This is the month of the MBA’s National Secondary in Manhattan. For some trivia, the nickname "The Big Apple" originated in the 1920s in reference to the prizes (or "big apples") rewarded at the many racing courses in and around New York City. However, it wasn't officially adopted as the city's nickname until 1971 as the result of a successful ad campaign… So ads do matter. Mark Zuckerberg thinks that ads will soon all be generated by AI. Not so with legal issues, right? Not so fast: In the UK, Garfield is offering basic legal work that is AI generated. Will AI generate actions for humans to follow? “Rob, did the CFPB send out a memo outlining its priorities going forward?” Yes, it did, unfortunately through the former Twitter: X. Here’s the memo. Things like supervisory exams will drop by 50 percent because they’re expensive, a shift in attention to depository institutions and away from non-depository companies. And a focus on actual fraud against consumers. (Today’s podcast can be found here and this week’s are sponsored by HomeEQ, the fully digital HELOC from Arc Home, which empowers brokers to quickly provide borrowers with easy access to their home equity. Brokers can benefit from competitive compensation, along with comprehensive training and a complete marketing plan designed to help them re-engage former clients and grow their business. Hear an Interview with Vesta’s Mike Yu on hype versus reality when it comes to AI tech in mortgage, and how companies can vet technology vendors.)

STRATMOR on Technology Survey Findings

On today’s episode of the Advisory Angle presented by the Chrisman Commentary, STRATMOR Group Senior Partner Nicole Yung will reveal some of the key findings from the 2024Technology Insight® Study Digital Innovations module, STRATMOR's annual deep dive into the latest digital trends and advancements transforming the mortgage industry. From trends in automation to digital capabilities and their perceived benefits and barriers, Nicole, along with STRATMOR Senior Partner Garth Graham and Senior Advisor Sue Woodard, will discuss how lenders can harness these innovations to enhance efficiency, reduce costs, and improve customer experiences. Don't miss this opportunity to tap into the latest trends and insights driving success in mortgage technology.

Software, Products, and Services for Lenders and Brokers

United Wholesale Mortgage (UWM), the nation’s largest mortgage lender, has selected ICE Mortgage Technology’s industry-leading MSP® loan servicing system to power its servicing strategy and bring servicing operations in-house. MSP streamlines the entire servicing process from boarding to default and provides world-class capabilities that drive repeat and referral business. “Our solutions simplify every stage of the loan lifecycle to promote a smoother, more efficient and more cost-effective mortgage experience for everyone involved,” said Tim Bowler, President of ICE Mortgage Technology. “As a neutral provider of third-party software, lenders and servicers can rest assured that we will always be in their corner, helping them support the American dream of homeownership and working to make them successful every day.” Read the full release here to see why UWM chose MSP as the system of choice to power their servicing operations.

“Join the TMS Correspondent and Servbank subservicing teams at the MBA Secondary and Capital Markets Conference in New York City on May 19-20. Discover how TMS Correspondent can grow your production through our DSCR, renovation, and HFA programs in AZ, CA, CO, OH, and TX. Learn about expanding your builder business through our builder forwards and extended lock program. As the nation’s premier bank subservicer, Servbank provides tailored subservicing solutions that meet your specific needs, while seamlessly operating as an extension of your brand. Their best-in-class service keeps your customers satisfied and loyal. While they handle the servicing on the full suite of products, from traditional loan programs, to HELOCs, ARMs, and Non-QM loans, you can focus on what matters most: growing your business and your brand. Schedule a meeting with us by emailing: Servbank: partnership@servbank.com TMS: correspondent@themoneysource.com.”

Stop Wasting Hours on Policies. Start Closing More Loans. In today’s market, top-performing mortgage businesses focus on what actually drives revenue, and even though it’s required, writing regulatory policies probably isn’t it! Firstline Compliance creates exam-ready, agency-approved policies tailored to your unique business model, not recycled templates. Whether you’re looking to streamline licensing, sail through audits, or keep your policies current, we’ve got you covered. Our policies are customized to your business model, battle tested against state and federal examinations and have helped our clients obtain approval by Agencies like FHA, VA, and USDA, as well as Fannie and Freddie. And our Annual Update Subscription keeps everything current, all at a lower cost than DIY or generic templates. Stop settling for cookie-cutter compliance. Reach out to Ashley Bradford or call 469-717-4232 to get started.

“Meet Axos Bank at MBA Secondary in New York! Axos Bank is heading to the MBA Secondary & Capital Markets Conference in New York, May 19–22, 2025! Our Wholesale & Correspondent and Warehouse Lending teams will be on-site and ready to connect.

