Mortgage has always been a relationship business, but it has also always been a performance business. Markets move in real time, capital flows react instantly, and every basis point matters. Few people understand that balancing act better than Michael Tannenbaum, the CEO of Figure and one of the more closely watched executives in housing finance right now. Long before he was running a public company trying to reshape mortgage infrastructure through blockchain-based capital markets and AI-driven origination, he and I were coworkers at SoFi, both navigating the chaos and ambition of fintech’s early growth years. More than a decade later, we still regularly meet for dinner, usually talking about the mortgage industry ("mortgagia," as we call it), life choices, rates, and tales from years gone by.

Figure occupies a strange and increasingly important corner of the mortgage world. It is part lender, part capital markets platform, part infrastructure company, and part technology bet on what the future of housing finance could look like. At a time when traditional mortgage companies are under pressure from elevated rates, shrinking volumes, and investor skepticism, Figure has managed to attract a very different kind of attention from Wall Street. The company recently posted what Tannenbaum calls “Rule of 140” earnings: roughly ninety percent revenue growth paired with nearly fifty percent EBITDA margins, numbers that stand out not just in mortgage, but in public markets broadly.

In our conversation, Tannenbaum discussed what it feels like to run a newly public company in an unusually volatile market environment, why he believes mortgage’s cost structure has barely improved despite decades of technological advancement, how Figure is trying to build liquidity and standardization into non-Agency lending, and why he thinks the future loan experience will depend as much on infrastructure as interface. We also talked about public market psychology, blockchain, AI hype, the treadmill of quarterly earnings, and the growing gap between traditional lenders and companies positioning themselves more like financial networks than mortgage originators.

The conversation below has been edited for length and clarity.

Q: Figure recently reported earnings. What stood out most from the quarter?

A: One of the highlights was that Figure is what we call a “Rule of 140” company, whereas the traditional benchmark is the “Rule of 40.” In the software and tech world, investors often look at a company’s growth rate plus its margin profile, and they generally want that number to total around 40. The idea is that if you’re growing extremely quickly, investors may tolerate lower margins because the growth itself is valuable.

Figure is unusual because we’re growing revenue around 90 percent while also producing roughly 50 percent EBITDA margins. That combination is rare. U.S. GDP grows around 3 percent, while we’re growing close to 90–100 percent, but we’re also doing it with very strong profitability. That’s what really differentiates the company, and it in large part reflects the value we add to our partners' businesses.

Q: Mortgage stocks broadly have struggled in the market lately. What makes Figure different from traditional mortgage companies in the eyes of investors?

A: I think it’s too simplistic to say the market likes Figure and dislikes other mortgage companies. Public markets in general are extremely frenetic right now, and not just in mortgage. There’s a huge amount of noise around AI, interest rates, inflation, and the economy overall. Investors are trying to figure out how AI affects software companies, financial services companies, and the broader economy all at the same time.

The truth is that Figure is increasingly viewed less like a traditional lender and more like a technology and capital markets platform. Investors see us as competing more with infrastructure providers or even with pieces of what Fannie Mae and Freddie Mac do. Obviously, part of our business still uses our balance sheet, but when I joined the company in 2024 we launched Figure Connect, and that platform now accounts for roughly 60 percent of our volume. Most of that business doesn’t touch our balance sheet or our licenses. We’re building a marketplace where partners can use our technology to originate loans and then distribute them efficiently into the capital markets.

Q: How would you describe Figure Connect?

A: Figure Connect is essentially a combination of origination technology, underwriting infrastructure, and secondary market execution. It standardizes the entire process from loan creation through securitization and sale into the market. Figure partners use this technology to originate and underwrite loans and sell into a capital market that is directly connected to this origination technology, which acts as a combination of an LOS + Fannie Mae.

A big part of what differentiates Figure is the way we’ve used blockchain infrastructure. Blockchain by itself isn’t some magic solution; just like AI isn’t automatically a solution. Mortgages moved from paper processes to software years ago, but production costs still sit around $12,000 per loan industry-wide. Technology alone doesn’t automatically lower costs.

What we’ve done differently is use blockchain for standardization and liquidity. We’ve created a liquid market for assets originated through our system, and those two things go hand in hand. That’s allowed us to remove significant time and cost from the process. The average time through the Figure funnel is about nine days, which is dramatically faster than traditional mortgage workflows. It also reduces interest rate risk and balance sheet risk, which is important for our partners.

Q: You mentioned mortgage production costs remaining high despite advances in technology. Why do you think that is?

A: There’s a concept in tech circles called Jevons Paradox, which basically says that when something becomes more efficient, people often end up using more of it overall. The same thing can happen with AI and workflow automation. As AI lowers the cost of producing information and content, you may actually create more workflow and more complexity rather than less.

That’s why infrastructure matters so much. AI by itself doesn’t necessarily lower mortgage costs if the underlying system remains fragmented. At Figure, we think of AI as the brain, while blockchain acts more like the nervous system. You still need standardized, verifiable infrastructure underneath all the automation, especially as the overall volume of information grows.

Q: What has being a public company CEO taught you?

A: The scale of public markets is very different from private markets. As a private company, you spend a lot of time trying to find a small number of investors. Once you’re public, anyone anywhere can invest in your company instantly.

That changes communication entirely. Investor relations, messaging, and explaining what you’re building become incredibly important because the percentage of investors you’ll ever actually speak to is very small. You have to be extremely clear about what the company is, what the strategy is, and why the business is compelling long term.

Q: How did you personally handle major stock price volatility after earnings?

A: Pretending you don’t notice it would obviously be dishonest. It feels bad because you feel like you’re letting people down: employees, investors, people who bought the stock at higher levels.

But at the same time, I’ve been through much worse situations in my career. I’ve been at non-bank lenders where we were genuinely worried about whether the company would survive. I’ve had financing pulled before. So while the stock volatility was difficult, it never felt existential because the underlying business itself was strong.

After one earnings release earlier this year, the stock dropped sharply and then recovered quickly afterward. That experience reinforced how emotional and noisy public markets can be in the short term. Being a public company almost feels like being on a treadmill: you’re constantly operating quarter to quarter because by the time one earnings cycle finishes, you’re already halfway into the next quarter.

Q: How do you balance investor expectations with the company’s long-term vision?

A: We absolutely care what the market thinks… otherwise we wouldn’t have chosen to go public. But you can’t manage a company based on daily stock movements.

A lot of this comes down to alignment internally. Figure's founder and Chairman Mike Cagney thinks very long term, and we’re aligned around building something much larger over a multi-year horizon. When you’re focused on building for the next decade, you can’t overreact to one day or one quarter in the market, even though obviously you still pay attention to it.

Here’s something to ruminate on: “No one ever announces when it's their first rodeo.” What is something that small and mid-sized lenders can’t offer? Chase rolled out a program for borrowers to earn 100,000 Chase Points. (Bilt and UWM rolled out something similar a while back.) But, nearly every lender can help borrowers with the cost of a mortgage, and STRATMOR’s current blog is “Pricing That Can Help Borrowers.” In addition, in the credit world two new automated features for the FICO Score Mortgage Simulator were announced yesterday designed to help lenders move beyond manual “what-if” credit simulations and generate personalized borrower action plans more efficiently. The program “automates credit action planning for borrowers based on target score goals or budget, offers early score potential estimates, and is built directly on the mortgage FICO Scores used in lending decisions (FICO Scores 2, 4 and 5). (Today’s podcast can be found here and this week’s ‘casts are sponsored by NFTYDoor, the white-label HELOC platform for banks, credit unions, and brokers. Close in zero days with warehouse funding. Power your home equity lending with NFTYDoor. Today’s features an interview with Sagent’s Sridhar Sharma and Shane Leonard on how the latest and greatest in underwriting technology is reducing friction in the mortgage origination process.)

Employment and transitions

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A well-capitalized national mortgage lender is recruiting for an EVP of Wholesale Production. The organization operates a full suite of loan products including non-QM. The ideal candidate has recent experience leading high-performing wholesale teams through multiple market cycles. You should demonstrate strong mentorship abilities, direct accountability for results, and the capacity to make decisions with limited oversight. Experience in managing relationships with brokers and loan officers at scale is required. You should be comfortable appearing in video, presenting to large groups, and engaging directly with partners and clients. The successful candidate is tech-focused and understands how to leverage technology to improve operations and originator productivity. Strong communication skills are essential. You are someone who is borderline obsessed with the work, with the performance of your team, and with building a best-in-class wholesale platform. This is a visible leadership role requiring someone who can build culture, recruit talent, and drive performance across a national platform. Remote or in-person position available. For confidential consideration, contact Anjelica Nixt.

The Chrisman Job Board is the go-to platform for employment opportunities across the mortgage industry. For employers, adding a job listing is easy. Simply create an account and drop in your existing application link, or forward the details to our team and we’ll take care of it for you. For job seekers, joining our Talent Community is completely free. Upload your resume to be visible to hiring companies across the industry and stay connected to new opportunities as they go live.

Lender and broker products, software, & services

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“500 loans or 50,000. You get the same elite servicing platform. At MSF Servicing, no portfolio is too big or too small. That's because we've eliminated the minimum loan count requirements that leave smaller servicers locked out of top-tier platforms. Whether you're managing 500 loans or 50,000, you'll have access to the same experienced team, the same state-of-the-art technology, and the same high-touch level of service, with no thresholds, no gatekeeping, and no compromises. Our servicing platform was purpose-built to scale without sacrificing quality. Boutique relationships and complex portfolios run on the same infrastructure that grows as you do. Finally, your borrowers will love the MSF mobile app, which delivers real-time account access, seamless payment tracking, and intuitive self-service, on their schedule. All backed by a dedicated borrower portal and multilingual support in 200+ languages that enhances your brand at every touchpoint. For more information, contact Rick Smith (860-989-9006).

Mortgage fraud continues to be a hot topic in the industry and it’s imperative to stay up to date with the latest trends. On June 3 at 10am PT, join experts from Cotality and ACES Quality Management at the Cotality Fraud Summit, a must-attend virtual event designed for mortgage lenders, servicers and risk professionals who need practical strategies to detect, prevent, and respond to evolving fraud threats. From synthetic identity and income manipulation to emerging AI-driven schemes, today’s risk landscape is more complex and costly than ever. The Cotality Fraud Summit brings together experts across data, analytics, and operations to share real-world insights, actionable best practices and technology-driven solutions that help you stay ahead of risk without slowing down your pipeline. Attendees will gain perspective on fraud and compliance best practices, and how advanced data and intelligence can strengthen decisioning across the loan lifecycle. If protecting margins, preserving borrower trust and safeguarding your organization are priorities in 2026, this event belongs on your calendar. Register here.

If your pipeline feels tight, it may not be a volume problem, but an overlooked opportunity. While many brokers are working the same deals, a $14.5 trillion senior equity market sits just outside the traditional mortgage lens. Reverse mortgages could help you drive more applications this month by turning existing conversations into action. For experienced brokers, the difference between a stalled conversation and a submitted application often comes down to how the opportunity is positioned and guided. With a financial assessment that does not rely on income, you could expand production without changing your business flow. Finance of America could help you identify opportunities and move more loans forward while protecting your reputation with standards that protect you and your client. Connect with an Account Executive to get started. Finance of America | NMLS #2285

Still pricing loans manually? It might cost you more than you think. From missed adjustments to outdated investor guidelines, manual pricing creates risk at every step. In today's market, the teams that respond fastest win the business. This breakdown covers how automated pricing helps mortgage teams work faster, quote more accurately and deliver a better borrower experience without the added complexity. Read the blog now.

Miss the recent webinar on AI in mortgage? JazzX AI had a candid conversation with lenders from PRMI and Revolution Mortgage on what it really takes to move from pilot to production. Hosted and moderated by JazzX AI, the discussion highlights how lenders are moving beyond point solutions to drive real results across the loan lifecycle. Think real talk on ROI, cost per loan, and what’s actually working versus hype. If AI is on your roadmap, this one’s worth a watch. See it now.

Confusing. Bloated. Expensive. Sound familiar? Your CRM shouldn't require a manual just to get your marketing out the door. LoanSquirrel by KensieMae does what a mortgage CRM is supposed to do: get out of the way and let you close. It starts with a vast content library of ready-to-go marketing; just grab what you need and send it. Want something more tailored? A visual content builder lets you create exactly what you have in mind. Your marketing goes out polished, on-brand, and on time. Layer in automated borrower nurture, referral partner campaigns, lead follow-up that runs itself, email, print, direct mail, on-demand flyers, and gift marketing, all in one platform. Centralize at the corporate level or let individual loan officers run their own. Either way, autopilot. No bloat. No steep learning curve. It just works. Everything you need. Nothing you don't.

Less back-and-forth. More first-time-right verifications. Truework replaces manual verification waterfalls with a single automated platform, so underwriters, LOs, and ops can cut down the document chasing, conflicting numbers, and last-minute corrections. Lenders see up to 50 percent cost savings on verifications, with faster turn times, higher accuracy, and stronger R&W relief. Trusted by top lenders in the U.S., Truework gives your team verification results they can rely on. Learn more.

The Mortgage Companies Winning with AI Aren’t the Ones Moving Fast… They’re the Ones Doing It Right. AI is quickly becoming the backbone of high-performing mortgage companies, but success isn’t about plugging in the latest chatbot or chasing hype. It’s about building an operation that scales production while staying compliant, auditable, and defensible. Sponsored by Brody-Gapp, LLC, join Ignite on June 4 at 12 Noon ET for Anatomy of an AI-Enabled Mortgage Company, a practical session designed for lenders, compliance leaders, and mortgage executives navigating the realities of AI adoption. Learn how to establish AI governance across lending, underwriting, pricing, and marketing; reduce bias and strengthen fair lending compliance; and deploy AI-powered marketing and CRM workflows that respect UDAP and TCPA guardrails while driving pipeline growth. You’ll also discover how leading companies evaluate AI vendors, build internal AI literacy, and create feedback loops that continuously improve performance safely and confidently.

The Chrisman Marketplace is a centralized hub for vendors and service providers across the mortgage industry to be viewed by lenders in a very cost-effective manner. We’re adding new providers daily, so check back often to see what’s new. To reserve your place or learn more, contact us at info@chrismancommentary.com.

STRATMOR, AI, and borrower trust

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What happens when your borrower’s most trusted relationship during the mortgage process is AI? In his latest CX Tip, STRATMOR Group Director of Customer Experience Mike Seminari explores how artificial intelligence is rapidly reshaping borrower trust, expectations, and engagement. As AI becomes more embedded in the customer experience, lenders face a new challenge: ensuring technology enhances relationships instead of replacing them. Seminari offers a thoughtful look at what this shift could mean for the future of mortgage lending and why the industry needs to start preparing now. It’s a timely read for lenders thinking about the evolving role of trust in the AI era.

