“I found a 95 year old painting in my attic. I asked him to leave.” Humor aside, many people have been asked to leave places like Fannie Mae, Freddie Mac, Go Mortgage, Onity, and others. It isn’t surprising, and the reductions are, in fact, a sign of the times given the time of year and the rate environment. That said, “finding success elsewhere” might just be what happens for those cut, and other lenders are using sources like RETR, mLoop, MMI, and Model Match (this list is by no means exhaustive) to take granular looks at LOs and their fundings, extension, price concessions, and profitability. A broadbrush statement like, “I’m calling on real estate agents to find business” may not be the best path forward. One experienced LO wrote to me saying, “Any originator needs to find out which agents are actually doing business and focus on those. NAR puts out regular stats about its members that can be a good place to start.” “Broadbrush” is not the current trend in residential lending where precision is now possible for many facets. (Today’s podcast can be found here. This week’s ‘casts are presented by Truework, a Checkr company, the one verification solution to replace in-house waterfalls. Verify any borrower with a VOIEA solution that automates the entire process to quickly deliver the most accurate and complete reports with broad GSE coverage. Today’s has an interview with Figure’s Alysse Guitar and Michael Tannenbaum on using AI loan officer assistants to reduce abandoned applications and help loan officers focus on sales and closing.)
Lender and brokers products, services, and software
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“Are you treating all borrowers the same way? Can you prove it? As AI governance gains attention, that question is becoming increasingly relevant for mortgage servicers. Yet explainability isn’t just an AI concern. Rules-based automation and investor decision engines also require transparency, consistent application of eligibility criteria, and documented results. In our latest blog, “AI Governance in Default Servicing Starts with Explainable Decisions,” we explore what explainable decisioning looks like in loss mitigation, why consistent borrower treatment matters, and how governance and efficiency can work together. Because the real measure of responsible automation isn’t simply whether a decision was made correctly. It’s whether you can explain it, support it, and demonstrate what happened next.”
The availability of additional credit score models for mortgage applicants sounds like progress, but without a clear way to choose which model applies to each loan, it’s a workflow problem. With VantageScore 4.0 and FICO Score 10T joining classic FICO models, every lender has to decide which model applies and when to select it. In the new blog by ICE, How Encompass supports credit score modernization with flexible options for lenders, see the options Encompass® gives lenders to implement the approach that fits the workflow: select the model at credit import, set accepted models for third-party originator submissions, price across models where partners offer it or automate selection with business rules. Once a model is selected, scores stay in sync at lock and the model used is recorded at the loan level, so the Decision Score and HMDA processes keep running without disruption. Read the blog.
Need some help with cash-out on a high acreage property? Symmetry to the rescue! Symmetry has no acreage limit on our HELOC products for properties that are common to market, so your borrowers in rural areas or with lots of space have options. For properties with more than 20 acres, a full appraisal is required. As a reminder, Symmetry allows you to order your own appraisal in your Broker Company name on all transactions if one is wanted or needed, which gives you even more control of the transaction. The Symmetry HELOC does not have an EPO or prepayment penalty at any time, and have 5- or 10-year draw period options. Reach out to your Area Manager with scenarios we can help with! (For Mortgage Professional Use Only – Not for Distribution to the Public.)
New GM, who dis? Floify has a new pilot at the helm. Bryan Traeger joined as general manager, with his first day being at MBA Annual. He’s no stranger to the mortgage industry, though. His experience as a lender gave him a different perspective when he moved to the technology side and built customer success teams. He shines as a team leader because the opportunity to challenge and build on one another’s ideas inspires him to bring the best results to clients. Now he’s bringing that enthusiasm to Floify to build on what sets them apart: creating a spectacular experience for lenders and borrowers alike. Supporting not just point-of-sale, but the entire mortgage journey. Start your Floify journey with custom-tailored solutions that support your lenders and brokers while also enhancing the borrower experience. Learn more at Floify.com. We’re excited for what’s ahead.
