Median mortgage payment dipped slightly in June

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1. Top LO Chris Gallo pleads guilty to bank fraud conspiracy

Christopher Gallo, once one of the nation's top mortgage loan officers, pleaded guilty Wednesday to conspiracy to commit bank fraud in federal court in New Jersey. He faces up to 30 years in prison at sentencing, scheduled for December 3.

Prosecutors allege Gallo and Elmas systematically falsified loan documents from 2018 through 2023, misrepresenting properties as owner-occupied primary residences when they were actually investment properties — allowing borrowers to qualify for lower rates. The scheme ran while both worked at NJ Lenders Corp. and later CrossCountry Mortgage.

Under the plea deal, remaining counts will be dismissed at sentencing if Gallo complies with the agreement. He will also pay mandatory restitution for the full amount of victims' losses. His former assistant Mehmet Elmas has a plea hearing set for August 20.

2. Median mortgage payment dipped slightly in June

The national median payment on new purchase applications fell $7 from May to $2,191, as lower loan application amounts offset rising rates.

MBA's affordability index declined 0.3% to 157.9, and with household earnings growing 4.6% over the past year, mortgage payments are consuming a smaller share of income than a year ago — though they remain historically elevated.

One exception: new construction payments moved the other way, rising to $2,199 in June from $2,173 in May. Idaho, Nevada, and Arizona remain the least affordable states by payment-to-income ratio; Louisiana and D.C. rank among the most affordable.

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3. More Nuggets

💼 The mortgage industry has been focusing on only half the market. (HousingWire)

🏦 Morgan Stanley bankers were pressured to approve mortgages for wealthy clients. (WSJ)

📰 'Come to NEXA': CEO publicly courts loanDepot loan officers. (NMP)

⏸️ Fed leaves rates steady, with internal dissent. (Axios)

4. New Silver acquires Mayflower Venture Partners to expand in New England

New Silver, a Connecticut-based tech-focused lender to real estate investors, has acquired Mayflower Venture Partners, a Massachusetts direct lender specializing in fix-and-flip and construction loans across New England.

Mayflower's clients gain access to New Silver's broader product set including DSCR rental loans, AI-assisted underwriting, and greater capital capacity for larger projects. Financial terms were not disclosed.

5. Fannie Mae posts $4B profit as first-time buyers power purchase surge

Fannie Mae reported $4.0 billion in net income for Q2 2026, its 34th consecutive profitable quarter, as single-family purchase acquisitions hit $72.8 billion — the highest quarterly volume since Q3 2022.

• Of the 201,000 single-family purchase loans financed, nearly 110,000 went to first-time buyers, who accounted for 55% of all purchase acquisitions.

Refinance volume fell 12.3% as rates remained elevated, but was still more than double Q2 2025 levels. The serious delinquency rate held steady at 0.58% and the weighted-average origination FICO score across the guaranty book was 753.

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

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