What happens if labor or materials become too expensive here in the United States? Despite the move toward rejuvenating the manufacturing-based economy in the United States by the current Administration, people will follow the money and go elsewhere, whether it be dental work, hair transplants, or… manufactured housing. With the high cost of home construction, more Americans are becoming curious about working with Chinese suppliers on their renovations. The price of home construction materials in the United States increased by 3 percent from last year, according to the National Association of Home Builders. And since 27 percent of those materials came from China (in 2023), some US homebuilders are thinking of skipping the middleman like Home Depot and local contractors. (Today’s podcast can be found here and this week’s ‘casts are sponsored by Figure, which is shaking up the lending world with their five-day HELOC, offering borrower approvals in as little as five minutes and funding in five days. Figure has hundreds of partners in the Banking, Credit Union, Home Improvement, and of course, IMB space embedding their technology. Today’s has an interview with WSFS Bank’s Jeffrey Ruben on how homeowners can strategically tap their equity while navigating today’s rate environment, avoiding common renovation financing pitfalls, and understanding why many are calling this the “golden age” of HELOCs.)

Lender and Broker Products and Services

Your workflow is already built. Your systems are already in place. Your credit reporting partner should support that. Advantage Partners Solutions gives you access to two platforms: Credit Interlink and MeridianLink Mortgage Credit Link. Both are fully supported by the same team. You choose the platform that fits your loan origination system. Your process stays intact. Your team keeps moving. No disruption. No retraining cycles. No forced transitions. This is an industry-first kind of structure that aligns to your operation and scales with your production volume. It allows your team to maintain momentum while gaining the support of a partner who understands your environment. See how this fits inside your operation and how both platforms support your workflow without interruption. Review your setup and compare it to a model designed to adapt to you and move forward with clarity: Schedule an intro today.

“Join JazzX at HousingWire The Gathering in Austin this week and see how top lenders are putting AI to work: cutting manual effort, speeding up loan cycles, and improving borrower experience. Stop by our kiosk to get a quick look at how we automate document workflows, surface real-time insights, and fit into your existing systems without disruption. We’ll share what’s actually working across lenders today, not just theory. Want dedicated time? Request a demo.”

Mortgage lenders do not have a data problem. They have a signal problem. There is more borrower information available today than ever before. The challenge is knowing which insights actually matter and when they should surface in the workflow. That is the idea behind the Xactus360 Intelligent Verification PlatformSM. Deliver the right data at the right time so lenders can make better loan decisions faster. Because in a market full of noise, recognizing the signal is what moves loans forward. See how lenders are recognizing the signal. Learn more here.

Two of the industry’s most influential voices are coming together for a conversation worthy of your time. On Thursday, May 14 (2–3 p.m. ET), the Mortgage Bankers Association will host its 2nd annual State of the Market webinar, featuring Dark Matter Technologies’ CEO Vikas Rao and MBA’s Chief Economist Michael Fratantoni. This session will offer a grounded, data-informed view of what lenders are facing now, from shifting economic conditions to evolving borrower expectations. Attendees can expect practical insight into AI’s growing role, next-generation LOS capabilities and servicing innovations that are reshaping loan manufacturing. More importantly, it’s an opportunity to hear how these two leaders are thinking about what comes next and what lenders should be doing now to stay competitive, operate more efficiently and meet rising expectations without adding friction. Tune in, take notes, and stay ahead of the curve.

Sign, sign. Everywhere a sign. LoanCare’s latest guide, “Unlocking Retention Opportunity,” breaks down how lenders are leveraging borrower signals to uncover refinance prospects early, before they walk out the door. Personalized outreach and embedded engagement across servicing touchpoints are key in turning signals into opportunities. As the largest non-originating subservicer, LoanCare never competes for your customers; they help you capture the opportunity in your portfolio. Download the guide and keep more of what is already yours.

