Mortgage Roundup | Eye-Opening Jobs Report

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Let’s make your job a little easier. The Empire Learning Mortgage Roundup newsletter brings you mortgage industry tips, market know-how, and CE updates—all in one quick email.

🗣️ Quote of the Week

"The only way to make sense out of change is to plunge into it, move with it, and join the dance."

– Alan Watts (Philosopher)

🚀 Featured Article

Eye-Opening August 2025 Jobs Report

August’s employment report confirms what many in the industry have felt since spring... the job market is pumping the brakes. The U.S. added only 22,000 jobs in August, a tiny increase that shows how hiring has stalled since April. For context, monthly job gains were 142,000 in August 2024, so this is a significant downshift. At the same time, the unemployment rate ticked up to 4.3% (from 4.2% in July), marking the highest jobless rate since late 2021. In other words, more people are looking for work now than in recent months. In this week's article, let's break down the recent jobs report and what it could mean for the near future.

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🏟️ Fall Means Football Sale!

Nothing says Fall like FOOTBALL! Take 20% off all real estate continuing education courses at Empire Learning this week. Use code FALL at checkout and experience the savings while earning those credit hours.

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Offer valid through September 14. Use promo code FALL at checkout.

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🔎 Appraisals 2.0 Starts Now

The way home appraisals are reported is getting a major facelift, and it kicks off now. Fannie Mae and Freddie Mac (the GSEs) have rolled out UAD 3.6 and a redesigned Uniform Residential Appraisal Report (URAR) into a limited pilot as of September 8, 2025. Instead of multiple static forms stuck in the past, appraisals will use a single dynamic report that adapts to each property and loan type. This isn’t just a cosmetic change... It’s meant to make appraisal reports clearer and more data-rich for everyone, from lenders to homeowners. MLOs should start talking with borrowers and real estate agents about what’s coming so nobody is caught off guard by the new format (or wonders why their appraisal suddenly looks so different).

• One flexible form for all properties. The new dynamic URAR replaces that alphabet soup of old forms (1004, 1073, etc.) with a single data-driven format. The report auto-customizes to show only the sections and fields that matter for each assignment. No more irrelevant blanks or endless “See addendum” notes. For example, if it’s a refinance, the contract section simply won’t appear.
• More details and fewer addendum pages. UAD 3.6 brings in new and redefined data fields and lets appraisers integrate photos and commentary right in each section. You’ll see richer descriptions of interior and exterior conditions (with separate ratings for each), and important explanations won’t be buried in miscellaneous addenda. The idea is a report that’s easier to read and provides better support for how the appraiser arrived at the value.
• Gradual rollout timeline. This isn’t an overnight switch. The GSEs are running a Limited Production Period now through January 25, 2026, with only select lenders using UAD 3.6, and full adoption (“Broad Production”) starts January 26, 2026. By late 2026, it will become mandatory for conforming loans. In short, we’re in the test-drive phase now, with a long on-ramp before everyone must use the new format.
• Preparing borrowers and agents. MLOs can help clients get ready by explaining the new appraisal format ahead of time. Let them know the appraisal report they receive may look different (more charts, more commentary, fewer checkboxes) and that appraisers might ask for additional property details upfront. In fact, the new system collects many more specific data points, so agents are encouraged to provide any available info (renovations, amenities, etc.) early to avoid delays.

🕵️‍♂️ AML Is Coming to the Closing Table

There’s a big anti-money laundering (AML) change headed for real estate closings, and it’s about to make all-cash deals a lot less private. The U.S. Treasury’s FinCEN has finalized a nationwide rule (effective December 1, 2025) that will require title companies and closing agents to report details on certain all-cash residential purchases to the government. Up to now, these reporting rules only hit specific cities via temporary Geographic Targeting Orders (“GTO”) orders, but soon it won’t matter if you’re buying in Manhattan, Montana, or anywhere in between. If an LLC, LP, trust, or similar entity buys a home outright with cash, Uncle Sam wants to know who’s behind it. This is all in an effort to crack down on dirty money in real estate. For lenders and title professionals, it means new paperwork and procedures at closing, and for buyers, it means no more anonymous shell-company purchases without disclosure. It’s important to start prepping clients now so they know what to expect (especially those who love their LLCs and trusts).

