The Federal Reserve and Treasury Department are on a path to reducing capital requirements for banks, large and small. The motivation includes the shift seen in mortgage lending toward nonbanks following the 2008 crisis.

After working for more than two years toward a spinoff of Newrez, Rithm Capital paused the effort and will invest in the mortgage unit.

Originations spiked by nearly 40% from the first quarter to the second. For the first half of the year, volume was up 13.3%. Lenders outside of the top five gained some market share in the April-to-June period. (Includes two data tables.)

While FHFA Director Bill Pulte had announced that the GSEs would “immediately” begin accepting VantageScore 4.0, FHFA acknowledged this week that implementation will take some time.

Executives at mortgage companies anticipate originations will pick up as soon as interest rates on mortgages decline. However, the MBA’s projections suggest little movement in rates for the rest of this year.

A new bill seeks to require FHFA to create a public database of information on all mortgage appraisals. The proposal comes as the Trump administration disbanded the Biden-era task force created to address appraisal bias.

U.S. Bank sells mortgages originated by Union Bank; tariffs and interest rates; Mr. Cooper starts MSR fund; Congress plans to address housing.

Some of the mortgage bellwethers began reporting second-quarter results this week. The good news is that loan production increased nicely from the first quarter.

President Trump and FHFA Director Bill Pulte are going after high profile targets to address mortgage fraud at Fannie Mae and Freddie Mac.

FHFA said lenders can now use VantageScore 4.0 when underwriting GSE loans. It’s not clear, though, if the mortgage industry is ready to take advantage of the opportunity.