Capital markets: Fed easing bias diminishing

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With refinance volume slowing and lenders leaning on every basis point of margin to stay competitive, the cost of legacy pricing engines and manual loan-commit workflows is harder than ever to absorb. In MCT's new case study, Secondary Market Analyst Matthew Bickerton walks through how the bank replaced an archaic rate sheet structure with the Base Rate Generator, layered in real-time best execution across agencies through MCT Marketplace, and compressed full loan sales from hours to 15–20 minutes; capturing two to five incremental basis points on every trade in the process. The case study and video also detail how a lean secondary desk built a runway to scale production without adding headcount, using MCTlive! to bring pricing, hedging, and execution into a single automated workflow. Join MCT's newsletter to stay informed with the latest market commentary and mortgage capital markets education.

To nobody’s surprise, markets remain highly sensitive to geopolitical developments; hopes for a peace deal with Iran are currently dominating headlines, sentiment, and market movement. The Trump administration, while continuing air strikes, has signaled that a potential agreement with Iran may still take several days to finalize, keeping headline risk elevated and oil markets volatile.

Even so, Treasury yields have continued to retreat from last week’s highs, with the 10-year yield falling more than 20-basis points as investors increasingly price in easing geopolitical fears, month-end demand for duration, and a Federal Reserve seemingly more inclined to remain patient than aggressively tighten policy. Technical momentum has become increasingly supportive for bonds, though absent a major deterioration in economic data or a decisive de-escalation in the Middle East, the rally may struggle to extend materially in the near term. 

Mortgage-backed securities tend to follow the Treasury markets, and those were relatively quiet before yesterday's $70 billion 5-year note auction, which met weaker demand than Tuesday's solid 2-year note sale, and reacted only modestly afterward, suggesting the results were viewed as solid but not strong enough to materially shift market sentiment (the auction was almost exactly in line with expectations). The 5-year notes yielded 4.18 percent and overall demand matched historical averages, as reflected by the unchanged 2.34x bid-to-cover ratio. Foreign and institutional buyers (“indirects”) showed especially strong participation, taking nearly 75 percent of the auction, while direct bidders participated far less than normal and dealers absorbed slightly more supply than average. Recent 5-year auctions have struggled to attract strong demand, particularly from foreign buyers, and ongoing geopolitical uncertainty is limiting investor appetite despite the more attractive yields now available.

At the Federal Reserve, recent commentary has reinforced the idea that policymakers are gradually shifting away from an easing bias toward a more neutral (and potentially more hawkish) stance as inflation risks tied to energy prices remain elevated and the broader economy continues to show resilience. Stronger-than-expected economic data, improving GDP growth estimates, and a still-firm labor market have pushed recession fears into the background and reduced expectations for near-term rate cuts, with markets now assigning growing probability to a rate hike by year-end.

Continuing with thoughts about the Fed, investors will be closely watching upcoming speeches, particularly traditionally dovish members, for confirmation of whether the Committee is becoming more comfortable holding rates steady for an extended period or even reopening the door to additional tightening. Attention is also beginning to shift toward the June FOMC meeting and updated dot plot projections, where even modest changes in policymakers’ rate expectations could further reinforce the market’s growing acceptance of a “higher-for-longer” interest rate environment. The Fed has made it clear they are unhappy to see inflation stuck above their 2 percent target. 

Today’s economic calendar kicked off with revised Q1 GDP (revised upward to 1.6 percent), April Personal Income (flat) and Spending (+0.5 percent), Fed-favorite April PCE (+0.4 percent month-over-month and 3.8 percent year-over-year) and Core PCE (+0.2 percent month-over-month and 3.3 percent year-over-year, as expected), April Durable Goods Orders (+7.9 percent month-over-month), and Initial Jobless Claims (215k, 1.786 million continuing). Real GDP growth for the first quarter was expected to be revised higher, reflecting upward revisions to consumer spending; inflation in the first quarter, as measured by the PCE price index, was expected to rise to around 4 percent in April as gas prices climbed; solid gains in personal income did not materialize, making that figure even worse than it appears due to inflation.

Coming up after the Commentary goes out are April New Home Sales, remarks from NY Fed President Williams and St. Louis Fed President Musalem, and a Treasury auction of $44 billion 7-year notes alongside a buyback of TIPS ranging from 10 to 30 years for up to $500 million. After the heavy spate of data, we begin Thursday with Agency MBS prices worse .125 to .250 versus yesterday’s close, the 2-year yielding 4.05 percent, and the 10-year yielding 4.49 after closing yesterday at 4.48 percent.

A couple was celebrating their golden wedding anniversary on the beaches in Montego Bay, Jamaica. Their domestic tranquility had long been the talk of the town. People would say, "What a peaceful & loving couple."

The local newspaper reporter was inquiring as to the secret of their long and happy marriage. The husband replied, "Well, it dates back to our honeymoon in America. We visited the Grand Canyon, in Arizona, and took a trip down to the bottom of the canyon, by horse. We hadn't gone too far when my wife's horse stumbled and she almost fell off.

"My wife looked down at the horse and quietly said, 'That's once.'

"We proceeded a little further and her horse stumbled again. Again my wife quietly said, 'That's twice.'

"We hadn't gone a half-mile when the horse stumbled for the third time my wife quietly removed a revolver from her purse and shot the horse dead."

The man continued, "I shouted at her, 'What's wrong with you, woman?! Why did you shoot the poor animal like that, are you *%&#@$ crazy!?'

“She looked at me, and quietly said, 'That's once.'

“And from that moment we have lived happily ever after."

Visit www.ChrismanCommentary.com for more information on our industry partners, access archived commentaries, or subscribe to the Daily Mortgage News and Commentary. You can also explore the Chrisman Marketplace, a centralized hub connecting mortgage professionals with trusted vendors and solutions. If you’re interested, check out my periodic blog on the STRATMOR Group website. STRATMOR’s current blog is “Pricing That Can Help Borrowers.”  The Commentary’s podcast is available on all major platforms, including Apple and Spotify.

qoɹ & ǝᴉqqoɹ

(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes, visit the Chrisman Job Board. This newsletter is intended for sophisticated mortgage professionals only. There are no paid endorsements by me. For the latest mortgage news, visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.ChrismanCommentary.com. Copyright 2026 Chrisman LLC. All rights reserved. Paid job & product listings do appear. This report or any portion hereof may not be reprinted, sold, or redistributed without the written consent of Rob Chrisman. The views and opinions in this newsletter are mine alone unless otherwise specifically stated herein.)

How ‘bout this one: A firefighter went to the college graduation ceremony for a baby he helped deliver many years ago. Loan originators can be involved in many life events of their clients as well, as the months and years roll on, something that a software program can’t do. They’re also in a great position to explain the nuances of the summer home buying season to clients. They know that rates aren’t the only thing making homes unaffordable. The median home price rose from $274,900 in Q4 2019 to $414,900 in Q4 2025, according to the National Association of Realtors. That has affected affordability much more than the rise in mortgage rates (the average 30-year fixed rate increased from 3.90 percent at the end of 2019 to 6-something percent today, let’s say about 6.16 percent because I saw that number somewhere). If we apply those rates on top of the median home prices in question and assume a 20 percent down payment, we get monthly principal and interest payments of $1,037 at 3.90 percent and $1,341 at 6.16 percent if the home costs $274,900. With a median home price of $414,900, those monthly payments go to $1,566 at 3.90 percent and $2,024 at 6.16 percent. Higher prices are impacting affordability significantly more than higher rates. (Today’s podcast can be found here and this week’s ‘casts are sponsored by NFTYDoor, the white-label HELOC platform for banks, credit unions, and brokers. Close in zero days with warehouse funding. Power your home equity lending with NFTYDoor. Today’s features an interview with NEO Home Loans Ryan Grant on the evolution of interactions between mortgage professionals and borrowers, and how companies can best provide support to origination staff.)

Employment and transitions

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“Newrez Correspondent is thrilled to welcome Evelina Arena as Regional Sales Manager, in the Bank and Credit Union Division. Evelina will be covering 11 East/Northeastern states and will bring extensive experience in the Correspondent Lending space, along with a strong, relationship-driven approach in supporting her partners. Evelina looks forward to connecting and working closely with our clients. Please join us in welcoming her and connecting with Evelina. In addition, we are excited to announce that Amanda Johnson has stepped into the role of Regional Sales Manager, in the IMB Division at Newrez Correspondent covering the Mid-Atlantic region. Amanda’s comprehensive industry experience and commitment to the correspondent space make her an incredible asset to independent mortgage bankers throughout the territory. Please join us in welcoming Amanda. We thank everyone who met with our team at the MBA® Secondary Conference last week. We value the time our customers shared with us and appreciate the opportunity to continue the conversations that support our shared goals.”

“EPM is experiencing record-breaking growth in 2026 and is actively looking to bring on 50 new Account Executives over the next 12 months. EPM is one of the fastest-growing wholesale lenders in the United States, built on a mission of helping homeowners realize the American Dream. Ideal candidates are driven, experienced AEs ready to plug into a platform with real momentum and the support to match. We are also entertaining teams looking for a new home. This is a rare opportunity to join an organization that is scaling rapidly and investing heavily in its people. If you are ready to align yourself with the fastest-moving name in wholesale lending, now is the time. For confidential consideration, please email us.”

The Chrisman Job Board is the go-to platform for employment opportunities across the mortgage industry. For employers, adding a job listing is easy. Simply create an account and drop in your existing application link, or forward the details to our team and we’ll take care of it for you. For job seekers, joining our Talent Community is completely free. Upload your resume to be visible to hiring companies across the industry and stay connected to new opportunities as they go live.

Lender and broker products, software, & services

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Does your subservicer oversight actually hold up under review? Some lenders rely heavily on subservicer reporting and attestations, but still lack clear, documented, independent validation of how controls are being executed day to day. That can create real exposure with regulators, Agencies, and GSEs. Firstline Compliance performs independent subservicer oversight reviews designed to assess compliance programs, evaluate adherence to regulatory requirements, and provide optional targeted file review to help validate actual and historical performance. Our team understands what effective oversight looks like in practice because we’ve worked firsthand through the operational, compliance, and examination challenges tied to mortgage servicing relationships. The result is stronger oversight, better visibility, and documentation you can confidently defend. Contact Ashley Bradford at 469-717-4232 to learn more.

“Blue Water Financial Technologies, with VAULT (Verified Asset & Universal Loan Transfer)! Blue Water Financial Technologies delivers an IDP platform purpose-built for mortgage and financial workflows helping teams move from manual document review to structured, standardized, decision-ready data. We offer unlimited scaling; AI review partnered with Machine Learning Algorithms developed over the last 7 years of real-world mortgage production. Contact Michael Bender. Learn more here.”

“Do you ever run into situations where a realtor has a borrower assuming a VA or FHA mortgage with a low rate? Symmetry Lending can help! Did you know that Symmetry can close a 2nd lien HELOC simultaneously behind an assumption to help bridge the gap between the loan amount of the assumption mortgage and the purchase price? On a primary residence, Symmetry’s 2nd can go to 89.99 percent CLTV of purchase price or appraised value if less, up to 500K line amount, so your borrower would only need to bridge that gap for 10.01 percent! If you ever run into these scenarios, please give your Area Manager a call! Symmetry Lending.”

Today’s mortgage servicing landscape demands speed, accuracy, and adaptability. MSP®, ICE’s industry-leading loan servicing platform, helps servicers streamline operations while staying ready for what’s next. Designed to support the entire servicing lifecycle, MSP delivers the scalability, reliability and compliance support servicers need to operate with confidence. Built-in automation and intelligent decisioning reduce manual work and operational risk to not just streamline tasks but deliver greater overall scale and efficiency. This frees up teams to focus on what matters most: delivering a consistent, high-quality homeowner experience. It’s no surprise MSP is trusted by more servicers than any other loan servicing software. Discover how MSP can help simplify complexity, drive efficiency, and power smarter servicing.

Less back-and-forth. More first-time-right verifications. Truework replaces manual verification waterfalls with a single automated platform, so underwriters, LOs, and ops can cut down the document chasing, conflicting numbers, and last-minute corrections. Lenders see up to 50 percent cost savings on verifications, with faster turn times, higher accuracy, and stronger R&W relief. Trusted by top lenders in the U.S., Truework gives your team verification results they can rely on. Learn more.

Most mortgage AI focuses on automating individual tasks, but the real inefficiencies live between them. Handoffs, exceptions, and cross-functional decisions are what keep costs high and limit true transformation. JazzX AI digital assistants go beyond step-level automation, coordinating work end-to-end across processing, underwriting, QC, and servicing. Every finding is reasoned against your guidelines and overlays, continuously updated as new data comes in, and tied back to the exact policy behind it, so your team stays in control. The result: lower cost per loan, faster decisions, and higher loan quality. Book a demo to see how JazzX AI drives end-to-end execution.

Lower & CANDID: A Tech100 Blueprint for Mortgage Scale! When Lower acquired Movoto, Lower secured a top five real estate portal and a massive front-end engine with 150 million annual visits; by partnering with CANDID, they’ve gained the mortgage marketing and sales operating system required to turn that traffic into lifelong enterprise value. Recently recognized on HousingWire’s Tech100 list, this partnership solves the industry's biggest disconnect: the gap between lead volume and LO adoption. By consolidating real-time lead engagement via Group SMS, CRM, mortgage presentation, Experience Cloud, and Client Retention Cloud into one system, Lower achieved a 61 percent+ adoption rate. This shift proves that elite lenders are moving beyond a patchwork of legacy tools in favor of a unified foundation that owns the customer relationship from the first click to the next refinance. The standard has been set. Is your organization built to compete?

AI continues dominating conversation across the mortgage industry, but lenders gaining traction are not using it to replace loan officers. They are using it to help originators operate more effectively. That is the foundation behind Usherpa and Dan Harrington’s book, Authentic Intelligence: The Other AI. Harrington, co-founder of Usherpa and longtime mortgage industry leader, believes technology should strengthen relationships, not replace them. By studying the habits of top-producing loan officers, Usherpa identifies behaviors and relationship strategies driving production. Combining those insights with AI-powered technology helps originators prioritize outreach, uncover opportunity, and strengthen relationships driving referrals and repeat business. Technology alone does not create peak performance. The right technology supporting the right habits does. See why more lenders are turning to Usherpa to help loan officers perform at a higher level.

The Chrisman Marketplace is a centralized hub for vendors and service providers across the mortgage industry to be viewed by lenders in a very cost-effective manner. We’re adding new providers daily, so check back often to see what’s new. To reserve your place or learn more, contact us at info@chrismancommentary.com.

Non-Agency/product lending news

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There are some who believe that, given the Agency’s stance on pricing and underwriting guidelines, volume will move away from them to the tune of 1 in 4 or 1 in 5 loans. Will we see $400 billion in non-Agency production in 2026? Stay tuned. Who’s doing what?

United Wholesale Mortgage is offering two new products: free 1-0 temporary rate buydowns and home equity loans. Effective immediately, UWM will cover the cost of lender-paid temporary rate buydowns on conventional and government purchases by providing credit to offset the buydown experience. This gives borrowers a payment equivalent to a 1 percent lower interest rate in the first year at no additional cost to them or the broker, providing a lower monthly payment and easing the transition into homeownership. This free offering is available through June 30, 2026.

