Credit Union and Real Estate Agent Relationship

A November webinar featuring Telhio Credit Union Loan Officer Allie Hager and Realtor Kelly Hamilton of Realty Forward is still getting attention from credit unions focused on strengthening realtor relationships. Moderated by LenderLogix CEO Patrick O’Brien, the discussion explored how accessibility, communication, and modern technology are helping credit unions compete more effectively in today’s purchase-driven market. The full replay is available on demand and remains a worthwhile watch for teams planning their 2026 strategy. Watch the replay 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.

HUD, FHA, VA, HECM and Government Program News

Whether it is about interest rates or programs, it is impossible to not mention the United States Government when it comes to residential lending. HUD, for one, continues to lead the pack in consumer home buying counseling.

A few days ago out came the FHA’s annual report on the Mutual Mortgage Insurance (MMI) Fund, focusing on taxpayer stewardship, program integrity, and prioritizing American citizens while continuing to support homeownership and housing affordability. In fiscal year 2025, FHA insured more than 876,000 single-family mortgages, 83 percent of which supported first-time homebuyers, and over 28,000 reverse mortgages for seniors, with active insurance covering more than 8.1 million forward loans totaling over $1.6 trillion and $64.3 billion in HECM obligations. Strong oversight contributed to a robust financial position, with the MMI Fund’s capital ratio reaching 11.47 percent as of September 30, 2025, and economic net worth rising to $188.87 billion, up $16.11 billion from the prior year, reflecting continued improvement in the fund’s financial strength.

“The latest actuarial report confirms that the FHA remains on a solid financial footing, which is vital for maintaining the broad access to credit that first-time and underserved home buyers rely on," said Isaac Boltansky, Head of Public Policy at Pennymac. "A healthy FHA doesn’t just support individual homeowners; it anchors a balanced housing ecosystem. We are encouraged by this year-over-year strength and remain hopeful that FHA leadership will continue to steadfastly manage its vital responsibility to the market.”

Reverse mortgages remain one of the most misunderstood (and underestimated) tools in residential lending, even among experienced mortgage professionals. In a recently published article on the Chrisman Commentary website, Wendy Oshiro and Jim Milano cut through outdated myths to explain how reverse mortgages really work, where the risks and protections lie, and why education and structure matter more than ever. As home equity levels remain high and the homeowner population ages, understanding the strategic role of reverse mortgages could unlock new opportunities for both borrowers and lenders... if the industry gets it right.

On October 2, 2025, the Department of Housing and Urban Development (HUD) through the Federal Housing Administration (FHA) and the Government National Mortgage Association (Ginnie Mae) published the Future of the HECM and HMBS Programs and Opportunities for Innovation in Accessing Home Equity Request for Information (RFI) (FR 6551-N-01) in the Federal Register. On December 10, 2025, HUD published a new RFI to extend the public comment period to January 5, 2026. The RFI seeks public comments regarding the market for senior homeowners (age 62 and older) to access equity in their homes and improvements to the Home Equity Conversion Mortgage (HECM) and HECM mortgage-backed securities (HMBS) programs.

FHA published Mortgagee Letter (ML) 2025-22, 2026 Home Equity Conversion Mortgage (HECM) Limits, which provides the calendar year (CY) 2026 maximum claim amount for FHA-insured traditional HECM, HECM for purchase, and HECM-to-HECM refinances.

FHA posted a draft Mortgagee Letter (ML), Increase in the Maximum Number of Draw Requests for Limited 203(k) Rehabilitation Mortgage Insurance Program, for review and feedback on FHA’s Office of Single Family Housing Drafting Table (Drafting Table) web page. This draft ML proposes to increase the maximum number of allowable draws under the Limited 203(k) program and clarifies draw disbursement procedures for both Limited and Standard 203(k) programs to strengthen risk controls and reduce administrative burden. View FHA INFO 2025-53 for details.

Newrez LLC “Newrez” Approved Correspondent Clients: effective for VA mortgages closed on or after January 1, 2026, the 2026 Conforming and High Balance Loan Limits that were recently issued by the Federal Housing Finance Agency (FHFA) will apply to all VA Purchase and Cash-out Refinance products.