• Nationwide reporting on cash deals. FinCEN’s new rule extends AML reporting requirements to all U.S. residential real estate markets, not just a few high-risk cities. Starting Dec. 1, 2025, any non-financed purchase of residential property by a legal entity or trust must be reported to FinCEN. In plain terms, if a home is bought with no loan (cash or private funds) and the buyer is an LLC, corporation, partnership, or trust (rather than a person’s name), it triggers a mandatory report. Regular homebuyers purchasing in their own name are unaffected. The rule specifically targets the use of entities and trusts in cash real estate deals, which have been a favored trick for money launderers.
• What info will be collected? Title companies, escrow agents, or attorneys handling the closing will be on the hook as “reporting persons.” They’ll need to identify the true owners behind the buying entity and gather a bunch of details about the deal. That means collecting beneficial owners’ information (names, ID details, address, etc.) for the individuals who ultimately own or control that LLC or trust, and specifics on the transaction (property address, purchase price, how the money was paid, etc.). Essentially, the closing agent has to lift the veil on who’s buying the property and submit that data to FinCEN in a government report. This report is typically required within 30-60 days of closing, and failure to comply can come with stiff penalties, so title professionals are gearing up to get it right.
• Big changes for the industry. This is a significant new compliance step, and the industry is responding accordingly. Title companies and law firms across the country are training staff and updating closing procedures now, well ahead of the deadline. The reporting form itself is no joke. FinCEN’s draft version had 111 different fields of information to be filled out for each transaction. Expect things like corporate organizational charts, IDs for multiple owners, and possibly extra time needed at closing to compile everything. Some in the real estate industry have raised concerns (even lawsuits) about the burden and privacy issues, arguing that it turns title agents into “financial watchdogs,” but as of now, the rule is marching forward.

📉 Insurance Is the New DTI Killer

Property insurance costs have become the surprise budget-buster for many homebuyers, sometimes scuttling deals the way high interest rates or taxes might. We’re seeing a wild mismatch. In some states, homeowners' insurance premiums have skyrocketed, whipsawing buyers’ debt-to-income (DTI) ratios, while other areas are finally seeing signs of stability. The past few years brought double-digit insurance jumps almost everywhere, and those higher premiums factor into a buyer’s monthly payment (and their DTI calculation). So now, a home that seemed affordable might suddenly bust the ratio once the insurance quote comes in. To avoid nasty surprises at the eleventh hour, MLOs are wise to “pre-flight” the homeowners' insurance (HOI) with borrowers. Essentially, get an early read on insurance costs and even encourage shopping around before closing.

• Premiums up across the board. Home insurance costs have soared in recent years, becoming a bigger chunk of homeownership costs. Nationally, homeowners saw about a 24% jump in premiums from 2021 to 2024... that’s twice the rate of inflation. On average, a typical homeowner is now paying roughly $3,300 a year for coverage. This surge (amounting to an extra $21 billion collectively) is deepening affordability issues and squeezing DTIs for buyers who must factor in these higher insurance bills.
• Regional rollercoaster. Insurance pain isn’t confined to hurricane zones, though places like Florida, Louisiana, and Oklahoma still lead the nation in pricey premiums. In fact, many non-coastal states got walloped too (Utah saw a 59% jump, Illinois 50%, Arizona 48% in just three years). The good news is that some hard-hit markets are starting to stabilize. Florida, for instance, enacted reforms that attracted new insurers into the state, easing an insurance crunch. More competition is a hopeful sign. Florida now has over a dozen new insurers entering the market post-reforms, a clear indication that the state’s insurance outlook is finally leveling out.
• “Pre-flight” your insurance early. One of the best ways to avoid an insurance surprise wrecking a loan approval is to shop for homeowners' insurance well before closing. Don’t wait until the week of escrow to find out the premium. Encourage buyers to get quotes 2–3 weeks in advance. Early shopping will likely fetch better rates, give time to compare policies, and make it so that the actual insurance cost is used in the debt ratio.
• No surprises at escrow. Early insurance checks give borrowers time to mitigate high premiums, too. For example, if initial quotes come back eye-wateringly high due to something like an old roof or outdated wiring, the buyer might address those issues or look into discounts. Many insurers offer lower rates for homes with safety upgrades (wind-resistant roofing, updated electrical systems, or monitored alarm systems). Knowing this upfront means a buyer could decide to invest in a new roof or ask the seller for repairs, bringing the insurance cost down before it ever becomes an issue.

🎯 Quick CE Tip of the Week

📲 CE to Social in 60
After a module, try to write a two-sentence social media post you could share with your sphere in under 60 seconds. Make it educational and friendly, rather than salesy. Have Chat GPT or another LLM help you write it if that helps, but always add your own voice to the final product.

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📈 Market Highlight: Wake Me Up When September Ends

🔥 Did You Know? Market highlights are updated at the beginning of each month, so if you've read through it at least once in any given month, you're good to go! This month, the national real estate and mortgage market is navigating a tricky balancing act. Both real estate agents and mortgage loan originators (MLOs) are finding that 2025’s housing scene feels very different from previous years. High mortgage rates have defined the summer, creating a bit of a “cruel summer” standoff between cautious buyers and stubborn sellers. Yet there are also bright spots, like stabilizing home prices and hints of relief on the rate front, that provide reasons for optimism as we head into the fall.

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💡 Feedback Welcome!

We'd love your feedback. The lifeblood of any good business is figuring out what their customers truly care about — the best MLOs also learn this about their clients.

If you have any thoughts, ranging from what topic should be discussed in next month's newsletter to more in-depth ideas on how the CE experience can be the best it can be, please reach out via the email link below — we're truly all ears.

Happy Learning,

— The Empire Learning Team
www.empirelearning.com