Issuance increased across product types during the first quarter, including a 50.4% increase in volume involving investment-property mortgages, hitting $14.10 billion.

The temporary change is due to FHA’s 2025 modification to the single-family loss-mitigation waterfall, which included reinstating TPP requirements before certain loss-mitigation options can be approved.

Daniel Hyman, a portfolio manager at PIMCO, said in a recent report that the buydowns lead to new-build homes selling at an inflated value that a homeowner is unlikely to match when they try to sell later.