New York AG Letitia James indicted on mortgage fraud

Plus: Fannie Mae appoints Brandon Hamara to board

October 10, 2025

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🗓️ Programming note: We are off for the holiday on Monday. We'll be back in your inboxes with a new edition on Wednesday!

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

1. New York AG Letitia James indicted on mortgage fraud

A grand jury has indicted Letitia James, the Democratic attorney general in New York, on two criminal charges. James will now face two felony counts of bank fraud and false statements to a financial institution.

This move comes after President Trump specifically pressed the Justice Department to prosecute James, who is one of Trump's longtime political foes.

In a statement, James accused the president - who recently publicly pressured prosecutors to file criminal charges against her - of a "desperate weaponization of our justice system".

2. Fannie Mae appoints Brandon Hamara to board

FHFA Director William Pulte appointed Brandon Hamara, vice president of Tri Pointe Homes and Freddie Mac board member, to Fannie Mae’s board as a full-time member.

The move aligns with President Trump’s push to accelerate U.S. homebuilding, citing 2 million idle lots held by builders.

Hamara joined Freddie Mac’s board in March 2025 and has led land acquisition at Tri Pointe since 2017. His prior roles include positions at Richmond American Homes, PulteGroup, and Land Interests Inc.

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3. More Nuggets

🏦 What a government shutdown means for VA loans. (VeteransUnited)

💸 Fifth Third grows mortgage lending to $5.2B, plans Southern expansion. (HW)

🏘️ Zillow, CoStar, and the Battle over Rentals. (Delprete)

4.  Roughly 1 in 7 U.S. home purchases get canceled

In August, 56,000 home purchase agreements were canceled across the country, according to Redfin. That’s equal to 15.1% of homes that went under contract that month, and marks the highest percentage of cancellations on record in any August dating back to 2017.

5. Fannie Mae: ADU income now allowed

Fannie Mae will now allow rental income from accessory dwelling units (ADUs) to count toward a borrower’s qualifying income. The change is effective immediately for purchase money mortgages and limited cash-out refinances.

Qualifying use is capped at 30% of the borrower’s total qualifying income, applies only to one-unit principal residences, and can include income from only one ADU. Properties with multiple ADUs or two- to four-unit dwellings are ineligible. Manual underwriting can adopt the rule immediately; standard rental documentation requirements remain.

ADUs must be independent living spaces with sleeping, cooking, and bathroom facilities. They may be interior, attached, detached, or manufactured, but cannot serve as the primary residence if the primary is a manufactured home.

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

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