AI is starting to feel a little like pumpkin spice. It is everywhere, everyone says they have it, and the real question is whether it actually improves anything. LenderLogix just introduced LiteSpeed Intelligence, AI built directly into its Encompass-native point of sale. It works in two parts: Sidekick, an on-demand assistant that helps LOs summarize loan files, spot red flags, and identify what needs attention, and Agents, an automated back-end workforce that organizes uploaded docs, corrects orientation, splits files when needed, and indexes them into the Encompass eFolder. In other words, some AI you use, and some AI just gets the work done. Learn more about LiteSpeed Intelligence here!

“Blue Water Financial Technologies: Our VAULT (Verified Asset & Universal Loan Transfer) Doc-to Data solution can be customized for your business needs. Whether it is daily flow, a large transaction or audit support, we have the ability to exceed your expectations. Our process seamlessly Ingests, Digitizes, Analyzes and Delivers results field level results in your desired format. 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.”

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’s Consumer Direct Workshop

Consumer Direct isn’t getting any easier. Between tighter margins, more informed borrowers, and relentless competition, lenders are being forced to rethink what actually drives performance. That’s exactly the focus of STRATMOR’s upcoming Consumer Direct Workshop, where consumer direct mortgage leaders and STRATMOR experts will share what’s working right now, from marketing and conversion to borrower engagement and call center effectiveness. This virtual workshop is for lenders only and will take place May 19-20, 2026. Split into two, 90-minute sessions, it’s a candid, data-driven workshop (and one of STRATMOR’s most popular events), with plenty of practical takeaways for lenders looking to sharpen their edge in today’s market. Learn more and register now: https://www.stratmorgroup.com/stratmor_event/cdw/

Training and Webinars

Today we have Now Next Later at 1PM ET, sponsored by CloudVirga! Jeremy Potter and Sasha Stair are joined by Josh Friend of Insellerate to discuss how AI is reshaping mortgage sales engagement. The conversation explores automation, data-driven outreach, and how lenders can improve conversion without losing personalization.

Tomorrow is Mortgages With Millennials at 1PM ET, sponsored by Depth! Bri Lees and Robbie Chrisman are joined by Phil Bracken to break down what the next decade of housing could look like. The discussion focuses on demographic shifts, affordability pressures, and the structural challenges shaping future homeownership.

Four new shows are coming to the Chrisman network, covering the biggest topics in mortgage right now with the Capital Markets Wrap moving to Wednesdays. Registration is open for these live, monthly, and free shows: The AI Show (a monthly panel on AI in mortgage... What's working, what's coming, and what you need to know, first episode May 6 sponsored by JazzXai), Credit Committee (bureau leaders, credit strategists, and data experts on camera together talking about what's changing in credit, first episode May 20 and sponsored by Equifax), Recapture Wars (the recapture fight in mortgage servicing… Who's winning, who's losing, and what the smartest shops are doing differently, first episode May 27), and The Hill: A Marketing Show (starting Tuesday, May 12, one thesis per episode about mortgage marketing, one guest in the room to prove it or fight it, one hill worth dying on... the first editorial podcast in mortgage, hosted by Bri Lees).

What Contractors are Thinking

Contractors across the U.S. came into 2026 with dampened expectations: While most project categories still show some level of optimism, according to a survey by the Federal Reserve Bank of Dallas, confidence has clearly weakened compared to the previous year. Out of 17 construction segments, only data centers and power saw increased optimism, with data centers standing out as the strongest growth area by far. In contrast, several sectors (especially private offices, retail, lodging, and education) are now viewed pessimistically, reflecting ongoing shifts in how people work, shop, and travel. Texas contractors remain somewhat more upbeat than the national average, with continued confidence in health care, water infrastructure, and certain manufacturing projects, but even there the outlook has softened. Overall, the industry is still growing, but with less momentum and more uncertainty. That uncertainty is driven largely by macroeconomic and policy concerns. A potential economic slowdown or recession tops the list, cited by 62 percent of respondents, alongside persistent issues with labor availability, quality, and cost. Materials costs (especially for metals like steel, aluminum, and copper) have surged again, largely due to tariffs, pushing contractors to raise bids or pass costs on to clients. Immigration enforcement has also disrupted the workforce, particularly in states like Texas where a large share of construction labor is foreign-born, contributing to wage increases as firms compete to retain workers. At the same time, broader structural changes (i.e., remote work reducing demand for office space and weakening downtown economies) are reshaping what gets built, with more emphasis on renovation and repurposing rather than new office construction. Despite these circumstances, contractors are not pessimistic about their own businesses. A majority still expect to grow headcount in 2026, supported by steady backlogs and emerging opportunities in areas like data centers, power infrastructure, and certain types of manufacturing. Residential construction, especially in previously overheated markets like Austin, has been weak but could begin recovering as mortgage rates stabilize and supply-demand imbalances correct. Ultimately, the industry sits at a crossroads: caught between economic fragility and powerful long-term investment trends, particularly those tied to infrastructure and the rapid expansion of AI-driven demand for energy and data capacity.

