- Mortgage Nuggets
- Posts
- Single-family housing starts tumble in April
Single-family housing starts tumble in April
Plus: Rocket confirms VantageScore availability for retail and TPO
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Today’s newsletter is a 2.5-minute read. There will be no newsletter on Monday.
Disclaimer: Average mortgage rates as of May 21, 2026. © MND Daily Rate Index.
1. Rocket confirms VantageScore availability for retail and TPO
Rocket Mortgage and Rocket Pro announced Thursday that they have begun using VantageScore 4.0 alongside Classic FICO scores in the mortgage qualification process, a move the company said is aimed at expanding access to home financing.
Rocket’s rival UWM began allowing its brokers to access both FICO and VantageScore credit scoring models for conventional loans at the end of April.
VantageScore 4.0 incorporates additional consumer payment data, including rent, utility and telecommunications payment histories, to assess creditworthiness.
“Rocket is giving more people than ever a fair shot at homeownership by leveraging diversified credit scoring,” Heather Lovier, chief operating officer of Rocket Companies, said in a statement. “Our evolving economy requires a more modern approach to evaluating credit, and VantageScore 4.0 uses an updated methodology designed to create a more inclusive view of creditworthiness.”
2. AI adoption in mortgage servicing is accelerating
A BlackWolf Advisory Group white paper found AI adoption among mortgage servicers rose from 15% in 2023 to 38% in 2025. Servicers using AI are reporting 30-50% reductions in customer service costs and 25-40% drops in document processing expenses.
Most companies are buying vendor solutions rather than building in-house — 63% rely on third-party tools according to a 2025 STRATMOR survey. BlackWolf's founder warns that's not a free pass on accountability: "You can't just rely on a vendor and say the vendor is the AI tool. You're responsible for it."
The biggest barriers to adoption are legacy systems, regulatory scrutiny, and organizational resistance. Freddie Mac's AI governance requirements, which took effect in March, now require formal policies, security assessments, and executive oversight — raising the compliance bar for any servicer deploying AI tools.
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3. More Nuggets
📊 Mortgage rates hit a nine-month high in blow to prime buying season. (WSJ)
🏡 Zillow-Compass fight raises bigger questions about the future of mortgage lead distribution. (NMP)
📰 Point launches wholesale channel. (Globe Newswire)
🏦 Smaller mortgage vendors face squeeze from lenders, regulators. (HousingWire)
💼 5 big obstacles Kevin Warsh faces as Federal Reserve chair. (The Hill)
🚨 Coach’s Corner
Don’t Send Long Ass Emails, do this instead! (Youtube Shorts)
— Dave Krichmar CEO
4. Single-family housing starts tumble in April
April single-family starts fell 9% from March to a 930,000 annual rate, and the broader picture hasn't changed in years — starts aren't crashing but they're not growing either.
The reason is simple: builders have too many completed homes already sitting unsold. That number currently stands at 121,000 units.
New home sales tell the same story — elevated versus 2019 pre-pandemic levels, but essentially stuck in neutral since then. Builders won't ramp up construction until that inventory clears, and with mortgage rates back at yearly highs and rate cuts now off the table for 2026, demand isn't moving fast enough to clear it.
5. NEXA acquires stake in Copper Ridge Ventures
NEXA Lending has made a phased acquisition investment in Copper Ridge Ventures, a holding company for mortgage joint ventures between loan officers and real estate professionals.
NEXA will provide Copper Ridge with compliance, licensing, processing, HR, and IT infrastructure. Copper Ridge will integrate and promote NEXA's systems in return.
Joint ventures have traditionally required back-office resources that most independent operators don't have. The deal gives Copper Ridge access to NEXA's platform infrastructure without having to build it independently. Financial terms were not disclosed.
☀️ You’re all caught up. See you on Wednesday!
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