Wholesale & Correspondent Lending: Led by J Shoop, our team delivers competitive, flexible mortgage solutions tailored for today’s market, featuring Super Jumbo ($30MM), buy-before-sell, unlimited cash-out (to max LTV), pledged assets, and cross-collateralization. Ask us about our Quick Pricer for instant rate comparisons. Warehouse Lending: Connect with Eric Nelepovitz and Bobby Martini to learn how Axos supports your liquidity needs. Our warehouse platform offers stable funding, extended 6:15 p.m. ET cutoff times, and wide product eligibility to help you grow with confidence. Let’s connect in New York! To schedule a meeting, email the team directly or call us at 888-764-7080. We’re excited to support your success in 2025 and beyond.”

“Alternative income solutions: expanding your lending toolkit. Looking for better ways to serve self-employed borrowers? Join Logan Finance at MBA Secondary in New York (May 18-21) to see how our Bank Statement, 1099, and P&L loans are changing the game for entrepreneurs. Our team (Don Pace, Bobby Love, Aaron Samples, Paul Jones, Angelo Zakis, and Dylan Montana) will be onsite discussing how these flexible qualification methods can help you capture the growing self-employed market (16.2 million Americans and counting!). With loan amounts up to $3M and simplified documentation requirements, we're helping brokers say "yes" when conventional lenders say ‘no.’ We work hard to make non-QM easy, especially for alternative income borrowers. Learn more.

PlainsCapital Bank National Warehouse Lending, a subsidiary of Hilltop Holdings (NYSE: HTH), focuses on relationship-driven business with long-term success. By-the-way, have you heard about our BTW Services? We are pleased to offer all customers our Broker-Dealer, Treasury Management and Warehouse Lending (BTW) services. Our Broker-Dealers can help customers hedge their origination pipelines by buying and selling TBAs, specified pools and whole loan trading. Our Treasury Management team helps customers with escrow and cash management. Finally, the Warehouse Lending team provides customers with confidence to meet their loan funding needs. If you attending the MBA Secondary Conference in NY and interested in learning more about PlainsCapital Bank National Warehouse Lending please contact John White.”

“Unlock Versatile, Trusted Liquidity with MAXEX! Grow your Non-QM and DSCR business confidently with MAXEX. Access premium liquidity and competitive pricing from top investors through one approval. Benefit from clear guidelines, innovative programs like WVOE, streamlined non-delegated processes, customized exceptions, and efficient bulk trading. MAXEX supports originators at all experience levels. Meet us at MBA Secondary or visit MAXEX.com.”

Service 1st, Covius’ national appraisal management solution, is excited to sponsor the upcoming ACES Engage conference in Colorado Springs May 18th-20th. Service 1st offers residential and commercial appraisal solutions that are ideal for lenders, servicers and investors looking to reduce costs while improving productivity and maintaining the highest standards of quality and compliance. Service 1st and our ACES Platform Lead, Dante Petrella, also provide dedicated support for clients ordering through the ACES platform. While at the conference, meet with Dante and learn how Service 1st solutions can benefit your business.”

Conventional Conforming News

China is diversifying its $3.2 trillion in foreign reserves away from US Treasurys, driven by concerns over the stability of US policies under President Donald Trump. The State Administration of Foreign Exchange is exploring alternatives such as mortgage-backed securities and agency bonds from Fannie Mae and Freddie Mac. This move comes as China seeks to mitigate risks of potential US-China financial confrontation and to avoid scenarios similar to the freezing of Russian assets.

Effective April 25, 2025, Freddie Mac enhanced Loan Coverage Advisor® to expand the repurchase alternative with a more efficient and transparent fee-based structure. See how you can potentially receive immediate representation and warranty (R&W) relief upon fee collection. View the Freddie Mac Release Notes.

Freddie Mac’s Uniform Appraisal Dataset (UAD) 3.6 and Forms Redesign team have developed new and updated existing documentation to support ongoing implementation efforts, including: New Frequently Asked Questions (UAD 3.6), New Lender Preparedness Webinar Recording, Republished Sample Scenario PDFs (Combined), Republished Condition and Quality Rating Definitions PDF, and Updated Lender Readiness Kit.

Discover how you can leverage Income Calculator to ensure efficiency and minimize quality risk on complex income calculations like self-employment and rental properties. Read this issue of Fannie Mae’s Quality Insider and learn how to increase certainty with our award-winning Income Calculator.

