Trump orders ‘Emergency Price Relief’ on housing

Plus: Rollout of new credit scoring models pushed back

January 22, 2025

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Disclaimer: Average mortgage rates as of Jan 21, 2025. © MND Daily Rate Index.

1. Rollout of new credit scoring models pushed back

A planned implementation of new credit score requirements for single-family loans acquired by Fannie Mae and Freddie has been paused in response to industry feedback, the Federal Housing Finance Agency announced.

Under the policy, Fannie Mae and Freddie Mac would replace the current FICO credit score model with the FICO 10T and the VantageScore 4.0 credit score models and transition from requiring three credit reports to two for single-family loans.

The changes were originally set to take place in the fourth quarter of this year. However, in a notice released on Friday, FHFA said it has pushed back implementation to a “to-be-determined date.”

2. CFPB slaps Equifax with $15M fine for mishandling consumer credit disputes

The CFPB found Equifax ignored consumer documents and evidence submitted with disputes, allowed previously deleted inaccuracies to be reinserted into credit reports, provided confusing and conflicting letters to consumers about the results of its investigations, and used flawed software code which led to inaccurate consumer credit scores.

“Equifax failed in its basic duty to investigate and resolve consumer disputes about inaccurate information on their credit reports. Today’s order requires Equifax to pay a civil penalty and follow federal laws on handling credit reporting disputes.”

Rohit Chopra, director at CFPB

The accusations against Equifax mirror allegations made in a lawsuit filed against fellow credit-reporting giant Experian just two weeks ago.

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3. More Nuggets

⚖️ Attorney General Henry files lawsuit against mortgage brokers who conspired in kick-back scheme. (Attorneygeneral.gov)

🏘️ Trump orders ‘Emergency Price Relief’ on housing. The details. (Realtor.com)

🚒 What happens to your mortgage if your home is damaged in a wildfire? (WSJ)

📝 FHA updates loss-mitigation waterfall in new mortgage servicing guidance. (FHA)

🤖 Goldman Sachs rolls out an AI assistant for its employees as artificial intelligence sweeps Wall Street. (CNBC)

4. Housing starts jump 15.8% in December

Fueled by strong demand, single-family construction increased in December despite ongoing industry challenges, including high mortgage rates, rising financing costs for builders, and limited availability of buildable lots.

Overall housing starts rose 15.8% in December to a seasonally adjusted annual rate of 1.50 million units, the highest level since February 2024, according to Census Bureau data.

Single-family starts, which form the majority of new construction, climbed 3.3% to a seasonally adjusted annual rate of 1.05 million units. Multifamily starts, including apartment buildings and condos, surged 61.5% to a pace of 449,000 units.

5. Mortgage rate forecasts for 2025

The 30-year fixed mortgage rate is expected to finish 2025 at 6.33%. That’s according to ResiClub’s analysis of seventeen mortgage forecasters. Here are the details of each forecast

  • Redfin: 6.80%

  • Capital Economics: 6.75%

  • Hunter Economics: 6.60%

  • NAHB: 6.53%

  • CoreLogic: 6.50%

  • Wells Fargo: 6.40%

  • MBA: 6.40%

  • FHFA: 6.40%

  • PNC Bank: 6.36%

  • Moody’s: 6.30%

  • Morgan Stanley: 6.25%

  • BrightMLS: 6.25%

  • Fannie Mae: 6.20%

  • Realtor’com: 6.20%

  • Goldman Sachs: 6.10%

  • TD Bank: 5.80%

  • NAR: 5.80%

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