“What do you call an aging actor who has finally paid off his house? Mortgage freeman.” Servicing is a highly important component of that, and I was fortunate to attend Sagent Ignite in Phoenix yesterday; we have a special live podcast today that was recorded from the event. Mortgagees follow demographics, whether it be aging owners or aging houses. Lenders know that there are plenty of old homeowners who have plenty of equity. GreenPath Financial Wellness (a nonprofit approved by the U.S. Department of Housing and Urban Development -HUD - and the National Foundation for Credit Counseling) reviewed data from its reverse mortgage counseling clients over the past two years. It found that more older homeowners are turning to home equity to close widening monthly budget gaps. Meanwhile, our housing stock isn’t getting any younger. The median home in the United States is at a record 44 years old, as new unit construction is still well shy of what it had been in the past. One ramification of this is that it’s getting more expensive to maintain those homes. The average homeowner in the United States spent $9,030 on replacement projects in 2023, up 59 percent from 2009. (Today’s podcast can be found here and this week’s ‘casts are sponsored by FirstClose, which provides fintech solutions to HELOC and mortgage lenders nationwide. Their home equity lending platform accelerates the home equity lending process, reducing application to closing times from 45 days to less than ten. Today we have an interview with Chris Marshall of Sagent at its 2026 Ignite Conference, as well as Scott Rodeman (Evergreen Home Loans), Chris Wittrig (Land Home), and Jane Roethler (Idaho Housing and Finance Association) on the latest and greatest in servicing technology.)

Lender and Broker Products, Software, and Services

Warehouse lenders looking to truly upgrade their systems and processes are implementing Greyhound by OptiFunder. OptiFunder pioneered connecting warehouse lenders to IMBs, and today Genesis and Greyhound link originators and lenders within a single secure infrastructure that streamlines activity from funding through paydown. As the only warehouse platform natively integrated with Genesis, Greyhound connects directly into the ecosystem where an estimated one in four warehouse loans are funded today. With expanding integrations across LOS platforms, investors, custodians, and more than 60 warehouse partners, OptiFunder continues to unify the industry. To learn more, connect with the team at the MBA Secondary Conference or schedule a demo online.

When mortgage lending operations become sluggish and pipeline visibility breaks down, scaling efficiently becomes a challenge. For Essex Mortgage, this showed up in lagging system performance and heavy reliance on manual workarounds, creating ongoing operational friction as the business expanded. A move to MeridianLink® Mortgage changed the pace entirely. Near real-time loan processing replaced delays, automated field mapping improved data accuracy, and a clear, reliable view of the pipeline brought teams into sync. From origination through post-closing, faster response times and consistent data reduced friction and strengthened execution at every step. Now, Essex Mortgage operates with greater speed, alignment, and confidence, backed by a modern platform built to scale, support compliance, and continuously improve the borrower experience. Read the full case study to see what a high-performing mortgage LOS makes possible.

“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’re attending the MBA Secondary Conference in NY and interested in learning more about PlainsCapital Bank National Warehouse Lending, please contact John White.”

JazzX AI is excited to be part of the new Chrisman AI in Mortgage monthly show, bringing practical conversations about how AI is shaping the industry. Jagjit Singh, JazzX Head of Product – Mortgage, will be joining to share his knowledge about what’s actually driving impact for lenders today. Expect a grounded discussion on real use cases, challenges, and what’s coming next. The first show premieres today, May 6th at 12:00PM PT / 3:00PM ET. Be sure to sign up!

“Heading to MBA Secondary? The Clayton team will be there ready to discuss how our 30+ years of experience can help smooth industry challenges to ensure your business can capitalize on the opportunities in today’s market. A recognized leader in due diligence, servicing oversight, and compliance solutions, Clayton has the scale and expertise to manage any size residential or commercial engagement, ensuring assets and processes meet quality, compliance and reporting standards and comply with regulatory, rating agency and investor requirements. Schedule a meeting and learn more about how Clayton can help get your deal done and done right.

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.

Broker and Correspondent Non-Agency Products

“eRESI will be in New York this month for MBA’s Secondary & Capital Markets Conference, and we’re looking forward to meeting lenders to talk non-QM growth. If you haven’t already, schedule a meeting with our team to discover how eRESI delivers the EDGE through consistent liquidity and best-in-class execution. There’s plenty to catch up on: we’re now live in ICE Mortgage Technology®’s Product and Pricing Engine, making it more seamless than ever to do business with us. We’re also thrilled to welcome Scott Maddox as SVP of Business Development, who brings deep roots in correspondent lending with experience at Pennymac, Bank of America, and Countrywide. And don’t forget to nominate a standout for our Non-QM Heroes campaign: Let’s celebrate the professionals powering non-QM forward.”

Supercharge your pipeline with Pennymac TPO’s non-QM Suite! Your clients don't always fit into a neat box. Your loan product offering shouldn't either. Pennymac TPO’s new Non-QM Product Suite (DSCR, A+, A, & A-) is designed for the modern borrower offering flexible solutions to help capture business that traditional Agency guidelines leave behind. For self-employed borrowers and gig workers, to first-time and seasoned investors, our programs empower you to say “yes” more often. Our expanded lineup includes: DSCR, 12- or 24-months Bank Statements, 1- or 2-years Full Documentation, WVOE, 1-year 1099, and two Asset Based programs - Asset Depletion and Asset Qualifier. Expand your reach, grow your pipeline, and deliver the dream of homeownership to a wider range of Clients. Contact your Pennymac TPO Account Executive or become a partner today to get started. (Equal Housing Lender, NMLS #35953)

Deephaven Mortgage LLC has enhanced its Equity Advantage HELOC to expand its wholesale and correspondent partners’ sales advantage in the equity products market. New features of this first- and second-lien digital HELOC include a maximum loan amount of $1,000,000, up from $500,000, with the minimum remaining at $50,000, LLC title vesting for investment property owners, product availability in Texas* adding to 44 other states, allowance of co-borrowers. Co-borrower minimum credit score is 620, and 2.50 percent lender-paid compensation on the full line amount. The Equity Advantage HELOC can be for self-employed borrowers who do not qualify using traditional income documentation, those who need manual 12-month personal or bank statement reviews as a qualification option, and free-and-clear borrowers who need cash to renovate or fund a goal, or homeowners who want to access liquidity without disturbing their current low-interest first lien.

