Through HUD’s disaster relief, the federal government offers a lifeline for entire communities to not only continue to exist but to thrive. Sharon Cornelissen is the Director of Housing at the Consumer Federation of America

If a rumored large-scale layoff at the Federal Housing Administration (FHA) occurs, it could result in major damage to key programs that mortgage lenders and investors rely on, such as project-based rental assistance, Section 202 and even financial losses to the national mortgage insurance fund.This is according to a former HUD official who spoke with HousingWire and was granted anonymity to discuss sensitive plans still taking shape inside the U.S. Department of Housing and Urban Development (HUD) and FHA.The impact inside FHA comes from the administration’s deferred resignation program (DRP) and the reported termination of probationary employees, according to the former official’s estimates. This, the source believes, could be only the beginning of more severe personnel cuts.So far, between the DRP and probationary employee cuts, there have been 200 people cut, the former official estimated. This falls short of initial reports that stated FHA would cut nearly half of its staff of more than 2,000 workers. Part of this, the source speculated, could have come from both media coverage and industry pressure.HUD told CNN on Wednesday that “suggestions FHA will cut about half its workforce are not accurate,” but did not elaborate.A HUD spokesperson told HousingWire that “HUD is carrying out President Trump’s broader efforts to restructure and streamline the federal government to serve the American people at the highest standard,” adding that any “streamlining” will be done “while also ensuring the department continues to deliver on its critical functions, mission to serve rural, tribal and urban communities and statutory responsibilities.”The former HUD official sees the administration disputing wide-ranging cuts as a sign of momentum for the housing industry, though the full amount of potential cuts to the FHA remains unclear. HUD did not specify where or how cuts could be made.“I believe their need to publicly comment on this reflects the success of industry participants and trade associations already weighing in,” the former official said. “We do not know if and when they will announce additional cuts.”But there are very apparent impacts on morale at the agency, the former official said, based on discussions with people inside HUD or those communicating with department staff.“People are truly terrified and traumatized by the uncertainty” of the department’s posture, the ex-official said. But as more people are fired, remaining staff will also see increases in their workloads.“Given that they are all now facing five days a week in the office, insane commutes, and office and/or desk overcrowding, higher workloads could push many over the edge to voluntarily leave,” the former official said. “There’s definitely a tipping point that could be reached where the agency spirals into full dysfunction.”Beyond FHA, rumored cuts could have a material impact on HUD’s ability to fulfill its mission, including a key resiliency retrofitting program and Section 202 senior housing, the former official explained.Doing away with the retrofit or Section 202 programs could lead “private owners and developers [losing] a lot of money and [they] will not be able to improve their properties to reduce operating costs and defend against natural disasters, or to build support or reinvest in senior housing,” the ex-official said.If other programs like Community Development Block Grants (CDBGs) or the HOME program — which provides grants to state and local governments to create affordable housing for low-income households — are cut, then cities could lose access to block grants for a variety of investments, including infrastructural and transportation upgrades and small business support for home renovations.Project-based rental assistance and Housing First programs, if cut, could lead to “an enormous reduction of affordable housing, ultimately leading to steep increases in homelessness even among more politically favored groups such as veterans and seniors,” while also leading to “worse educational, health and public safety outcomes,” the former official explained.Staffing, contract or IT support is harder to predict, the person said, but has a direct impact on the ability of the FHA to run programs. There could be pronounced impacts on the agency’s multifamily support capacity, and while many single-family programs’ front-end work is managed by participating lenders, claims and the National Servicing Center will see more immediate impacts.Additionally, “contracts that FHA uses to support servicing of partial claims and the Secretary-held HECM portfolio could also be impacted negatively, which could have ripple effects for the industry itself,” the person said, referring to the senior-focused Home Equity Conversion Mortgage (HECM) program and the reverse mortgage industry.On top of this, a reduction in staff could lead to a loss of receipts for the federal government due to the self-sustaining nature of the MMI Fund, the person said.“That means that FHA will return less in ‘profit’ to the federal government, reducing federal government revenue that is normally used for other things,” the former official said. “FHA is a negative credit subsidy program, meaning that overall it makes more money for the government than it costs to the tune of billions of dollars. Cutting there seems to make no sense at all.”

