Sep. 13: Cook's docs show 2nd home; What if Pres. Trump controlled the Fed; Equity Prime & FHA lending; Saturday Spotlight: LicensingStore
“Many years ago, I loaned my girlfriend $100 sometime soon after we met. After 3 years, when I broke up with her, she returned exactly $100. I guess I just lost interest in that relationship.” We’re in the debt business, right? We all know that “debt” includes a multitude of instruments: first mortgages, auto loans, municipal bonds, Treasury securities, HELOCs, credit cards, the list goes on and on, especially when you go around the world. Here in the United States, total household debt increased by $185 billion to hit $18.39 trillion in the second quarter, according to the latest Quarterly Report on Household Debt and Credit. Mortgage balances grew by $131 billion and totaled $12.94 trillion at the end of June. Auto loan balances also increased, rising by $13 billion to reach $1.66 trillion. The pace of mortgage originations increased slightly, with $458 billion in newly originated mortgages in the second quarter. HELOC balances rose by $9 billion to $411 billion, representing the thirteenth consecutive quarterly increase. Student loan balances edged up by $7 billion and stood at $1.64 trillion, with student loans seeing another uptick in the rate at which balances moved from current to delinquent due to the resumption of reporting of delinquent student loans.
Saturday Spotlight: LicensingStore
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“Mortgage Licensing Reinvented”
In 3–5 sentences, describe your company
We built our team with veteran mortgage executives in a diverse array of subject areas including compliance officers, legal counsel, risk directors, finance controllers, and sales managers. We know firsthand what it takes to build a mortgage business from getting licensed, to staying compliant, and scaling efficiently and effectively. We are best able to help clients and new brokers because we have been in their shoes.
From licenses, reports, and renewals to start, and expanding into compliance, policy development, exam support, and post-closing loan file quality control, LicensingStore’s approach helps companies accelerate growth, often moving from concept to nationwide licensing faster than they thought possible.
Tell us about volunteer work employees are encouraged to engage in
We’re passionate about mental health and believe supporting our communities is part of supporting each other. Our team members choose causes that matter to them, from platelet donations and heart disease fundraisers to giving back to veterans. We encourage everyone to take time to give back as it’s just as important as the work we do for our clients.
What does your company do to help elevate employees’ growth?
We invest in our people the same way we invest in our clients. That means ongoing training in mortgage compliance, hands-on mentorship from leadership, and opportunities to attend industry events and webinars. Our team shares knowledge across every corner of the business so everyone can develop their expertise and their career.
How do you maintain culture in a work-from-home environment?
Being remote has been a value add for our team and our clients. We connect daily through video calls, team chats, and collaborative tools that keep projects moving and people talking. We make a point to check in on each other and keep the human side of work front and center.
Things you are most proud of that don’t have to do with sales
It’s our team’s collective brainpower that sets us apart. With a diverse and robust range of industry experience, we have an unmatched ability to understand and solve our clients’ unique challenges. We’re also proud of the trust we’ve built, growing alongside clients from their very first license to nationwide coverage.
Fun fact about your company
We just launched our own show: Approved AF - The Mortgage Licensing Podcast, where we share real stories, strategies, and compliance tips to help mortgage pros grow without the stress.
Anything else you’d like to share?
Licensing isn’t just a requirement; it’s the foundation for scaling a business. By adding audit assistance and loan file QC to our services, we’re making sure our clients’ foundations are solid so they can focus on bigger opportunities ahead.
(For more information on having your firm’s extracurricular activities, employee growth, and your charitable side featured, contact Chrisman LLC’s Anjelica Nixt.)
Fed Governor Cook’s 2nd home in Atlanta
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“A loan estimate for an Atlanta home purchased by Lisa Cook, the Federal Reserve governor accused of mortgage fraud by the Trump administration, shows that Cook had declared the property as a ‘vacation home,’ according to a document reviewed by Reuters. The document, dated May 28, 2021, was issued to Cook by her credit union in the weeks before she completed the purchase and shows that she had told the lender that the Atlanta property wouldn’t be her primary residence. The document appears to counter other documentation that Cook’s critics (most notably FHFA’s Bill Pulte) have cited in support of their claims that she committed mortgage fraud by reporting two different homes as her primary residence, two independent real-estate experts said.”
