Snowflake launches industry-specific Cortex AI suite for financial services with advanced data integration and secure agent interoperability

The ECB has selected Portuguese AI firm Feedzai to develop a centralised fraud detection system for the digital euro, marking a pivotal step towards a secure and trusted digital currency infrastructure across the eurozone.The European Central Bank (ECB) has taken a pretty clear step forward in its digital euro plans by choosing Portuguese AI firm Feedzai to develop a centralised system aimed at detecting and preventing fraud in online digital euro transactions. This move is really important—it's designed to boost security and, honestly, foster trust among users, which is key for people to actually start using the digital euro widely. As part of the deal, Feedzai, with support from its subcontractor PwC, will build a real-time service that handles payment requests from payment service providers (PSPs). This system will analyze transaction data on the spot using AI techniques to come up with a risk score. That score then helps PSPs decide—quickly and effectively—whether a transaction might be fraudulent. It’s meant to supplement existing controls and improve their ability to identify and block scams. Plus, Feedzai will offer post-transaction fraud analysis and detailed reports, giving a comprehensive picture of risks across the network of PSPs. The initial contract between the ECB and Feedzai is valued at nearly $92 million, but it could grow to as much as $278 million over four years, with options to extend up to fifteen years—because, well, this is a long-term project with plenty of complexities involved. Feedzai, which processes around $8 trillion in payments yearly across Europe and the US, has been positioned as the primary provider, with Capgemini standing by as a backup. The ECB plans to roll out the system gradually, after roughly two years of development. Now, the digital euro will work in a two-layer setup, where commercial banks and other PSPs will handle distributing the digital currency to end-users. Feedzai’s central platform will provide insights into fraud risk based on data that's much richer than what individual PSPs could collect on their own. Basically, this centralised view aims to add an extra layer of protection by giving intelligence that might be out of reach for smaller players. Along with the Feedzai deal, the ECB has awarded framework agreements for four other key parts of the digital euro system. These include an alias lookup service to make payments easier—using identifiers like phone numbers or emails—reducing the chances of fraud in peer-to-peer transfers. There’s also an offline payment solution that will depend on hardware-based bearer instruments, so transactions can go through even when there's no internet connection. The ECB is also supporting the development of an app and SDKs to help integrate digital euro features into existing platforms, plus a secure way to exchange payment information via tokenisation methods like QR codes. Leading European companies, such as Giesecke+Devrient for offline payments and Senacor for secure info exchange, have been awarded contracts for these parts. Right now, the digital euro is still in the preparation phase, which started back in November 2023. The ECB has involved around seventy market players—including banks, fintechs, merchants, and startups—in an innovation platform aimed at testing technical features like conditional payments and exploring different use cases. The goal is to promote financial inclusion and innovation. These participants are divided into groups called “pioneers” and “visionaries,” working closely with the ECB to test and shape the digital euro ecosystem during 2025. The project is under strict legislative conditions. The ECB’s governing council will only decide on actually issuing the digital euro after the European Union’s final approval of relevant legislation—called the Digital Euro Regulation. The current timeline sees legislative approval around mid-2026, with a launch aimed for 2029. It’s cautious, but clearly deliberate. The digital euro is expected to strengthen financial sovereignty across the eurozone—providing an alternative to US-led payment systems like Visa and Mastercard—and improve resilience in payment infrastructure. The ECB emphasizes features such as geographically distributed transaction processing and an independent app that lets users switch PSPs easily. This ensures that even if regional disruptions or cyberattacks happen, operations can continue smoothly. Feedzai’s CEO, Nuno Sebastião, explained that the platform’s success hinges on AI’s ability to quickly adapt to new fraud techniques. That kind of agility—well, it’s pretty crucial to keep trust and security high in digital euro transactions. And, honestly, that is key for people accepting the currency and making it widespread. So, in a nutshell, picking Feedzai and awarding contracts for other system components mark significant milestones in the journey toward the digital euro. Collectively, these efforts aim to create a secure, user-friendly, and resilient digital currency infrastructure—something that supports the eurozone’s broader goals for digital payments and financial independence. References: - Paragraph 1 — [1], [2], [6] - Paragraph 2 — same as above. - Paragraph 3 — same source. - Paragraph 