Onslow Bay Financial has recently enhanced its product offerings to now offer DSCR from $100k-$3mm. “We've also sharpened our prepayment penalty LLPAs by 37.5 bps. With a full suite of Non-QM, Agency 2nd Home / Investor, CES, HELOC, and Jumbo products, Onslow Bay offers unparalleled product flexibility and superior secondary market execution. New technological innovations like our Laminr bank statement calculator help streamline purchases. We had a record-setting 2025. Our flow channel funded $16.5B in loans and completed 29 securitizations totaling $15.2B in proceeds. And starting off 2026, with a record first quarter funding nearly $2 billion in March and ended the quarter at $5.1 billion of purchases. Interested in learning more about how our products, pricing, and technology can work for you? Please reach out to OBSales@onslowbayfinancial.com."

Due to recent CFPB Regulation B amendments, Citi Correspondent Lending has made the decision to discontinue its Special Purpose Credit Program. Access announcements for critical dates related to new registrations and locks, deadline for credit package submissions, and the final date for SPCP loan purchases.

Onity Mortgage, formally known as PHH Mortgage, published announcements regarding revisions to several topics in the Correspondent Seller Guide and Non-Agency Addendum, updates, and clarifications to FlexIQ Non-Agency product offerings, and addressed the VantageScore 4.0 and FICO Score 10T credit score model announcements issued by Fannie Mae and Freddie Mac.

Onslow Bay Financial has incorporated multiple changes to its Non-QM Seller Program Underwriting Guidelines with version 8.9. Additionally, updates were made to the LLPAs on their DSCR Program. Loans locked prior to the effective dates will continue to be priced with the LLPAs at the respective lock date.

Considering a higher-value home purchase? Priority is currently offering jumbo loan options up to $3,000,000, featuring 10/1 and 7/1 ARM programs with rates starting below 6 percent. These solutions may fit those who are seeking lower initial monthly payments, competitive interest rates, increased purchasing power without compromising flexibility, or financing tailored for luxury or high-value properties.

Pennymac updated non-QM LLPAs effective for all Best-Efforts Commitments taken on or after Wednesday, April 22, 2026. View Announcement 26-40 for details.

Newrez rolled out its Medical Professional Home Loan, a specialized mortgage solution designed to address common qualification challenges facing early‑career medical professionals, including student loan debt and limited savings. View Newrez’s media alert and blog post for additional details. It is designed to help early-career health care professionals achieve homeownership via reducing upfront costs by offering 100 percent financing with no traditional private mortgage insurance, alongside flexible student loan debt-to-income treatment and qualification based on projected earnings.

Capital markets: headlines over fundamentals

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Unsurprisingly, financial markets opened the shortened trading week focused almost entirely on the evolving conflict with Iran, as renewed White House optimism surrounding a potential peace framework was tempered by fresh military clashes near the Strait of Hormuz, including a “defensive” U.S. strike. Despite geopolitical tensions remaining elevated, investors are largely leaning into hopes for eventual de-escalation, driving a rally in both equities and longer-dated Treasuries, while pushing yields lower and flattening the curve further. Economic data and traditional fundamentals have temporarily taken a back seat to geopolitical headlines, though investors are aware that persistently high energy prices, weakening real wage growth, and mounting inflation pressures could eventually weigh more meaningfully on consumer spending, economic activity, and Federal Reserve policy expectations.

The FHFA House Price Index released yesterday showed that U.S. home prices continued to rise modestly over the past year (+1.7 percent), extending a streak of annual appreciation that has remained intact since 2012, though gains have become increasingly uneven across regions. While most states and major metro areas still posted price increases, several markets (particularly in parts of the South and West, including the Austin area and Colorado) experienced notable declines, reflecting a housing market that is gradually cooling and becoming more regionally fragmented.

The Treasury Department’s $69 billion 2-year note auction yesterday was well received by investors, with the notes yielding 4.07 percent (0.25 percent above where it was for the last 2-year auction) and demand metrics coming in close to historical averages, including a solid 2.64x bid-to-cover ratio and strong non-dealer participation at 88 percent. Direct and indirect bidders accounted for most of the demand, and despite Treasuries already rallying earlier in the day, the market reaction after the auction remained relatively muted. The front-end of the yield curve has been consistently underperforming as policymaker appetite for rate cuts diminishes, and the Fed moves toward a more neutral stance on the future direction of policy rates.

Agency mortgage-backed securities (MBS) have staged a notable rebound recently, supported by improving excess returns, moderating volatility, and a relatively stable Treasury market, with the 10-year yield holding near the mid-4 percent range. Performance within the MBS sector has been mixed beneath the surface, with certain Fannie Mae 15- and 20-year products outperforming while higher-coupon pools and specs continue to attract investor interest due to favorable spread and valuation dynamics. MBS valuations currently appear somewhat attractive relative to investment-grade corporates, though less compelling versus Treasuries, as investors continue balancing elevated rates, convexity risk, and shifting expectations around Federal Reserve policy. Trading activity has remained relatively subdued, reflecting cautious positioning, selective demand, and ongoing focus on spread behavior and prepayment dynamics (rather than aggressive directional risk-taking).

Today’s economic calendar kicked off with mortgage applications from MBA, which revealed that activity declined sharply last week as rising interest rates continued to pressure borrower demand; overall applications fell 8.5 percent and refinance activity dropped 18 percent from the prior week. The average 30-year fixed mortgage rate climbed to 6.65 percent, its highest level since August 2025, discouraging many refinance borrowers, while purchase activity remains more resilient and continues to run modestly above year-ago levels. We’ve also received ADP Employment (+35.75k). Later today brings Redbook same store sales, Treasury activity that will be headlined by auctions of $28 billion 2-year FRNs and $70 billion 5-year notes, Richmond and Dallas Fed manufacturing data, and no fewer than three Fed speakers. We begin Wednesday with Agency MBS prices slightly improved from yesterday’s close, the 2-year yielding 4.03 percent, and the 10-year yielding 4.46 percent after closing yesterday at 4.49 percent.

Last night I made salmon for supper.

As it was gently cooking in a warm bath of garlic, herbs, lemon, wine, and onion, I got a visit from a Fish and Wildlife officer.

He knocked on the door and yelled, “Sir, we have reason to believe that salmon has been poached!”

Visit www.ChrismanCommentary.com for more information on our industry partners, access archived commentaries, or subscribe to the Daily Mortgage News and Commentary. You can also explore the Chrisman Marketplace, a centralized hub connecting mortgage professionals with trusted vendors and solutions. If you’re interested, check out my periodic blog on the STRATMOR Group website. This month’s piece is titled, “Mortgage Rates Are Not Random.” The Commentary’s podcast is available on all major platforms, including Apple and Spotify.

qoɹ & ǝᴉqqoɹ

(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes, visit the Chrisman Job Board. This newsletter is intended for sophisticated mortgage professionals only. There are no paid endorsements by me. For the latest mortgage news, visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.ChrismanCommentary.com. Copyright 2026 Chrisman LLC. All rights reserved. Paid job & product listings do appear. This report or any portion hereof may not be reprinted, sold, or redistributed without the written consent of Rob Chrisman. The views and opinions in this newsletter are mine alone unless otherwise specifically stated herein.)

How about we start the week with some “actual intelligence” instead of “artificial intelligence”? I’ve never heard the terms empathy, wisdom, or experience applied to software, but good originators have all of those, and more, as well as a keen interest in their pool of potential borrowers. The gap between where rates are and where households “need them to be” is suppressing labor mobility, distorting retirement decisions, and reshaping expectations about generational wealth building: 56 percent of working Americans have either turned down a job requiring relocation or say they would, and 20 percent have already turned down a job, promotion, or career opportunity because it required moving. LOs will tell you that the attachment to low rates is behavioral, not just financial. Polls show that the majority of homeowners with mortgages would consider moving if they could transfer their current rate, and a portion of those would move immediately. Generational wealth expectations have shifted, with the minority of Americans believing their children will ever be able to afford a home. If you recall, this year’s State of the Union Address did not include proposals for housing construction, zoning reform, first-time buyer credits, or changes to housing finance policy, and this data helps explain why rate drops alone won't be enough. It is hoped that Trump administration moves before the midterms will shift the landscape. (Today’s podcast can be found here and this week’s ‘casts are sponsored by NFTYDoor, the white-label HELOC platform for banks, credit unions, and brokers. Close in zero days with warehouse funding. Power your home equity lending with NFTYDoor. Today’s features an interview with THE David Lykken on transformation in mortgage lending over the past five-plus decades, as well as lessons on leadership.)

Builder JV; TPO lender available; transitions

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Missed the 2026 Builder 100? We got you. One message came through clearly: builders must focus on what they can control in a market shaped by rates, affordability pressures, and cautious buyers. Mortgage joint ventures (JVs) are becoming a strategic way to do exactly that. As rate buydowns and financing incentives become essential to driving sales, mortgage is no longer a back-end function. It is part of the product itself. “We’re focused on what actually helps move homes without eroding profitability,” Tony explains. Alongside CMG’s JV model, Builder Tony helps align builder sales, financing, and customer experience into one strategy designed to improve buyer confidence and maximize incentive spend. The result is greater control across the transaction, stronger conversions, and more opportunity to protect margins. Connect with Builder Tony at CMG Financial to start the conversation. "Builder Tony" Cardoza office is (417) 210-7600, mobile (602) 920-6748.

An East Coast-based TPO lender with strong loan volume, a highly scalable automation platform, and one of the top sales teams in the industry is seeking either an acquisition opportunity or a strategic partnership to accelerate continued growth. Interested parties are encouraged to send inquiries confidentially to me; please excuse any delays in responding due to travel.

Industry executive Dan Smith has joined LoanNEX, a modern PPE that specializes in the growing non-QM lending area. A Duke MBA, Dan has 25+ years’ experience and held leadership positions at LOS, automated compliance, and MSR valuation firms. Congratulations!

The Chrisman Job Board is the go-to platform for employment opportunities across the mortgage industry. For employers, adding a job listing is easy. Simply create an account and drop in your existing application link, or forward the details to our team and we’ll take care of it for you. For job seekers, joining our Talent Community is completely free. Upload your resume to be visible to hiring companies across the industry and stay connected to new opportunities as they go live.

Lender and broker products, software, & services

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KIND KWERKS: Our differences, your advantages. Kind is built to solve the deals others walk away from. Lowered LLPAs on second homes and investment properties keep your margins intact. Manual underwriting on FHA, VA, and USDA means a real second look for borrowers who deserve one. No credit score? No problem. Kind underwrites using Non-Traditional Mortgage Credit Reports for FHA, VA, and conventional loans. We handle VA joint loans, temporary buydowns, manufactured housing, high-LTV escrow waivers, and streamlined FHA spot approvals. If you've had a scenario sitting on your desk that didn't fit anywhere like a 580 FICO VA borrower, a non-traditional credit file, an investment property that priced out; there's a good chance Kind can help. Contact your Kind AE today! Not an approved partner? Let’s change that! Join the Kind movement here.

Every lender has a list of things they wish their platform could do, but most are told to wait six months for a tech budget and a custom integration project before any of it gets built. Dark Matter is taking a different route. Its Developer Platform now publishes a downloadable OpenAPI Specification (OAS) file for every API, which means a developer can drop the spec into the AI coding tool of their choice, Claude, Cursor, ChatGPT, or GitHub Copilot, describe what they want to build, and get working integration code back in minutes. This is live and functioning code that compiles on the first try. What used to be a multi-month engineering project becomes a quick conversation. For lenders, the gap between "we wish Empower did this" and "Empower does this" just got a lot smaller. Steve Joyce, Director of Product Management for Empower, breaks down what is in the spec. Read it here.

What do gas station sushi and a mortgage application with no clear next steps have in common? Technically nothing, but both can make people nervous. LenderLogix released a free eGuide, What Today’s Mortgage Borrowers Expect and How AI Is Closing the Gap, looking at what borrowers actually value in the mortgage process: faster answers, clearer guidance, and a loan team that feels informed without being buried in backend work. It also explores how AI can help reduce friction without replacing the human relationship borrowers still want. Download the free eGuide here.

Less back-and-forth. More first-time-right verifications. Truework replaces manual verification waterfalls with a single automated platform, so underwriters, LOs, and ops can cut down the document chasing, conflicting numbers, and last-minute corrections. Lenders see up to 50 percent cost savings on verifications, with faster turn times, higher accuracy, and stronger R&W relief. Trusted by top lenders in the U.S., Truework gives your team verification results they can rely on. Learn more.

Every 90 seconds a new HOA lien is filed somewhere in the U.S. How many are on properties in your portfolio? Clayton’s HOA Lien Monitoring Service alerts servicers to HOA liens in their portfolios and then runs a second check on all properties in HOAs and COAs, just to make sure that the automated search hasn’t missed any liens. When a lien is found, our team gets the latest payoff information from the HOA and checks again to make sure there are no other HOAs or lien-bearing entities on the property. Given what’s at stake, it’s worth asking how we can help. Contact the Clayton team to learn more about Clayton’s HOA Lien Monitoring Service.

NFTYDoor, an end-to-end digital HELOC platform, is now operating as a fully independent company, enabling direct partnerships with wholesale brokers and private label correspondents. Brokers are already active on the new structure, submitting applications and closing loans today with no waiting period, supported by NFTYDoor's combination of AI-powered origination and real people on every loan. Key enhancements include minimum FICO reduced from 640 to 600, maximum CLTV increased from 80 to 90 percent, maximum loan amount increased from $500,000 to $750,000, borrower rates reduced by 100+ bps, increased compensation for partners, and a fully embedded no-cost warehouse line for private label partners. Available exclusively to partners contracting directly with NFTYDoor.

The Chrisman Marketplace is a centralized hub for vendors and service providers across the mortgage industry to be viewed by lenders in a very cost-effective manner. We’re adding new providers daily, so check back often to see what’s new. To reserve your place or learn more, contact us at info@chrismancommentary.com.

Sponsored webinars and training

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Climate risk isn't just a future concern; it's impacting the $55+ trillion U.S. housing market now. According to ICE's recent research paper, delinquencies spiked 250 percent after wildfires and severe delinquencies increased 30 percent+ in high-risk flood and hurricane zones over five or more years. Additionally, home price appreciation is slower in higher exposed areas, and rising insurance premiums are increasingly tied to mortgage performance. The question isn't whether climate risk affects your portfolio. It's whether you have the data to act on it. Join ICE Climate experts and Benjamin Keys, Professor of Real Estate and Finance at Wharton School of Business, on Wednesday, June 3 at 10 a.m. ET to explore where geographic stress hotspots are emerging, the importance of climate risk integration in portfolio management and how to use ICE Hazard Watch for portfolio stress testing to turn climate risk challenges into portfolio opportunities. Don’t miss out, register for this upcoming webinar now.

In today’s market, top-producing MLOs are not working harder. They are working smarter with a CEO mindset. Join James Jin, CEO, and top LOs from GMCC as they break down the daily routines and strategies that consistently generate business, strengthen Realtor and builder relationships, and help originators win more deals. Learn how successful loan officers market themselves with purpose, leverage product knowledge to stand out, and take full control of their pipeline and growth strategy. If you want to separate yourself from the competition and build long-term success, this webinar is a must-attend. This Thursday, May 28 at 1:00 PM ET. Register now.