So now we’ve had the finger pointed at Fed Chair Powell for building remodeling cost overruns, and Fed President Cook for occupancy fraud. Who’s next?
Equity Prime continues with FHA but is wronged in print
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I received this note from the company early Friday morning regarding Equity Prime Mortgage (EPM). “EPM has issued a statement in response to HousingWire’s misleading report on FHA approvals. Contrary to HousingWire’s headline, the Federal Register notice makes clear the action was limited to a few jurisdictions. EPM continues to originate FHA loans nationwide and remains an FHA-approved lender.
“HousingWire implied a sweeping termination of FHA approvals, when in fact the action was narrowly scoped. 90 percent+ of EPM’s borrowers are Hispanic, Black, women, first-time buyers, veterans, or rural families, the very groups most harmed when misleading headlines limit access. Rising property taxes, insurance premiums up 200–400 percent, and inflation, not poor underwriting, have created stress on households. EPM has brought in Frank Razi, former HUD leader, as Chief Credit Officer; implemented new credit overlays; and overhauled down payment assistance programs to ensure long-term strength and compliance. CEO Eddy Perez Jr. stated, ‘This was a narrow and specific action, not the sensational headline HousingWire ran with. Their approach is designed for clicks, not for truth.’ EPM remains steadfast in its mission to protect access to homeownership, calling it ‘The American Gift’ and refuses to let sensationalism undermine the resilience of the families it serves.
Regarding HousingWire’s story, EPM stated, “And when the press misleads, it doesn’t just hurt companies, it hurts the very families who rely on accurate information about access to homeownership. EPM believes it is important to recognize that delinquency ratios are indicators, not outcomes. These numbers do not represent losses to the FHA insurance fund or to EPM, and they should not overshadow the fact that families are making payments and building stability.
“’We respect the role of accountability, but we also know numbers alone can’t tell the story,’ said Philip Mancuso, President and Partner at EPM. ‘Statistics don’t capture the resilience of families fighting to stay in their homes. That is what matters, and that is what we stand behind…It’s easy to lend money to people who don’t need it…’ At the heart of this fight are the communities EPM serves. More than 90 percent of the company’s borrowers are Hispanic, Black, women, first-time buyers, veterans, or rural families. By enforcing rigid formulas without context, HUD’s decision directly limits access for those most in need of the opportunity to own a home.
“What is most troubling is that HousingWire has once again chosen sensationalism over truth. While the Federal Register told a measured story of limited scope, HousingWire ran with a national ‘termination’ headline designed to generate traffic rather than inform the industry.”
The note from EPM wrapped up. “Sadly, this is not the first time. In 2025, when reporting on the passing of EPM’s late Chief Lending Officer, HousingWire published some inaccurate details that caused the need for changes to the article and some pain. Over the years, HousingWire has also misquoted EPM team members and other industry professionals, repeatedly prioritizing speed and clicks over accuracy and responsibility. It is a shame that… some competitors would stoop so low as to spread false allegations made by a so-called trusted source like HousingWire. ‘Greed is a deadly sin for a reason,’ Perez said. ‘HousingWire has become the tabloids of the mortgage industry,’ Perez said.”
What might rates do if President Trump controls the Fed
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Simon Johnnson opines that mortgage rates and other borrowing costs could rise if Trump controls the Fed.
“President Donald Trump has been highly critical of Federal Reserve Chair Jerome Powell as part of a challenge to the central bank’s independence. President Donald Trump is determined to subordinate the Federal Reserve to his will. Elected political leaders often express frustration with monetary-policy makers. If only the central bank would lower interest rates, they reckon, businesses and households could borrow more easily for long-term purposes, like building factories and buying homes, boosting the economy and, typically, incumbents’ re-election chances. If the central bank, concerned about inflation, keeps interest rates higher, some politicians try to pressure them into lowering interest rates by all possible means, from browbeating to changing the leadership.
“This is the current situation in the United States, where President Donald Trump is determined to subordinate the Federal Reserve to his will. At this stage, at least in countries with higher GDP per capita and well-functioning government institutions, political leaders’ top policy advisers typically point out that undermining (or eliminating) central-bank independence is likely to prove, quite quickly, to be entirely self-defeating. But wise counsel of this kind is either lacking within the Trump White House or, more likely, being brushed aside.
