Do you remember when everyone was talking about the lack of housing inventory as a problem for buyers? Those days are long gone: There are now nearly 50 percent more home sellers than buyers as mismatch widens to a record 630,000. (Of course this is depending on price point and location.) And what they’re selling isn’t necessarily new: Per the American Community Survey, it seems that the median owner-occupied house is about 43 years old. As anyone from the building profession will tell you, at any given time the 5 L’s (labor, lots, laws, lumber, and lending) can create problems. Some will say there’s a 2.5 million unit mismatch. There isn’t necessarily a shortage, just the wrong housing stock in the wrong locations at the wrong price points. Regardless of supply and demand, tech marches on, and today at 1PM ET we have Now Next Later, Sponsored by Depth: Jeremy Potter and Mike Yu of Vesta revisit how AI is transforming mortgage communication across calls, texts, and emails. The conversation focuses on improving conversion, reducing missed opportunities, and driving more consistent performance across sales teams. (Today’s podcast can be found here and this week’s ‘casts are sponsored by RelCu. RelCu is the all-in-one agentic platform driving conversion, retention, and cross-sell across mortgage and deposits. Today’s features an interview with Lennar’s Laura Escobar on leadership, housing trends, people-first leadership, and the ongoing evolution of diversity and mentorship.)
Products, Services, and Software for Brokers and Lenders
Don’t panic. AI is moving fast in mortgage lending, but that does not mean lenders need to get lost in the noise. Join the Ohio MBA and LenderLogix CEO Patrick O’Brien on April 14 from 2 to 2:30 PM EST for The Hitchhiker’s Guide to AI in Mortgage Lending, a practical webinar exploring where AI is already creating real value, how it is showing up in mortgage tech today, and how to separate useful innovation from bold claims that sound better than they work. Register now to save your seat.
Commercial lending is rapidly becoming one of the most predictable income streams in real estate, driven by a surge in maturing CRE debt and a tightening banking environment that is pushing borrowers toward alternative financing. Oceanview Commercial Lending has built a system that makes this opportunity accessible by providing brokers with consistent monthly leads, a marketplace of more than 6,000 lenders, and a straightforward daily workflow. With 75 leads a month, a 5–10 percent close rate, and commissions ranging from $2,500 to $25,000 per deal, brokers can generate annual incomes from roughly $225,000 to more than $1 million, depending on consistency and deal size. As $1.5 to $2.7 trillion in commercial loans come due over the next several years, demand for knowledgeable brokers is accelerating, creating a rare window for residential agents, loan officers, and new entrants to expand their business. Those interested can register for the free weekly seminar every Wednesday at 1 PM EST or schedule a one‑on‑one strategy session to explore whether the program is a fit.
“AI-NATIVE vs. AI-ENHANCED: In 2026, the main mortgage tech debate is about the role of AI. Do you rip and replace core systems with AI-native systems? Or can you find smart ways to enhance your current stack with AI? Our CI&T team helps lenders do BOTH successfully, whether it’s replacing/integrating an LOS in record time; augmenting a servicing system of record with voice AI to optimize call center teams; or using already approved/deployed MS Teams as an AI delivery engine for hundreds of LOs to run pipelines hands-free with their voices. AI opens up options for lenders at all growth and budget stages, so you DON’T have to overhaul core systems to innovate fast for your teams and customers. The AI era is much more iterative than that, and we’d love to share proven scale IMB and bank examples with you. Please reach out to Tim Von Kaenel and Dawn Svedberg to talk shop.”
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.
FHA, VA, USDA Program News
Originators keep a keen eye on product mix. Last week’s MBA application survey showed that the refinance share of mortgage activity decreased to 49.6 percent of total applications from 52.3 percent the previous week. The adjustable-rate mortgage (ARM) share of activity is running around 8 percent. The FHA share of total applications is about 20 percent, VA around 16 percent, and the USDA share of total applications is less than 1 percent, but obviously meaningful in rural areas. So what’s happening with USDA, VA, and FHA programs?
The industry’s Owen Lee had some thoughts on the VA program that were entered as official government records.
FHA INFO 2026-06 provides information regarding previously announced errors in FHA’s Neighborhood Watch Early Warning System (Neighborhood Watch). FHA estimated data refresh to be completed on or around Thursday, March 5. In recognition of these issues, FHA will allow flexibility around time frames for case selection and completion of quality control reviews. Continue to check the FHA Connection Message Board and the Latest Refresh Date link under the Help/About tab in Neighborhood Watch for updates.
The Department of Veterans Affairs is open to revising its appraisal standards, per Patrick Zondervan, executive director of the VA Loan Guaranty Service. At a hearing last week by the House VA committee, Zondervan said the agency was “absolutely willing” to examine its appraiser requirements, which call for three years of appraisal experience and a two-year probationary period before an appraiser can become VA certified.
Will it be a change or a reduction? Rep. Chris Pappas, D-NH, said he understood the industry’s desire to align appraisal standards with other lending programs to address the stigma that VA loans are more difficult to process, but was skeptical of reducing standards. “I have to question the logic, though, that we should lower VA standards to meet everyone else, instead of perhaps raising all standards for FHA and USDA to match VA,” he said.
