Changes in the housing industry are nothing new for Julienne Joseph. Before she was chief of staff for U.S. Housing and Urban Development Secretary Marcia Fudge, and deputy assistant secretary for single-family housing for the Federal Housing Administration (FHA) in the Biden-Harris administration, Joseph had started her housing journey as an originator prior to the 2008 housing crisis.
She then became a foreclosure and pre-purchase counselor for those experiencing distress — something many were experiencing at the time. Joseph spent five years as an official for the commonwealth of Virginia before joining the Mortgage Bankers Association as associate director of government housing programs, working on policy like the recalculation of student loan debt in FHA and loss mitigation strategies on behalf of the industry during COVID. Then she got the call to serve at HUD.
When her political appointments ended in early 2025, Joseph founded JYJ Consulting. She aims to expand access to credit in the residential housing finance mortgage space and is working with organizations for leadership development and organizational culture. She talked with Scotsman Guide about some of the issues facing borrowers and lenders today.
How important is clear guidance from federal agencies in shaping lender confidence and avoiding market uncertainty?
This cannot be overstated. Early unambiguous policy guidance from federal housing agencies is essential for market stability. Transparency is necessary. In the previous administration, we engaged the industry while policies were curated, to solicit thoughts on any policy framework. That ensures we’re on the right path and creates a level of buy-in. When rules and expectations are clearly articulated upfront, lenders can calibrate systems, which stops operational disruption. Inconsistent or delayed guidance creates uncertainty that suppresses innovation and tightens credit availability.
What strategies expand access for first-time and underserved homebuyers without increasing default risk?
Expanding sustainable mortgage access requires responsible underwriting with targeted support. Downpayment assistance programs work, as does reporting positive rental history. In the FHA space it was opt-in, utilized by borrowers with positive rental histories, instead of a rental payments catchall, which could have negatively impacted some folks. On the policy side, maintaining clear guardrails is good for access to credit and for monitoring risk such as residual income requirements. It ensures expansion doesn’t come at the cost of higher defaults.
How should lenders integrate credit evaluation tools and alternative data sources?
Using utility payments or consistent gig income could broaden access for those outside the traditional credit box. But integration should be accompanied by strong consumer protections, maybe in transparent scoring models, clear borrower consent, and rigorous testing to ensure predictive accuracy in the algorithms. If there’s implementation of those things, lenders must balance speed and inclusion with safeguards preventing data misuse or discriminatory impact. If calibration is required, it gets done quickly to ensure discriminatory effects are addressed.
How might the use of buy now, pay later products impact borrowers’ credit profiles?
The increased use of buy now, pay later can reshape borrower credit profiles while transactions aren’t yet captured in traditional credit reports. Multiple loans adding up can affect borrowers’ DTIs [debt-to-income ratios] and reveal short-term repayment behaviors that may influence underwriting. How should small-term debt impact a 30-year obligation? While borrower behaviors could indicate levels of financial distress, it requires attention to ensure underwriting doesn’t disproportionately impact communities who utilize them more than others.
How can FHA meet the needs of today’s market while supporting borrowers who may not qualify for conventional financing?
Expand the use of the alternative credit data. Streamline refinancing options for existing FHA borrowers. Adjust student loan debt calculations. FHA has always been counter-cyclical. When a lot of the other programs seem to rescind their work, like during COVID or the housing crisis, FHA has been the watering hole for the housing finance industry — constantly open for business. When private capital retreats, FHA still provides access. It’s critical to stabilize opportunities for those excluded from conventional markets.
With rates and affordability pressures high, what should lenders watch for?
For shifts in borrower credit mixes as affordability pressures push more applicants toward adjustable rates or low downpayment products. Delinquencies may emerge among borrowers stretching to meet the payment thresholds. Some borrowers get to that 60-day mark, then bring the mortgage current. It’s like robbing Peter to pay Paul. Not necessarily in serious delinquency, 90 days or more, but we’ve seen a level of strategic default for short-term where they might not pay the mortgage to pay the student loans or credit card. Lenders should also monitor interplay between softening home prices in some regions and tighter credit standards in others. Market fragmentation could affect both volume and performance.
Julienne Joseph is the founder and principal of JYJ Consulting, focusing on housing policy, mortgage finance and closing the racial wealth gap through equitable homeownership. She was chief of staff to the HUD secretary, managing the agency’s $73 billion budget, leading cross-agency initiatives advancing housing equity. Joseph oversaw a $1.3 trillion mortgage insurance portfolio as deputy assistant secretary for single-family housing at the FHA. Her leadership resulted in recalculating student loan debt in underwriting, integrating rental payment history into credit assessments and launching foreclosure prevention tools that helped more than 2 million households stay in their homes during the pandemic.