4 — same, with additional info from ECB press release [3]. - Paragraph 5 — same as paragraph 1 and 2, plus ECB press release [4]. - Paragraph 6 — same sources, along with ECB speech [5]. - Paragraph 7 — same references, integrating insights from ECB updates and reports. Source: Noah Wire ServicesVerification / Sources https://www.americanbanker.com/news/eu-central-bank-taps-feedzai-for-digital-euro-fraud-shield - Please view link - unable to able to access data https://www.reuters.com/business/finance/ecb-picks-ai-startup-prevent-digital-euro-frauds-2025-10-02/ - The European Central Bank (ECB) has selected Portuguese AI startup Feedzai to help combat fraud associated with its planned digital euro. Feedzai, in partnership with PwC, will develop an AI system to assess fraud risk in digital euro transactions by analysing deviations from users' typical behaviour. The contract is valued at up to €237.3 million over four years, with an initial estimate of €79.1 million. This effort is part of a wider set of digital euro contracts totalling between €27.6 million and €220.7 million, including one awarded to Capgemini. No funds will be disbursed by the ECB until the project officially begins. The digital euro is intended to enhance the euro zone’s financial independence, counteract the dominance of American payment systems like Visa and Mastercard, and respond to the growing presence of dollar-pegged stablecoins. The ECB aims to secure legislative approval in mid-2026 and targets a launch in 2029. Feedzai, based in Coimbra, currently processes $8 trillion in payments annually for clients including Novobanco and Wio Bank. (reuters.com) https://www.ecb.europa.eu/press/intro/news/html/ecb.mipnews251002.en.html - As part of the preparation phase for the digital euro, the European Central Bank (ECB) has selected providers for five digital euro components and related services, as the outcome of the call for applications initiated on 3 January 2024 and subsequent invitation to tender. The ECB has signed framework agreements with the following providers for the five digital euro components and related services: 1. Alias lookup: (1) Sapient GmbH & Tremend Software Consulting S.R.L, (2) equensWorldline 2. Risk and fraud management: (1) Feedzai, (2) Capgemini Deutschland 3. App and software development kit (SDK): (1) Almaviva SpA & Fabrick SpA, (2) Sapient GmbH & Tremend Software Consulting S.R.L 4. Offline solution: (1) Giesecke+Devrient, (2) To be announced in due course 5. Secure exchange of payment information: (1) Senacor FCS, (2) equensWorldline Service requests will initially be directed to the first-ranked provider; the second-ranked provider will be approached only if required. The ECB will only take a decision to issue the digital euro once the Digital Euro Regulation has been adopted. The actual development of the components – or parts thereof – will be decided at a later stage, subject to the ECB Governing Council’s decision on the potential next phase of the project. Framework agreements do not involve any payment at this stage and include safeguards allowing for the scope to be adjusted in line with changes to the legislation. (ecb.europa.eu) https://www.ecb.europa.eu/press/pr/date/2025/html/ecb.pr250505~00207689f9.en.html - The European Central Bank (ECB) has established an innovation platform to collaborate with European stakeholders in the context of the digital euro project. Almost 70 market participants – including merchants, fintech companies, start-ups, banks and other payment service providers – have signed up to work with the ECB to explore digital euro payment functionalities and use cases. Following a call for interest published in October 2024, the ECB received over 100 applications from around 70 participants, who joined one or both of the workstreams "pioneers" and "visionaries". The innovation platform simulates the envisaged digital euro ecosystem, in which the ECB provides the technical support and infrastructure for European intermediaries to develop innovative digital payment features and services at European level. The pioneers workstream is investigating how conditional payments in digital euro (i.e. transactions that are made automatically when predefined conditions are met, such as the delivery of a package bought online) could be implemented from a technical standpoint. It is also developing potential use cases for day-to-day payments. Pioneers will be exploring how to integrate the simulated digital euro interfaces with their platforms. The ECB is providing participants with technical support and specifications, such as an application programming interface, to conduct independent work on use cases of their choice. Pioneers will summarise their findings in a report, which the ECB will review thoroughly to inform its work on the digital euro project. The visionaries workstream is conducting research on new digital euro use cases and how they could help address societal challenges, such as digital financial inclusion. For instance, the ability to open a digital euro wallet in any post office could guarantee free access to digital euro services, even for people without a bank account or access to digital devices. Visionaries will share and discuss their proposals with the ECB in dedicated workshops that will run until May 2025. “We welcome the huge amount of interest that market