Fortunately for the readers of this Commentary, we don’t receive federal funding, so it won’t be cut… Unlike groups like NPR and PBS which the Trump Administration call “biased.” Most media have advertising as a source of funding, and speaking of ads, Mark Zuckerberg says ads will soon be handled entirely by AI. Doubt it. But for those interested in lending and artificial intelligence, “artificial” being the key word, here is a story about how high rates and low volumes are accelerating the Rise of AI-Enabled Mortgage Lenders. But technology isn’t going away, and is often a topic on today's Last Word at 10AM PT, Brian Vieaux, Kevin Peranio, and Robbie Chrisman explore the impact of recent economic news and falling mortgage rates on the housing and lending markets. They'll also reflect on key takeaways from the 109th tech-heavy TMBA Annual Conference and preview what’s ahead in the busy spring conference season. (Today’s podcast can be found here and this week is sponsored by CreditXpert, the credit optimization platform that helps today’s top mortgage originators and more than 60,000 mortgage professionals qualify more applicants, make more competitive offers, reduce LLPA premiums and close more loans. Hear an interview with Realfinity’s Kipper Bush on how embedded finance can empower real estate professionals with seamless mortgage solutions at the point of sale.)
Software, Products, and Services for Lenders and Brokers
Leading Lenders: Risk, Reward, and Reinvention dives into how industry leaders are embracing change, overcoming challenges, and driving innovation in today's market. Produced by HousingWire in partnership with Polly, this exclusive docuseries showcases the people and platforms changing how pricing, automation, and strategy intersect. Each episode takes you inside a different lending organization to share their unique perspective on the industry and how they are raising the bar. Episode 1 features Kristin Ankeny Bickenbach of New American Funding, sharing how the company is leveraging strategic technology and automation to empower their loan officers and lead in a tightening mortgage landscape. NAF has redefined how loan officers engage with crucial parts of the mortgage process, including the lock desk, secondary marketing, and customer service. From intuitive pricing systems to high-touch lock desk support, NAF's strategy prioritizes speed, accuracy, and adaptability while staying rooted in its people-first values. View episode!
“Fast. Flexible. Funded in Days. Looking to help your clients tap into their home equity, without the headache? The Loan Store’s Standalone HELOC is a game-changer. With closings in as little as 5 days (12 in Texas) and generous guidelines for both owner- and non-owner-occupied properties, it's a flexible solution for today’s borrowers. We offer up to $400,000 in funding with 85% CLTV, no title insurance requirement, and fixed rate draws. Plus, our direct debt payoff feature helps more borrowers qualify by eliminating personal loans and credit card debt at closing. And the best part? Our wholesale partners earn 200 bps comp on every HELOC they close. Let’s connect and show you why brokers across the country trust TLS to deliver fast closings and outstanding service. Reach out to your Account Executive today or visit www.theloanstore.com.”
Take a ride on the space elevator and you’ll scroll through rainstorms, clouds, and jet streams, all unfolding in the troposphere, the layer of the atmosphere where life as we know it unfolds. That’s the inspiration behind Tropos, the new digital lending platform built for the part of lending where real connections form. Unlike portals that stop at data collection, Tropos was built to reimagine how borrowers and loan officers engage across every product you offer. Missed yesterday’s big reveal? The forecast is still clear. Explore Tropos.
Lender, Agency, and Investor Changes
Brokers and lenders are certainly watching UWM expand its Rocket rivalry into mortgage loan servicing by signing a long-term agreement with ICE Mortgage Technology which “helps the nation's largest mortgage lender bring $242B loan servicing portfolio in-house, and boost repeat business and referrals.
The industry is also watching the latest class action lawsuit against United Wholesale, which the company calls baseless: UWM faces allegations of mishandling 401(k) assets in class action suit. Filed Monday in a Michigan district court, the lawsuit accuses UWM of violating the Employee Retirement Income Security Act (ERISA).
Meanwhile, Agencies, investors, and lenders are changing policies, procedures, and reacting to Trump Administration directives.
USDA Rural Development April 23 Bulletin announced Interest Rate Decrease for SFH Direct Programs.
HUD issued Mortgagee Letter 2025-12, which establishes FHA’s requirements for the servicing of FHA-insured mortgages, including those in Default, and filing associated claims. Donna Schmidt, Managing Director of DLS Servicing, has some opinions about the notice (link to FHA Final Rule).