Capital Markets

Struggling with frustrating and sometimes costly TBA settlement problems? Whether it's mismatched trade amounts, incorrect coupons, or the wrong settlement month, manual trading over the phone leaves too much room for error. Agile Trading Technologies offers the solution in their award-winning Electronic TBA Request for Quote (RFQ) Platform. Purpose-built for lenders and the dealers who serve them, Agile eliminates human error, reduces risk, and brings confidence back to your TBA trading process. “Since transitioning to Agile, we’ve improved trade accuracy and eliminated monthly and quarterly settlement errors,” said Luther Hubbard with Evergreen Home Loans. “The platform streamlines our TBA trading process, removing the inefficiencies and risks we used to face when trading over the phone.” Ready to say goodbye to settlement headaches? Contact Agile or schedule a meeting with them at the upcoming MBA National Secondary in New York to get started.

Bond and stock markets are being pulled in opposing directions: the fragile U.S. - Iran ceasefire is helping stabilize oil prices while still leaving investors wary of prolonged supply disruptions that could keep inflation sticky and Treasury yields biased higher. With the long end nearing key breakout levels around 5 percent, a larger-than-expected increase in U.S. Treasury borrowing needs and mixed economic data are reinforcing a “higher-for-longer” narrative. We learned yesterday that services activity continues to expand (but at a slower pace) with rising prices, job openings suggest a labor market in a holding pattern, and stronger new home sales (driven by lower-priced inventory) point to improved affordability at the margins. A wider trade deficit belies a likely surge in U.S. crude exports tied to Strait of Hormuz happenings, which could support Q2 growth.

For people who like to look behind the numbers, demand from fast money accounts has cooled as tighter higher-coupon TBAs, elevated roll levels, and a roughly 50-basis points backup in 10-year yields since early March have shifted the prepayment outlook toward slower speeds. Bank participation in production coupons remains notably subdued, particularly in specified pools, but overall demand has been balanced enough to absorb supply. This has been helped in part by sizable Agency retention. Performance has been relatively stable month-over-month, with 5.0s and 5.5s tracking duration hedges and benefiting from prior money manager demand, while 6.0s lag modestly on a TBA basis but hold up better when viewed against broader rate moves. Given the rate selloff, improving carry via slower speeds, and supportive roll dynamics, spec payups have held in well. However, they look vulnerable if yields continue higher or if front-end rate expectations shift more hawkishly. Over the medium term, reduced Agency retention could further pressure valuations.

The steady expansion of loan balance “cuts” by the Agencies are complicating the TBA landscape by eroding deliverable float and increasing negative convexity, which in turn strengthens the relative value case for specified pools while introducing technical risks. Higher payup, lower loan balance stories appear increasingly attractive after meaningful cheapening, driven by a mix of muted refinancing cycles, shifting CMO and REIT demand preferences, and evolving borrower characteristics.

Mortgage rates are driven by supply and demand, and while investors have gravitated toward lower payup structures in the current environment, there is a compelling argument to move up in quality in anticipation of an eventual refinancing wave. Beyond production coupons, seasoned lower-coupon pools (particularly in the 3.5 percent to 4.5 percent range with moderate seasoning) also stand out as offering favorable relative value, with more predictable speeds and competitive spreads versus comparable alternatives.

Agency mortgage issuance remained robust in April, surpassing $133 billion and marking a second consecutive month above the $100 billion threshold, driven largely by a sharp resurgence in refinancing activity, particularly on the conventional side. Refinance share in 30-year UMBS has roughly doubled year-over-year, fueling a nearly 40 percent increase in overall loan production and underscoring strong lending momentum despite relatively stable rates. Both conventional and Ginnie Mae markets saw meaningful gains in issuance, with production concentrated in higher coupon pools like 5.0 percent and 5.5 percent, reflecting the current rate environment. More broadly, the data points to a mortgage market that is increasingly driven by rate-sensitive refi flows rather than purchase activity, sustaining elevated supply levels and signaling continued strength in origination volumes even as broader housing demand remains uneven.

Today’s economic calendar kicked off with mortgage applications from MBA falling 4.4 percent in the latest week, with declines across both purchase and refinance activity as rising rates weighed on demand. Despite the weekly pullback, refinance applications remain 29 percent above levels a year-ago and purchase activity is still modestly higher annually.

We’ve also received April ADP Employment (+109k, better than expected), and Treasury’s Quarterly Refunding Announcement, with borrowing sizes increasing. Later today brings weekly crude oil inventories, and remarks from Fed Governor Musalem, Chicago President Goolsbee, and Cleveland President Hammack. We begin Wednesday with Agency MBS prices better by .250-.375 better than yesterday depending on coupon, the 2-year yielding 3.88, and the 10-year yielding 4.36 after closing yesterday at 4.42 percent as hopes of an Iran deal are rising.