Three civil rights nonprofits including the National Fair Housing Alliance have filed a lawsuit against President Donald Trump and his administration for allegedly violating the First and Fifth Amendments with three executive orders Trump signed in January related to diversity, equity and inclusion (DEI).The plaintiffs claim that the elimination of federal grants perceived as “DEI” — including those administered by the Department of Housing and Urban Development (HUD) — materially impede their ability to advance civil rights causes at the core of their missions.In addition to violations of free speech and due process, the plaintiffs say the administration is violating the Fair Housing Act and other longstanding civil rights protections by deeming any DEI effort as illegal.The National Urban League and the AIDS Foundation of Chicago are the other plaintiffs in the complaint. The defendants are Trump, HUD, HUD Secretary Scott Turner and 12 other federal agencies and their respective secretaries or directors.Among the seven claims for relief, one is an alleged violation of the First Amendment, three are alleged violations of the Fifth Amendment, two claim the orders are in excess of Trump’s authority as president and one is a violation of the Administrative Procedure Act.Representatives for the plaintiffs did not respond to a request for comment at the time of publication. Representatives for the defendants could not be reached.Trump’s DEI executive orders eliminated grants, contracts, offices and positions within the federal government that related to or sought to alleviate issues that impact marginalized populations within race, gender and sexual orientation.Much of the real estate industry is affected by the DEI orders in some way through departments in the federal government, including HUD, but the sweeping nature and at times vague language around them make it difficult to assess which ones.The Property Appraisal and Valuation Equity (PAVE) Task Force, of which the Consumer Financial Protection Bureau (CFPB) was a part — was one of the first things to go, which most in the appraisal industry were happy to see end.The Federal Housing Finance Agency (FHFA) is also impacted, and Fannie Mae, Freddie Mac and the Federal Home Loan Banks might be as well.

Real estate closing platform Qualia announced on Wednesday a series of security upgrades to its platform. These enhancements are exclusive to Qualia’s Shield solution, a wire fraud detection system designed for title and escrow professionals.The upgrades start with added protection for low-risk wire transfers of up to $1 million. According to Qualia, the low-risk wire transfer insurance feature is backed by London-based insurance company Lloyd’s.Email verification is another new security feature on the Shield platform. The Email Link feature allows title and escrow agents to determine whether an email is from known or unknown email addresses.Other upgrades include public record checks that will verify an individual’s identity across several public datasets, as well as identity verification features that utilize facial recognition and multivariable risk assessments to uncover fraud.“With these new features and enhancements added to the Shield, Qualia delivers a holisticsolution that protects businesses while simplifying operations and ensuring a secure and efficient closing experience. This approach significantly reduces human errors, mitigates risks, and enhances operational efficiency for title & escrow professionals,” Qualia explained in a press release.Qualia unveiled these changes in response to a growing trend of fraud tactics. Some examples include artificial intelligence-powered deepfakes and business email compromise (BEC) schemes.The Shield platform already impacts professionals across the title and escrow industry, according to Qualia. Christine White of KVS Title LLC said that “Shield gives us peace of mind by detecting bad actors before they can impact transactions.”Qualia’s mission centers on giving title and escrow professionals tools to combat wire fraud threats.“Title & escrow professionals are acutely aware of the large sums of money and sensitive information that flow through their hands, which make them particularly vulnerable to wire fraud,” said Charlotte Brown, Qualia’s vice president of product and design. “We want to help the industry bolster its defenses in today’s evolving cybersecurity landscape. Shield offers multiple layers of protection against wire fraud and reduces vulnerable entry points for bad actors with built-in security features.”About 40% of title and escrow professionals received one or more fraudulent emails per month, according to Qualia’s 2025 Real Estate Fraud Trends report. Nearly all professionals reported that wire fraud attempts either remained stagnant or increased in 2024. In 2023, losses tied to wire fraud exceeded $12.5 billion, including $145 million in real estate fraud, according to the FBI Internet Crime Complaint Center.Homebuyers are also at risk when it comes to wire fraud. According to a report by CertifID, 52% of buyers and sellers were unaware of wire fraud risks. First-time homebuyers were three times more likely to be a victim of wire fraud.The rise of ChatGPT and other AI tools may be a key factor behind growing digital fraud trends. According to a report by cybersecurity platform SlashNext, malicious emails increased by 856% in a recent 12-month period. Meanwhile, business email compromise rates increased by 29% in the first six months of 2024.

