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federal appeals court has overturned a lower-court ruling that blocked the Consumer Financial Protection Bureau (CFPB) from cutting most of its workforce. The decision allows President Donald Trump's administration to proceed with plans to downsize the agency, which could impact at least 80% of employees.

    Meanwhile, over 40 former Fannie Mae employees have filed a defamation lawsuit against their former employer, alleging they were fired without notice or due process and later defamed through press releases and TV interviews. The new lawsuit follows an earlier discrimination case filed by ex-employees last month.

    In a separate development, the Federal Housing Finance Agency (FHFA) has released new guidance for temporary interest rate buydowns, which must be implemented by November 1. Fannie Mae loan servicers are instructed on how to apply buydown funds for various workout options.

    A top Federal Reserve official is pushing for three short-term interest rate cuts this year, a significant shift in monetary policy. Michelle Bowman, the Fed's vice chair for supervision, has advocated for lower rates and believes the weak July jobs report supports her view. The decision on whether to cut rates will be made by Fed Chair Jerome Powell, who faces pressure from President Trump to lower rates or resign.