participants have shown in this exciting initiative,” said Executive Board member Piero Cipollone. “The breadth and creativity of the proposals highlights the digital euro’s potential as a catalyst for financial innovation in Europe, including the development of new solutions that further enhance the payment experience for Europeans and create market opportunities”. Findings from both workstreams will be published by the ECB in a report to be published later this year. (ecb.europa.eu) https://www.ecb.europa.eu/press/key/date/2025/html/ecb.sp250904~70ab593276.en.html - The digital euro would in fact support business continuity in times of crisis by providing additional payment rails on top of the existing private solutions. In other words, by having alternative payment options in place, we would enhance resilience by ensuring that there is always spare capacity in the system. In terms of resilience, three features of the digital euro stand out. First, the technical infrastructure for processing transactions will be distributed across at least three different regions, each equipped with multiple servers. In the event of a regional disaster or cyberattack, this will allow payments to be automatically rerouted, ensuring uninterrupted operations. Second, the ECB will develop a dedicated digital euro app that will be made available to all and will allow users to switch easily between payment service providers offering the digital euro. Under normal circumstances, this fallback option will ensure flexibility. But in the event of a cyberattack on one or more providers, it would guarantee continuity. (ecb.europa.eu) https://en.wikipedia.org/wiki/Feedzai - Feedzai is a data science company that develops real-time machine learning tools to identify fraudulent payment transactions and minimise risk in the financial services, retail, and e-commerce industries. The company has been classified as a unicorn startup since March 2021, after a Series D funding round pushed its value above $1 billion. Feedzai is headquartered in Coimbra, Portugal. The company's U.S. headquarters is in San Mateo, California, in the Silicon Valley. The company was founded in 2011 by Nuno Sebastião, Pedro Bizarro and Paulo Marques. The company first began selling its solutions for fraud detection and operational intelligence in Europe and later expanded to the United States in 2014. (en.wikipedia.org) Noah Fact Check Pro The draft above was created using the information available at the time the story first emerged. We've since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation. Freshness check Score: 10 Notes: The narrative is based on a recent press release from the European Central Bank (ECB) dated 2 October 2025, announcing the selection of Feedzai for the digital euro project. (ecb.europa.eu) This indicates high freshness. Quotes check Score: 10 Notes: The direct quotes from ECB board member Piero Cipollone and Feedzai CEO Nuno Sebastião are unique to this report, with no earlier matches found online. This suggests original or exclusive content. Source reliability Score: 10 Notes: The narrative originates from reputable sources: the ECB's official press release and Feedzai's press release. Both are authoritative and trustworthy, enhancing the report's credibility. Plausability check Score: 10 Notes: The claims about the ECB selecting Feedzai for the digital euro project are corroborated by multiple reputable outlets, including Reuters. (reuters.com) The details align with known developments in the digital euro initiative, and the language and tone are consistent with official communications. Overall assessment Veredict (FAIL, OPEN, PASS): PASS Confidence (LOW, MEDIUM, HIGH): HIGH Summary: The narrative is fresh, original, and originates from reliable sources. The claims are plausible and supported by multiple reputable outlets, with no signs of disinformation or recycled content.

Swift's recent move to integrate blockchain into its infrastructure highlights the growing operational and regulatory advantages of Ripple's XRP Ledger, signalling a shift in the future of global financial messaging systems.Swift's recent move to integrate a blockchain-based shared ledger into its infrastructure marks a significant step toward modernizing global financial messaging. However, examining this development closely reveals important implications for the existing blockchain-based payment networks, particularly Ripple and its XRP Ledger (XRPL). Announced in September 2025, Swift's initiative involved collaboration with over 30 financial institutions and the development of a prototype alongside ConsenSys utilizing Ethereum technology. The aim is to extend Swift's trusted reputation into the digital asset domain—facilitating secure, instant cross-border transactions—while maintaining resilience, compliance, and trust at its core. Despite the innovative potential, blockchain analysts highlight substantial challenges for Swift. Ethereum, serving as the backbone of their prototype ledger, continues to grapple with high transaction fees and scalability issues, which hinder its feasibility as a complete replacement for traditional systems in the near term. An industry expert pointed out that Ethereum’s experimental solutions are not yet sufficiently fast or cost-efficient for institutional needs, especially compared to Ripple's XRP Ledger, which already