Thousands of residential lenders have descended on Chicago, and the MBA Annual is off to a fine start. Seeing President Bush live in person today, with its security measures, is a hot ticket. FHFA Director Pulte will be on the big screen, tomorrow, and not in person. Three meals a day, 3,000 people, that’s 9,000 mortgage banker meals. What happens when the Federal Government cuts back on or changes overseeing food preparation? Americans’ confidence in food safety has dropped to a new low, a recent Gallup survey showed, and they are less confident in the federal government’s oversight of food supply as well. The findings come as headlines on food recalls keep popping up, while this year saw a significant rise in foodborne illnesses. For something a little more cheerful, the Census Bureau tells us that there are 132.7 million occupied U.S. housing units as of 2024. And for you big forward thinkers out there, there are about 72 million U.S. children under the age of 18… someone’s gotta be around in 10 or 20 years to help them finance a house! (Today’s podcast can be found here. This week’s ‘casts are presented by nCino, the platform for agentic AI in mortgage lending. nCino is helping mortgage lenders deliver a faster, simpler path to homeownership. Today’s has an interview with Saul Ewing’s Jason McElroy on Telephone Consumer Protection Act (TCPA) litigation trends, compliance risks, AI-driven calling, and related legal services for the mortgage industry.)
Employment
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Stockton Mortgage has landed three proven sales leaders to power its next stage of growth. Kevin Cario, SVP and divisional manager, leads the East Coast division, bringing a career dating to 1993 and a reputation for recruiting and developing high-performing teams. Chris Garza, SVP and divisional manager, builds branches across Arizona, California, Missouri, and Nevada from Las Vegas. A real estate investor since 1999, he gives loan officers the same straight answers on operations and compensation in a slow market as in a hot one. Scott Pendleton, VP and market leader, is a licensed mortgage banker with deep experience across conventional, jumbo, and government lending, and a knack for complex files. Producing LOs and branch managers who want to run a real business, not a branch in name only, should explore careers at Stockton.
Lender and brokers products, services, and software
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“Qualified buyers shouldn’t have to empty their savings to close. Essex Mortgage offers down payment assistance that opens doors for more buyers and gives them greater security and peace of mind. Instead of using every dollar at closing, buyers may be able to keep a financial cushion for future expenses, unexpected costs, or essentials their new home needs. For mortgage professionals, Essex Mortgage DPA can help qualified FHA buyers become confident homeowners while strengthening their stability from day one. With the right partner, that opportunity is within reach for more buyers. That’s where Essex Mortgage comes in. We pride ourselves on being a dependable partner for your long-term success and confidence in the DPA space. Our program includes funding up to 101.5 percent LTV, availability in 49 states, delegated underwriting for fast-tracked closings, all with industry-leading service and consistency. Ready to put DPA to work? Connect with Essex today.”
FundingShield, the leader in wire & title fraud prevention, released its Q3-2026 Wire Fraud Analytics & Risk Report, showing 45.9 percent of transactions across a $108.7B+ monitored portfolio carried material wire and title-related risks. Problematic transactions averaged 2.2 issues each, with 47.8 percent involving CPL-related discrepancies, 6 percent involving wire-instruction defects, and 1.6 percent involving licensing irregularities. As higher rates and lower transaction volumes pressure operating models, mortgage-sector consolidation accelerates, and AI agents introduce new cybersecurity risks, lenders, investors, and carriers increasingly need real-time, independently verified source-level data before capital moves. “Risk ratings are snapshots; fraud threats evolve in real time. Even the most highly rated counterparty can be compromised. And a rating is only as trustworthy as the independence of the organization providing it.” (Ike Suri, Chairman and CEO, FundingShield) Contact Sales@fundingshield.com for demos/trials. Meet us at MBA Annual 2026 (October 11–14, Chicago, IL), NPLA Scottsdale, ABS East, and AAPL Vegas. (The full article will be linked to the following URL today: Q3-2026 Wire Fraud Analytics & Risk Report.)
“Come meet MOZAIQ at Booth 411 at MBA Annual26, October 11–14 at the Hyatt Regency Chicago, where we’ll be showcasing the LoanAssist platform. Built by mortgage insiders and deployed by mortgage leaders, LoanAssist automates end-to-end loan fulfillment for enterprise lenders. Its AI agents autonomously complete the work and hand it off to a processor or underwriter at exception thresholds set by the lender. Book a time to see LoanAssist in action and learn how a top five wholesale lender cut cost per loan by 40 percent, how a modular rollout delivers ROI step by step, and why change management and adoption are built into the solution, not dealt with afterward. Because automation is the easy part.”
When a bank understands your business and where you want to take it, financing can do more than meet today’s needs. Backed by deep mortgage-sector expertise and a commitment to strong client relationships, the right banking team can also provide insights that will help you prepare for tomorrow’s growth opportunities. That’s the experience Western Alliance Bank’s Specialized Mortgage Services Group brings to clients through customized mortgage warehouse lending, MSR financing, note financing and treasury management solutions, plus a whole loan trading desk focused on purchasing scratch-and-dent loans (send bid requests to SnD@westernalliancebank.com). See that approach in action in this client story featuring CMG Financial. Contact Specialized Mortgage Services at Western Alliance Bank, Member FDIC, to discuss how its trusted banking advisors can help your company adapt quickly, respond to change, and capitalize on opportunity.