“Elevate your accounting function today! As an independent mortgage bank or broker, your focus should be on growth, not accounting headaches. Whether you have no accounting expertise in-house or you have a new team with no mortgage experience, you can lean on the Richey for the support you need. This team is stacked with mortgage industry experts who can tailor your solution to meet your most pressing needs with no training needed. Need help transitioning to loan-level accounting? Need a fully outsourced function? You got it! Need industry training for your controller? We can do that. Contact Richey May today to get started on the solution that fits your business.”
The next Chrisman Demo Day is November 19 and is a free perk for all Chrisman Marketplace members. If you’re a technology or service provider and haven’t joined the Marketplace yet, reach out to Chloe Murray at info@chrismancommentary.com to learn more.
The Chrisman Marketplace is a centralized hub for vendors and service providers across the 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.
Webinars of note
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Webinar – Automate Compliance Review for Your Content, Right Inside Canva. Manual compliance review can slow campaigns down. On Tuesday, November 17 at 2 PM ET, ActiveComply’s Melissa Grindel, Head of Compliance & Industry Strategy, will demo ActiveComply Pre-Review in Canva, which automates the marketing compliance review. See how an AI scan automatically checks each design against your institution’s own rules and flags issues before content ever reaches compliance. You’ll watch Pre-Review work inside Canva: what marketing sees, how findings come back, and how compliance officers stay in the loop on anything that needs a judgment call. No download, no email chains, no separate login. Built for marketing, sales, and compliance teams at mortgage lenders and financial institutions. Live Q&A included. Register today!
Lawyers, compliance officers, risk executives, and consumer finance leaders: this one is for you. Join Saul Ewing’s “Consumer Financial Services Annual Update: Courts, Regulators & the In-House Perspective” free CLE webinar on Thursday, November 12 from 1:00 – 4:00 PM ET. The program will provide a timely, practical look at the forces reshaping consumer finance litigation, regulation, and compliance, with the discussion covering key developments under the FCRA and FDCPA, significant court decisions, emerging litigation trends, and notable settlements and enforcement outcomes. Speakers will also review and examine the role states have taken to fill the void left by the Federal Government’s changed priorities in areas of fair lending, fair loan servicing, interest, and other consumer/borrower fees, and general UDAAP concerns. With insights from in-house counsel, the program will offer practical strategies for managing compliance risk, responding to litigation and enforcement activity, and navigating the responsible use of emerging technologies, including AI, in a rapidly changing environment. Click here to learn more and register.
Mortgage Matters is Wednesday, November 11, at 11AM PT, presented by Lenders One to discuss current topics facing lenders.
Capital Markets Wrap is Wednesday, November 11, at noon PT. Presented by Polly, the Capital Markets Wrap panel of Ira Selwin, James Baublitz, Kristin Ankeny Bickenbach, Rob Kessel, and Robbie Chrisman breaks down the latest developments shaping mortgage capital markets. The discussion covers the market’s reaction to the Fed’s latest decision, the impact of recent elections, continued merger and acquisition activity, the return of spec payups, and expectations for 2027 conforming loan limits. The panel also examines margin and production elasticity across retail, wholesale, and correspondent channels, exploring how lenders are adapting their strategies to current market conditions.
Government-backed mortgage product news
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The vast majority of VA and FHA loans go into Ginnie Mae securities. Ginnie Mae’s mortgage-backed securities (MBS) portfolio outstanding grew to $3.01 trillion as of August 2026. Additionally, Ginnie Mae issued $52.14 billion in total MBS, resulting in net portfolio growth of $24.46 billion. Ginnie Mae facilitated the pooling and securitization of 478,434 first-time homebuyer loans year to date.
Ginnie Mae’s MBS portfolio outstanding grew to $3.03 trillion as of September 2026. In addition, Ginnie Mae issued $46.52 billion in total MBS, resulting in net portfolio growth of $20.92 billion. Ginnie Mae facilitated the pooling and securitization of 62,891 first-time homebuyer loans year to date.