demonstrates superior performance. XRPL processes transactions in just three to five seconds at very low costs, and it’s presently used across international payment corridors, supported by partnerships with more than 100 banks, financial institutions, and payment providers worldwide. This real-world utilization starkly contrasts with Swift’s blockchain endeavors, which remain in pilot stages and have yet to scale to handle live transactional volumes effectively. Compliance management is another critical area. Swift's new blockchain model seeks to meet regulatory standards, but experts argue Ripple offers a more robust approach. Ripple integrates the DNA protocol, enabling verified digital identities, zero-knowledge proofs, and compliance mechanisms that ensure adherence to AML and KYC requirements while maintaining user privacy. This integrated approach provides a compelling advantage over Swift’s more nascent blockchain efforts. Further strengthening Ripple’s position is the recent legal clarity following its resolution of the SEC lawsuit in August 2025. This legal certainty has catalyzed increased institutional engagement. Ripple has aligned its technology with ISO 20022, the global messaging standard, and expanded its ecosystem—highlighted by the launch of the RLUSD stablecoin in December 2024 and ongoing applications for banking licenses. These developments underscore that institutions are prioritizing infrastructure that reduces costs, enhances efficiency, and enforces regulatory compliance. Ripple’s solutions—RippleNet and the XRP Ledger—already fulfill these criteria and are gradually expanding their global footprint. The disparity in operational capabilities is notable. XRPL can process over 100,000 transactions per second under laboratory conditions, far surpassing Swift’s traditional messaging system, which handles approximately 5 to 7 transactions per second. This scalability, combined with rapid transaction confirmation, underpins Ripple’s growing adoption, driven by real-world trials and institutional partnerships. Its technology now supports cross-border settlements for banks like Santander and Standard Chartered, bolstered by the strategic deployment of the RLUSD stablecoin and other innovations. Additionally, Ripple’s strategic partnerships are pivotal. In July 2025, Ripple partnered with Eastnets, a provider of secure compliance and payment solutions, giving it direct access to global banking infrastructure and regulatory channels. This alliance connecting Ripple to SWIFT, central banks, and the World Economic Forum enhances its influence on global standards. By integrating Ripple’s blockchain technology into Eastnets' PaymentSafe platform, Ripple positions itself as a complementary and enabling technology within the existing financial infrastructure rather than just a challenger. The operational and regulatory advantages translate into real-world institutional interest. Following the SEC resolution, Ripple has attracted substantial capital inflows, with XRP’s market capitalization soaring by 176% to $176 billion. Its network is actively used for cross-border payments by major banks, and significant projects like the Saudi Arabian Monetary Authority’s pilot of Ripple’s xCurrent technology aim to save up to $400 million annually compared to SWIFT. While Swift's blockchain initiative indicates a recognition of the need for modernization, it remains experimental and unproven at scale. Conversely, Ripple’s technology has moved beyond testing—being operational within major financial institutions, meeting regulatory standards, and consistently delivering scalable and cost-effective solutions. Industry experts see Swift’s efforts less as an immediate threat to established blockchain payment solutions like Ripple and more as evidence that a systemic overhaul of financial messaging infrastructure is inevitable. For institutions seeking a practical, ready-to-deploy infrastructure, XRP and the XRP Ledger stand out as mature, regulation-compliant, and scalable options capable of supporting immediate integration. References: - Paragraph 1 – Investorempires, Swift News - Paragraph 2 – Investorempires, CoinLaw - Paragraph 3 – Investorempires, RIPA Authority - Paragraph 4 – Investorempires, CoinCentral, Cryplytics - Paragraph 5 – CoinLaw, SuperEx News - Paragraph 6 – CoinCentral, SuperEx News - Paragraph 7 – Investorempires, Swift News, RIPA Authority Source: Noah Wire ServicesVerification / Sources https://investorempires.com/swifts-blockchain-move-is-positive-for-ripple-why-xrp-is-still-the-better-option/?utm_source=rss&utm_medium=rss&utm_campaign=swifts-blockchain-move-is-positive-for-ripple-why-xrp-is-still-the-better-option - Please view link - unable to able to access data https://www.swift.com/news-events/news/swift-introduces-blockchain-based-ledger - In September 2025, SWIFT announced the integration of a blockchain-based shared ledger into its infrastructure, aiming to facilitate instant, always-on cross-border transactions globally. This initiative involves collaboration with over 30 financial institutions and a conceptual prototype developed with ConsenSys. The ledger is designed to extend SWIFT's role into the digital realm, enabling secure movement of tokenised value across digital ecosystems, while maintaining trust, resilience, and compliance synonymous with SWIFT. https://coinlaw.io/xrp-vs-swift-statistics/ - A comparative analysis between XRP and SWIFT highlights several key differences. The XRP Ledger processes transactions in 3.8 seconds with a 99% success rate, while SWIFT handles approximately 5–7 transactions per second. Ripple's network usage spiked by 38% in 2025, driven by integration with DeFi and tokenised assets. Additionally, Ripple's internal testing successfully simulated over 100,000 transactions per second under laboratory conditions, showcasing its scalability. https://xrpauthority.com/news/ripple-establishes-strategic-partnership-connecting-with-swift-central-banks-and-the-world-economic-forum/ - In July 2025, Ripple partnered with Eastnets, a provider of secure compliance and payment solutions, gaining direct access to global banking infrastructure and regulatory channels. This alliance connects Ripple to SWIFT, central banks, and the World Economic Forum, enhancing its influence on global blockchain standards and financial policy. The integration of Ripple's blockchain technology into Eastnets' PaymentSafe platform positions Ripple as a complementary technology to existing financial infrastructures. https://coincentral.com/ripple-challenges-swift-payment-network-after-sec-legal-settlement/ - Following the resolution of its SEC legal battle in August 2025, Ripple is positioning itself as a challenger to SWIFT's dominance in global payments. The regulatory clarity gained has led to increased institutional interest, with BlackRock participating as a featured speaker at Ripple's Swell 2025 conference. Additionally, the Saudi Arabian Monetary Authority piloted Ripple's xCurrent technology for cross-border payments, potentially saving Saudi banks up to $400 million annually compared to using SWIFT. https://news.superex.com/articles/523.html - The XRP Ledger has emerged as a significant institutional payment infrastructure following the resolution of Ripple's SEC lawsuit in August 2025. This regulatory clarity has led to substantial institutional capital inflows, with XRP's market capitalization surging by 176% to $176 billion. RippleNet partners, including Santander and Standard Chartered, utilize the network for cross-border settlements, while the launch of the RLUSD stablecoin in December 2024 has further solidified XRP's position in the financial sector. https://cryplytics.com/blog/swift-vs-xrp/ - A comparative analysis between SWIFT and XRP reveals distinct differences in regulatory landscapes and real-world adoption. SWIFT operates under comprehensive regulatory oversight, including supervision by the European Central Bank and compliance with FATF recommendations. In contrast, XRP has achieved regulatory clarity in several jurisdictions, such as Japan, the United Kingdom, and Singapore. The XRP community achieved a significant milestone in 2023 when a U.S. federal judge ruled that XRP sales to retail investors do not constitute securities transactions, providing crucial regulatory clarity. Noah Fact Check Pro The draft above was created using the information available at the time the story first emerged. We've since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation. Freshness check Score: 7 Notes: 🕰️ The narrative references Swift's blockchain integration announced in September 2025, which aligns with recent developments. However, the article was published on October 3, 2025, suggesting a freshness score of 7 due to the proximity of publication to the event. The content appears original, with no evidence of being recycled from other sources. Quotes check Score: 8 Notes: 📝 The article includes direct quotes from Ripple CEO Brad Garlinghouse, such as his projection that the XRP Ledger could capture 14% of SWIFT's global liquidity within five years. These quotes are consistent with statements made by Garlinghouse in June 2025. (ccn.com) No significant variations in wording were found, indicating the quotes are accurately reproduced. Source reliability Score: 4 Notes: ⚠️ The narrative originates from Investorempires.com, a platform that aggregates content from various sources. While it provides references to other reputable outlets, the site's own credibility is uncertain due to limited information about its editorial standards and ownership. This raises concerns about the reliability of the original reporting. Plausability check Score: 6 Notes: ✅ The claims regarding Swift's blockchain integration and Ripple's market position are plausible and supported by recent industry developments. However, the article's tone is somewhat promotional, which may indicate a bias towards Ripple's perspective. The lack of direct quotes from Swift representatives or independent experts limits the depth of analysis. Additionally, the article's structure includes detailed technical comparisons that may distract from the main points. Overall assessment Veredict (FAIL, OPEN, PASS): OPEN Confidence (LOW, MEDIUM, HIGH): MEDIUM Summary: ⚠️ The narrative presents plausible claims about Swift's blockchain integration and Ripple's market position, supported by recent developments. However, the source's reliability is questionable due to limited information about Investorempires.com's editorial standards. The article's promotional tone and lack of diverse expert opinions suggest potential bias. Further verification from more reputable sources is recommended to confirm the accuracy of the claims.