Staying is easier when you know what you’re turning down. Match anonymously with lenders on mLOOP and share your name only if you decide to. Get started.
loanDepot (NYSE: LDI) is expanding Novaprime across its post-closing operation after a successful pilot. In the pilot, Novaprime automated more than 80 percent of Government Insuring tasks, so the insuring team completes more loans each day. loanDepot is now extending Novaprime to CD Reconciliation, Defect Remediation, and Loan Delivery to reduce cost per loan and add capacity while its teams apply their expertise to higher-level tasks. Novaprime’s platform measures quality and throughput in real time, works alongside existing systems, adapts to how each team works, and keeps a complete audit trail behind every decision. Miami-based Novaprime is SOC 2 Type II compliant; learn more at novaprime.com.
JUMBO TRIVIA. BIG PRIZES. MODERN SERVICING. Only at Dara by Sagent’s booth during MBA Annual. Today at 4 PM CT, swing by Booth 725 for your chance to win big during the Jumbo Trivia Challenge. Test your servicing knowledge, compete for prizes, and connect with the team that’s helping servicers modernize for what’s next. While you’re there, learn how Dara is transforming mortgage servicing with one platform that powers the entire servicing lifecycle. From onboarding and customer engagement to default, compliance, loss mitigation, payments, and investor reporting, Dara brings servicing together on a modern, AI-native platform built from the ground up for today’s challenges and tomorrow’s opportunities. Whether you’re focused on improving operational efficiency, reducing compliance burden, leveraging AI, or delivering better homeowner experiences, the team is ready to show how Dara helps servicers move faster, work smarter, and achieve real business outcomes.
“Fall into More Fundings with October Specials from LendingPros on Non-QM! Non-QM Specials include: 20 BPS Price Improvement on 30-year ARM, 50 BPS Price Improvement on 40-year Fixed Rate and 25 BPS Price Improvement on all 3 year + Prepayment Penalties (Note: specials cannot be combined). Specials are here for a limited time for loans locked 10/1 through 31st, 2026. Check in with your LendingPros AE on these today! Plus, learn how to recognize potential DSCR opportunities make investor scenarios easier to understand with LendingPro’s newest webinar DSCR 101: The Pros’ Guide to Investor Lending. We’ll cover how cash flow and debt coverage work together, clear up common misconceptions and walk through the fundamentals of DSCR Investor loans. Register yourself or your team now. Space is limited!”
Is your LOS ready for UAD 3.6? MortgageFlex is. While the industry meets this week at MBA Annual in Chicago, the November 2 UAD 3.6 mandate is quickly approaching. LoanQuest now supports the redesigned Uniform Residential Appraisal Report (URAR), UAD 3.6 appraisal workflows, and updated UCDP submission processing for Fannie Mae and Freddie Mac. More importantly, MortgageFlex clients can begin implementation and testing now. UAD 3.6 is more than a form change. It represents a significant modernization of how appraisal information is structured and exchanged throughout the mortgage ecosystem. Lenders should be testing workflows, training teams, and preparing operations, not waiting for their technology provider to finish development. For more than three decades, MortgageFlex has helped lenders stay ahead of industry change. If you’re at MBA Annual in Chicago this week, let’s connect. John McCrea Read the full MortgageFlex UAD 3.6 announcement: News & Resources — LoanQuest by MortgageFlex.
New MeridianLink report: Your peers have an AI plan. Here’s what they said. There’s no single starting point for AI in lending. But the priorities are remarkably clear. In the AI Priorities Benchmark Report, MeridianLink® surveyed 257 lending professionals on how AI can move the needle, what’s slowing the technology’s adoption, and where institutions are investing. The answers provide a clear view of what’s happening across the industry and how these developments can impact your mortgage lending team’s AI strategy. Find your place on the maturity curve: Four stages of AI adoption, from exploring to scaling. See what’s getting prioritized. Three capabilities peers want AI to tackle first. Spot the gaps before they cost you. Where AI needs and investment diverge. Know what to ask before you invest… Five questions to pressure-test your AI strategy. Get the full benchmark report.
MISMO, logo, standards, and changes
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Brian Vieaux, the President of MISMO, writes, “On my first anniversary as MISMO president, one thing has become clear to me. We have an opportunity to help more people understand what happens within this community and why it matters to their business. Many people know MISMO through our standards. Some know the name because their technology team works with those standards every day. Others are just beginning to discover the breadth of what this community brings to the industry.
“Our new brand is an opportunity to bring that fuller story into view. For years, our tagline has been “The Language of Lending.” That language remains essential. The shared understanding behind it is part of what allows our industry to work together. And as you watch this video, pay attention to the ‘S’ in the new logo. It represents the standards that remain at the core of our mission.
