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- IMBs urge FHFA, Treasury to preserve G-fee parity and cash window
IMBs urge FHFA, Treasury to preserve G-fee parity and cash window
Plus: Mortgage rates slip to 2025 low on soft jobs data
🔁 Another Monday, another batch of news. Today’s newsletter is a 2.5-minute read.
Disclaimer: Average mortgage rates as of September 5, 2025. © MND Daily Rate Index.
1. IMBs urge FHFA, Treasury to preserve G-fee parity and cash window
A group of 46 independent mortgage banks urged Treasury Secretary Scott Bessent and FHFA Director Bill Pulte to preserve G-fee parity and the cash window as the Trump administration weighs a Fannie Mae and Freddie Mac stock offering.
The lenders, who account for most GSE loan sales, warned that ending conservatorship without safeguards could tilt advantages back to mega-banks. They asked regulators to keep Fannie and Freddie separate, cap guarantee fees, and block Wall Street banks from GSE charters.
The coalition also pressed for continued support of mission-based products, such as manufactured housing, condos, and rural loans, and suggested the GSEs temporarily buy mortgage-backed securities to help lower borrowing costs.
2. Mortgage rates slip to 2025 low on soft jobs data
The average rate on the 30-year fixed mortgage dropped 16 basis points to 6.29% on Friday, according to Mortgage News Daily, following the release of a weaker-than-expected August employment report.
It marks the lowest rate since Oct. 3 and the biggest one-day drop since August 2024. Rates are finally breaking out of the high 6% range, where they’ve been stuck for months.
“This was a pretty straightforward reaction to a hotly anticipated jobs report,” said Mortgage News Daily Chief Operating Officer Matt Graham. “It’s a good reminder that the market gets to decide what matters in terms of economic data, and the bond market has a clear voting record that suggests the jobs report is always the biggest potential source of volatility for rates.”
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3. More Nuggets
🎃 The U.S. town with a pumpkin-based economy. (theHustle)
🔄 Bill Pulte’s relatives claimed primary residence on two properties in two states. (CNBC)
✍️ Trump signs trigger lead bill into law. (Senate.Gov)
📝 Freddie Mac boosts LTVs to 95% on 2-4 unit homes, opening door for ‘house hacking’. (NMP)
💰 Investors buy nearly one-third of homes across US. (Cotality)
📰 The real mortgage crisis is too much paperwork. (Bloomberg)
4. Homebuilder layoffs on the rise
Homebuilder layoffs are climbing as the housing market softens, with Texas and Florida hit hardest.
Builders are trimming staff and slowing speculative construction as unsold inventory rises and pricing power fades, especially in Sun Belt markets.
John Burns Research and Consulting: Share of homebuilders reporting layoffs among peers in their local housing market
Source: ResiClub
5. Pennymac enters non-QM
Pennymac will begin offering Non-QM products Sept. 22 through its correspondent channel, with wholesale to follow later in the year. The launch starts with DSCR loans for real estate investors and programs for borrowers with non-traditional income, using bank statements, 1099s, or asset-based documentation.
Executives said the move comes amid growing demand from self-employed and gig workers, alongside strong capital markets appetite for Non-QM securities. Pennymac plans to focus on higher-credit borrowers and retain servicing.
“We think it's a space that's going to continue to grow... the demographics in the U.S. are leaning more toward self-employed and gig income borrowers,” Pabarcus said. “The GSEs don’t have a great solution for this product line, and with that growing borrower demographic, there’s a real opportunity that the space is going to continue to grow,” he said.
☀️ You’re all caught up. See you on Wednesday!
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