Real estate professionals will hope to see a noticeable increase in mortgage activity in the months ahead following the Federal Reserve’s long-awaited decision to reduce interest rates. Data released by the country’s largest mortgage industry trade association reported a modest year-over-year improvement in purchase application volume the month before the Fed’s first rate cut in over four years.
The Mortgage Bankers Association (MBA) reported a 4.4 percent year-over-year increase in mortgage applications for new home purchases in August, with no change compared to July. This marks the 19th consecutive month of annual growth, driven by declining mortgage rates and increased activity among first-time buyers, according to the trade association. The share of Federal Housing Administration purchase applications reached a record high of 29.6 percent, while estimated new home sales rose nearly 15 percent – the fastest pace since February 2022. The MBA projected new single-family home sales were running at a seasonally adjusted annual rate of 776,000 units in August. Read more here.
The Consumer Bankers Association (CBA) released its 2025 policy agenda, titled “Vision for America – A Bank Policy Agenda for All.” The agenda outlined the retail banking industry’s priorities, beliefs, and positions on various issues affecting the consumer-focused financial services marketplace. The policy agenda was accompanied by a new website and video and is intended to serve as a roadmap for policymakers across the ideological spectrum who recognize the valuable role of banks, according to the trade organization. CBA President and CEO Lindsey Johnson issued a statement with the release asserting the need for legislative and regulatory approaches “rooted in sound data, rather than partisan politics.” Learn more here.
America’s Credit Unions Regulatory Advocacy Senior Counsel James Akin expressed concerns about the Consumer Financial Protection Bureau’s (CFPB) recent circular about overdraft products in a letter to CFPB Director Rohit Chopra. He argued the circular may mislead consumers into thinking credit unions are not complying with the Electronic Fund Transfer Act and Regulation E. The circular highlights so-called “phantom” opt-ins to overdraft programs. Akin emphasized credit unions continue to follow well-established laws and asserted the CFPB’s statements, though aimed at banks, could erode consumer confidence in credit unions. Akin also criticized the bureau for failing to recognize credit unions’ proactive efforts and positive member relationships. See more details here.
The Independent Community Bankers of America (ICBA) has released a guide to assist community bankers in participating in the Economic Growth and Regulatory Paperwork Reduction Act (EGRPRA) review process. The EGRPRA requires federal banking agencies to review existing regulations every 10 years to identify outdated or burdensome rules. The ICBA encouraged community bankers to use this opportunity to voice their concerns and offer suggestions for improving the regulatory environment. Although registration for the virtual hearing on Sept. 25 is closed, the agencies will accept written comments on regulatory burden until Oct. 30, covering topics like consumer protection and money laundering. The trade organization published the guide to help bankers prepare for these opportunities to provide input.