The David Greene Show: Mortgage Monday | The Government Shutdown and What You Should Know
Episode 87 | October 6, 2025
Host: David Greene
Guest: Christian Bashelder (Broker Owner, The One Brokerage)
Episode Overview
In this Mortgage Monday edition, David Greene and his business partner, Christian Bashelder, dig into the impact of the recent federal government shutdown on the mortgage industry. The conversation unpacks what causes mortgage rates to move, how government agencies and loan products are affected during a shutdown, and crucial tips for borrowers navigating uncertain times. With the usual blend of practical advice and candid humor, the hosts demystify industry jargon and advocate for smart real estate lending choices.
Key Discussion Points & Insights
1. The Current Market Climate (00:00–02:14)
- Backdrop: The episode is recorded on October 1, 2025, just after news breaks of a looming government shutdown due to incomplete federal budget agreements.
- Market Movement:
- The One Brokerage has over 200 loans in processing, reflecting a market uptick due to recent interest rate easing.
- Both new home purchases and refinancing applications are up as rates loosen after a long period of tightness.
- Seller Relief: Lower rates are helping previously stagnant properties move to contract.
2. How Government Shutdowns Affect Mortgage Rates (04:02–13:33)
- Immediate Impact on Financial Markets:
- Shutdowns unsettle markets, causing investors to seek safer assets like bonds or mortgage-backed securities.
- Christian:
"In general, historically speaking, a government shutdown is typically, at least in the short term, helpful for mortgage rates. ...Any time there's something new that's uncertain, that causes concern, people will typically retract...and will typically retreat into more secure investments." (05:13)
- Money Flow Analogy:
- David:
"Money does that towards yield wherever it thinks it can get the best yield for the lowest risk is where money's going to go. ...Money flows to safety. And what you're saying is mortgages are considered on the safer end of the spectrum compared to other investments." (08:00–08:57)
- David:
- Supply & Demand for Loan Pricing:
- As more buyers shift funds into safe assets, bond and mortgage yields drop, pushing rates lower.
- Investor Perspective:
- Lenders need buyers for their originated loans; if buyers accept lower returns, lenders can offer lower borrower rates and move higher loan volumes.
3. Mortgages as "Safe" Investments & The Foreclosure Reality (11:25–15:29)
- Investment Comparisons:
- Mortgages, bonds, T-bills are preferred by risk-averse investors during uncertainty.
- Foreclosure Data Reality:
- Despite sensationalist headlines, foreclosures remain rare.
- Christian:
"The foreclosure rate between Fannie Mae and Freddie Mac in the fourth quarter of 2024...1.57%. So that's half a percent." (13:33) - David:
"The smart money tends to think of mortgages as a safer bet." (14:18) - Media often exaggerates the threat by quoting raw foreclosure numbers without context.
4. Government Shutdown: Which Mortgage Agencies & Loan Products Are Affected? (15:29–21:19)
- Agencies Impacted:
- HUD/FHA: Processing slowed; FHA sits under HUD.
- VA Loans: VA underwrites and insures loans for veterans, also faces staffing interruptions.
- IRS: Vital for income/resource verification—shutdown suspends the 4506T tax transcript service necessary for most mortgages.
- CFPB & BLS: May have limited operations, impacting regulatory actions and economic data releases (needed for market/rate decisions).
- USDA/Rural Development: Loans for rural areas (primary residences only) often delayed or halted.
- Authentication & Fraud Prevention:
- Lenders use IRS/financial institution verification to prevent fraudulent documentation (e.g., doctored tax returns or bank statements).
- Christian:
"If you send us a bank statement, typically lender has a built in...verification of deposit, where they'll call your bank..." (18:26) - Attempts to game these systems are almost always detected, unlike during the 2008 crisis.
5. Navigating Specialty Loan Types: Don’t Fall for Gimmicks (22:08–27:52)
- Myth-Busting Loan “Specialists”:
- Any competent mortgage broker should offer a comprehensive suite of products: FHA, VA, USDA, DSCR, HELOC, bridge, hard money, and more.
- Hyper-niche branding (e.g., “VA lender”) is typically a marketing ploy, not a real performance differentiator.
- Christian:
"We can pass along that savings to the borrower. And ultimately the ideal is to give you better service as well." (24:33)
- Advantages of a Versatile Brokerage:
- Provides multiple quotes/options (e.g., FHA vs. conventional) and ongoing support instead of siloed, transactional relationships.
- Like a trusted property manager, a single broker understands your big picture as needs evolve.
- David:
"If you want to be a good loan officer, you need to use the different loan products at your disposal to solve the different problems that your clients bring you." (24:10)
6. Establishing a Relationship with Your Mortgage Broker (27:52–31:14)
- Funny Relationship Analogy:
- David likens a client using multiple brokers for different loans to a friend-zoned crush who never realizes you like them.
- David:
"We want to be your boyfriend. That's what we're trying to say." (29:55) - Brokers enjoy working on primary residence deals, not just investment loans, so clients should feel comfortable bringing all mortgage business to them.
- Service Commitment:
- The One Brokerage aspires to be the “one-stop shop” for all mortgage needs—and to nurture real relationships with clients.
- Refinancing As Renewing Vows:
- Christian:
"That's a refinance—renewal of our terms." (30:56)
- Christian:
Notable Quotes & Memorable Moments
- On market volatility and rates:
- "A surge in people interested in buying bonds will have downward pressure on mortgage rates." —Christian (06:55)
- On data and media hype:
- "Put it on a graph. Let me actually see what that looks like, and it's very minimal." —Christian (15:17)
- On lender selection:
- "Why are you doing all that? If the rates are very competitive and the service is similar, why not just have your core group?" —Christian (26:38)
- On client relationships:
- "Till sale do us part, or refinance—either way. We'll just renew our vows." —Christian and David (30:49–30:58)
- Closing lighthearted appeal:
- "I thought he was too busy for me. I didn't know he wanted to be my boyfriend. I do..." —David (31:33)
Timestamps for Key Segments
- 00:00–02:14: State of the Mortgage Market & Brokerage Operations
- 04:02–13:33: Mortgage Rate Dynamics During Shutdowns
- 13:33–15:29: Foreclosure Rates and Media Perspective
- 15:29–21:19: Shutdown Impact on Government Agencies & Loan Processing
- 22:08–27:52: Mortgage Broker Capabilities vs. Niche Lender Myths
- 27:52–30:56: Relationship Building Analogy, Call to Work with the Broker
- 31:14–End: How to Contact David & Christian, Next Episode Teaser
Summary Takeaways
- Government shutdowns typically create short-term uncertainty that can lead to falling mortgage rates, as investors flock to safer assets.
- The IRS, HUD/FHA, VA, USDA, and other agencies are key players in loan processing, and their shutdown disrupts the lending pipeline.
- Beware of lenders who market themselves as "specialists"; a skilled broker can handle all major products, offering better rates and service.
- Building a relationship with a trusted broker brings efficiency, transparency, and strategic guidance—no need to split business among multiple lenders.
- For borrowers: now is a good time to consider refinancing or buying, especially if your current rate is high, and to seek out brokers who truly invest in your financial future.
Connect with the Hosts
- David Greene: @davidgreene24 on Instagram
- Christian Bashelder: @the_one_broker on Instagram
- To inquire about loans or jobs: davidgreene24.com | 1brokerage.com
Next Week Teaser
The hosts will break down The One Brokerage’s unique operational structure and reveal how they process loans faster and more efficiently than the mainstream competition.