Optimal Blue’s October Market Advantage mortgage data report shows that mortgage activity pulled back sharply even as rates ended the month lower. Total lock volume fell 19 percent M-o-M and 38 percent Y-o-Y, while purchase loans accounted for 84 percent of production. ARM share climbed to 17 percent of lock volume, its highest level in Market Advantage data going back to 2019. “ARM share reached another high, FHA gained share and first-time buyers took a larger share across the major agency programs.”
Chris Maloney with BOK Financial writes, “Mortgage lending rates have been dropping of late with the Optimal Blue conventional, VA and FHA down 37, 42 and 32 basis points, respectively, since their early October highs. Still, that’s not enough to spark any prepayment concerns. The US Treasury 10-year yield seems unable to break below its 100DMA of 4.81 percent, and until it does its unlikely mortgage rates have any further to drop.”
The FHA is inviting anyone to participate in a virtual office hour meeting with FHA staff who can answer questions about the addition of VantageScore® 4.0 (V4) and FICO® Score 10T (10T) credit score models and related topics. The Virtual office hour meetings will be held on selected dates before and after implementation beginning Monday, November 15, 2026, and concluding on Friday, January 15, 2027. Each meeting will be held from 2:30 PM – 3:30 PM (EST) via Microsoft Teams. Click on the session below you wish to attend at least 15 minutes before the meeting start time. Monday, November 16, 2026 (Meeting ID: 268 366 620 114 234, Passcode: dx3nB6Kg, or dial in (audio only): +1 202-510-9533 | Conference ID: 972 802 174 #.)
Pennymac updated Government LLPAs effective for all Best-Efforts Commitments taken on or after Wednesday, October 21, 2026. See Announcement 26-125 for details.
Effective with 20260905-CL Product Announcement, AmeriHome Mortgage is pleased to announce that FHA, VA, and USDA Mortgage Loans secured by manufactured homes are now eligible for purchase.
On September 16, 2026, USDA Rural Housing Development announced that funding will not be available for a short period of time at the beginning of Fiscal Year 2027, which begins October 1, 2026, and ends September 30, 2027. See AmeriHome Mortgage 20250906-CL Product Announcement for more information.
A while back the Community Home Lenders of America (CHLA) issued a statement applauding the extension of a federal court temporary injunction pausing USDA personnel relocations as the court considers an indefinite freeze. “CHLA welcomes the Court’s decision to extend the temporary pause on the USDA’s proposed re-organization,” said Scott Olson, Executive Director for CHLA. CHLA wrote a letter to the USDA in July in which it noted that “it is critically important that USDA maintain continuity among experienced SFHGLP staff during this transition to avoid disruption to lender onboarding, program guidance, and borrower service and to fully implement a final rule to provide mortgage lenders with delegated authority to make loans and obtain loan note guarantees.”
A few months back Matt Jones was nominated to be the new FHA Commissioner. In the meantime, Joe Gormley, the current commissioner, and president of Ginnie Mae, has let it be known that the Trump administration is “very comfortable” with the current mortgage insurance structure for single-family home loans and reverse mortgages.
Pennymac will continue to purchase USDA Rural Housing loans with Conditional Commitments that are subject to the availability of commitment authority. Correspondents must ensure all standard Reps and Warrants, and underwriting requirements are met. See Announcement 26-127 for more information.
AmeriHome Mortgage announced that FHA Mortgage Loans secured by manufactured homes are eligible. Effective with 20261001-CL Product Announcement, FHA Mortgage Loans secured by HUD-approved secondary residences are now permitted, provided all requirements in the FHA Single Family Handbook 4000.1 are met.
LoanStream Mortgage will accept UAD 3.6 appraisal files starting Thursday, October 15th, 2026, for Conventional, FHA, and Non-QM loan programs requiring an appraisal. LoanStream will be fully transitioned to UAD 3.6 on January 1, 2027, and will no longer accept the UAD 2.6 appraisal.