In support of aspects of the Mortgagee Letter, Donna noted the following. “The Borrower will not be eligible to receive more than one Permanent Home Retention Option in a 24-month period except in cases of natural disasters; [Change from 18 months to 24]. The implementation deadline has been expedited.
In opposition to other parts, she said, “If the borrower can afford the current payment – FHA wants the servicer to evaluate for a standalone modification. If the payment is lower, then the servicer must offer the stand-alone modification. The only borrowers who will qualify for this option in the current interest rate environment will be those borrowers in seasoned loans (older than 7 years), given the difference in the interest rate from 7 years ago: These borrowers will most likely see an increase in their interest rate, plus a repayment period of another 7 years or more. Overall, a net negative to a borrower emerging from a recent default. There is still no opportunity for those borrowers who need more assistance to obtain it. For example, borrower #1 is deceased and was the major income earner. Borrower #2 is seeking assistance for the first time in the life of the loan. The streamlined calculation requires that the P&I be calculated to reduce by 25 percent. After performing the calculations to reduce by 25 percent, there remains available partial claim funds and borrower #2 would still struggle to make the new proposed payment. There is no option to allow a further reduction of the P&I to bring the payment to an affordable level for this borrower who has seen a significant reduction in household income.” Thank you, Donna.
The Department of Veterans Affairs published Circular 26-25-2, formally announcing the imminent closure of the Veterans Affairs Servicing Purchase Program (VASP) with one week remaining. As of yesterday, the VA will no longer accept new VASP enrollees, including new VASP Trial Payment Plans (TPPs), and mortgage servicers must remove the VA Home Retention Waterfall from their loss mitigation programs.
The MBA wrote, “VASP’s eventual wind down has been widely known since early April and concludes a rollercoaster story after only six months as a loss mitigation program/option. Although the VA will allow active TPPs to continue through August 31, 2025, financially distressed veterans are now without a viable foreclosure prevention alternative. Nonetheless, the VA will continue to accept, and expect servicers to complete, the transfer of 18,000+ loans the VA’s contractor has purchased. In the meantime, mortgage servicers must adjust their operations and processes within one week.
“It is VA’s position that VASP is a mandatory spending program and that it expects to meet its obligations and purchase all qualified loans successfully submitted and certified. Nonetheless, MBA will continue investigating any risk of servicers not receiving payment after meeting VASP’s final deadlines.”
Arch MI reminds clients who are originating non-QM and jumbo loans of its AMGC Home Program. “Arch Mortgage Guaranty Company® (AMGC) was created to reduce your exposure and support portfolio lending by providing credit loss protection on prime, standard, and non-standard qualifying loans. The company has the highest Mortgage Insurer Financial Strength ratings in the U.S. MI industry. With AMGC, you can explore new lending opportunities and loan products while limiting your portfolio’s risk exposure.
“Our eligibility requirements are straightforward. The Lender must be approved for an AMGC Master Policy (AMGC Master Policy application). Full non-delegated Arch MI underwrite on all loans submitted. Prime quality loans only. Loans insured with AMGC are not eligible to be sold to the GSEs. With AMGC, you can originate a wide range of mortgages to support your strategic goals: Jumbos, loans intended for private securitization, and Non-Qualified Mortgage loans.
AmeriHome accepted the updates in the timeline provided by FHA with FHA INFO #2025-04. Unless otherwise stated in AmeriHome 20250406-CL Product Announcement, these updates may be implemented immediately but are mandatory for case numbers assigned on or after April 10, 2025.
AmeriHome Mortgage 20250311-CL General Announcement summarizes previously published changes made during March, additional changes made with this announcement, and recent Agency and regulatory news.
PHH Mortgage posted a Credit Policy Update Announcement regarding its following of FHA guidance regarding NPRA.
PHH Mortgage announced updates and clarifications to its Non-Agency Gold DSCR program.
Coming in May 2025, AmeriHome is expanding availability of the Non-QM Expanded and Non-QM DSCR product offerings to include approved Sellers for Delegated Underwriting, providing Sellers with multiple underwriting options. Additional information is available in
AmeriHome Mortgage 20250403-CL Product Announcement.