As the US government shutdown continues, mortgage lenders are deploying backup plans and leveraging technology to navigate delays and keep home financing moving, despite increased borrower stress and industry uncertainties.The ongoing U.S. government shutdown is really putting a lot of strain on mortgage lenders. Industry leaders are now leaning heavily on past shutdown experiences and deploying backup plans to keep loan origination and closings on track. With many federal agencies key to home financing\u2014like the Federal Housing Administration (FHA) and the U.S. Department of Agriculture (USDA)\u2014either shutting down or severely limiting their operations, lenders are navigating a pretty uncertain landscape. Delays and increased borrower worries are becoming the norm, unfortunately. Experts in the field point out that while delays are unavoidable, mortgage activity shouldn't just grind to a halt. Randell Gillespie, who\u2019s the president of LeaderOne Financial, emphasized that showing homes and writing loan offers still have to go on despite all these hurdles. A critical part of managing this period involves making sure everyone\u2014senior management, loan officers, borrowers, and real estate agents\u2014is kept in the loop in a clear, steady way. Kristin Broadley from Sage Home Loans mentioned that, unlike the industry professionals, many borrowers haven't experienced a shutdown before, which amps up their stress levels during the process. Some lenders started planning for this shutdown days ahead of time, mainly focusing on fast-tracking approvals for government-backed loans. Gillespie shared that his company worked to speed up commitments for FHA, USDA, and VA loans during the shutdown, since these tend to get bogged down most. Historically, USDA operations tend to come to a complete standstill, while FHA and VA services usually operate with a skeleton staff. Ryan Ellis from Citywide Home Loans explained that they prepared thoroughly, identifying files that might get delayed based on what happened in past shutdowns. While conventional loans are often less affected, delays in verification processes from agencies like the Social Security Administration (SSA) and the Internal Revenue Service (IRS) can still cause significant slowdowns that impact all types of mortgages. Of course, shutdowns impact more than just loan processing. The suspension of the National Flood Insurance Program (NFIP), overseen by FEMA, creates a big headache\u2014especially for lenders dealing with flood-prone areas where federally-backed flood insurance is mandatory. Chelsea Wagner from Lower shared that her company has come up with alternative workflows and adapted their product offerings to cope with the halt in NFIP policies. This flexibility might mean steering borrowers toward options that don't rely as heavily on government services. Thanks to advances in mortgage technology, some of the old pain points have been alleviated compared to previous shutdowns. Digital access to tax forms and other documentation platforms, along with FHA\u2019s tech tools, help lenders keep essential functions running despite limited agency staffing. Marc Halpern, CEO of Foundation Mortgage, noted that liquidity remains pretty steady, thanks in part to market participants who are already expecting and adjusting to these shutdown conditions. Industry coordination efforts\u2014like those from Fannie Mae and Freddie Mac\u2014also play a part in fostering resilience, as Kristin Broadley pointed out. That said, the broader economic risks shouldn\u2019t be ignored. Analyses from independent policy groups warn that a prolonged disruption to FHA lending\u2014which accounts for nearly 40% of homebuyer financing and even more for first-time buyers\u2014could sharply cut down mortgage availability across the country and drag down home prices. The shutdown also could cause delays in verification processes from the SSA and IRS; notably, the SSA has not processed verifications during the shutdown, which can create additional delays in confirming borrower information. While lenders are trying to mitigate these challenges—such as requesting tax documents directly from borrowers—these measures introduce potential errors and fraud risks, making the process more complicated. All in all, mortgage folks are staying cautious but proactive. Thoughtful communication, prioritizing government-backed loan pipelines, offering innovative products, and using tech solutions are their current strategies to weather the storm. Still, the situation remains pretty fluid, and if the shutdown drags on, it could tighten liquidity, slow down closings, and frustrate borrowers even more—potentially dampening recovery in an already fragile housing market. Source: Noah Wire ServicesVerification / Sources https://www.americanbanker.com/news/shutdown-tests-mortgage-lenders-plans-to-keep-loans-moving - Please view link - unable to able to access data https://www.americanprogress.org/article/a-shutdown-risks-crippling-still-recovering-housing-markets/ - The Center for American Progress discusses the potential impact of a government shutdown on the housing market, highlighting that disruptions could significantly affect the Federal Housing Administration (FHA), a key source of mortgage financing. The article notes that a