Today is Mortgages with Millennials at 1PM ET, sponsored by Insellerate. Robbie Chrisman and Kristin Messerli are joined by Sosimo Avila for an informative session focused on educating consumers about home buying, mortgage strategy, credit, affordability, and real estate finance through consultations, newsletters, podcasts, and social media content.

Lenders One’s Mortgage Matters is tomorrow, Wednesday, May 27, at 2PM ET | 2:00 PM ET. Robbie, Rob, and Tricia Migliazzo will dive into a range of mortgage-related topics, including market trends, interest rate fluctuations, innovative mortgage products, and industry advancements. The panel brings a unique mix of age perspective, expertise, and charisma to the screen, ensuring that the information is not only educational but also entertaining.

Recapture Wars is tomorrow, Wednesday, May 27, at 3PM ET sponsored by Mortgage Solutions Financial. On this brand-new Chrisman Commentary show, Rick Smith, Nolan Turner, Courtney Thompson, and Seth Sprague debut Recapture Wars with a candid discussion on why recapture remains one of mortgage’s most misunderstood challenges. The conversation explores why retention problems often stem from sales and borrower engagement, not servicing alone.

Join Arch MI on Wednesday, May 27th, at 1:00 PM ET for a live webinar that takes a closer look at the mortgage industry outlook, informed by their economic team’s analysis of recent housing and economic data.

The Big Picture is Thursday, May 28, at 3PM ET. Rich Swerbinsky and Rob Chrisman are joined by Varun Krishna of Rocket to discuss the future of mortgage at scale. The conversation explores technology, innovation, and how lenders are adapting to changing borrower expectations and market dynamics.

Last Word is Friday, May 29 at 1PM ET. The weekly roundtable breaks down market signals, agency developments, and where the industry succeeded or failed. The discussion focuses on separating real insight from reaction as the market evolves.

After skipping yesterday due to the holiday, Now Next Later returns next Monday at 1PM ET, sponsored by Relcu. Jeremy Potter and Sasha Stair to discuss leading through volatility in a tech-driven market. The conversation explores rising expectations, AI’s impact, and how leaders balance innovation with execution.

Training is essential for successful mortgage professionals. But when things get busy, you may not have the time for a full webinar or in-person session. That’s why Arch MI introduced their new Micro Learning Library.

There are the National MI, ARCH MI, MGIC, Essent, Radian, and Enact training calendars.

Servicing Smarter in 2026! The latest QC Now webinar offers mortgage servicers clear strategies to address evolving technology and regulatory demands. Industry experts explain how to use data and automation to manage increased volume and complexity, discuss AI’s impact on servicing quality, and outline a practical planning framework for 2026. The webinar features insights from Brock Miller, Director of Business Development at ACES Quality Management, and John Freda, VP of Compliance and Quality Control at Selene Finance. Watch the webinar on demand.

Capital markets: rates still driven by oil prices and war

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Despite the difficult/uncertain times (still better than “unprecedented?), last week brought some housing data that has shown signs of stability. Builder sentiment improved in May, returning to pre-war levels, while pending home sales posted their strongest April reading since 2023, evidence that some buyers are gradually adapting to elevated mortgage rates and affordability pressures. Still, lenders, borrowers, and investors are not expecting meaningful near-term relief. Mortgage and bond markets remain heavily influenced by (the now-usual culprits of) geopolitical instability, persistent inflation concerns, elevated energy costs, and a growing acceptance that interest rates may stay “higher for longer,” even if economic growth continues to moderate.

Kevin Warsh took his oath of office as chairman and a member of the Board of Governors of the Federal Reserve System after the Federal Open Market Committee unanimously selected Warsh as its chairman last week. Investors expect Chair Warsh to prioritize controlling inflation over political pressure for lower interest rates, especially as the Iran war fuels the sharpest inflation surge since 2023 and markets increasingly price in possible rate hikes by year-end. While White House adviser Kevin Hassett believes easing oil prices after a deal in the Middle East could eventually allow rate cuts, the view held amongst many “strategists” is that long-term borrowing costs may remain elevated even if geopolitical tensions cool.

Minutes from the Federal Open Market Committee’s April meeting reinforced the burgeoning view that the Federal Reserve is becoming increasingly cautious about inflation risks, with most policymakers acknowledging that additional rate hikes remain possible if inflation stays persistently above target. While the Fed stopped short of signaling a clear tightening bias, the minutes revealed significant uncertainty surrounding the economic outlook, particularly regarding whether elevated energy prices and tariffs could spill over into broader domestic inflation categories such as housing and labor-intensive services. Markets responded by pushing Treasury yields higher, with the 10-year note climbing alongside oil prices, showing just how closely bond markets remain tied to geopolitical developments and energy-driven inflation expectations. Although crude prices subsequently retreated after reports of potential diplomatic progress between the U.S. and Iran, investors remain skeptical that a durable resolution is near, especially given conflicting messaging surrounding negotiations and the future of the Strait of Hormuz.

Data this week is expected to show continued consumer resilience despite higher prices and a less certain job market. Forecasts suggest that nominal spending gains will be almost entirely offset by rising costs, meaning consumer spending is simply keeping pace with inflation rather than expanding. This ongoing inflation is also expected to erode personal income gains, causing real wage growth to remain nearly flat for April. As consumers struggle to absorb these higher prices, it becomes increasingly likely they will need to pull back on discretionary spending in the coming months. On Thursday, April’s new home sales data will be released. Builders continue to rely heavily on incentives, such as mortgage rate buydowns and direct price cuts, to move inventory that sat at an elevated 481k units in March. With mortgage rates firmly entrenched in the mid six percent range, the pace of sales is forecast to decline in April from March. Affordability remains the primary factor keeping inventories elevated; however, builders are also contending with their own rising input and financing costs.

Today’s economic calendar kicked off with the Chicago Fed National Activity Index (registering +0.14 after a previous reading of -0.15), though markets are paying much more attention to reports that the U.S. military carried out “self-defense strikes” targeting Iranian missile launch sites and boats around the Strait of Hormuz, hours after President Trump suggested negotiations with Tehran over an interim deal were making progress. Later today brings several housing market indicators including the S&P/Case-Shiller Home Price Index and FHFA House Price Index readings, Consumer Confidence data, and the Dallas Fed Manufacturing Index, followed by Treasury auctions for short-term bills and 2-year notes. We begin the week with Agency MBS prices a touch higher than Friday’s close depending on duration, the 2-year yielding 4.06 percent, and the 10-year yielding 4.50 percent after closing last week at 4.51 percent.

A guy rides his motorcycle through the border from Spain to France every week carrying two bags of sand.

The border guard searched the bags every time, but never found anything, so he had to let him through. The guard has his last day at work before retiring and the guy comes to the border again, carrying his two bags of sand.

The guard says, "Look, man, it's my last day, I'm not going to bust you. You're clearly smuggling ‘something’ across the border all this time, but we never find anything. What is it."

The guy replies, "I'm smuggling motorcycles."

Visit www.ChrismanCommentary.com for more information on our industry partners, access archived commentaries, or subscribe to the Daily Mortgage News and Commentary. You can also explore the Chrisman Marketplace, a centralized hub connecting mortgage professionals with trusted vendors and solutions. If you’re interested, check out my periodic blog on the STRATMOR Group website. This month’s piece is titled, “Mortgage Rates Are Not Random.”  The Commentary’s podcast is available on all major platforms, including Apple and Spotify.

qoɹ & ǝᴉqqoɹ

(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes, visit the Chrisman Job Board. This newsletter is intended for sophisticated mortgage professionals only. There are no paid endorsements by me. For the latest mortgage news, visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.ChrismanCommentary.com. Copyright 2026 Chrisman LLC. All rights reserved. Paid job & product listings do appear. This report or any portion hereof may not be reprinted, sold, or redistributed without the written consent of Rob Chrisman. The views and opinions in this newsletter are mine alone unless otherwise specifically stated herein.)

From my ‘vieaux’ on the inside these past several months, I see the Mortgage Bankers Association differently. I say that as someone who spent more than three decades on the “outside”, as a member, before stepping into a leadership role within the organization as President of MISMO.

For years, like many in our industry, I saw the headlines, the conferences, the press releases, and the advocacy alerts. What I did not fully see was the relentless, often invisible work happening behind the scenes, in DC, on behalf of our industry.

The past several weeks surrounding the movement of the 21st Century ROAD to Housing Act really brought this home for me. What I’ve witnessed was professionals doing difficult work in real time under intense pressure, with rapidly changing bill language, competing priorities, coalition management, stakeholder outreach, and nonstop coordination across countless constituencies. There were no cameras, no applause, and no LinkedIn victory laps. Just people showing up.

Most mortgage professionals only notice advocacy when something goes wrong. Rates spike. Regulations tighten. Margins compress. Compliance burdens increase. Credit availability shrinks. Very few see the thousands of hours invested trying to prevent those things from happening in the first place. That’s what I’ve seen up close over the last several weeks.

As the House worked through the latest version of the 21st Century ROAD to Housing Act, Mortgage Bankers Association teams across residential, multifamily, servicing, policy, legal, communications, and political affairs were operating almost around the clock to analyze evolving language, identify unintended consequences, advocate for fixes, and coordinate industry responses.

One section of the bill required detailed reconstruction to ensure FHA multifamily statutory loan limits were actually increased appropriately. Another required deep engagement around institutional investor language and the treatment of “horizontal multifamily.” Yet another focused on REO “first look” servicing provisions that needed refinement behind the scenes.

Meanwhile, other team members were continuously monitoring changes to House text, analyzing revisions as they appeared, coordinating with committee staff, engaging coalition partners, managing messaging, preparing public affairs responses, activating advocacy campaigns through the Mortgage Action Alliance, and communicating updates to industry stakeholders.

That level of coordination is not happenstance. It happens because experienced professionals care deeply about protecting housing finance, expanding sustainable homeownership opportunities, and ensuring our industry can continue serving consumers effectively.

As affordability remains one of the defining challenges facing aspiring homeowners, this legislation attempts to address meaningful structural issues impacting housing supply, financing accessibility, regulatory modernization, and operational efficiency across the housing ecosystem. Is it perfect? No. No major piece of legislation ever is. But that is also where MBA’s work becomes so critical.

The role of advocacy organizations is not simply to cheerlead legislation. It is to improve it. To challenge language. To identify operational consequences. To surface unintended impacts. To represent the realities facing lenders, servicers, multifamily operators, independent mortgage banks, community lenders, and ultimately consumers. Importantly, the work is bipartisan.

Housing cannot become a purely partisan issue. Homeownership impacts families, communities, economic mobility, and long-term financial stability across every political affiliation. The American Dream should not depend on party lines.

One thing I’ve learned from being on the inside is this: the organization is filled with amazing humans who genuinely care about housing. Not just mortgage production. Not just quarterly volume. Housing. Consumers. Communities. Access. Affordability. Stability.

The work is complex because the housing finance system itself is complex. Whether people realize it or not, much of what allows our industry to function consistently happens because organizations like the Mortgage Bankers Association are actively engaged every single day.

Even for companies that are not MBA members.

That is an important point. The advocacy work does not stop at the membership line. The policy outcomes impact the entire industry. Independent mortgage banks. Mortgage Brokers. Banks. Credit unions. Servicers. Technology providers. Service Providers. Consumers. Everyone.

Which is why I would offer this challenge to those who are consistently critical of MBA from the sidelines: be part of the solution. It is easy to criticize institutions from the outside. It is much harder to build consensus, coordinate coalitions, navigate politics, manage stakeholders, and advocate effectively inside rooms where real decisions are being made.

I’ve now seen those rooms firsthand. I’ve watched people exhaust themselves trying to protect this industry and the consumers we serve. Frankly, I believe they deserve more credit than they receive. Our industry is stronger together. That is not a slogan. It is reality.

Especially in an environment where affordability challenges, technology disruption, regulatory scrutiny, artificial intelligence, operational costs, and industry consolidation are all accelerating simultaneously.

No single lender solves those challenges alone. No single trade association solves them alone either. Collective engagement matters. Collective advocacy matters. Collective participation matters.

That is why the Mortgage Action Alliance continue to matter. That is why engagement with policymakers matters. That is why industry participation matters. And yes, that is why membership matters.

The work surrounding the 21st Century ROAD to Housing Act reinforced something important for me personally. The mortgage industry has a lot of really smart people. A lot of passionate people. A lot of people who care deeply about expanding sustainable homeownership opportunities.

Sometimes we disagree on tactics. Sometimes we disagree on priorities. Sometimes we disagree loudly. But underneath all of that, there are countless professionals showing up every day trying to move housing forward.

I’ve now seen that work from the inside, and I’m grateful for it.

If you haven’t taken the time to understand what MBA teams are doing behind the scenes on behalf of this industry, I’d encourage you to do so. You may come away seeing things differently too.

For additional perspective on the updated House amendment to the 21st Century ROAD to Housing Act, the Bipartisan Policy Center issue brief provides a strong summary of the legislation and the evolution of the bill language.

#VieauxPoint

If you really think housing is in short supply, why are there “81 markets where home prices are falling”? Instead, let’s agree that there is an imbalance as all real estate is local. The Census Bureau’s 2025 Population and Housing Unit Estimates show continued U.S. population growth driven largely by strong international migration, with the national population reaching roughly 341.8 million as of July 1, 2025, up more than 3 percent from the 2020 Census base. Growth remained concentrated in the South and Mountain West, where states benefited from domestic migration, job expansion, and relatively affordable housing, while parts of the Northeast and Midwest saw slower growth or modest declines. Large metropolitan areas regained momentum after pandemic-era slowdowns, supported by immigration and renewed urban job growth. The housing unit estimates also pointed to ongoing expansion in the nation’s housing stock, particularly in fast-growing Sun Belt markets, although construction growth continued to lag long-term household formation trends in many regions, reinforcing ongoing housing supply constraints and affordability pressures across much of the country.

Non-compete and non-solicitation contracts: tread wisely

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Attorney Troy Garris discusses the Federal Trade Commission's rule banning non-compete agreements is dead. But the reports of that “death” may be greatly exaggerated. The FTC is still targeting companies that use non-competes and certain other restrictive covenants it views as anticompetitive, and a recent warning letter to a company in the industry proves it. “The warning letter makes clear that the FTC is focused more broadly on ‘noncompete agreements or other restrictive covenants.’ Non-solicitation agreements (which are common across the lending space) fall within that category.”

The California MBA and wildfire rebuilding

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The California Mortgage Bankers announced its strong support for Governor Newsom’s $100 million allocation for the Southern California Rebuild Fund included in the “May Revise” budget proposal as advancing wildfire recovery and practical financing solutions.

“The proposed funding would help expand access to construction financing for homeowners impacted by the devastating Southern California wildfires by providing lending support designed to bridge the gap between insurance payouts and the actual cost to rebuild.

