Senators warn FHFA on crypto in mortgages

Plus: Zillow updates home price forecast

July 28, 2025

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☕️ Good morning. This is Mortgage Nuggets. The newsletter that pairs perfectly with your morning coffee. Let’s dive into what we’ve got for you today—a 2-minute read.

Disclaimer: Average mortgage rates as of July 25, 2025. © MND Daily Rate Index.

1. Senators warn FHFA on crypto in mortgages

Five Senate Democrats are warning the FHFA against allowing unconverted cryptocurrency assets in mortgage underwriting.

In a letter to FHFA Director Bill Pulte, they cited financial stability, crypto volatility, and security concerns as major risks. They also questioned Pulte’s dual role as FHFA director and chair of Fannie Mae and Freddie Mac boards, raising conflict-of-interest concerns.

The FHFA is currently evaluating crypto-backed assets held on U.S.-regulated exchanges, with support from firms like Milo, Ledn, Figure, and Moon Mortgage.

“Using unconverted crypto in mortgage underwriting could threaten financial stability, as ongoing volatility and liquidity issues may prevent borrowers from converting assets to cash in time to avoid default,” the senators wrote.

2. Zillow updates home price forecast

Among the 300 largest U.S. metro area housing markets, Zillow expects the strongest and weakest home price appreciation between June 2025 and June 2026 to occur in these areas:

Strongest

  1. Atlantic City, NJ → 2.9%

  2. Kingston, NY → 2.2%

  3. Knoxville, TN → 2.0%

  4. Torrington, CT → 1.9%

  5. Rockford, IL → 1.7%

  6. Concord, NH → 1.7%

  7. Pottsville, PA → 1.7%

  8. Fayetteville, AR → 1.6%

  9. Norwich, CT → 1.6%

  10. East Stroudsburg, PA → 1.5%

Weakest

  1. Houma, LA → -9.6

  2. Lake Charles, LA → -9.5%

  3. Alexandria, LA → -8.0%

  4. New Orleans, LA → -7.2%

  5. Lafayette, LA → -7.0%

  6. Shreveport, LA → -6.9%

  7. Beaumont, TX → -6.5%

  8. San Francisco, CA → -6.1%

  9. Austin, TX → -5.1%

  10. Corpus Christi, TX → -5.0

3. More Nuggets

📊 Mortgage data firm InGenius acquires mortgage recruiting platform SIMPL. (Pulse)

🎥 Trump says he believes Powell is ready to start lowering rates. (CNBC)

🆕 Mortgage pundit Barry Habib named to the Fannie Mae board. (Scotsman Guide)

🔨 Michael Isaacs out as CEO of Go Mortgage. (PremierPlus)

📝 Lawmakers voice support for FHFA’s adoption of VantageScore 4.0. (HousingWire)

4. Homeowners sour on mortgage servicers

Customer satisfaction with mortgage servicers fell sharply in 2025, according to J.D. Power, as borrowers face poor communication, lack of personalization, and escalating escrow costs.

While mortgage originators earned a high satisfaction score of 727, servicers lag far behind at 596 — a 131-point gap. Nearly 60% of borrowers reported increased escrow costs, and only 31% rated servicer communication as excellent.

Rocket Mortgage led the rankings with a score of 685, followed by Guild Mortgage (677), and Regions Mortgage (656).

5. Texas AG Paxton faces mortgage fraud allegations

Texas AG Ken Paxton and his wife allegedly claimed three different homes as their primary residence, securing lower mortgage rates and multiple homestead tax breaks—both likely illegal. Records also show they violated loan terms by renting out a property restricted to personal use.

The case is similar to ones Paxton has supported against Democrats, drawing criticism over double standards. While the Trump administration has made mortgage fraud a political focus, experts say Paxton is unlikely to face investigation.

The issue surfaces as he prepares a Senate run and follows past legal troubles, including impeachment and ties to a convicted developer who paid for work on one of the homes.

A MESSAGE FROM PACASO

Former Zillow exec targets $1.3T

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

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