FHFA chief says govt could release GSE’s soon

Plus: Two charged with misuse of homelessness funds

October 22, 2025

👋 Well, hello, Wednesday — Today’s newsletter is 653 words, a 2.5-minute read.

Disclaimer: Average mortgage rates as of October 21, 2025. © MND Daily Rate Index.

1. Refinance demand is 81% higher than it was a year ago

Mortgage rates last week dropped to the lowest level in a month, pushing more borrowers to refinance. Potential homebuyers, however, were not as enthused.

  • Applications for a mortgage to purchase a home dropped 5% for the week and were 20% higher than the same week one year ago.

  • Applications to refinance a home loan rose 4% for the week and were 81% higher than the same week one year ago.

  • The average interest rate for a 30-year FRM decreased last week to 6.37% from 6.42%

  • ARM applications increased 16% over the week, which pushed the ARM share to 11%.

“The refinance index increased 4 percent, driven by a 6 percent increase in conventional refinances and a 12 percent increase in FHA refinance applications, as borrowers remain attentive to these opportunities to lower their monthly mortgage payment. VA refinances bucked the trend and were down 12 percent,” said Joel Kan, MBA economist.

2. FHFA chief says govt could release GSE’s soon

In a series of posts on social media, Pulte urged Americans to read up on the financial state of the two government-sponsored enterprises he oversees with President Trump looking to release them to the market.

“President Trump made the right decision not to take Freddie and Fannie public during his first term and is opportunistically evaluating an offering this time around, which could be as early as the end of 2025,” Pulte wrote on X.

“Combined, Freddie and Fannie have over $7 trillion of assets on their balance sheets. We are focused on running them like a business and taking out costs so I don’t think there’s any limit to what they could be worth one day,” Pulte said.

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3. More Nuggets

🏡 Housing markets where home prices are falling. (ResiClub)

⚖️ Homes’com hit with lawsuit over monetization of CRMLS data. (PRNewswire)

👋 Affordable housing left vulnerable after HUD fires building inspectors. (Bloomberg)

🎤 Panel: Federal guarantee a must in GSE privatization. (NMP)

4. LO sentenced in reverse mortgage fraud scheme

A former Illinois loan originator, Gary Bohn, was sentenced to 18 months in federal prison for his role in a reverse mortgage and home repair fraud scheme.

Bohn, formerly of American Fidelity Financial Services, admitted to helping divert reverse mortgage funds meant for home repairs. He pleaded guilty to mail and wire fraud, cooperated with investigators, and has repaid about 7% of the $300,000 restitution ordered.

The broader scheme, led by Mark Steven Diamond, defrauded elderly homeowners of $7 million. Diamond received a 17-year sentence earlier this year for targeting seniors aged 62 to 97 and misdirecting lender funds for personal use.

5. LenderMAC and Ares enter non-QM partnership

LenderMAC has entered into a strategic partnership with Ares Management’s Alternative Credit funds to scale its Non-QM mortgage operations and fuel expansion.

Under the deal, Ares will buy a portion of LenderMAC’s Non-QM loan production and provide structured debt financing to support origination and growth, following the lender’s recent milestone of surpassing $100 million in funded loans since its May 2025 relaunch.

"Entering into a strategic relationship with Ares allows us to focus on expanding our product offerings and grow our customer base, all while maintaining a relentless focus on keeping costs down for homeowners. We are excited to work with Ares as we grow LenderMAC into one of the largest national providers of mortgage solutions." said Kenny Jo, owner and CEO of LenderMAC.

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

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