“California MBA strongly supports the Governor’s proposed investment in the Southern California Rebuild Fund because wildfire survivors need more than temporary relief, they need realistic pathways to rebuild their homes and communities,” said Paul Gigliotti, CEO of the California Mortgage Bankers Association. “Many homeowners are facing a major financing gap between insurance coverage and actual reconstruction costs. This proposal recognizes that challenge and creates meaningful tools to help families access financing, move forward with rebuilding, and return to their communities.”

California MBA has been actively engaged with the Governor’s Administration, legislators, state agencies, and industry partners since late last year to help develop practical recovery solutions for wildfire survivors. The association has advocated for policies that support consumers, while aligning with federal servicing standards, investor requirements, and the practical realities of mortgage lending.

Under the proposal, the Rebuild Fund would be administered through programs intended to leverage private capital and improve access to reconstruction lending for disaster-impacted homeowners. Proposed tools include a loan loss guarantee program, interest rate buydown assistance for reconstruction loans, and potential subordinate financing and other mortgage assistance tools.

California MBA and participating industry partners have also supported development of a new consumer-facing online portal powered by Prudent AI. The portal will help connect homeowners with participating lenders and available recovery resources by collecting borrower information and comparing it against lender matrices from participating construction lending partners, including CMG Financial, and Guild Mortgage, to match consumers with the lender best suited to provide a construction loan based on their profile and rebuilding needs, with insights informed by data provided by Cotality.

“We are proud that California MBA has been engaged as a constructive and solutions-oriented partner throughout this process,” Gigliotti said. “We are committed to helping develop real-world solutions that support homeowners, enhance communities, and strengthen responsible lending practices.”

The Governor’s revised budget proposal now moves to the Legislature for consideration as part of the state budget negotiation process ahead of the June 15 constitutional budget deadline.

Home equity investments: a slice of someone’s home…

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Matt Levine had some thoughts on home equity investments. “Companies can raise money with debt, or with equity. If you use debt, you have to pay back the amount you borrowed, with interest. This is expensive for you if things go poorly: If you borrow $1 million to invest in your business, and your business doesn’t make any money, you still have to pay back, say, $1.1 million, and how will you do that? You might have to default, file for bankruptcy, etc.

“If you use equity, you don’t have to pay back any fixed amount, but you give up a share of your business. This is expensive for you if things go well: If you raise $1 million by selling 10 percent of your company, and your business goes amazingly well and makes $20 million per year in profits, the person who bought 10 percent of your company gets $2 million a year, even though she only gave you $1 million to begin with.

“Companies can raise money with debt, or with equity, but most other things can only be financed with debt. You can put a sandwich on a credit card, but you can’t get a venture capitalist to give you $1 for a 5 percent stake in your sandwich. This is quite untidy, and people who work in the financial industry (where everything can be financed with debt or equity) are often bothered by it. “Shouldn’t people be able to finance _____ with equity,” they constantly muse, and then launch companies to fill the niche. We talk about this a lot. The two main versions are, ‘Shouldn’t people be able to sell stock in themselves,’ and ‘Shouldn’t people be able to sell stock in their houses?’

“[Regarding houses], Bloomberg’s Patrick Clark and Prashant Gopal report on home equity investments: It’s a rapidly growing segment that’s attracted Fortress Investment Group, Carlyle Group Inc. and Bain Capital as backers in various forms. Private credit giant Blue Owl Capital Inc. said in December it plans to deploy $2.5 billion into the contracts in the coming years, one of the largest commitments yet.

“For investors, the agreements are a lucrative way to tap into the $34 trillion that Americans have tied up in their homes, turning future price gains into a new stream of returns. For homeowners, they can mean giving up a large share of the appreciation that would otherwise build long-term wealth, and, in some cases, owing far more than they initially borrowed.

“Yes, right, the defining feature of financing something with equity is that sometimes you ‘owe more than you initially borrowed.’ Everyone understands that when a company issues stock. But when a person sells equity in her house for money, (1) she doesn’t necessarily understand that and (2) it’s not exactly equity:

“In February 2025, the Massachusetts Attorney General’s office sued Boston-based Hometap, saying that its contracts amounted to predatory loans designed ‘to strip that home equity away from vulnerable consumers.’ Hometap Chief Executive Officer Jeffrey Glass declined to comment on the specifics of the lawsuit but said that he’s aligned with regulators on some key points, including the need for consumer education and government oversight.

“Unlike a credit card with a clear interest rate, the true cost of an HEI is opaque, like a financial time bomb that only detonates years later when the homeowner realizes exactly how much of their future they sold off, said Ken Johnson, a real estate professor at the University of Mississippi.

“As HEIs proliferate, even basic questions about the products can be difficult to answer. The industry argues that they are investments, not loans, emphasizing the lack of monthly payments. But when it comes time to pay, the maturity date, lien on the home and threat of a forced sale make the distinction harder to draw.

“The National Consumer Law Center calls them ‘subprime mortgages’ with predatory rates, disguised to bypass laws designed to protect consumers. In a 2024 consumer alert, the group called the terms of the contracts confusing, and said the true cost of an HEI requires making difficult calculations about rates of real estate appreciation and inflation a decade into the future.

“Two points here. First, while it is genuinely impossible to sell stock in a person, it’s not actually that hard to sell stock in a house. You know: Form a shell company, buy the house in the company’s name, give the homeowner 80 percent of the stock of the company and the HEI investor 20 percent, give the homeowner management rights (she can sell the house, etc.) and the investor some governance rights, etc. I gather that HEIs mostly don’t work this way in part because it is administratively annoying (you have to form a company, it might be harder to get a mortgage on a house owned by the shell company, etc.) and in part because actual HEIs do have some rather credit-like features to make them easier to securitize.

“Clark and Gopal note: It’s not hard to see why the contracts would have investor appeal. Point, as one example, calculates the amount that its borrowers pay back as a percentage of the change in home value over the life of the contract. But it discounts the starting value of the home by about 15-30 percent, securitization documents show.

That feature virtually ensures that investors make money. A DBRS Morningstar analysis of 2,700 Point contracts showed that more than 98 percent generated positive returns for investors. The Urban Institute, meanwhile, found that an underlying home could decline in value by 3 percent annually for six consecutive years and a Point contract would still be in the money. Hometap offers investors even more protection, Urban Institute found.

“Point cofounder Eoin Matthews said the investor protections built into the contracts are a prerequisite for lining up the capital that funds homeowner advances. That's especially true for money flowing into HEIs through securitizations that have been vetted by ratings companies, where memories of the subprime mortgage crisis are still fresh. Right, if you are getting money from investors in an investment-grade-rated securitization, it’s not exactly equity, is it?

“Second, I do think that people here are genuinely talking past each other. I am convinced that everyone who has ever started a ‘sell stock in your house’ company (or a ‘sell stock in yourself’ company) was motivated by a genuine, possibly slightly naive belief that people should be able to sell stock in their houses. And then life intervened and they ended up building a product with a preferred return and a maturity date that they could sell into a rated securitization, fine fine fine, but in their hearts they all believe that they’re buying equity in people’s houses. And then when the homeowners say, ‘We have to pay you far more than you initially gave us,’ they are reply, ‘Right, yes, that is how equity works, what is the problem?’” Thank you, Matt.

Opinion on False Claims, HUD, and what may be in store

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A while back I received a note about how HUD may allow the return of the False Claims Act “Monster.” “Rumors suggest multiple new sealed FCA lawsuits against FHA lenders are emerging, potentially violating the 2019 HUD-DOJ Memorandum of Understanding by punishing lenders for technical/ immaterial non-compliance via FCA liability rather than HUD's normal administrative remedies.

“The 2019 Agreement reserved FCA liability for egregious fraud, calling for HUD to instead use its normal administrative enforcement powers to enforce compliance with its rules. As a reminder, whistleblower FCA lawsuits in the mortgage are predatory tort litigation in its most dangerous form. With unlimited treble damages and penalties for technical violations, sleazy law firms see FCA lawsuits against mortgage lenders as a career-ending lottery ticket. Before the 2019 Agreement sent them into hiding, such firms had significant success in weaponizing it, turning good-faith underwriting errors into taxpayer-funded windfalls.

“Secretary Ben Carson declared the post-2008 FCA ‘monster’ ‘slayed’ after it drove major banks from FHA lending (depository share fell from ~50 percent in 2010 to <14 percent). JPMorgan CEO Jamie Dimon noted a major FCA settlement ‘wiped out a decade of FHA profitability,’ making it ‘risky and cost prohibitive for many banks.’

“If these sealed cases are real, HUD may be quietly retreating from previously agreed upon protections, potentially chilling FHA lending and harming low-income/first-time buyers. This trend could undermine the FHA program and further restrict access to credit for low-income/ first-time buyers… See Atlanta Fed's 2024 paper on past FCA litigation: "Government Litigation Risk and the Decline in Low-Income Mortgage Lending".

I received this note from a retired industry vet who had worked for a large, well-known correspondent investor. “I appreciate the walk down memory lane on the FCA issue. I remember when the MOU came out and the 15-minute discussion I had at the time about whether we should reenter FHA lending. Good times!

“I also remember the first edition of that FED paper. The conclusion at the time was that the MOU was not worth the paper that it was written upon and that, yes, bank lending was restricted by the pursuit of FCA claims. I don’t imagine the current administration will be pursuing anything in the space given the contradiction it would create with current housing policies, and their inability to focus on hard problems. Also, I think the DOJ, which is where these matters need to be pursued, is somewhat tied up right now with the Epstein files.

“I think the main jurisdiction for FCA is SDNY because the lending contracts are based in New York law, but I could be wrong about that understanding. We were sued by SDNY, as you might remember, to the tune of $2.1 billion dollars and yes this represented in excess of 10 years’ worth of profit on our FHA production. Hedge performance on the FHA MSR book was our savior. In my experience the HUD team was not very interested in the false claims’ issues given that they understood how things actually work in practice. Now I think the investigative team has been gutted, so I am not sure there is anyone looking at the fraud issues much these days. I have not seen many enforcement actions coming out from HUD.

“All this being said, the FCA machine can get turned on in a moment’s notice given a high motivated DOJ prosecutor since there is not really a statute of limitations when they use the FIRREA provisions. (Not sure how FIRREA applies to non-banks; it might be worth a discussion with a good mortgage attorney.) I personally like the view from the cheap seats better than the one I had in the fire.”

AI… it’s being discussed everywhere, even on Saturday Night Live.

Visit www.ChrismanCommentary.com for more information on our industry partners, access archived commentaries, or subscribe to the Daily Mortgage News and Commentary. You can also explore the Chrisman Marketplace, a centralized hub connecting mortgage professionals with trusted vendors and solutions. If you’re interested, check out my periodic blog on the STRATMOR Group website. This month’s piece is titled, “Mortgage Rates Are Not Random.” The Commentary’s podcast is available on all major platforms, including Apple and Spotify.

qoɹ

(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes, visit the Chrisman Job Board. This newsletter is intended for sophisticated mortgage professionals only. There are no paid endorsements by me. For the latest mortgage news, visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.ChrismanCommentary.com. Copyright 2026 Chrisman LLC. All rights reserved. Paid job & product listings do appear. This report or any portion hereof may not be reprinted, sold, or redistributed without the written consent of Rob Chrisman. The views and opinions in this newsletter are mine alone unless otherwise specifically stated herein.)

I recently got on an airplane, and there were no other passengers! A flight attendant walked up and chittered, “You’ve got the whole plane to yourself! A large group that was going to a psychic’s convention all cancelled at the last minute.” Obviously i surived, and what you know matters. Wanna know the new buzz acronym? Residential Transition Loans (RTL): financing for properties in transition, including fix-and-flip, bridge, and rehab deals. Catch the wave… people always need to borrow money! Now, if only income guidelines by the Agencies matched how incomes have changed. Change is constant: “Rob, if you think inflation is bad, home insurance price increases in many parts of the nation are worse. When is the government going to address that?” I don’t know the answer to that: the government certainly is involved in lending, but not much so with insurance companies. Interestingly, insurance companies’ use of data analytics is way above that of the mortgage industry’s, although servicers and others are certainly catching up on risk-based pricing. (Today’s podcast can be found here and this week’s ‘casts are sponsored by TransUnion. Discover how data-driven mortgage intelligence is helping lenders identify in-market borrowers, strengthen portfolio performance, personalize outreach, retain customers, and drive smarter growth in an increasingly competitive housing market. Today’s has an interview with Insellerate’s Josh Friend on increasing loan officer and sales manager efficiency.)

Employment

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“Essent is Hiring & Your Mortgage Experience Belongs Here! At Essent, we're growing and actively recruiting professionals across the organization (Operations, Business Development, Loss Management & IT) who bring deep industry knowledge and the ambition to make a difference. We're a financially strong, industry-leading MI and Title Insurance company that moves fast, cuts through bureaucracy and invests in forward thinking technology that empowers our people. At Essent, your industry experience from mortgage banking, insurance, credit card isn't just respected… It's the foundation for accelerated career growth and leadership opportunities. If you're ready to join a high-performance team where experience is elevated, decisions and careers move forward, explore opportunities now at essent.us/apply!”

loanDepot continues to stand out as a destination for top producing Retail sales professionals, and Jason Osenton’s return as branch manager in Northern California is just the latest example. With deep market relationships as a top 1 percent national producer and a long history with the company, Jason brings trusted leadership and proven local expertise to the Marin County and greater Northern California market. He’s back at loanDepot after several years in bank lending to serve customers and referral partners with the care and market knowledge that have defined his career. His return adds another respected leader to a Retail team with clear momentum and a growing bench of experienced pros who know how to win. Sales leaders interested in exploring opportunities with loanDepot are encouraged to contact Shane Stanton.

Evergreen Home Loans® is celebrating 40 years of helping families achieve homeownership in 2026, reflecting the company’s consistent leadership and steady presence through changing mortgage and housing markets. As mortgage professionals continue evaluating where they want to grow their careers, Evergreen is attracting originators looking for strong operational support, experienced leadership, innovative lending solutions, and a culture centered on long-term success. The privately held lender continues to invest in products and programs designed to help associates better serve clients in today’s evolving market while maintaining a relationship-focused approach and local decision-making. Evergreen’s ongoing investment in its people, operations, technology, and communities has helped position the company as a trusted partner for clients and a strong career destination for mortgage professionals nationwide.

The Chrisman Job Board is the go-to platform for employment opportunities across the mortgage industry. For employers, adding a job listing is easy. Simply create an account and drop in your existing application link, or forward the details to our team and we’ll take care of it for you. For job seekers, joining our Talent Community is completely free. Upload your resume to be visible to hiring companies across the industry and stay connected to new opportunities as they go live.

Lender and broker products, software, & services

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“Why are you paying onboarding fees to stay in a servicing relationship you don't love? Don't let onboarding and de-boarding fees keep you in a bad servicing relationship. At MSF Servicing, we believe partnerships should start with alignment, not invoices. That's why our onboarding fees are structured to the specific engagement. For initial transfers, we partner with you and help negotiate the de-boarding fees. We invest in the relationship first because we're confident about what we deliver next. Of course, we do so much more than collect payments. Our platform also supports full loan origination capabilities (FHA, VA, USDA, and conventional) paired with a disciplined retention strategy designed to maximize lifetime borrower value while reducing runoff, managing outcomes, anticipating risks, controlling narratives, and optimizing performance at every stage. Finally, our private-label and co-branding options allow your brand to stay front-and-center while our systems run seamlessly in the background. For more information, contact Rick Smith or call 860-989-9006.

