'Be nimble': Mortgage lenders, experts mull the Trump effect
National Mortgage News
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Donald Trump's return to the White House will shake up the housing market, but mortgage industry veterans are split on the extent of the impact. Treasurys rose Wednesday as the market is partially wary of a Trump Administration's prospective tax cuts and adding to the federal deficit. Mortgage players generally tight-lipped before Tuesday's results are now reacting with uncertainty around the impact to housing, from mortgage rates to regulation and home building. "Trump would make comments on the campaign trail about different types of tax and other policies than you would normally expect from a Republican," said Sairah Burki, managing director and head of regulatory affairs and sustainability at the Commercial Real Estate Finance Council. "So I think we just have to be prepared for those types of surprises, and be nimble."
Reverse mortgage lender Finance of America announced plans for new marketing campaigns in 2025 after seeing multimillion profits return in the third quarter thanks to increased business volumes and fair-value gains. The Plano, Texas-based company posted net income totaling $203.7 million, rising from a $5.1 million loss three months earlier. The latest number marked a year-over-year turnaround from a $174.9 loss compared to the third quarter a year ago. The company credited growing originations, particularly of its Homesafe second-lien product, for the improved results.
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Guild Mortgage reported financial setbacks in the third quarter, driven by the impact of fluctuating interest rates on its servicing portfolio, but its origination segment held strong. The company reported a significant loss of $145.8 million in value adjustments to its mortgage servicing rights, compared to a gain of $2.1 million in the prior quarter, due to rates dropping in August. Its servicing segment posted a net loss of $74.6 million in the third quarter, while company wide it reported a $66.9 million net loss, a drop from its net income of $37.6 million in the second quarter.
The list of things that are going to be altered in Washington in terms of regulation of financial markets is very long. The sweeping victory by President Trump means that there will be big changes for federal agencies, both in terms of new legislation and also oversight of federal agency personnel. This Trump team is far better organized than in Trump I and is already vetting Cabinet appointments. One insider told NMN before the election that once the election is decided, the transition will begin in earnest. Major appointments will be announced and the outlines of an agenda will emerge, but a big part of the Trump effort in year one will be rolling back years of progressive policy.
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