“Our new tagline is: ‘Where Our Industry Builds What’s Next.’ The word ‘our’ means a great deal to me. It recognizes the people who show up, contribute their knowledge, and stay involved long enough to turn an idea into something the industry can use. It also extends an invitation to people who have something valuable to contribute and may not yet see a place for themselves at MISMO. There is a place for you here.
As we introduce this identity at MBA Annual, I’m proud of what it represents and grateful to the community behind it. Take a look at the new MISMO. Here’s a preview of the new logo. To everyone who helped bring us here, thank you. And if you’re wondering where you fit into what comes next, reach out. I would welcome that conversation. #VieauxPoint
Lack of data, credit, and closing costs
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On Friday, Jenn McGuinness of Pivot Financial laid out an argument, complete with numbers, about why the fabled Pulte “pilot program” was sadly lacking in survey numbers and data.
Ben Corb, SVP for Strategy and Public Affairs at Consumer Data Industry Association, also has some thoughts on data (or lack thereof) and credit changes that impact millions.
“Many in the housing space are speculating that FHFA Director Bill Pulte will announce a move away from the tri-merge credit standard when he speaks at the MBA Expo in Chicago on Monday. I’ll be in the room listening closely.
“With so much of the conversation focused on affordability, we ran the numbers. Across ten housing markets in every region of the country, the tri-merge credit report costs homebuyers about $151 on average. That is roughly 1 percent of the more than $18,000 in average closing costs in those markets. Making homeownership more affordable is a goal we share. Across 10 housing markets of every size and region, the typical tri-merge credit report fee averages $151, about 1 percent of what a buyer pays at closing.
“Fannie Mae groups closing costs into four categories. On average, taxes and government fees are the largest. The credit report is just one component of standard loan origination fees and is typically about $1 of every $100 a buyer pays at closing.
“Our view is simple. We support more data, not less (our statement from last week is here). Any savings from changing the standard would be a fraction of that $151, while the cost of less data could show up in borrowers’ rates and payments.
“We’re not alone in raising concerns. Aiden Buzzetti of the Bull Moose Project wrote in Breitbart about how the change could raise rates and cost homebuyers thousands, and AEI Housing Center co-directors Tobias Peter and Edward Pinto laid out the unintended consequences of these possible reforms in RealClear Markets.” Thank you, Ben.
The Fed doesn’t set mortgage rates, but…
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What the Federal Open Market Committee watches are things that we should all be watching. The FOMC’s September meeting minutes revealed united support for the central bank’s tightening cycle, with officials highlighting upside risks to inflation and cementing market expectations for prolonged higher rates.
The MBA’s economic team provided their projections for 2026 and 2027. The bad news is that the projections are always wrong. The good news is that the MBA’s team does a good job of using the information available to them, revising the numbers, often, and no one else’s are any better. With that in mind…
The Mortgage Bankers Association (MBA) announced that total single-family mortgage origination volume is expected to decrease 5 percent to just under $2 trillion in 2027 from the $2.1 trillion expected in 2026. “Purchase originations are forecast to increase 0.8 percent to $1.42 trillion next year and refinance originations are expected to decrease by 17 percent to $571 billion. By loan count, total mortgage origination volume is expected to decrease by 5.6 percent to 5.0 million loans in 2027 from the 5.3 million loans expected in 2026.”
Capital markets: markets closed but issues continue
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U.S. Treasuries and Agency MBS staged a modest price recovery at the end of last week after a sustained selloff pushed 10-, 20-, and 30-year yields to fresh 2026 highs. Strong demand at longer-dated Treasury auctions and three consecutive sessions of intraday rebounds suggest that selling momentum may be moderating.
However, the rally appears more opportunistic than a confirmed trend reversal, as persistent inflation, geopolitical uncertainty, fiscal concerns, and a hawkish Federal Reserve continue to pressure bond prices lower. Markets have reduced the probability of an October rate hike to below 20 percent, despite Fed minutes signaling broad support for restrictive policy and the possibility of another increase in 2026. Inflation data released this week (CPI Wednesday, PPI Thursday) will be key in determining whether yields consolidate or resume their ascent, particularly given technically overbought conditions in the 10-year Treasury market and improving momentum indicators that suggest room for some near-term relief.
This is a daily commentary about residential lending, and Agency MBS continue to face greater challenges than Treasuries, with elevated rate volatility, limited buyer demand, and widening spreads weighing on valuations and mortgage origination margins. Conventional 30-year MBS underperformed last week, with the FNCL current-coupon spread widening to 124-basis points over the 5-year/10-year Treasury blend, while 15-year securities outperformed as their spread tightened to 66-basis points. Mortgage rates rose to 7.40 percent, the primary-secondary spread widened to 92-basis points, and total mortgage applications declined 4.2 percent week-over-week, reflecting continued affordability and demand pressures.
Mike M. writes, “My son brought home a new sickness from daycare: The peekaboo virus. Now, I may have to go to the… ICU!”
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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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