“That won’t make the problem go away. What any sensible politician cares about (or should care about) is long-term interest rates. And if the focus is on helping people buy homes, a current hot topic in Washington, what matters most is the fixed interest rate on 30-year mortgages. This interest rate is set in private markets, but the benchmark for pricing it is the yield on 10-year Treasury bonds. If the yield on these bonds goes up, then the mortgage rate rises and buying a house becomes more expensive, all other things being equal. (From 2021 until earlier this year, I was on the board of Fannie Mae, a government-sponsored enterprise that insures many U.S. mortgages against default.)
But the Fed, like most central banks most of the time, at best controls only short-term interest rates. At what is known as the short end of the yield curve, the Fed is highly influential and perhaps even has control when things go well. But market forces determine rates on 10-year government bonds (and on 30-year fixed-rate mortgages).
“The key question: What do investors think is a fair rate, given what is likely to happen to the economy next (and over the coming years). An important element of this entirely private-sector calculation is expected short-, medium- and long-term inflation.
“In the U.S., the Federal Open Market Committee sets interest rates in an attempt to keep inflation around 2 percent. If the FOMC is effectively forced by political pressure (of any kind) to lower interest rates below what its members believe is consistent with that target, there might be more economic growth in the short run, but there will likely also be more inflation. How much more is hard to say for sure, but this is exactly the math that the bond market is trying to do.
“Political pressure can lower short-term interest rates, but, given the likelihood of higher inflation, long-term rates are likely to rise. For example, firing the chair of the Fed or any combination of governors, or taking any other extraordinary political measures, is likely to raise long-term interest rates and make it more expensive to buy homes. (Robin Brooks produces a daily must-read Substack newsletter on these issues, including an analysis of recent movements in interest rates.)
“Top White House advisers know all this, and they must be making these points to the president. So, what is going on? One possibility is that Trump is tethered to an alternative reality, or thinks that he and his administration can conjure their preferred reality by suppressing inflation data as it emerges, for example, by firing officials. But consumers know what they pay for groceries. Inflation works like an enormously regressive tax on poorer people and those on fixed or not fully indexed incomes (like pensions). It is in your face every day. The degree of deniability is low and falls quickly as prices rise.
“Perhaps Trump and his advisers are calculating that the economic boost they desire will happen right away and that inflation will surge only later. But recall that what matters is inflation expectations in the long-term bond market, and these views can take off like a hare.
“Or is the plan to launch a new round of quantitative easing? After the 2008 global financial crisis, the Fed intervened at the long end of the bond market, which did affect mortgage rates. But those circumstances were truly exceptional, with falling house prices and many homeowners struggling to stay afloat. The U.S. is nowhere near such conditions today. If the Fed launched a heavy bond-buying program now or in 2026, there is no telling exactly what would happen… to, for example, the value of the U.S. dollar, which can also depreciate (or appreciate) rapidly.
“In any of these politics-driven scenarios, the U.S. could face prolonged high inflation. That would definitely not advance the White House’s professed goal of boosting homeownership and creating more good jobs. On the contrary, it would undermine prosperity for most Americans, today and well into the future.”
(Simon Johnson, a 2024 Nobel laureate in economics and a former chief economist at the International Monetary Fund, is a professor at the MIT Sloan School of Management, faculty director of MIT’s Shaping the Future of Work initiative, and co-chair of the CFA Institute Systemic Risk Council. He is a co-author (with Daron Acemoglu) of Power and Progress: Our Thousand-Year Struggle Over Technology and Prosperity (PublicAffairs, 2023).
Nearly no one knows that tomorrow is Clayton Moore’s birthday. Trivia buffs know that Clayton Moore played the Lone Ranger in the 1950s. But you don’t have to be an expert in anything to be entertained by this tale told by Jay Thomas on David Letterman. (Yes, this is a repeat.)
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(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes, visit the Chrisman Job Board. This newsletter is intended for sophisticated mortgage professionals only. There are no paid endorsements by me. For the latest mortgage news, visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.ChrismanCommentary.com. Copyright 2025 Chrisman LLC. All rights reserved. Paid job & product listings do appear. This report or any portion hereof may not be reprinted, sold, or redistributed without the written consent of Rob Chrisman. The views and opinions in this newsletter are mine alone unless otherwise specifically stated herein.)