Newrez explains that “FHFA Maximum Conforming Loan Limits (CLL) are not actual caps for VA loan amounts but are used for calculating the available loan guaranty for Veterans who have only partial entitlement (when the Veteran’s home loan benefit has been used and is not restorable). Veterans with full entitlement are not restricted by the CLL and are eligible for the maximum 25 percent entitlement guaranty of any loan amount. For veterans with partial entitlement, the maximum amount of guaranty is the lesser of 25% of the loan amount or the applicable years conforming loan limit for a 1-unit property, reduced by the amount of the entitlement previously used by the veteran.”

FHA is waiving its policy requiring mortgagees to provide borrowers with Form HUD-92900-B, Important Notice to Homebuyers. This change is intended to streamline processes and reduce administrative burdens for lenders by eliminating a redundant and outdated form. The change could lead to faster processing times and a less cumbersome experience for the borrower. The waiver removes the following specific requirements regarding Form HUD-92900-B found in Section II.A.1.a.ii.A.(2) of the Single Family Housing Policy Handbook 4000.1 (Handbook 4000.1). More information is available in FHA INFO 2025-51.

FHA Info 2025-54 announced draft Mortgagee Letter (ML) proposing updates to policies related to the use of independent third-party providers in connection with foreclosure and post-foreclosure sales, and the marketing of the properties during the CWCOT process. For review and feedback on FHA’s Office of Single Family Housing Drafting Table (Drafting Table) web.

Ginnie Mae’s combined September and October 2025 update shows the mortgage-backed securities (MBS) portfolio outstanding increased from $2.83 trillion to $2.84 trillion. Monthly issuance reached $46.8 billion in September and $50.2 billion in October totaling $97 billion, contributing to $23.1 billion in net portfolio growth. View details in the Press Release.

Effective with loan deliveries on and after December 05, 2025, maximum LTV/CLTV requirements applicable to VA cash-out refinance transactions. Details available in Pennymac Announcement 25-126.

FHA has implemented a new phishing-resistant multi-factor authentication (MFA) for its FHA Connection (FHAC) system. FHA is extending the MFA implementation requirement to January 5, 2026, from October 27, 2025, by which users must implement the phishing-resistant MFA to be able to continue accessing FHAC. This MFA implementation replaces the current process communicated in an FHA INFO email on November 17, 2023. FHA INFO 2025-55.

FHA published Mortgagee Letter (ML) 2025-23, 2026 Nationwide Forward Mortgage Loan Limits, which provides the maximum mortgage limits for FHA-insured Title II forward mortgages for calendar year (CY) 2026. View Press Release for details.

Ginnie Mae’s mortgage-backed securities (MBS) portfolio outstanding reached $2.86 trillion as of November 2025. In addition, Ginnie Mae issued $54.8 billion in total MBS, resulting in net portfolio growth of $20.8 billion. Ginnie Mae facilitated the pooling and securitization of more than 660,000 loans for first-time homebuyers’ year to date. Additional information is available in this Press Release.

FHA announced a change to its Mortgagee Compliance Manager (MCM) to Residential Enhancements, Inc. This new contractor replaces Information System Networks, Corporation Western Operation Center as FHA’s MCM, effective December 3, 2025.

FHA issued a waiver of certain language in section III.A.2.d.ii(A) of the Single Family Housing Policy Handbook 4000.1 (Handbook 4000.1). The waived language was introduced in Mortgagee Letter (ML) 2025-06, Updates to Servicing, Loss Mitigation, and Claims. That ML was updated and replaced by ML 2025-12, Tightening and Expediting Implementation of the New Permanent Loss Mitigation Options, which became effective on October 1, 2025.

Pennymac is aligning with FHA’s policy requirement to provide borrowers with Form HUD-92900-B, Important Notice to Homebuyers is waived. View Pennymac Announcement 25-134 for details.

FHA published Mortgagee Letter (ML) 2025-24, Updates to FHA Appraiser Roster Management. This ML updates the policies and procedures for roster appraiser management in FHA Connection (FHAC). These updates are essential to ensure that the FHA Appraiser Roster remains accurate and reliable, thus ensuring all appraisers meet FHA eligibility guidelines.