AmeriHome Mortgage February General Announcement 20260204-CL summarizes previously published changes made during February, additional changes made with this announcement, and recent Agency and regulatory news.
MISMO announced that the new Department of Veterans Affairs (VA) Documents Data Mapping for VA Form 26-1820 has reached “Candidate Recommendation” status. This milestone recognizes that the standard has been thoroughly reviewed by a broad range of industry participants and is available for implementation across the mortgage industry.
Ginnie Mae's mortgage-backed securities (MBS) portfolio outstanding grew to $2.909 trillion as of February 2026. View the Press Release for key highlights from the February issuance.
A notice regarding the Single-Family Housing Section 502 Self-Help and Affordable Housing Pilot was published in the Federal Register March 23, 2026. The pilot extends the following program approaches: Appraised values for self-help housing loans may: (1) exceed the maximum area loan limit, and (2) be used to establish the owner’s original equity. However, the Section 502 loan amount must be at or below the maximum loan limit. When an applicant is receiving a housing grant or other form of affordable housing assistance for eligible loan purposes, the area loan limit may be exceeded by those amounts, provided that the Section 502 loan is at or below the area loan limit and is in the first lien position. Pilot states include Alaska, Arizona, California, Colorado, Delaware, Florida, Hawaii, Idaho, Illinois, Maine, Maryland, Michigan, Minnesota, Montana, New York, North Carolina, Ohio, Oregon, Pennsylvania, South Dakota, Tennessee, Washington, Utah, and Virginia.
The Single-Family Housing Guaranteed Loan Program (SFHGLP) published a Final Rule on March 19, 2026, amending 7 CFR 3555 to grant Delegated Lenders participating in the Single-Family Housing Guaranteed Loan Program (SFHGLP) the authority to make loans and obtain Loan Note Guarantees after closing with limited-to-no Agency involvement. The effective date of the Final Rule is June 17, 2026, with implementation occurring on September 28, 2028.
The SFHGLP published a Federal Register Notice announcing the Lender Interactive Test Environment (LITE) Delegated Authority Pilot Program. The pilot program will test a change in the SFHGLP loan approval process by replacing the Agency's pre-closing loan approval requirement with the delegation of loan approval authority to eligible lenders, consistent with the Delegated Authority Final Rule. The Agency will be hosting an informational session for Lenders regarding the LITE pilot program; further details will be forthcoming. The effective date of the LITE Delegated Authority Pilot Program is September 1, 2026. Lenders interested in participating must notify the Agency.
The U.S. Department of Agriculture announced the Rural Housing Modernization Initiative, an effort to upgrade how USDA delivers affordable single-family housing through its Rural Development Mission Area. The initiative strengthens USDA’s two major rural housing programs, the Single Family Housing Guaranteed Loan Program and the Single Family Housing Direct Loan Program, by improving service delivery, reducing unnecessary delays, and aligning processes with current market expectations. The upgrades do not change eligibility standards, funding levels or program safeguards.
Capital Markets
As the conflict in the Middle East doesn’t appear to be ending any time soon, and with the White House continuing to send mixed signals about the status of the war, investors have grown increasingly concerned that higher oil prices will lead to faster inflation and cripple the global economy. March began dovish and ended hawkish, with the shifting macro narrative obviously being a function of the war in the Middle East.
U.S. Treasuries ended Friday mixed, leaving yields little changed for the week despite hitting new 2026 highs, as early losses driven by global market weakness and Iran-related tensions were tempered by news that President Trump would delay potential strikes to allow for negotiations. The final reading of the University of Michigan Consumer Sentiment for March fell to 53.3, below levels from a year ago and tellingly conveying large drops in sentiment among consumers with middle and higher incomes, who are dealing with rising gas prices and falling stock prices.
The Federal Reserve is once again attempting to shrink its massive agency mortgage-backed securities holdings (built up to $2.7 trillion during pandemic-era QE) back toward an all-Treasury balance sheet, but at the current passive runoff pace it could take over a decade. Despite a roughly 26 percent reduction since 2022, the portfolio remains heavily concentrated in low-coupon 30-year MBS, meaning any active sales (though unlikely) would disproportionately pressure those segments. The feared risk of rapid prepayments flooding the market has diminished, as rising Treasury yields have pushed mortgage rates higher and sharply reduced refinancing activity.
This Easter week’s calendar includes month-end tomorrow and March payrolls on Friday’s abbreviated Good Friday session, when the bond market will close at noon (there will be both a Commentary and a podcast on Good Friday). Other data of note includes Fed surveys, house prices, Chicago PMI, consumer confidence, JOLTS, ADP, retail sales, manufacturing and services PMIs, business inventories and trade.
Today’s lone data point is Dallas Fed manufacturing for March, coming out mid-Monday and won’t move rates. There will also be some short-duration Treasury auctions and remarks from Fed Chair Powell and New York Fed President Williams. We begin the week with Agency MBS prices better than Friday’s close by .125-.250, the 2-year yielding 3.88, and the 10-year yielding 4.39 after closing last week at 4.44 percent, up 5-basis points over the course of last week.
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