Capital Markets

It could take the Federal Reserve at least six months to move ahead with interest-rate cuts, according to a Reuters poll of economists, with elevated energy prices affecting the central bank's calculus. Nevertheless, 71 of the 103 economists in the poll still expect at least one cut.

As we all know, a geopolitical and economic standoff continues over the Strait of Hormuz, with both sides appearing willing, and then not willing, to de-escalate tensions. Economic fallout from the broader war is increasingly visible in U.S. consumer behavior: sentiment in April fell to a record low in data stretching back to 1978, driven by surging gasoline prices, inflation concerns, and declining affordability. Gas prices, elevated around $4 per gallon, are expected to stay high for months, weighing on household outlooks even as spending remains resilient.

As most of you know, bond yields are anchored in a narrow range as investors weigh resilient economic data and risk appetite against (mounting) global growth risks and geopolitical uncertainty. The Federal Open Market Committee meets this week, and its monetary policy update will be released on Wednesday. Consensus is for no change to the fed funds rate while addressing the recent uptick in inflation and softening labor market conditions. The Committee is expected to incorporate open-ended language that leaves its options open for future adjustments.

The Federal Reserve’s apparent willingness to look through supply-driven inflation shocks has reinforced expectations that policy may not tighten aggressively, yet markets remain skeptical of prolonged inaction. The dominant strategy has been to fade extremes in rate expectations while awaiting clearer signals, either from a sustained easing in geopolitical tensions or more decisive shifts in economic data, which could break the current equilibrium.

Meanwhile, the confirmation of Kevin Warsh as the next FOMC Chairman is expected to move forward, following the DOJ’s decision to drop its criminal probe into Jerome Powell. Dropping the criminal investigation, widely criticized as politically motivated, removes a major hurdle to confirming Kevin Warsh, especially after Senator Thom Tillis threatened to block the nomination unless the probe ended. Initially framed around cost overruns at the Fed but broadly seen as pressure tied to interest rate policy, the investigation has raised significant concerns about central bank independence and potential politicization of the Justice Department.

While its dismissal may ease Warsh’s path, it does not resolve deeper tensions: Powell has pledged to remain on the Fed’s Board through his term unless the matter is settled with “transparency and finality,” and analysts question whether the administration’s move meets that standard or simply pauses the threat. Critics warn that the willingness to revive such probes, or target other Fed officials, signals ongoing political pressure, reinforcing fears that future leadership changes could be perceived as politically driven rather than grounded in economic judgment.

Highlights of this week’s packed economic calendar include February house prices from FHFA and S&P Case-Shiller, April Consumer Confidence, February and March Housing Starts and Building Permits, durable goods orders, the trade balance, advanced indicators (retail/wholesale inventories, and the trade deficit), February and March New Home Sales, the April FOMC Decision (no rate cut expected), Q1 GDP, March Personal Income and Spending, PCE and Core-PCE, Global U.S. Manufacturing PMI, March Construction Spending, and the April ISM Manufacturing Index. Woof!

Today’s calendar is devoid of scheduled news but will see Treasury auction $69 billion of 2-year notes and $70 billion of 5-year notes, both good barometers for investor demand. We begin the week with Agency MBS prices unchanged from Friday’s close, the 2-year yielding 3.79, and the 10-year yielding 4.31 after closing last week at 4.31 percent, up six-basis points over the course of the week.