Fed holds rates steady but sees first double dissent in three decades

🎉 Hey there. Happy Friday. Today's newsletter is 648 words, a 2.5-minute read.

1. Judge orders HUD to resume allocation of fair housing funds

A federal judge this week temporarily compelled HUD to restart distribution of its Fair Housing Initiatives Program grants, which were suspended for the first time in three decades.

The decision, in a class-action suit brought by the National Fair Housing Alliance and the Tennessee Fair Housing Council, found that withholding congressionally appropriated funds inflicts “irreparable harm” on community‐based organizations combating housing discrimination.

Judge Sparkle Sooknanan ordered HUD to file, by August 4, a detailed timetable for obligating existing and new grants before the fiscal‐year end on September 30. Advocates say the pause forced layoffs and program cuts at groups serving seniors, veterans and people with disabilities. HUD has not yet commented.

2. Fed holds rates steady but sees first double dissent in three decades

The Federal Reserve kept short-term interest rates at a level of 4.25 percent to 4.5 percent on Wednesday, but the vote saw the first double dissent from Fed board officials in more than 30 years.

• Nine members of the committee agreed to keep rates where they are. But Fed Vice Chair of Supervision Michelle Bowman and Gov. Christopher Waller — who are both in the running for President Trump’s nomination to replace Fed Chair Jerome Powell — voted to lower them, following an immense pressure campaign from the president.

Many market participants are now anticipating a rate cut in September, which could provide relief to the housing market even before it’s officially enacted. According to the CME Group‘s FedWatch tool as of Wednesday afternoon, about 45% expect a 25-bps reduction in September.

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3. More Nuggets

💸 The LO comp rule is brutal. (Levy's Mortgage Musings)

📊 Fannie Mae posts $3.3B profit, tops $100B net worth despite earnings dip. (HousingWire)

🏡 June pending home sales fall 2.8% year-over-year. (CNBC)

🏦 Jamie Dimon and Trump finally had a meeting after battling for years. (CNN)

🥇 Andy declares victory in portal wars, says Homes.com is ‘now No. 1’. (Inman)

🚨 Coach’s Corner

What the heck is a Calendar Chokepoint? Tune in to find out and how to avoid them!

https://youtube.com/shorts/bZPJ3kTRBaY

— Dave Krichmar CEO

4. CoStar sues Zillow for “rampant” copyright infringement of real estate photos

Zillow was sued on Wednesday by Homes’com owner CoStar Group, which accused the largest U.S. online real estate portal of publishing at least 46,979 copyrighted photos without permission.

The complaint filed in Manhattan federal court seeks unspecified compensatory and punitive damages, which Arlington, Virginia-based CoStar estimated could exceed $1 billion.

According to the complaint, Zillow uses CoStar's photos to induce property managers and landlords to "claim" properties that are not actively listed for rent, and then sells advertising packages and tools to generate revenue.

5. President signs law to prevent veteran foreclosure

President Trump on Wednesday signed the VA Home Loan Program Reform Act into law, establishing a permanent partial‐claim option that lets veterans who fall behind on payments shift missed amounts to the end of their loan term.

The measure fills the void left when the VA shuttered its Servicing Purchase program on May 1, extends existing mortgage‐assistance tools and aligns VA servicing rules with other federal relief programs.

Widely supported by lawmakers and industry groups—from the Mortgage Bankers Association and Rocket Mortgage to the National Association of Realtors—the act also modernizes buyer‐agent compensation to streamline homebuying for veterans.

☀️ You’re all caught up. See you on Monday!

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