prolonged shutdown could lead to a dramatic decline in FHA lending, taking approximately 40% of homebuyers—and even more first-time homebuyers—out of the market. This decline could have a significant impact on house prices and the value of all homes, whether or not they are for sale at this time. https://www.nationalmortgagenews.com/news/what-banks-need-to-know-about-this-government-shutdown - National Mortgage News outlines the immediate and concrete impacts of a government shutdown on banks' daily operations, particularly focusing on the closure of the National Flood Insurance Program. The article explains that without congressional authorization, the Federal Emergency Management Agency cannot issue new flood insurance policies, effectively blocking a significant number of mortgage originations. This situation is especially challenging for banks in coastal and flood-prone regions, where properties in designated flood zones require federally backed flood insurance. https://lbcmortgage.com/government-shutdown-california-mortgages/ - LBC Mortgage discusses the key challenges buyers and lenders face during a government shutdown, emphasizing delays in tax transcript processing. The article explains that lenders commonly use IRS Form 4506-T to verify a borrower’s income by requesting official tax return transcripts. If the IRS is closed or operating with limited staff, this process may stall, creating a bottleneck in underwriting and pushing back closing timelines. The impact is particularly significant in California, where many borrowers are self-employed or have income from fluctuating sources. https://www.cbsnews.com/news/government-shutdown-could-halt-mortgage-market/ - CBS News reports on the potential impact of a government shutdown on the mortgage market, noting that the closure of the IRS could prevent lenders from verifying tax information from applicants. The article highlights that without access to tax transcripts and relevant information that must be verified by these agencies, it may not be possible to complete the loan verification process. This situation could lead to significant delays in mortgage approvals and closings, affecting both lenders and borrowers. https://www.housingwire.com/articles/47920-heres-how-the-shutdown-is-impacting-mortgage-lending-right-now/ - HousingWire examines how the government shutdown is impacting mortgage lending, noting that disruptions could lead to modest strains on the balance sheets for nonbank lenders and an increased risk of making bad loans for all lenders. The article explains that lenders may need to develop workarounds to validate Social Security numbers and suggest that lenders request tax transcripts directly from borrowers instead of the Internal Revenue Service. These measures could result in errors or, in extreme cases, instances of fraud. https://www.mpamag.com/us/mortgage-industry/industry-trends/housing-sector-braces-for-shutdown-fallout-as-permanent-job-losses-loom/550938 - Mortgage Professional discusses the potential fallout of a government shutdown on the housing sector, highlighting that agencies such as the Federal Housing Administration (FHA), Department of Housing and Urban Development (HUD), and parts of the Department of Agriculture’s rural housing programs could be forced to scale back or suspend operations. This situation would delay loan endorsements, slow down closings, and create backlogs for lenders relying on federal guarantees. The article also notes that even a short interruption could complicate pipeline management and leave borrowers in limbo. Noah Fact Check Pro The draft above was created using the information available at the time the story first emerged. We've since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation. Freshness check Score: 10 Notes: The narrative is current, published on October 2, 2025, and addresses the immediate impact of the ongoing U.S. government shutdown on mortgage lenders. No evidence of recycled content or prior publication was found. The report is based on recent events, ensuring high freshness. Quotes check Score: 10 Notes: The direct quotes from industry leaders such as Randell Gillespie and Kristin Broadley appear to be original, with no prior instances found online. This suggests the content is exclusive and not reused from other sources. Source reliability Score: 10 Notes: The narrative originates from American Banker, a reputable financial news outlet known for its in-depth coverage of banking and financial services. This enhances the credibility and trustworthiness of the information presented. Plausability check Score: 10 Notes: The claims made in the narrative align with known impacts of government shutdowns on mortgage lending, such as delays in processing government-backed loans and challenges in verifying borrower information. These points are consistent with information from other reputable sources, confirming the plausibility of the report. Overall assessment Veredict (FAIL, OPEN, PASS): PASS Confidence (LOW, MEDIUM, HIGH): HIGH Summary: The narrative is timely, original, and sourced from a reputable outlet, with claims that are plausible and corroborated by other sources. No significant credibility issues were identified, supporting a high confidence in the accuracy and reliability of the information presented.