Pennymac information about FHA and VA increased loan limits for 2026 are posted in Pennymac Announcement 25-137.

PHH Mortgage posted an announcement regarding 2026 FHA Loan Limit Update for case numbers assigned on or after January 1, 2026.

Capital Markets

In December, the Federal Reserve announced the reappointment of Federal Reserve Bank presidents and first vice presidents. (Jerome Powell's term as chair of the Federal Reserve is set to end in May 2026. However, his term as a member of the Fed's Board of Governors does not expire until 2028… but if you were him, would you stick around?)

By law, all Reserve Bank presidents and first vice presidents serve five-year terms, with each of the current terms expiring on February 28, 2026. In December 2024, the board of directors of each Reserve Bank, representing a wide range of business and community leaders across each district, started a process to assess their president and first vice president across several performance dimensions. Those factors include: the president's active engagement with the local business, financial, and non-profit communities within the district; their effectiveness as the chief executive officer of the Reserve Bank, including developing and implementing the Bank's strategy and leading its staff; and their leadership contributions to the Federal Reserve System as a whole, notably in supporting coordinated System functions and activities.

The new five-year term begins on March 1, 2026. A list of presidents by Federal Reserve district, follows: Boston: Susan Collins; New York: John Williams; Philadelphia: Anna Paulson; Cleveland: Beth Hammack; Richmond: Thomas Barkin, president Atlanta: Cheryl Venable (Raphael Bostic previously announced his retirement as president of the Federal Reserve Bank of Atlanta at the end of his current term); Chicago: Austan Goolsbee; St. Louis: Alberto Musalem; Minneapolis: Neel Kashkari; Kansas City: Jeffrey Schmid; Dallas: Lorie Logan; and San Francisco: Mary Daly.

Good news or bad news first? As we enter 2026, there are certainly reasons for optimism. Mortgage rates ended 2025 dropping for a third straight week to the lowest point of the year. The average 30-year fixed rate was 6.15 percent, continuing the trend of inching lower over the past few months after having begun 2025 at 7.04 percent. The 10-year U.S. Treasury yield finished 2025 about 20 basis points shy of the midpoint of last year's 92-basis point range while the 2-year yield finished just nine basis points above its October low, down 95 basis points from its January peak.

Pending home sales climbed in November to the highest level since early 2023, per the National Association of Realtors, the fourth straight monthly increase. If that momentum, combined with rates sliding lower, continues into the peak buying season of 2026, it is poised to be a better year for the mortgage industry than 2025. We also learned Wednesday that U.S. applications for unemployment benefits fell sharply in the final week of December, with initial claims dropping by 16k to 199k, only the second sub-200k reading in 2025. The data continued a recent trend of government economic reports on jobs, inflation, and growth coming in stronger than economists had expected, hmmm… Despite the low reported level of layoffs, hiring remained sluggish throughout 2025, and the unemployment rate has risen to a four-year high of 4.6 percent (with little expectation for imminent improvement).

Home builders had a difficult year, with sentiment deteriorating sharply as the NAHB housing market index fell deeply into pessimistic territory despite a severe housing shortage. Weak buyer traffic, persistently low affordability, and subdued sales have weighed on the sector, even as mortgage rates have eased and prices have begun to soften. Homeownership rates, particularly among younger households, continue to decline, and purchase activity remains well below long-term norms, underscoring how single-family homes have become unaffordable for many. Still, with home prices now falling in most states, a trend expected to continue in 2026, improved affordability could revive demand, echoing past cycles where declining prices ultimately boosted both new and existing home sales.

There isn’t anything on today’s economic calendar to move markets much as the sole economic report is the final December S&P Global manufacturing PMI, due out later this morning. We begin the first trading day of 2026 with Agency MBS prices a touch better than Wednesday’s close, the 2-year yielding 3.47, and the 10-year yielding 4.15 after closing Wednesday at 4.17 percent (up 15 basis points in December, but down 40 basis points in 2025).