JMAC Lending has Spring Price Improvements up to 125 bps on DSCR PRIME. Plus, 5-8 Units and 2-8 Mixed-Use.
Get Ready to Power Up with LoanStream Mortgage Wholesale Specials - they're here and better than ever. Take advantage now for loans locked 4/1/2025 through 4/30/2025, offering huge Price Improvements, the best part is you can combine our April Special and Select Specials.
The latest on DSCR for Investors from LoanStream Wholesale. Program highlights 85% LTV for Purchase, Rate & Term Refi, 75% LTV for Cash-Out, down to .75 with 70% LTV, Loan amounts to $3,500,000, Down to 620 FICO. Non-Warrantable Condos OK. Short-term rentals! Airbnb, VRBO, Purchase, Rate & Term Refi, Cash Out.
Pennymac Announcement 25-36: AUS Jumbo Program Updates: Appraisal Update Clarification.
Citi Correspondent Lending is updating policy related to condo/co-op project insurance requirements, effective with new loan registrations on/after 4/18/25. We encourage you to take a few minutes to review the information provided in the announcement (link below) and share with appropriate staff. Click here to view the full announcement for more details, which includes details around impacts to Non-Agency and Agency loans.
Faster Closings, Happier Clients with Hybrid eClose at Kind Lending. Hybrid eClose combines digital convenience with traditional security to streamline the closing process. Some documents are signed electronically ahead of time, while key notarized documents still receive the in-person “wet signature” treatment. Experience the speed and ease of a Hybrid eClose with Kind Lending.
Capital Markets
Recent data suggests that the U.S. economy would be on solid footing were it not for the uncertainty created by President Trump’s tariffs, which have dampened both consumer and business confidence. While some Federal Reserve officials express skepticism toward survey-based inflation metrics, favoring market-based measures (e.g., the spread between nominal and inflation-indexed securities) due to the financial stakes involved, the broader market has largely dismissed early-year weakness in growth. Much of that slowdown was attributed to a temporary surge in imports, rather than a fundamental shift in economic momentum. Strong consumer spending data has supported investor confidence, encouraging a focus on core economic strength rather than transitory disruptions.
Despite this optimism, 10-year Treasury yields continue to drift toward the lower end of their recent range, reinforcing the market’s bullish tone. However, the continued presence of tariffs raises the risk of weaker data ahead, though the extent of their impact remains uncertain.
Investor sentiment has become more positive amid strong technology earnings and signs of progress on trade, helping fuel a broader risk-on rally. However, this optimism is tempered by mixed signals elsewhere, such as General Motors slashing its outlook due to tariff impacts and McDonald’s reporting a sharp Q1 sales drop amid growing consumer unease. Hopes for tariff relief have been rekindled as the White House has signaled pending reductions for select countries and renewed engagement with China on trade talks.
The timing, ahead of the May Refunding Auctions from the Treasury, appears calculated to help restore market confidence and reduce volatility. Although markets are not fully normalized, they are beginning to stabilize. Still, weaker labor data, reflected in disappointing JOLTS and ADP reports, suggests employers remain cautious, with future hiring trends largely dependent on how trade negotiations unfold and whether the economy can avoid a deeper downturn.
We saw a healthy rise in the most recent personal income and spending figures, with incomes up 0.5 percent and spending up 0.7 percent, while inflation, as measured by the PCE Price Index, cooled significantly, breaking the upward trend seen in late 2024. Despite weaker hiring data from ADP and a spike in Challenger layoffs, the broader labor market remains stable for now, though concerns persist that unemployment could rise soon. The divergence between soft sentiment indicators and hard economic data, such as Q1’s negative GDP print, highlights the current uncertainty.
The week closes with the April payrolls report and March Factory Orders. Headline payrolls were stronger than expected at +177k when the number was expected to drop to 125k from the previous release of 228k (which was revised down to +185k). (For reference, the average payroll growth over the past six months has been +181k.) The unemployment rate was unchanged at 4.2 percent, as expected; average hourly earnings were +.2 percent. After the jobs data, and with the backdrop of analyzing the hit on the U.S. economy of tariffs, we begin Friday with Agency MBS prices roughly unchanged from Thursday’s close, the 2-year yielding 3.72, and the 10-year yielding 4.23 after closing yesterday at 4.23 percent.
Get Rob Chrisman Daily by Email
