Mortgage Roundup | Jerome Powell's Fed Speech

By Empire Learning 5 min read

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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.

đŸ—Łïž Quote of the Week

"A good monetary policy follows inflationary expectations and not historical numbers."

– Adi Godrej (Chairman of Godrej Group)

🚀 Featured Article

Jerome Powell's Fed Speech on Friday, August 22, 2025

Real estate agents and mortgage loan officers got a dose of good news from Federal Reserve Chair Jerome Powell’s latest speech in Jackson Hole, Wyoming. In a much-anticipated address at the Fed’s annual economic symposium, Powell signaled that relief from high interest rates could be on the horizon. This marks a notable shift in tone that has big implications for the housing market. This article will break down the main takeaways and what they mean for anyone in real estate or mortgage lending.

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😎 Big 30% Off Labor Day Sale!

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Labor Day weekend is coming up, and Pumpkin Spice Lattes are almost here! Take 30% off all real estate continuing education courses at Empire Learning this week. Use code LABOR at checkout and experience the savings while earning those credit hours.

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Offer valid through September 2. Use promo code LABOR at checkout.

đŸȘ” Off-Grid Living... Your Next Niche?

More homebuyers, especially professionals and young families, are looking for a life away from the city hustle. In fact, mortgage applications for rural and non-metro homes have surged about 80% since the pandemic began. Home prices in rural areas have also skyrocketed (one analysis shows roughly a 64% jump since 2019), yet they’re still significantly cheaper, on average, at 15% or so below comparable metro home prices. This combination of rapid growth and relative affordability makes “off-grid” or country living an appealing path for value-seekers. For MLOs, it signals a chance to shine in specialty financing, like USDA rural loans, homestead mortgages, and renovation financing for self-sufficiency upgrades. Helping borrowers tap these niche options can set you apart, while directly speaking to clients chasing more space, independence, or a simpler life.

  • Big shift to rural living. Remote work and a craving for space have more buyers heading to the countryside. Rural housing demand is way up, with loan applications well above pre-2020 norms.
  • Rural prices rising fast. Home values outside cities climbed faster than urban ones during the pandemic (e.g. ~36% vs 21% from 2020–2023). Even after surging, rural homes remain cheaper than city homes, which is great for bargain hunters.
  • Special loan programs. Good MLOs can leverage USDA loans and rural development programs that offer favorable terms (like zero-down options) in eligible areas. These financing tools help off-grid buyers afford properties that traditional loans might not cover.
  • Appeal to lifestyle seekers. Understanding off-grid needs, like solar panels, well water, and acreage financing, shows that you “get” clients’ dreams of independence. Guiding them through unique rural loan options builds trust and can make you the go-to expert for escaping the city rat race.

A new federal bill (the Homebuyers Privacy Protection Act) is poised to crack down on the sale of mortgage “trigger leads,” those pesky alerts that prompt lenders to bombard borrowers with unsolicited offers. This legislation sailed through Congress with rare bipartisan support. While it won’t eliminate every unwanted call (your current lender can still reach out if you’re shopping around), it’s a big step toward curbing aggressive marketing. For MLOs, this shift is a perfect moment to double down on trust-based communication and opt-in lead strategies instead of buying data. Showing clients how to protect their info, like signing up at OptOutPrescreen.com to stop credit bureaus from selling their data, demonstrates your care and builds goodwill in an era moving away from spammy tactics.

  • New law on the way. Congress is effectively banning trigger leads, meaning credit bureaus won’t freely sell your mortgage inquiry data. Fewer surprise calls = happier, less harassed homebuyers.
  • Some exceptions remain. Lenders you already do business with can still get notified if you’re mortgage shopping. So you might hear from your current bank, but the random sales calls should drop off significantly.
  • Focus on trust marketing. With cold-call tactics fading, MLOs can set themselves apart by building personal relationships and referrals. Gaining leads through content, education, and customer referrals (rather than buying lists) creates more genuine connections.
  • Help clients protect themselves. Educate borrowers about tools like the Do Not Call Registry and OptOutPrescreen. Taking a moment to guide clients in guarding their data shows you’re looking out for them.

💳 VantageScore 4.0 Joins the Game-Changer List

Big credit score news... Fannie Mae and Freddie Mac now accept VantageScore 4.0, not just the old FICO score, for conforming loans. Why does it matter? VantageScore 4.0 looks at extra info that FICO usually ignores, like rent, utility, and phone payment history. That means people with thin or no traditional credit files (long-time renters, folks without credit cards, etc.) can finally get credit scores that count. Industry estimates say this change could help up to 5 million more Americans become mortgage-ready homeowners. For MLOs, it’s a potential game-changer, especially when working with first-time buyers or clients who’ve been diligent bill-payers but lacked credit history. Educating your borrowers (and even your team) about the new scoring model can open doors for customers who might have been overlooked before.

  • FICO vs. VantageScore. Unlike FICO, the new VantageScore 4.0 considers alternative data, like on-time rent, utilities, cellphone bills, not just loans and credit cards. It also tracks trends over 24 months, rewarding consistent good behavior instead of just a snapshot.
  • Millions gain credit access. Because of these additions, VantageScore can score millions more people than FICO can. In fact, roughly 5 million previously “credit invisible” Americans could now qualify for mortgages they couldn’t before.
  • Great for first-time buyers. Many newcomers to credit (e.g., recent grads, long-time renters) will benefit. Paying your rent on time for a year might boost your score into mortgage-eligible range, which is awesome news for young buyers or those without credit cards.
  • MLO opportunity – educate and lead. Make sure your clients know about this update. Explain that a thinner credit file isn’t a deal-breaker now and guide them on building credit via rent reporting or utility payment history. Being the MLO who helps clients leverage VantageScore could set you apart and bring more borrowers into the homeownership fold.

🎯 Quick CE Tip of the Week

đŸ“± Text-Yourself Takeaways. At the end of each CE module, text yourself one key tip you’d actually share with a borrower. Later, you’ll have a whole thread of ready-to-use borrower talking points right in your phone, like a CE cheat sheet you built for yourself.

→ Start Your CE and Text Yourself Today!

📈 Market Highlight: August Snapshot

đŸ”„ Did You Know? If you missed the last few weeks' market highlight, we're keeping it in this week's newsletter. If you already skimmed it at some point in the month of August, you're good to go! We'll have a new market update next week for the month of September. Mortgage rates have held steady in the high‑6% range as purchase demand has cooled and inventory has improved across many markets, while regulatory updates (FHA documentation simplifications, the reinstatement of VA partial‑claim foreclosure relief, and changes to medical debt reporting) are reshaping lender requirements and borrower options. Get key insights on rates, borrower sentiment, refinance trends, and notable policy shifts MLOs need to know heading into late summer.

→ View Full Market Highlight

💡 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.
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Happy Learning,

— The Empire Learning Team
www.empirelearning.com