Mortgage lenders know they need automation and AI, but most are doing it wrong. JazzX can help. Most mortgage automation and AI tools today focus on individual tasks, not the full loan process. Basic tools may eliminate small inefficiencies, but they rarely lower cost per loan or accelerate credit decisions at scale. JazzX AI delivers true end-to-end intelligent automation with digital assistants that work alongside your existing LOS, streamlining operations across the loan lifecycle to lower costs, accelerate decisions, and improve quality without adding headcount. Want to learn more? Book a demo with the JazzX team.

“Ready to take the next step in your lending journey? FirstFunding helps mortgage professionals evolve from broker-to-banker, and now from banker-to-TPO, with innovative warehouse lending solutions built for speed, capital efficiency, and security. For years, FirstFunding has been a trusted partner for broker-to-banker transitions, helping lenders move into delegated correspondent and non-delegated correspondent channels with confidence. We provide the tools, strategic support, and reliable access to capital needed to compete, scale, and gain greater control over the lending process. Today, we’re also helping bankers expand into the TPO and wholesale space, creating new opportunities for growth and long-term success. With real-time transaction processing, integrated risk management, and strategic partnerships, FirstFunding delivers more than warehouse lending… We help deliver a smarter way to grow. Whether you’re entering correspondent lending or expanding your wholesale channel, FirstFunding gives you the foundation to move faster, operate efficiently, and fund with confidence. Learn more.”

The Chrisman Marketplace is a centralized hub for vendors and service providers across the mortgage industry to be viewed by lenders in a very cost-effective manner. We’re adding new providers daily, so check back often to see what’s new. To reserve your place or learn more, contact us at info@chrismancommentary.com.

Credit and verification services

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Earlier this week Equifax’s Joel Rickman explained the current credit situation: Why Your Mortgage Credit Score Looks Different, Mortgage Underwriting Is About To Use A Lot More Data, VantageScore Adoption Is Accelerating Fast, and Washington Is Pushing Mortgage To Cut Costs.

The mortgage credit ecosystem is entering a new phase, one where score choice is becoming operational, not theoretical. As competition increases, lenders are being asked to evaluate how modern credit models, richer data and pricing dynamics intersect with risk management and compliance. TransUnion® is helping lenders navigate this shift by modernizing mortgage credit reporting and analytics to support more confident, forward-looking decisions across the loan lifecycle. To explore how credit score competition can drive both insight and cost efficiency, without compromising safety and soundness, read TransUnion’s blog.

Look at your current pipeline. Pull up a mortgage file and count how many vendors touch it before it closes: Credit, Income, Employment, Flood, Fraud, Tax transcripts, Social Security verification, Background screening and more. For a lot of operations, that's five or six different relationships, five or six logins, five or six places where a delay or a missed response stalls the file. Advantage Partners Solutions brings the full verification stack into one partnership. APS streamlines your process from application through closing, gaining clarity and reducing team handoffs. The result? Your pipeline moves better with fewer interruptions. Bring structure to your process and simplify execution across every file today. Let’s map your workflow and show how a single partnership can replace multiple vendors and simplify your process. Connect with APS today to get started.

Less back-and-forth. More first-time-right verifications. Truework replaces manual verification waterfalls with a single automated platform, so underwriters, LOs, and ops can cut down the document chasing, conflicting numbers, and last-minute corrections. Lenders see up to 50 percent cost savings on verifications, with faster turn times, higher accuracy, and stronger R&W relief. Trusted by top lenders in the U.S., Truework gives your team verification results they can rely on. Learn more.

Less Data, More Risk? A Data-Driven Look at the Future of Mortgage Credit Standards. A new mortgage industry study by AD&Co paints a concerning picture if the current tri-merge standard were to be replaced with a bi-merge or single credit report standard. The findings point to potentially costly impacts on borrowers and mortgage lenders, including less accurate loan pricing and increased borrower credit risk, which could, ultimately, drive higher mortgage rates for everyone.

Continued news from New York City and Basel III

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We’ll be dealing with the issues that were discussed at this week’s MBA Secondary conference. Today’s Last Word at 1PM ET breaks down market signals, agency developments, and where the industry succeeded or failed. The discussion focuses on separating real insight from reaction as the market evolves. Panelists will be fresh from the MBA Secondary.

Mortgage prices are a result of supply and demand, more specifically the demand by MBS, institutional, and portfolio investors, and banks & credit unions. Critics say, “a town in Switzerland shouldn’t impact the U.S. mortgage market,” but it does, especially when it comes to servicing rights and weighing their risk.

Regarding Basel, our MBA writes, “The current rule raised the risk weight on MSRs from 100 to 250 percent, with no empirical justification. As a result, banks looked at the capital cost and started walking away from mortgage servicing. The new proposal recognizes that 250 percent might not be the appropriate risk weight, and requests input from stakeholders on what the appropriate number should be. MBA will be recommending that the risk weight for MSRs return to 100 percent. That should increase bank MSA activity and MSA values. To put this in perspective, a 25-basis point increase in servicing value is a 25-basis point reduction in closing costs, or $1,000 in savings on a $400,000 loan.

“We’re also striving to improve the treatment of warehouse lending. Under the current system, warehouse lines carried a 100 percent risk weight, but that defies logic. If an IMB fails to repay, a bank gets the whole loan, but at only a 50 percent risk weight. The risk weights shouldn’t improve when a counterparty fails! The risk weightings should be fully aligned. The current policy makes it more difficult for banks to participate in the lending and servicing business. We need a policy that fully recognizes and respects the role that banks play in providing vital liquidity to IMBs, who make the bulk of affordable loans to American families.

“We’re strongly calling on agencies to change the capital requirements for banks that have loans on portfolio that have private mortgage insurance. They’re obviously not as risky, and the rules should reflect that. Bottom line, there several places in Basel III that still need fine-tuning.”

Capital markets: rates “higher for longer”?

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Markets experienced a sharp reversal Thursday when reports surfaced that Pakistan may have helped broker a potential ceasefire framework between the U.S. and Iran, easing fears of further escalation. Oil prices quickly fell back below $100 per barrel, which helped calm inflation expectations, stabilize bond markets, and lift equities.

Longer-dated Treasuries, recovered to finish stronger on the day, while mortgage-backed securities (MBS) also rebounded after early weakness, allowing some lenders to modestly improve mortgage pricing. Despite the relief rally, investors remain cautious over (and about) elevated energy prices, persistent inflation pressures, sovereign debt issuance and demand, and structurally higher interest rates.

Stepping back slightly, expectations have been scaled back for near-term rate cuts as investors increasingly accept a “higher-for-longer” policy environment that could extend well into 2027. Long-term Treasury yields have risen to levels not seen since 2007 without sparking a major equity selloff, suggesting a gradual repricing to a world of permanently higher capital costs. I have also heard growing concerns that yields approaching key psychological levels could eventually trigger broader risk-asset repricing. And rising gas prices are beginning to pressure consumers, with recent spending data showing household budgets increasingly strained outside of fuel purchases. All in all, bond markets are entering the summer with low conviction, thin liquidity, and heightened sensitivity to policy shifts and headline-driven volatility.

It’s a light economic calendar to end the week, with Final May Michigan Consumer Sentiment (it won’t move rates) being the sole release of note. Markets will also receive remarks from Fed Governor Waller. We begin the Friday before a three-day weekend with Agency MBS prices better than Thursday’s close by .125-.250, the 2-year yielding 4.08, and the 10-year yielding 4.55 after closing yesterday at 4.59 percent.

My Dad (U.S. Navy, 1942-1962) was always quick to remind me that Memorial Day doesn’t honor servicemen and servicewomen, or veterans. It is a federal holiday in the United States for remembering the people who died while serving in this country’s armed forces. Don’t let any politicians tell you otherwise. The number totals about 1.1 million, almost half of which were in the Civil War, fighting against one another. First recognized in 1868, it was set on the last Monday in May starting in 1971. Give those who gave the ultimate sacrifice for our nation more than a passing thought, not only Monday but throughout the year!

Visit www.ChrismanCommentary.com for more information on our industry partners, access archived commentaries, or subscribe to the Daily Mortgage News and Commentary. You can also explore the Chrisman Marketplace, a centralized hub connecting mortgage professionals with trusted vendors and solutions. If you’re interested, check out my periodic blog on the STRATMOR Group website. This month’s piece is titled, “Mortgage Rates Are Not Random.”  The Commentary’s podcast is available on all major platforms, including Apple and Spotify.

qoɹ & ǝᴉqqoɹ

(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes, visit the Chrisman Job Board. This newsletter is intended for sophisticated mortgage professionals only. There are no paid endorsements by me. For the latest mortgage news, visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.ChrismanCommentary.com. Copyright 2026 Chrisman LLC. All rights reserved. Paid job & product listings do appear. This report or any portion hereof may not be reprinted, sold, or redistributed without the written consent of Rob Chrisman. The views and opinions in this newsletter are mine alone unless otherwise specifically stated herein.)

If you spend enough time around blockchain conversations in financial services, you start to notice a pattern: people talk about “tokenization” like it is one thing. It is not. It is three distinct categories of work, each with different risk profiles, different operational demands, and different paths to production. Tokenization will matter most when it stops acting like an experiment.

From where I sit as Head of Institutional Finance at Ava Labs, the team building the Avalanche blockchain, the clearest way to deconstruct what is actually happening inside banks and financial institutions is to separate the use cases into distinct categories: crypto custody, stablecoin payments, and traditional assets coming on chain.

Custody is where activity shows up first because it starts with client demand and maps cleanly to a service banks already understand. Early momentum came through private banking, and the pattern is consistent: banks go where the demand is. That is why custody has moved from niche to mainstream, with major custodians launching digital custody platforms and expanding them. It is a contained problem with familiar controls, even if the assets are new.

Stablecoins are different. They touch the core of what banks do: move money. Cross border payments, settlement speed, and competition from non-banks are pushing this from curiosity to strategic urgency. Banks are responding by exploring tokenized deposits as an alternative, partly to protect their deposit base and partly to stay relevant in the payment stack. I do not view this as a winner take all debate. There is likely a role for both stablecoins and tokenized deposits. What matters is that banks are becoming the bridge between crypto and fiat, and that bridge is where a lot of real financial services value will be layered.

The third category is the one most people in lending care about: mortgages and other Real World Assets. And here, the truth is simple. The most exciting use cases exist, but we are still early. Yes, you have examples like on-chain HELOC origination, and you have emerging platforms bringing commercial real estate and other bank assets into a more portable, machine readable format. But broad adoption across primary mortgages is not imminent because the hard part is not tokenization. The hard part is changing how assets are issued, serviced, governed, and moved through their full lifecycle.

That distinction matters more than most conversations admit. Tokenization is often used as a blanket term, but there is a meaningful difference between digitizing the wrapper and digitizing the asset. If you tokenize the ownership record, the cap table equivalent, you get a “casino chip” that moves around and represents interest in something. You can get to market quickly and still unlock value, especially around collateral mobility, but the deeper efficiencies come when the asset itself is digitally native. This is when lifecycle events such as repayments and amortization are executed on-chain, and where the chain becomes a true system of record rather than a mirrored representation of an off-chain process.

The challenge is that lending is not going to wake up tomorrow with a single digitally native loan origination system. We will be issuing loans in traditional systems for the foreseeable future. There are too many issuers, too many workflows, and too much embedded infrastructure. That means the near-term value will come from reliable onboarding of assets originated in a Web2 environment, validating the data, maintaining that data over time through integration with servicing systems, and making those assets more portable and composable for downstream capital markets use.

This is where the “democratization” promise of blockchain becomes practical. Regional banks fund a meaningful share of the economy, yet many of their loans live in formats that are not portable and cannot be recycled efficiently. They do not have capital markets takeout desks. Their capital gets trapped. If you can bring those assets into a validated, standardized digital form, you can route them into participation vehicles, warehouse structures, or securitizations, with automation around concentration limits and other functions that have historically required heavy operational overhead. Done correctly, that does not just benefit the largest institutions with the biggest innovation budgets. It can help smaller and regional institutions compete, but only if we are intentional about design and access.

Of course, none of this matters if it cannot live inside a bank’s existing risk and control framework. That is where I think some of the fear is misplaced. The principles banks rely on are not new. Defense in depth, role-based access controls, separation of duties, governance and permissioning, and strong encryption are all familiar concepts. They simply need to be applied to new control surfaces.

In digital assets, one example is that the most dangerous key is not necessarily the one that grants access to an individual holding. It is the key that controls the smart contract itself, because that impacts every holder of the asset. That means institutions need clear separation across wallets that control mint and burn, whitelisting, pause and freeze functions, and especially contract upgrades. The control environment has to be designed with the same rigor banks already understand, just mapped onto a different technical substrate.

This is also why the public versus private chain debate has never been academic. Financial institutions have two jobs. The first is “don’t go to jail.” They have fiduciary obligations to their clients, and legal obligations to their regulators. The second is “don’t miss out.” They want to deliver best execution to their clients. Privacy, compliance, and safety push institutions toward permissioned environments. Liquidity, innovation, and network effects pull them toward public permissionless environments. The first wave of private chains solved for control but failed on connection, largely because they became silos. The next wave is racing toward connection, but it cannot ignore why privacy and governance mattered in the first place.

What I believe Avalanche gets right is that you do not have to choose between control and connection. Complex financial transactions contain multiple trust boundaries and multiple data sensitivity layers. Some elements belong in a permissioned context. Others benefit from public settlement and liquidity. An architecture like Avalanche’s that supports both, without relying on third party bridges, opens a much broader design space for regulated finance: control without isolation, and connection without compromise.

Regulation is often framed as the gating factor, and it does matter. My view, though, is that we have centuries of regulatory principles we can reuse. We will need tweaks and specific implementation patterns, but we do not need to reinvent the concept of custody, governance, and control from scratch. The more interesting comparison right now is between Europe’s clarity and America’s experimentation. Europe has harmonized regimes and earlier supervisory structure, but that has also created constraints and slower product velocity. The US allowed experimentation to run ahead of formal clarity, and that helped markets and products develop. It is now codifying the learnings into formal regulations like GENIUS and CLARITY. The key is finding the balance where innovation can move without leaving institutions paralyzed by uncertainty.

If I had to make one five-year prediction, it is that some of the most controversial debates today will look overly precious in hindsight. We are spending enormous effort splitting hairs over control in principle versus control in practice, especially in collateral mobility and related structures. Those questions matter, and they will be resolved. But I suspect that in five years, the industry will view some of that debate as a level of legal and regulatory anxiety that extended further than it needed to, because the operational reality of control and liquidation will prove more stable than the fear suggests.

The real work is not the terminology. It is turning tokenization from a wrapper into a workflow, and from a pilot into a banking stack.

