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MortgagePoint » Your Trusted Source for Mortgage Banking and Servicing News 50 August 2025 J O U R N A L higher than the estimated 110,000 and just above the upwardly revised 144,000 in May. The BLS also found that the unem- ployment rate fell to 4.1%, the lowest since February 2025, and against a forecast for a slight increase to 4.3%. Though the jobless rates fell, it was due largely to a decrease in those working or looking for jobs. In June, labor force participation rate dropped to 62.3%, its lowest level since late 2022. The household survey, which the BLS uses to calculate the unemploy- ment rate, showed a smaller employment gain of just 93,000, as those who had not looked for a job in the past four weeks rose by 234,000 to 1.8 million. Experian found that, in line with the MBA's MCAI data, first mortgage delinquencies and foreclosures increased in June 2025, particularly in later stages of delinquency. Home equity delinquencies remained low, signaling stability in that segment. Mortgage originations were up, with refis beginning to recover. HELOC direct mail offers have surpassed first mortgage offers, driven by aggressive mar- keting and AVM-based personalization. Delinquency and foreclosure metrics indicate an upward shift in credit risk, particularly in first mort- gage portfolios. Data trends show that early-stage delinquencies—30 Days Past Due (DPD)—are steadily increasing, according to Experian's analysis. More concerning is the continued progression of loans from 90 DPD to 120 DPD and ultimately into foreclosure, suggesting that borrower distress is not isolated but escalating through the default pipeline. This sustained deterioration in perfor- mance warrants enhanced vigilance from servicers and risk managers. Integrated portfolio monitoring, credit-based scoring overlays, and property data models offer a more proactive approach to identifying and mitigating risk. In contrast, home equity products, especially HELOCs, have shown some resilience. Both early- and late-stage HELOC delinquencies have declined or stabilized in recent months. This contrast may reflect the different borrower profiles or underlying risk exposure between first mortgage and home equity borrowers. FHFA'S PULTE CONSIDERS CRYPTO FOR MORTGAGE APPLICATION PROCESS I n the American mortgage market, cryptocurrency may someday be just as important as cash. Today, Bill Pulte, Director of the U.S. Federal Hous- ing Finance Agency (FHFA), announced a ground-breaking initiative: the agency will investigate how cryptocurrency hold- ings affect mortgage eligibility. Pulte's remark corresponds with the United States' growing embrace of cryptocurrency under President Trump. Pulte was sworn in on March 14 following Trump's nomination. According to public records, he holds up to $1 million in bit- coin. He also has investments in MARA Holdings, a cryptocurrency company, air conditioning companies, MrBeast Industries, and Elon Musk's X, among other companies. For cryptocurrency assets to be taken into consideration, Fannie Mae and Fred- die Mac now stipulate that they must be "exchanged into U.S. dollars and held in a U.S. or state-regulated financial institution." In what might be a revolutionary change in U.S. housing financing, the FHFA is investigating whether crypto- currency holdings could be taken into account when evaluating mortgage eligibility. The Federal Home Loan Administration (FHFA), which is in charge of Fannie Mae, Freddie Mac, and the Federal Home Loan Banks (FHLB), is evaluating how cryptocurrency fits into the larger picture of borrower assets and may include it in the underwriting toolset that already consists of traditional savings, income, and credit ratings. Key Findings: • The FHFA is investigating if cryp- tocurrency assets can be used to qualify for a mortgage.