‘Special Purpose Credit Programs’ face the axe

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1. ‘Special Purpose Credit Programs’ face the axe

On March 25, 2025, Federal Housing Finance Agency (FHFA) Director Bill Pulte issued Decision No. 2025-145, directing Fannie Mae and Freddie Mac to terminate their support for Special Purpose Credit Programs (SPCPs).

These programs were designed to assist borrowers lacking adequate down payments or funds for closing costs. The directive specifies that the Government-Sponsored Enterprises (GSEs) must cease their involvement in SPCPs, as their current support is deemed inappropriate during their conservatorship.​

It's important to note that this decision does not impact other programs like FHA loans or well-known initiatives such as HomeReady and Home Possible, which are categorized under Equitable Housing Finance Plans (EHFPs).

📰 In other news: Judge Orders HUD To Reinstate $30M In Housing Grants

2. HUD revises residency requirements for FHA loans

The FHA has released Mortgagee Letter 2025-09 and TIL-490, revising residency requirements for FHA-insured mortgages.

This is effective for case numbers assigned on or after May 25, 2025. The “Non-permanent Residents” category has been removed from both the Single Family Title I and Title II programs.

This means individuals must be citizens or have a green card for FHA financing. The May 25th date means the loan must be officially started on or before May 25th.

The FHA encourages all stakeholders to review these updates thoroughly. Questions regarding them should be directed to the FHA Resource Center.

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3. More Nuggets

📉 Mortgage rates tick down, sending 30-year average to 6.65%. (Bloomberg)

📝 NAR clarifies details on delayed marketing listings. (CandysDirt)

🗞️ FinLocker says it will cover 100% of mortgage verification costs. (FinLocker)

🧑‍⚖️ CFPB's probes of big tech and finance firms freeze up. (NMP)

⚖️ CFPB staffer alleges misconduct in Townstone redlining suit. (HousingWire)

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4. Pending home sales rise but continue to lag last year

The number of homes going under contract rose a little in February but continues to lag last year’s levels, according to a NAR report. Here are the main takeaways from the report released yesterday:

• The pending home sales index, a leading indicator of house sales based on contract signings, rose 2% to 72.0 in February. The index remains well below 100, which represents the level of contract activity in 2001.

• Despite the monthly increase, contract signings remain well below the historical norm, NAR Chief Economist Lawrence Yun said.

• “A meaningful decline in mortgage rates would help both demand and supply – demand by boosting affordability, and supply by lessening the power of the mortgage rate lock-in effect,” Yun said.

• Compared with a year earlier, signings were 3.6% lower.

• The sharpest gains on month were in the Southern region of the U.S., while they declined in the Northeast and West. Compared with a year earlier, all four regions of the country booked sliding sales, the index showed.

5. Mortgage application payments plateau in February

Homebuyer affordability remained flat in February with the national median payment applied for by purchase applicants remaining unchanged at $2,205 in February.

This is according to the MBA’s Purchase Applications Payment Index (PAPI), which measures how new monthly mortgage payments vary across time – relative to income – using data from MBA’s Weekly Applications Survey (WAS).

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

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