Mortgage Update - August 11th, 2025
This past weekend, I went on a guys’ golf trip — fun, relaxing, and the kind of laughter that leaves your sides aching. Absolute medicine for the soul… even if the golf courses kicked my butt.
But the real “aha” moment didn’t come on the greens. It came at a restaurant. Not from our server, but from the kid who simply delivered the food — or so I thought.
In less than three minutes, he jumped into small talk after he noticed our golf attire, we learned he loves making homemade pasta noodles (but hates baking), he wants to study finance, and he somehow managed to make a plate drop-off one of the most entertaining parts of our trip. He even brought out special sauces from the kitchen, because apparently he moonlights as a flavor consultant.
The life lesson? Whatever your role, own it. Add flavor. Make an impression. When you bring more to the table than expected — whether it’s a new experimental aioli or customer service — you create moments people remember. And in life or business, that’s how you win.
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Read time: ~4 minutes
The End of Trigger Leads Is Here — And That’s Great News for EVERYBODY
If you’ve ever had a buyer apply for a mortgage and then immediately get buried in calls from strangers offering “better deals,” you’ve witnessed the ugly side of trigger leads. These happen when a credit bureau sells a borrower’s mortgage inquiry data to other lenders, opening the floodgates for unsolicited calls, texts, and emails.
Kreg’s wife, Katie, knows this nightmare firsthand. Years ago, after applying for a mortgage, she received literally hundreds of calls and texts in just a few days from aggressive lenders she’d never spoken to. The stories she told us were insane. Her phone was ringing non-stop. Some were downright deceptive. The experience was stressful, confusing, and confidence-shaking — exactly the opposite of what we want buyers feeling during a transaction.
That’s why the new Homebuyers Privacy Protection Act (HBPPA) is such a big deal. It amends the Fair Credit Reporting Act to shut down most trigger leads by restricting the sharing of credit report data. Now, only lenders with the borrower’s explicit consent — or those who already have an established relationship — can access that information.
Why This Matters for Real Estate Agents
Preserves Client Trust – No more awkward conversations explaining that you didn’t give away their info.
Keeps Buyers Focused – With fewer predatory offers flooding their inbox, buyers can focus on the home search without second-guessing their financing plan.
Cleaner Transactions – Reducing confusion means smoother communication and fewer last-minute curveballs.
In short: less noise, more trust, and a better buying experience — exactly what we all want for our clients.
Key Takeaway: The HBPPA is a win for the general public because it restores privacy during one of the most stressful financial decisions of their lives. For you, the agent, it means fewer outside influences derailing your client relationships and transaction timelines.
Fannie & Freddie Going Public? What It Could Mean for Rates, Loans, and Closings
President Trump is reportedly gearing up to take Fannie Mae and Freddie Mac public by late 2025. The plan could involve selling 5% to 15% of shares from the two institutions—valued at around $500 billion combined—raising approximately $30 billion for the government.
For anyone not living in the mortgage world every day like me and Kreg, here’s the quick version: Fannie and Freddie are the backbone of the U.S. mortgage system. They buy loans from lenders (like me), bundle them into mortgage-backed securities, and sell them to investors. This process keeps money flowing so we can keep making loans.
The idea on the table is to sell shares of these two giants to the public.
The Potential Upside
1. Cheaper Borrowing Costs
If the IPO pumps in fresh capital and streamlines operations, it could lead to lower mortgage rates, which was suggested by billionaire investor Bill Ackman on X. More buying power for clients = more offers written and accepted.
2. More Loan Products, Faster
Privately traded companies often move quicker than government-controlled ones. That could mean more flexible loan programs and faster adoption of creative financing options.
3. Stronger Housing Market Activity
Lower rates and more accessible financing almost always mean more buyers in the game. More buyers = more closings for agents.
The Possible Risks (and What They Mean for Us)
1. Rates Could Go Up Instead of Down
If investors think the government is stepping back from guaranteeing Fannie and Freddie’s loans, they’ll want a higher return for taking on more risk. That means higher mortgage rates — fewer qualified buyers, smaller loan amounts, and potentially slower sales.
2. IPO Growing Pains Could Disrupt the Market
Rolling out a massive IPO like this is complicated. If it’s messy, mortgage-backed securities pricing could wobble. For us, that could translate into short-term rate volatility and unpredictable pricing for borrowers.
3. Confused Clients Could Stall Deals
When headlines say “Fannie Mae and Freddie Mac are going private,” some buyers may think their financing options are disappearing. If that confusion isn’t cleared up fast, it could lead to delayed applications, lost deals, or clients shopping unnecessarily.
Key Takeaway: From where I’m sitting, this is a high-stakes, high-reward move. If it’s handled right, we could see lower rates, more loan options, and a more energized housing market. If it’s handled poorly, we might see short-term bumps that slow the momentum.
A Loan for the Asset-Rich, Income-Light Buyer
Every now and then a loan product comes along that makes you think, “Finally.”
I’m working with a couple right now who are the perfect example of why this new loan program is such a game changer.
They’re both retired. They each work part-time and get Social Security. Solid people, great credit — but on paper, their income isn’t enough to qualify for a traditional mortgage.
Normally, that’s where the conversation stalls.
But here’s the twist: they have a $1 million annuity just sitting there, untouched. With the new Asset Qualifier loan, that’s all we need.
No income verification. No employment requirements. As long as the value of their asset covers the loan amount plus six months of reserves, we’re golden.
These aren’t risky borrowers. They’ve done everything right — they’ve just shifted from earning to living off what they’ve built. Traditional guidelines don’t account for that, but this program does.