UWM, the nation’s #1 mortgage lender, announced that it is removing minimum credit score overlay on agency products effective immediately. Fannie Mae and Freddie Mac (Conventional) as well as Ginnie Mae (FHA, VA, USDA), will no longer be subject to a minimum credit score requirement. Instead, eligibility will be determined through the Automated Underwriting System (AUS), the industry-standard underwriting tool already used by UWM and designed to evaluate loans based on agency guidelines.
Capital markets: the bond market ahead of the Fed, as usual
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Let’s go through a couple of the main factors driving mortgage rates. Despite stronger-than-expected employment growth in October, worsening long-term unemployment and historically low labor-market turnover point to underlying economic weakness. Investor sentiment remains heavily influenced by AI-driven equity volatility and potential regulatory changes following the Democratic midterm sweep. Persistent housing affordability challenges affect first-time and repeat buyers alike. Treasury yields remain relatively stable, with markets currently pricing in about an 80 percent chance of a December rate increase from the Fed.
Ultimately, expectations for further tightening remain driven more by the Fed’s longer-term commitment to restoring price stability than by any single inflation report. Economic uncertainty and safe-haven demand may continue to limit upward pressure on longer-term Treasury yields. U.S. Treasuries posted mixed results to open the week: stronger equities and weak 3-year auction demand pressured shorter maturities, while longer-term bonds remained resilient and received a modest late boost from reports of a potential U.S.-Iran agreement easing geopolitical tensions.
For the first time since February, declining real yields, a narrowing Treasury 2-year/3-month funding spread, and widening credit spreads simultaneously signaled less favorable mortgage servicing rights (MSR) valuation conditions in October, with these trends continuing into November. Meanwhile, limited refinancing incentives and declining purchase activity are constraining mortgage production, increasing the likelihood that monthly gross MBS issuance will remain below $100 billion.
Despite these headwinds, the U.S. MBS market last week posted its strongest weekly excess return since early August as lower volatility and improving investor demand brought year-to-date returns nearly back to breakeven. 30-year MBS, particularly UMBS and Ginnie Mae securities with 5 percent to 6 percent coupons, led the gains, while seasoned Ginnie Mae pools and select higher-balance securities continue to offer attractive relative value. In the broader fixed-income market, declining oil prices, easing inflation expectations, concerns over AI-driven economic growth, and post-election political gridlock have supported safe-haven demand for Treasuries, helping contain yields despite persistent inflation concerns and the Fed’s hawkish stance.
Today’s economic calendar is already underway with October NFIB Small Business Optimism (nearly unchanged from the prior month), and the all-important October CPI (+.4 percent versus 0.3 percent expectations after a prior reading of 0.6 percent) and Core CPI (ex-food and energy+.3 percent versus 0.2 percent expectations after a prior reading of 0.3 percent).
In addition to the CPI data, Fed commentary, and continued equity market volatility will be critical in determining whether the recent Treasury rally and improving mortgage performance can be sustained. And after yesterday’s $58 billion 3-year Treasury auction delivered mixed demand, with a higher-than-average yield and weaker bid-to-cover ratio offset by strong non-dealer participation and elevated direct bidding, today brings $42 billion 10-year Treasury note auction results. We will also receive Fed remarks from Waller, Logan, and Schmid. After the latest strong inflation data, Agency MBS prices are worse than Monday’s close by .125-.250, the 2-year is yielding 4.67, and the 10-year is yielding 4.92 after closing yesterday at 4.86 percent.
A wife tells her shiftless husband to get a farm-bred turkey for Thanksgiving. He brings home a turkey, but she finds shot in it.
“I told you to get a farm-bred turkey, not a wild one!”
“That is farm-bred.”
“Well, where’d this shot come from?”
The lazy man says, “I think the farmer was aiming at me!”
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, “Those Monthly Payments Go Somewhere.” 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.)
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