USDA lenders ask, “Can our Fed save the day for U.S. wheat farmers up against a drought, tariff woes, lack of a deal with China, and rising fuel bills?” Nope. Buy flour before you leave the supermarket. Lots of folks were leaving the MBA’s National Secondary yesterday, and many comments and questions were heard. “Did you hear that Jerry Seinfeld is doing a show at the MBA National in October?” (True) “Ginnie Mae began ratcheting up its cybersecurity efforts in 2024. Why aren’t others?” (Good question; I’m sure they are at some level.) “Most lenders are selling loans to the Agencies through their ‘cash windows’ on a whole loan basis rather than through MBS execution.” (True; Freddie and Fannie have increased gfees, so when capital markets staff are seeking every basis point in price, they are nudged toward the window.) During the day, FICO announced that the next generation UltraFICO Score, a “brand new scoring model that combines the trusted FICO Score with real-time, consumer-permissioned cash flow data built through a partnership between FICO and Plaid, is available for lender use… it examines how money actually moves through a consumer's everyday accounts, including cash inflows and outflows, account balance stability, and spending behavior.” (Today’s podcast can be found here and this week’s ‘casts are sponsored by TransUnion. Discover how data-driven mortgage intelligence is helping lenders identify in-market borrowers, strengthen portfolio performance, personalize outreach, retain customers, and drive smarter growth in an increasingly competitive housing market. Today’s has an interview with TransUnion’s Satyan Merchant on the accelerating shift toward mortgage credit score competition, exploring how lenders should adapt to increasing model choice, evolving credit report innovation, operational complexity, alternative data, and the growing role of dynamic credit insights across the full mortgage lifecycle.)

Employment; a new STRATMOR partner; a new lender in town

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Ready to lead a high-performing underwriting team where precision meets possibility? Headquartered in Lake City, FL, First Federal Bank is seeking a Mortgage Underwriting Supervisor who excels at sound decisions, coaching talent, and keeping loans moving with confidence and care. In this role, you’ll manage daily underwriting operations, mentor underwriters, ensure compliance with agency and investor guidelines, and improve quality, efficiency, and turnaround times. You’ll partner with processors, loan officers, and leadership to deliver a smooth borrower experience from application through approval. The ideal candidate brings sharp analytical skills, strong leadership, and a positive, team-first mindset. Experience with FHA, VA, USDA, and conventional underwriting is required, along with the ability to identify risk, solve problems quickly, and guide a team toward exceptional service. Join First Federal Bank, where your leadership supports sound credit decisions, clear communication, and a smooth path to homeownership every day.

Verus Mortgage Capital isn’t just participating in the non-QM market. It’s setting the pace. As a trusted issuer delivering repeatable non-QM securitizations, Verus brings the kind of consistency, reliability, and execution partners can count on, deal after deal, cycle after cycle. When others pause, Verus performs. Now it’s doubling down on growth. Verus is actively recruiting top-tier National Account Executives to expand its wholesale presence nationwide. If you know non-QM, how to build relationships, and how to produce, this is your platform. You’ll be backed by a proven securitization engine, a deep capital markets bench, and a brand that opens doors. This isn’t about potential. This is about production. Align with a lender that delivers so you can, too. If you’re ready to win with a team built for consistency and scale, Verus is ready for you. To learn more, contact Joel Veenstra, Head of Correspondent Sales, at (202) 534-1822.

Southern Land Company (SLC), a leading national real estate firm with extensive, multidisciplinary expertise spanning master-planned communities, single-family homebuilding, multifamily development, and mixed-use environments, announced the launch of SLC Lending, a new in-house mortgage division that marks a significant evolution of the company’s vertically integrated operating model. SLC has appointed Bobby Frank, a seasoned mortgage executive with a track record of building and scaling a national lending company, to lead it. “SLC Lending will initially launch in core markets where Southern Land Company has established master-planned and single-family home communities, including Colorado, Texas, and Tennessee, and will expand alongside SLC Homes into additional regions.”

STRATMOR Group announced the appointment of Silvia Kennedy as Partner. Kennedy brings more than 25 years of mortgage industry experience, with a background spanning enterprise transformation, mortgage operations, servicing, technology integration, and change management. In her new role, she will lead strategic engagements for large banks and IMBs, support the expansion of STRATMOR’s digital mortgage platform implementation advisory work, and help advance the firm’s capabilities in AI solution evaluation and deployment. Kennedy has led large-scale origination and servicing initiatives and is known for helping organizations align strategy, technology, and operations to improve performance and customer outcomes. Her appointment reflects STRATMOR’s continued focus on expanding senior leadership and advisory capabilities as lenders and servicers navigate ongoing operational and technology transformation.

The Chrisman Job Board is the go-to platform for employment opportunities across the mortgage industry. For employers, adding a job listing is easy. Simply create an account and drop in your existing application link, or forward the details to our team and we’ll take care of it for you. For job seekers, joining our Talent Community is completely free. Upload your resume to be visible to hiring companies across the industry and stay connected to new opportunities as they go live.

Correspondent & wholesale product news

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“The non-QM market continues to show remarkable strength, with issuance up 40 percent year over year and volume trends pointing to continued momentum into 2026. At SG Capital Partners, we are not simply observing the growth. We are building for it. As demand accelerates, SG Capital is strategically positioned to support significant volume growth in the second half of 2026. Our platform, infrastructure, and team are aligned to scale with the market while maintaining the responsiveness and service our partners expect. A key advantage is our efficient prior-to-close process, delivering 48-hour turn times that help clients move quickly and confidently. To support this growth, SG Capital has expanded teams across multiple departments, adding experienced professionals to strengthen operations and client support. Recent additions include Elizabeth Schuette as Client Relationship Manager and Nicole Turitto as Transaction Manager, both helping drive a seamless client experience as the market continues to evolve.”

“Planet appreciated the opportunity to connect with clients and partners at MBA Secondary this week. We heard from many lenders looking to increase volume and margin in today’s range-bound market and discussed ways to expand confidently into agency, non-agency, and business-purpose lending. From DSCR, SFR, and RTL to renovation, manufactured housing, and expanded credit/alternative income, Planet delivers the operational support and execution flexibility sellers need across changing market conditions. If we missed you at MBA Secondary, it’s not too late to connect. Contact your Regional Sales Manager or SVP Correspondent Sales Jason Mac Gloan (843-625-6869) to learn more about Planet’s Correspondent opportunities.”

Some borrowers don’t fit the standard mold, and that’s okay. In today's market, traditional eligibility requirements could limit otherwise strong candidates. Reverse mortgages offer a path forward, with a financial assessment that does not rely on income. For you, that means expanding your business by identifying new opportunities. That could be done within conversations you're already having, not by chasing entirely new clients. Standards matter. They protect consumers and professionals alike. Finance of America continues to raise the bar for how reverse is delivered to borrowers and implemented by mortgage professionals. Connect with a Finance of America Account Executive to learn more. Finance of America | NMLS #2285

Lender and broker products, software, & services

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Emporium TPO cut collateral review time by 57 percent, and they did it without adding headcount or overhauling their tech stack. The key was letting loan data drive decisions. By unlocking automation already built into Encompass®, Emporium was able to streamline and scale its entire lending business. For lenders still relying on manual workflows, the gap between where you are and where you could be is often smaller than it seems. Read their customer story to see how they're using Encompass automation to transform wholesale lending from the inside out.

ACES Q4 and CY 2025 Mortgage QC Industry Trends Report shows critical defect rate falls to annual low. “Lenders ended 2025 on a strong note, with Q4 delivering a meaningful drop in the critical defect rate and the full-year average holding essentially flat versus 2024,” said Nick Volpe, EVP at ACES Quality Management. “But the year’s defining shift toward eligibility-driven defects as refinance activity returned indicates that disciplined documentation and consistent eligibility decisioning will define quality in 2026.” Notable findings: The overall critical defect rate fell to 1.38 percent | CY 2025’s average critical defect rate was 1.50 percent, essentially flat from CY 2024’s | Legal/Regulatory/Compliance defects increased 30 percent | For CY 2025, Borrower/Mortgage Eligibility climbed 291.58 percent year over year | Refinance review share nearly doubled year over year in CY 2025 | FHA defect share remained elevated relative to review share at 30.86 percent for CY 2025. Read the full report.

Sagent’s Ignite 2026 brought together servicers, regulators, and industry leaders in Phoenix earlier this month, including Robbie Chrisman, who sat down with Sagent Chairman and CEO Chris Marshall for a live interview on Dara and the future of servicing. One theme came through clearly: compliance isn’t a checkpoint… it’s infrastructure. In the conversation, Marshall outlined how Dara is designed to build compliance directly into servicing workflows, using real-time data, automation, and unified systems to reduce risk instead of reacting to it. It’s a shift away from fragmented processes toward a model where auditability, accuracy, and execution happen simultaneously across the lifecycle. That idea takes center stage in Sagent’s latest Dara-focused Down to the Roots blog series, breaking down how modern servicing platforms can get compliance right by design, not by exception. Read the Chrisman/Sagent recap of the conversation here, then go deeper on compliance in Dara here. 

Less back-and-forth. More first-time-right verifications. Truework replaces manual verification waterfalls with a single automated platform, so underwriters, LOs, and ops can cut down the document chasing, conflicting numbers, and last-minute corrections. Lenders see up to 50 percent cost savings on verifications, with faster turn times, higher accuracy, and stronger R&W relief. Trusted by top lenders in the U.S., Truework gives your team verification results they can rely on. Learn more.

The Chrisman Marketplace is a centralized hub for vendors and service providers across the mortgage industry to be viewed by lenders in a very cost-effective manner. We’re adding new providers daily, so check back often to see what’s new. To reserve your place or learn more, contact us at info@chrismancommentary.com.

Continued news from New York City and Washington DC

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Another MBA conference under many people’s belts, and the discussions and topics will be impacting our biz for quite some time.

First off, today’s The Big Picture at 3PM ET, 9AM HT, features Kate deKay, CEO of Eustis Mortgage, to discuss leadership and growth in today’s market. The conversation explores how lenders are adapting strategy and operations as conditions continue to evolve. Register here.

Tomorrow’s Last Word at 1PM ET breaks down market signals, agency developments, and where the industry succeeded or failed. The discussion focuses on separating real insight from reaction as the market evolves. Panelists will be fresh from the MBA Secondary. Register here.

All kinds of organizations were pleased about the House passing H.R. 6644, the “21st Century Road to Housing Act." On to the Senate.

The MBA points out that most of what’s in the legislation is positive, including a greater recognition of modular and manufactured housing options. “But the Senate’s version has a harmful ban on institutional investors. It’s a policy that’s destined to reduce housing supply.

“A ban would lead to less new rental home construction, thereby decreasing the supply of available homes overall. But that’s a guaranteed recipe for higher prices. MBA has opposed any such effort that would make homeownership, or rental housing, for that matter, harder to achieve.

“The House bill clarified and broadened the Senate bill’s exemptions to the institutional investor ban for build-to-rent properties and attached/contiguous multifamily properties. It also preserves needed improvements to rural housing programs and appraisal-related provisions. And now rescopes and appropriately narrows a proposed expansion of an inefficient “first look” requirement for servicers.”

Capital markets: “dead cat bounce” or turnaround?

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For lenders running best efforts, the burning question for a 10-50 bps lift is whether pipeline, net worth, and lock desk are ready to support the move to mandatory. In MCT's whitepaper, Mortgage Pipeline Hedging 101, growth-stage originators will find a clear breakdown of how TBA-based hedging offsets pre-close pricing risk, how the daily lock, coverage, best execution, and mark-to-market cycle runs in practice, and the operational prerequisites that separate lenders ready to make the move from those who should wait. With pull-through assumptions shifting and investor pricing buffers continuing to eat into already-thin best-efforts margins, the cost of postponing the decision is no longer abstract. Join MCT's newsletter to stay current with the latest secondary market strategies and mortgage capital markets education.

Ginnie, Fannie, Freddie. Ginnie Mae’s (with its couple hundred employees) mortgage-backed securities (MBS) portfolio outstanding grew to $2.93 trillion as of April 2026. In addition, Ginnie Mae issued $57.3 billion in total MBS, resulting in net portfolio growth of $18.9 billion. Ginnie Mae facilitated the pooling and securitization of more than 209,000 loans for first-time home buyers year-to-date. April had $55.3 billion in Ginnie Mae II MBS, $1.9 billion in Ginnie Mae I MBS, including $1.8 billion for multifamily housing loans, and the pooling and securitization of loans for more than 160,000 American households, including over 58,000 first-time home buyers.

A drop in oil, a Treasury selloff driven by inflation fears easing, and a respite for traders; not a bad day in the bond market yesterday. The market saw good demand at the day's $16 billion 20-year bond auction, while the April FOMC Minutes unsurprisingly showed some division among policymakers about the future rate path. The 20-year auction was welcomed following seven consecutive tails in Treasury coupon auctions and a disappointing 30-year auction last week despite yields above 5 percent. Historically, 20-year refunding auctions have struggled when preceded by weak 30-year demand, though current yields above 5 percent represent the most attractive outright level for 20-year issuance since the bond’s reintroduction in 2020.

With rising yields and deteriorating technical conditions in long-duration bonds, investors are increasingly being forced to balance fiscal concerns against the absence of any clear economic breakdown or recessionary shock. The lack of a sustained flight-to-quality bid, even as 30-year Treasury yields breached post-financial crisis highs above 5.15 percent earlier this week, reflects both the resilience of the U.S. economy and investor uncertainty surrounding the Middle East (read: the growing likelihood of a prolonged disruption in global energy markets). Investors have become conditioned to expect aggressive political rhetoric and policy threats to eventually soften, though bond market momentum remains firmly bearish.

And borrower psychology has been hurt, although for those truly wanting to buy a home many will view rates as secondary. (In China, which is slowly elevating its world economic status, bonds are diverging from global trends as a fragile economic recovery and ample liquidity keep yields low. The yield on 10-year government notes has dropped to 1.73 percent, contrasting with rising yields in the U.S. and Japan driven by inflation concerns.)

Today’s economic calendar kicked off a few moments ago with April Housing Starts (1.465 million, versus 1.42 million expectations and a prior reading of 1.50 million), Building Permits (1.44 million, versus 1.38 million expected and a prior reading of 1.37 million), weekly Initial Claims (209k, similar to the prior week), Continuing Claims (1.782 million), and May Philadelphia Fed survey. Later today brings S&P Global Flash PMIs, the Kansas City Fed Manufacturing Index, a 10-year TIPS auction from Treasury, and Freddie Mac’s Primary Mortgage Market Survey. We begin Thursday with Agency MBS prices roughly unchanged from yesterday’s close, the 2-year yielding 4.10, and the 10-year yielding 4.61 after closing yesterday at 4.57 percent.

What is the leading cause of dry skin? Towels.