Review recent Fannie Mae policy changes and updates from the Selling Guide, Servicing Guide, Lender Letters, and Desktop Underwriter® (DU®)/Desktop Originator® (DO®) release notes all in one place, In Case You Missed It (ICYMI).

Don’t miss the Uniform Appraisal Dataset (UAD) 3.6 and Forms Redesign Lender Preparedness Webinar recording, updated FAQs, and more on the recently refreshed UAD web page. This Fannie Mae page serves as your hub as you transition to the new UAD.

Pennymac updated Conventional and Jumbo LLPAs effective for all Best Efforts Commitments taken on or after Tuesday, April 29, 2025, Pennymac Announcement 25-46 - Updates to Conventional and Jumbo LLPAs.

Pennymac updated Jumbo LLPAs effective for all Best Efforts Commitments taken on or after Friday, May 02, 2025, Pennyman Announcement 25-47 - update Jumbo LLPAs.

Pennymac will update Conventional LLPAs effective for all Best Efforts Commitments taken on or after Monday, May 5, 2025, Pennymac Announcement 25-48: Updates to Conventional LLPAs.

Both Freddie and Fannie are, of course, active in the secondary markets. For example, as part of the government-sponsored enterprise’s ongoing effort to reduce its retained mortgage portfolio, Fannie Mae announced plans for its latest sale of non-performing loans.

Recall that Fannie Mae’s net income fell in the first quarter 11 percent from Q4 2024 as net worth climbed nearly 4 percent to $98.3B Fannie Mae had $3.66 billion in net income for the first quarter of 2025, down from net income of $4.13 billion for the prior quarter. The company, however, now has a net worth of $98.3 billion as of March 31, 2025, up nearly 4% from $94.7 billion at the end of 2024.

Freddie Mac posted a profit of $2.79 billion for the quarter ended March 31, up 1% from the year before. Revenue rose 2% to $5.85 billion, primarily driven by higher net interest income, Freddie Mac said. Income in the single-family segment rose 16%, while multifamily fell 35%.

Capital Markets

If the US Dollar isn’t the world’s leading currency, what is? And what is it backed by? Before we get to today’s Federal Reserve rate-(non)decision, we have a couple of other developments to discuss. Namely, skepticism is rising about the dollar’s role as the world’s reserve currency and the reliability of U.S. Treasuries as a safe-haven asset. Investor concerns are being driven by the Trump Administration’s increasingly unpredictable use of executive power, contributing to currency volatility and challenges to market confidence. Reports over the weekend of Asian exporters shifting away from dollar holdings further underlined the unease around the greenback’s standing in global trade.

Despite these concerns, April’s strong nonfarm payroll report reinforced perceptions that the U.S. labor market remains healthy for now. The strength in jobs has emboldened President Trump’s aggressive trade stance, with equity markets responding positively to signs that his rhetoric may soften. Still, falling oil prices and persistent global growth fears are pressuring inflation expectations. U.S. services sector activity accelerated in April, with both S&P Global and ISM PMIs showing expansion, though rising input prices tempered the upbeat data.

As markets digest these mixed signals, the broader expectation is for the Fed to remain on hold today, with attention turning to Fed Chair Powell’s press conference this afternoon for clues on future policy direction. With no updated projections or Summary of Economic Projections (SEP) this meeting, investors will focus on Powell’s remarks for insights into how the central bank views the Q1 GDP contraction and the inflation outlook. While political pressure for easier policy is growing, economic signals remain mixed, offering little clarity on whether rate cuts are imminent. The market will closely parse Powell’s comments, especially in light of President Trump’s preference for looser monetary conditions.

Yesterday's $58 billion 3-year note auction was met with decent demand ahead of today's $42 billion 10-year note auction. The entire slate of Treasury Refunding Auctions this week will offer a key gauge of market demand for U.S. debt (reread the first paragraph of this section if you don't understand why this is important), especially in light of rising tariffs and concerns about foreign participation. While the structural demand for Treasuries remains intact, investors will scrutinize the breakdown of auction participants for any signs of weakening global appetite. For now, markets remain caught between resilient fundamentals and mounting political and global headwinds.

The March trade deficit is on today's economic calendar. (Expectations are for the deficit to deteriorate to $130.0 billion from $122.7 billion.) Later today brings Redbook same store sales and the aforementioned Treasury auction of $42 billion 10-year notes. Tuesday starts with Agency MBS prices unchanged from Monday’s close, the 2-year yielding 3.81, and the 10-year yielding 4.34 after closing yesterday at 4.34 percent.