Judge blocks Trump from firing Fed’s Cook

Plus: Compass hires former NAR settlement attorney Ethan Glass as Chief Legal Officer

September 10, 2025

In partnership with

Good morning! This is Mortgage Nuggets, the email that makes you smarter about the mortgage industry, in 5 minutes or less. Today’s newsletter is 698 words, lets dive in.

Disclaimer: Average mortgage rates as of September 09, 2025. © MND Daily Rate Index.

1. Judge blocks Trump from firing Fed’s Cook

A judge temporarily blocked President Donald Trump on Tuesday night from firing Federal Reserve Governor Lisa Cook.

“The best reading of the ‘for cause’ provision is that the bases for removal of a member of the Board of Governors are limited to grounds concerning a Governor’s behavior in office and whether they have been faithfully and effectively executing their statutory duties,” D.C. Judge Jia Cobb wrote.

Fed governors can be removed for “cause,” though the threshold of cause is open to interpretation. Typically, “for cause” firings have involved inefficiency, neglect of duty or malfeasance. However, Trump has asserted that allegations of mortgage fraud against Cook – for which no charges have been filed – are sufficient.

Judge Cobb noted that the mortgage issue in question came in 2021 – before Cook was confirmed to the Fed board.

2. Compass hires former NAR settlement attorney Ethan Glass as Chief Legal Officer

Compass has hired Ethan Glass, a veteran antitrust attorney and former DOJ official, as chief legal officer. Glass previously led Cooley LLP’s antitrust practice and represented Compass in its lawsuit against Northwest MLS over listing restrictions.

Glass also represented NAR in the Sitzer-Burnett commission lawsuit, gaining first-hand exposure to the disputes over agent pay structures and industry rules that continue to shape the market. His background spans both defending and challenging real estate groups.

“At Compass, we firmly believe agents should not be fined by MLSs or banned by Zillow for marketing listings off their platforms and that no agent should be told by an MLS or Zillow how they must work with their clients,” Compass founder and CEO Robert Reffkin said.

Emails so badass that Realtors call you!

In this webinar I will go over:

  • Subject lines that get your emails opened!

  • Topics that get Leads

  • Your Call to Action

  • How to make you the Go To Lender!

Do not miss my Webinar with TLOP on how to crush your email marketing! September 16th, 1pm central/2pm eastern.

👉 [Register here]

— Dave Krichmar CEO

3. More Nuggets

📈 Property insurance nears 10% of mortgage costs. (ICE)

👷 BLS overestimated past year’s US job growth by 911,000 jobs. (The Hill)

✂️ Traders see a chance the Fed cuts by a half point. (CNBC)

💰 PNC to acquire FirstBank in $4.1B deal. (Banking Dive)

📊 14 states are back above pre-pandemic 2019 housing inventory levels. (ResiClub)

✍️ Young America faces an economic crisis. (Axios)

4. Mortgage demand jumps to the highest level in three years

A sharp drop in mortgage interest rates finally got some homebuyers off the fence. It also helped more current homeowners save on their monthly payments

Total mortgage application volume jumped 9.2% last week compared to the previous week, according to the MBA’s seasonally adjusted index. The week’s results include an adjustment for the Labor Day holiday.

  • Applications for a mortgage to purchase a home rose 7% for the week and were 23% higher than the same week one year ago.

  • Applications to refinance a home loan jumped 12% for the week and were 34% higher than the same week one year ago.

  • The average contract interest rate for 30-year fixed-rate mortgages decreased to 6.49% from 6.64%.

“Mortgage rates declined for the second consecutive week as Treasury yields moved lower on data indicating that the labor market is weakening,” said Joel Kan, MBA economist. “The downward rate movement spurred the strongest week of borrower demand since 2022, with both purchase and refinance applications moving higher.”

5. Aven raises $110M, expands into mortgage refinancing

Fintech Aven secured $110 million in Series E funding, lifting its valuation to $2.2 billion, and is expanding beyond its home equity-backed credit card into mortgage refinancing. The round was led by Khosla Ventures with backing from General Catalyst, Founders Fund, GIC and others.

Founded in 2019, Aven says it has issued more than $3 billion in credit lines and saved borrowers $215 million in interest. Its HELOC-backed card, which offers 2% cash back, remains its flagship product, but executives say refinancing will deliver the same “speed and efficiency” that reshaped home equity access.

The San Francisco-based firm also bolstered its advisory ranks, adding former Treasury Secretary Lawrence Summers and ex–House Financial Services Chair Patrick McHenry. They join a roster that already includes former leaders of the Fed, Fannie Mae and Freddie Mac.

A MESSAGE FROM PACASO

Keep This Stock Ticker on Your Watchlist

They’re a private company, but Pacaso just reserved the Nasdaq ticker “$PCSO.”

No surprise the same firms that backed Uber, eBay, and Venmo already invested in Pacaso. What is unique is Pacaso is giving the same opportunity to everyday investors. And 10,000+ people have already joined them.

Created a former Zillow exec who sold his first venture for $120M, Pacaso brings co-ownership to the $1.3T vacation home industry.

They’ve generated $1B+ worth of luxury home transactions across 2,000+ owners. That’s good for more than $110M in gross profit since inception, including 41% YoY growth last year alone.

And you can join them today for just $2.90/share. But don’t wait too long. Invest in Pacaso before the opportunity ends September 18.

Paid advertisement for Pacaso’s Regulation A offering. Read the offering circular at invest.pacaso.com. Reserving a ticker symbol is not a guarantee that the company will go public. Listing on the NASDAQ is subject to approvals.

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

🚀 Wanna help our newsletter grow? Forward it to a friend or colleague.

Would you like to receive a ready-to-send weekly marketing email for your realtors and/or clients? Start your 30-day free trial here.

Was this email forwarded to you? Subscribe here.

Interested in advertising to 40k+ loan officers? Get in touch.