A viral Instagram post this week claims that a wave of new inventory is hitting the Washington, D.C., housing market after large numbers of federal employee layoffs were announced. Bright MLS has addressed these claims this week with relevant data.Social media posts suggest that more than 4,000 homes recently hit the housing market in and around the nation’s capital. Home prices for these listings ranged from less than $100,000 up to several million, depending on the area.One such post belongs to Instagram user Darth Powell, a social media personality with a history of strong opinions on the U.S. housing market. Powell shared an image that shows an exorbitant number of homes for sale in the Washington, D.C., area. Many observers attributed the increased inventory to the recent layoffs pushed by the Elon Musk-led “Department of Government Efficiency” (DOGE).Bright MLS countered this post by saying that, “We’re not seeing any evidence of a surge of listing activity in the Washington, D.C., region.” According to Bright MLS, there were 2,829 new listings that hit the market between Feb. 3 and Feb. 16. That’s no different from the same two-week period in 2024, the report said.Among the key counties in the D.C. metro area, Spotsylvania County, Virginia, saw the largest increase in available inventory (up 27%), according to Bright MLS. A few other markets also had double-digit increases, but they were balanced out by double-digit decreases in other areas. Bright MLS indicated that “nothing about the geographic pattern of listing activity suggests that it is related to homeowners who are or were Federal government employees.”Data from the U.S. Office of Personnel Management shows that federal employees account for 9% of the region’s workforce. USAJobs.com claims that only 15% of the federal workforce lives in the D.C. area.Some industry experts caution against taking housing market doomsday posts seriously.HousingWire Lead Analyst Logan Mohtashami recently reported on the job cuts in the D.C. area and their impacts on housing.“Before you jump to conclusions, let me share a word of wisdom: be cautious with those doomsday posts floating around on X,” he wrote. Altos Research debunked the social media claims with data showing that inventory in D.C. isn’t much higher than its post-pandemic low points.

Denver-based loan originator Chris Franquemont announced on Wednesday his return to Guaranteed Rate as producing branch manager. His return follows a brief stint with CrossCountry Mortgage.Chris FranquemontFranquemont returns to Guaranteed Rate after a one-year stint as CrossCountry Mortgage’s senior vice president of mortgage lending, producing branch manager. The top-producing loan officer brings a proven track record of high-volume production and financing solutions for borrowers. Franquemont funded $38 million across 103 loans 2024 alone, according to Rate. He first joined Guaranteed Rate in January 2019 after a two-year stint as a loan officer at Northpointe Bank. At Rate, the veteran mortgage professional began his tenure as vice president of mortgage lending. He then transitioned to vice president of business development and senior vice president of mortgage lending.According to Franquemont, his decision to return to Rate stems from a desire to re-align himself with new mortgage technology and resources that ultimately help homeowners the most.“Providing an exceptional customer experience is my top priority. Aligning with Guaranteed Rate allows me to put families in the best position to win homes and makes the mortgage process faster and easier than ever,” said Franquemont in a statement.“The combination of Rate’s streamlined processes, cutting-edge technology, and talented personnel create the ideal environment to support my customers on their homeownership journey. Rate absolutely stands apart from the competition in its ability to provide this superior experience,” he added. Guaranteed Rate CEO Victor Ciardelli welcomed Franquemont back with open arms, expressing excitement future growth opportunities.“We’re thrilled to welcome Chris back to Rate. With his incredible track record in the Denver market, Chris is a valuable addition to our team,” said Ciardelli. “We’re excited to support his current business and work alongside him to expand his reach, serving both his customers and referral partners with the highest caliber of service in the industry.”This recent move is the latest in a series of leadership changes within Guaranteed Rate’s nationwide team. The company also welcomed Andy Ward as originating manager in Missouri in late January. Guaranteed Rate was ranked as the No. 4 retail mortgage lender in the Scotsman Guide for 2024. It maintains over 850 branches nationwide since its launch in 2000.