Visit www.ChrismanCommentary.com for more information on our industry partners, access archived commentaries, or subscribe to the Daily Mortgage News and Commentary. You can also explore the Chrisman Marketplace, a centralized hub connecting mortgage professionals with trusted vendors and solutions. If you’re interested, check out my periodic blog on the STRATMOR Group website. This month’s piece is titled, “Mortgage Rates Are Not Random.” The Commentary’s podcast is available on all major platforms, including Apple and Spotify.

qoɹ & ǝᴉqqoɹ

(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes, visit the Chrisman Job Board. This newsletter is intended for sophisticated mortgage professionals only. There are no paid endorsements by me. For the latest mortgage news, visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.ChrismanCommentary.com. Copyright 2026 Chrisman LLC. All rights reserved. Paid job & product listings do appear. This report or any portion hereof may not be reprinted, sold, or redistributed without the written consent of Rob Chrisman. The views and opinions in this newsletter are mine alone unless otherwise specifically stated herein.)

Here in New York, as over a thousand of us head to airports (hopefully avoiding manholes… tragic), the mood has been pragmatic. Not overly optimistic, not somber, just realistic. No one is arguing that the war hasn’t driven up worldwide oil prices, impacting inflation and borrower psychology, impacting lending. The Mortgage Bankers Association now predicts a Federal Reserve rate hike to arrive in 2027, so any lenders or originators hoping for lower rates, well… At this point there isn’t a lot of reason for rates to drop unless higher oil prices slow the economy further. We knew that a second Trump Administration would impact the economy and regulatory environment, and along those lines… SCOTUS Justice Kennedy built a constitutional protection into fair lending disparate impact doctrine for mortgage lenders in a 2015 case and then accidentally ensured it would never work. Read attorney Brian Levy’s latest Mortgage Musing to find out about fair lending compliance in the second Trump term and sign up for free on Substack to get Levy’s Musings delivered directly to your email box. (Today’s podcast can be found here and this week’s ‘casts are sponsored by TransUnion. Discover how data-driven mortgage intelligence is helping lenders identify in-market borrowers, strengthen portfolio performance, personalize outreach, retain customers, and drive smarter growth in an increasingly competitive housing market. Today’s has an interview with LendingTree’s Rob Bhatt on how home insurance costs are rising far faster than both inflation and household income growth nationwide.)

Employment; non-QM strategic partnership sought

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A leading, well-capitalized national non-QM mortgage platform is exploring strategic growth opportunities within its wholesale division, including potential M&A, team acquisitions, partnerships, and alternative strategic structures. The platform offers deep and diversified non-QM capital markets execution, sophisticated margin management, advanced technology infrastructure, and a scalable operational model purpose-built to reduce friction, manufacture high-quality assets, and deliver best-in-class service across both customers and sales teams. The result: a proven engine for growth in today’s non-QM market. Organizations, established teams, or platforms open to confidential strategic discussions are encouraged to reach out. Contact inquiries@mortgagepartnerinquiries.com to start the conversation.

Essent Guaranty is hiring a Sales Operations Manager. This role sits at the intersection of business development and advanced analytics, using data-driven insights to help sales teams and lenders grow market share. The position leverages deep account and market analysis—including production trends, pullthrough rates, firstpass quality, and demographic data—to identify new opportunities, support strategic account planning, and deliver actionable customer insights. By translating complex internal and external data into reports, presentations, and competitive analysis, the role enhances customer relationships, informs sales strategy, and drives smarter decision making across the mortgage lifecycle. If you are a performance-driven professional who enjoys working in a fast-paced environment, apply here Sales Operations Manager. Learn more about Essent go to Essent.us.

The next closing matters. A business you truly own matters more. Motto Mortgage empowers brokers with the support and opportunity they need to thrive, for life. As a mortgage brokerage franchisor, Motto offers you the opportunity to own and build your own business for the long haul. You bring the ambition. We bring a franchise model built to create stability and sharpen your competitive edge. From day one – and every chapter after – you gain the tools, support, and autonomy to grow a business that is entirely yours. Our dedicated HQ team supports you before your doors open and continues showing up as you capture more deals, grow your team, and build customer relationships that last. Ready to scale smarter and create lasting value? Email franchise@mottomortgage.com to get started.

The Chrisman Job Board is the go-to platform for employment opportunities across the mortgage industry. For employers, adding a job listing is easy. Simply create an account and drop in your existing application link, or forward the details to our team and we’ll take care of it for you. For job seekers, joining our Talent Community is completely free. Upload your resume to be visible to hiring companies across the industry and stay connected to new opportunities as they go live.

Lender and broker products, software, & services

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Home equity demand is strong, but if your team is still coordinating vendors manually, chasing conditions and watching closings drag past three weeks, you're not just losing time, you're losing deals to lenders who've already solved this. FirstClose built an on-demand webinar specifically for lenders tired of scaling headcount just to scale volume. In under 30 minutes, you'll see how lenders are cutting closing timelines, reducing manual processing costs, and improving borrower experience without adding staff. The lenders figuring this out now will own the next cycle. The ones who don't will spend it catching up. Register here.

Less back-and-forth. More first-time-right verifications. Truework replaces manual verification waterfalls with a single automated platform, so underwriters, LOs, and ops can cut down the document chasing, conflicting numbers, and last-minute corrections. Lenders see up to 50 percent cost savings on verifications, with faster turn times, higher accuracy, and stronger R&W relief. Trusted by top lenders in the U.S., Truework gives your team verification results they can rely on. Learn more.

SettlementOne: The Credit Score Transition Is Real. Execution Is the Differentiator. As homebuying season gains momentum, mortgage lenders are contending with the most significant shift in GSE credit scoring requirements in nearly three decades. The FHFA’s move to accept VantageScore® 4.0 alongside Classic FICO® scores open real opportunities: broader scoreable populations, trended data, rent payment history. But the path from policy to closed loan runs through investor alignment, LOS configuration, LLPA frameworks, and compliance review that most lenders are still working through. SettlementOne systems already support FICO Classic, FICO 10T, and VantageScore 4.0. With more than 30 years of experience helping lenders navigate exactly this kind of credit complexity, Cheryl Kenney, SVP of Sales and Marketing at SettlementOne, is ready to help your team build a transition plan that holds up in the real world. Contact Cheryl to start a conversation.

“With over 40 years of experience in mortgage banking, Richey May knows the industry from every angle. Many of our team members are credentialed industry experts who dedicate significant time to developing other industry experts. From this expertise, we’ve created a wealth of services and products to help lenders stay ahead: audit and tax services, robust cybersecurity solutions designed to protect company assets and sensitive borrower information, business intelligence to enhance your operations…you name it! Whether you're leveraging our innovative platforms or having us work as your extended team for outsourced internal audit or accounting services, get ready to tackle challenges faster with some serious firepower on your side. Everything you need… Contact our experts today!”

Onboarding is just the beginning. It's ongoing support and communication that makes or breaks a tech stack. Informative Research (IR) clients gain access to live trainings designed to deepen their AccountChek® expertise, sharpen workflows, and optimize verification. IR's next session is May 27 at 1 pm Eastern, focusing on maximizing the value of AccountChek within Encompass Partner Connect (EPC). Attendees will explore automation, VOA/DVOE ordering, borrower experience, and strategies for achieving validated outcomes. New AccountChek users and experienced veterans alike will receive practical guidance from the experts. A great technology partner doesn't disappear after go-live. IR clients benefit from regular product updates, quality customer support, and insights into the news and regulatory shifts reshaping mortgage lending today. Register for the training to discover how Informative Research helps clients build lasting confidence with AccountChek.

In case you missed it, checkout MQMR’s latest and greatest TMC partner webinar! The recording for Taming the Third-Party Web: AI, Spreadsheets, and Vendor Blind Spots, is now available! Scott Weintraub and Joseph Rhodes broke down actionable strategies to help you stop vendor mistakes from becoming a compliance headache. If you are ready to properly manage your complex tech stack and protect your Seller/Servicer status, this replay is exactly what you need. You will learn how to stop wasting compliance resources on low-risk vendors, ditch manual spreadsheets for continuous oversight, and tackle the hidden regulatory dangers of vendor Shadow AI. Grab a coffee and watch the full MQMR replay at your own pace to get all the practical insights and tools to streamline your vendor oversight. Watch the recording here!

The Chrisman Marketplace is a centralized hub for vendors and service providers across the mortgage industry to be viewed by lenders in a very cost-effective manner. We’re adding new providers daily, so check back often to see what’s new. To reserve your place or learn more, contact us at info@chrismancommentary.com.

Correspondent & wholesale product news

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“Pennymac TPO Non-QM: Start Saying “Yes” to More Deals! Your clients don’t always fit into a neat box, so why should their property choices? Traditional Agency guidelines often leave Non-Warrantable Condos behind, but Pennymac TPO’s Non-QM Product Suite is designed to capture the business others miss. Join our upcoming Non-Warrantable Condo Webinar on Tuesday, June 2nd at 10AM PT, to learn how to master financing for Non-Warrantable projects. We’ll show you how our flexible suite (including DSCR, Bank Statement, and Asset-Based programs) provides the key to closing these complex deals. From self-employed entrepreneurs to first-time and seasoned investors, our non-QM lineup (DSCR, A+, A, & A-) empowers you to say “yes” more often. Register for the free webinar here, contact your Pennymac TPO Account Executive or become a partner today to get started. (Equal Housing Lender, NMLS #35953)”

Arc Home is offering a 25 bps price improvement on eligible non-QM purchase loans through its Access DSCR and Bank Statement programs, available now through May 31st. The special applies across a broad range of purchase scenarios, creating more opportunities to improve pricing throughout your pipeline. If you have purchase deals that are close, stalled out, or worth another look, this may be an opportunity to improve execution before month end. Run a scenario through our Quick Pricer or connect with your Arc Home Account Executive.

Live from New York City!

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The roasting temperatures turn to rain here in Manhattan as a thousand mortgage folks exit.

On today Credit Committee at 3PM ET, powered by Equifax, I will be joined by Equifax’s Joel Rickman for a discussion on the unintended risks of mortgage credit cost-cutting initiatives, examining how tri-merge data, credit scoring models, cybersecurity investments, regulatory pressures, and evolving bureau practices impact consumer access, lender repurchase risk, loan quality, and the long-term stability of the secondary mortgage market.

In terms of news coming out of the National conference here, various sectors are jockeying for attention in terms of relief from red tape: credit unions, IMBs, large banks, small banks, brokers, and many others. The MBA reminded those assembled that the best reforms will take the unnecessary burdens off every lender, regardless of size or business model, while retaining core consumer protections.

Remember the Basel III bank capital requirements, and its apparent lack of understanding of the U.S. mortgage world? The MBA reports that federal regulators have now unveiled a new proposal that’s far superior to the old one, “omitting the most excessive and burdensome capital requirements with a more balanced approach to risk mitigation. That’s no accident. The MBA played a central role in getting rid of the worst mandates. Put simply, we moved Basel III in a better direction.”

Capital markets: What will Warsh attempt? Actually do?

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Yields on government bonds have surged globally in recent weeks as the jump in energy prices has stoked inflation fears, and MBS have tagged along for the ride. The U.S. Treasury’s 30-year bond surged to 5.20 percent yesterday, reaching a level last seen on the eve of the global financial crisis. Investors are betting that central banks, including the Federal Reserve, will raise interest rates. Additionally, rising government deficits are prompting investors to demand greater compensation to own longer-maturity debt. Despite President Trump’s decision to postpone a planned military strike on Iran in favor of continued negotiations, investors remain unconvinced that a durable diplomatic resolution is imminent.

That skepticism has been reflected in Treasury yields continuing to rise, and the rising possibility of broader repricing across global risk assets. The market has become conditioned to treat geopolitical relief rallies as temporary unless accompanied by evidence of normalized energy flows and reduced global supply risk.

All of the above factors will define the early tenure of newly confirmed Federal Reserve Chair Warsh, who inherits a central bank confronting elevated inflation uncertainty, resolute economic activity, and heightened political scrutiny regarding the direction of monetary policy. Markets have steadily shifted toward a more hawkish Fed outlook, with front-end Treasury yields trading above the effective federal funds rate for one of the longest periods in decades and futures markets gradually pricing in the possibility that future rate hikes are more likely than near-term cuts.

Investors are now focused less on immediate policy moves and more on how Warsh may try to reshape the Federal Reserve’s balance sheet, communication strategy, forward guidance framework, and institutional transparency following years of highly publicized post-FOMC messaging under Jerome Powell. Your takeaway? Resilient labor markets and stable consumer spending continue to afford policymakers the flexibility to remain patient, even as elevated energy prices and geopolitical volatility challenge market conviction.

As expected, elevated rates and affordability pressures are suppressing activity across both existing and new home sales. Homebuilder sentiment remains deeply negative despite modest stabilization in some forward-looking indicators, such as weak buyer traffic, high financing costs, and ongoing geopolitical uncertainty weigh heavily on demand. In mortgage-backed securities markets, rising volatility and Treasury weakness drove the sharpest weekly underperformance in over a year last week, widening spreads and extending durations across both conventional and Ginnie Mae products. Although shorter-duration and higher-coupon securities have shown relative resilience, investors remain cautious amid elevated convexity risk and uncertain rate direction. The mortgage industry continues to grapple with the structural consequences of the “rate lock-in effect.”

After yesterday revealed Pending Home Sales for April were up 1.4 percent (missing expectations), today’s economic calendar kicked off with mortgage applications decreasing 2.3 percent from one week earlier, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey. Later today brings a 20-year bond auction from the U.S. Treasury, some Fed speeches, and the latest FOMC Minutes, which are expected to reinforce growing divisions within the Committee, particularly after several hawkish dissents tied to forward guidance and inflation persistence. We begin Wednesday with Agency MBS prices slightly improved from Tuesday’s close, the 2-year yielding 4.09, and the 10-year yielding 4.64 after closing yesterday at 4.67 percent.

Last night here in New York I was a passenger in a taxi, and I tapped the driver on the shoulder to ask him a question.

The driver screamed, lost control of the car, nearly hit a bus, went up on the footpath, and stopped inches from a shop window.

For a second, everything was quiet in the cab. Then the driver said, "Look, buddy, don't ever do that again. You scared the living daylights out of me!"

I apologized and said, "I didn't realize that a little tap would scare you so much."

The driver replied, "Sorry, it's not really your fault. Today is my first day as a cab driver… I've been driving a funeral van for the last 25 years."

Visit www.ChrismanCommentary.com for more information on our industry partners, access archived commentaries, or subscribe to the Daily Mortgage News and Commentary. You can also explore the Chrisman Marketplace, a centralized hub connecting mortgage professionals with trusted vendors and solutions. If you’re interested, check out my periodic blog on the STRATMOR Group website. This month’s piece is titled, “Mortgage Rates Are Not Random.”  The Commentary’s podcast is available on all major platforms, including Apple and Spotify.

qoɹ & ǝᴉqqoɹ

(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes, visit the Chrisman Job Board. This newsletter is intended for sophisticated mortgage professionals only. There are no paid endorsements by me. For the latest mortgage news, visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.ChrismanCommentary.com. Copyright 2026 Chrisman LLC. All rights reserved. Paid job & product listings do appear. This report or any portion hereof may not be reprinted, sold, or redistributed without the written consent of Rob Chrisman. The views and opinions in this newsletter are mine alone unless otherwise specifically stated herein.)