In the second quarter of 2025, real estate investors accounted for a historic share of home purchases as traditional buyers struggled with surmounting affordability challenges. Investors snapped up nearly 27% of all homes sold during this period—an all‑time high over the past five years and a sharp rise from the 18.5% average seen between 2020 and 2023.
As September unfolds, anticipation is building around the Federal Reserve’s likely decision to implement its first rate cut of 2025. The expected 25-basis-point reduction would bring the federal funds rate down to a target range of 4.00%–4.25%. But despite the headlines, homebuyers shouldn’t expect mortgage rates to fall dramatically in response.
The Department of Housing and Urban Development (HUD) has announced a sweeping new policy requiring that all agency business be conducted solely in English. The directive follows an executive order signed by President Trump earlier this year declaring English the official language of the United States.
Fannie Mae has scaled back its housing and mortgage market projections, issuing a more conservative outlook in its latest Economic & Housing Forecast. The update reflects a recognition that elevated interest rates, affordability constraints, and slowing economic momentum are likely to weigh on both home sales and price growth through the remainder of 2025 and into 2026.
U.S. housing starts surged unexpectedly in July, rising 5.2% to a seasonally adjusted annual rate of 1.428 million units—a five‑month high and 12.9% above the same month last year. The surge was driven primarily by a jump in multifamily construction.
In today’s world of FHA underwriting, I think it can be said that we cannot assume that an automated underwriting establishes a positive credit risk. AUS approvals are really unreliable in today’s marketplace. Quite frankly, I consider them pretty much worthless. Manual underwriting is a much more sensible approach to analyzing credit risks and rendering loan decisions and the more documentation included in the loan file, the better the chance of catching any risk factors that might have otherwise escaped an automated underwriting system.
Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMU®. Nothing contained in this articles should be considered legal advice.
As I am sure everyone is aware, just about every lender out there is utilizing 3rd party tax transcripts for all mortgage transactions. When we began to utilize the service there were generally limited to self employed borrowers, however, over the past year or two most lenders have determined that they were a very useful tool when trying to detect income fraud. I personally have found them to be a useful tool in many other ways as well.
Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMU®. Nothing contained in this articles should be considered legal advice.
We all know that a real estate contract of sale is an agreement between a buyer and a seller regarding the purchase of a property, as well as the terms and conditions each participant is required to execute within certain time frames to be “in contract”.
Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMU®. Nothing contained in this articles should be considered legal advice.
I don’t know about anyone else but these past two weeks have been exhausting not only in dealing with extremely heavy loan volume due to the expiration of the Homebuyer Tax Credit Incentive but also because it seems the lenders are once again cracking down and changing policies left and right.
Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMU®. Nothing contained in this articles should be considered legal advice.
The mortgage universe of 25 years ago was quite different than it is today. Around this time I took my first mortgage banking position. It was as a Loan processor in the Equity Lending division of a big bank in Baltimore City, Maryland. Although the position implied the processing of second mortgage applications, more particularly Home Equity Lines of Credit, it was actually a closing position whereas I completed the closing documents for HELOC’s.
Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMU®. Nothing contained in this articles should be considered legal advice.
If you want to get credit policy people like me all fired up, here’s the topic to drop in passing. Fannie Mae’s Loan Quality Initiative has gotten so much press and has stirred up so much controversy it’s ridiculous.
Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMU®. Nothing contained in this articles should be considered legal advice.
Ten years of experience in the real estate industry and last week I went through four contract extensions, a six hour settlement waiting for HUD-1 approval and scrambling around getting documents signed the following day so that the loan wouldn’t be recalled, all for the same transaction!
Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMU®. Nothing contained in this articles should be considered legal advice.
How many times have you suspended or possibly rejected a loan and then listened politely as the processor or loan officer provided a very long dissertation as to why the case should be approved which usually ended with one or both of them stating very strongly, “but it meets guidelines!” Yep me too, lots of times.
Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMU®. Nothing contained in this articles should be considered legal advice.
You know, the more I’ve thought about things lately the more I have to admit I was wrong on one thing and I’m sure I’m not the only one in this category. For years we all frowned on having to do all of the extra processing and qualifying steps on VA loans.
Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMU®. Nothing contained in this articles should be considered legal advice.
Hello Everybody – Hope everyone is staying busy. In my hunt for a topic every week, sometimes it is easy and other times, I haven’t a clue what I will write about until the last minute. This week was one of those last minute thoughts – so I hope this blog is helpful.
Opinion-Editorial (Op-Ed) Disclaimer For NAMU® Library Articles: The views and opinions expressed in the NAMU® Library articles are those of the authors and do not necessarily reflect any official NAMU® policy or position. Examples of analysis performed within this article are only examples. They should not be utilized in real-world application as they are based only on very limited and dated open source information. Assumptions made within the analysis are not reflective of the position of NAMU®. Nothing contained in this articles should be considered legal advice.
Written By: Stacey Sprain
As an FHA originator, processor or underwriter, it’s likely that in the ongoing foreclosure market you’ll run across a HUD REO loan at some point. The purpose of this multi-part article is to provide you with some useful information to help in your endeavors.