Moody’s downgrades Fannie Mae, Freddie Mac

Happy Wednesday to you, loyal reader. Have thoughts or feedback to share? [email protected]. Today's newsletter is 712 words, a 3-minute read.

1.  Mortgage demand slips as rates hit highest level since February

Mortgage applications dropped 5.1% last week as the average 30-year fixed rate rose to 6.92%, the highest since February, according to the Mortgage Bankers Association.

• Purchase applications, which had shown signs of recovery in recent weeks, fell 5% but remained 13% higher than a year ago. Despite increased inventory, elevated rates and growing economic concerns are putting pressure on spring homebuying activity.

• Refinance applications also declined 5% and are now 27% higher than the same week last year, though momentum is slowing. With rates hovering near where they were one and two years ago, fewer homeowners stand to benefit from refinancing.

2. Zillow provides clarity on private listings rule

Zillow will begin requiring that all publicly marketed for-sale listings under exclusive agreements be entered into an MLS within one business day, or they’ll be blocked from Zillow and Trulia.

The policy, rolling out May 28 and fully enforced by June 30, targets listings marketed via social media, broker websites, or yard signs without MLS entry. After three violations, all future noncompliant listings will be automatically blocked.

Exemptions include FSBOs, rentals, and builder listings. Office exclusives are allowed as long as the homeowner signs a seller disclosure form. So far, eXp Realty, NextHome and West USA Realty have all signed on to Zillow’s listing standards.

🤖 Enterprise Agent Management: Create. Deploy. Control the Chaos.

The value of automation depends on your ability to manage it.

With Aidium’s Enterprise Agent Management, you can build a shared library of agents tailored to your company and decide exactly how they’re deployed across teams and branches.

Roll out consistent workflows, coach at scale, and increase CRM adoption—without needing dev resources. Teams get the flexibility to personalize their experience, while you stay in control of what matters most.

Two modes that give you full control:

• Copy Mode – Teams can turn agents on/off and edit them to fit their process.

• Control Mode – Activate mandatory agents for teams and run them as designed.

Empower your teams without losing oversight. → Learn more about Enterprise Agent Management

3. More Nuggets

⏸️ Investor lawsuit seeks to pause Rocket-Redfin merger. (NMP)

🎥 Mortgage rates cross back over 7% after U.S. credit downgrade. (CNBC)

🏡 Here are the most expensive active listings in the country. (Redfin)

📰 JPMorgan’s Dimon talks regulatory changes, crypto. (BankingDive)

🔐 FHA announces Multi-Factor Authentication for FHA Connection. (WBK)

4. MBA applauds passage of VA partial claims bill

The MBA praised the House’s passage of the VA Home Loan Program Reform Act (H.R. 1815), which would grant the VA permanent authority to offer partial claim loss mitigation—a key tool to help struggling veteran homeowners avoid foreclosure.

MBA President Bob Broeksmit called the bill’s passage “urgent,” noting the VA has lacked a permanent post-pandemic solution since its previous program ended. The measure aims to align VA options with those of other federal housing agencies.

The MBA said it will now push for swift Senate approval, warning that thousands of distressed veteran borrowers remain at risk without a permanent fix.

5. Moody’s downgrades Fannie Mae, Freddie Mac

Moody’s has downgraded the long-term debt ratings of Fannie Mae and Freddie Mac to Aa1 from Aaa, following its May 16 downgrade of the U.S. government. The outlooks for both were revised to stable, signaling no immediate further action, but clearly tying their credit standing to a weakened federal rating.

The move doesn’t affect loan pricing or guidelines today, but it reinforces a key truth: agency mortgage market strength hinges on the perceived backing of the U.S. government.

The downgrades extend beyond the GSE’s. The Federal Home Loan Bank system and its 11 regional banks were also cut to Aa1, though their outlooks were upgraded to stable, citing sound asset quality and essential liquidity roles.

P.S. Why are you bored 😂

☀️ 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.