No one in places like Florida or Myrtle Beach or Colorado’s Glenwood Springs wants to wake up to a headline, sensationalist or not, saying, “Vacation homes (about 7 million in the U.S.) are being dumped at a rapid rate as fresh fears of a housing market crash, and a shrinking pool of renters, rattle sellers. “The number of people buying second homes has plunged to its lowest level since records began, and is under a third of what it was during the pandemic boom. A toxic mix of sky-high mortgage rates, soaring maintenance costs, and a widespread return-to-office push is fueling the trend.” Mortgage rates and the economy will certainly be a topic at the upcoming NY conference, as well as today’s Capital Markets Wrap, sponsored by Polly, at 12PM PT where the panelists will analyze the Fed’s recent meeting and its potential impact on market trends. They'll also discuss the return of focus to economic data amid steadier volatility, changes in tariffs, and how technology is enhancing transparency and efficiency in capital markets. (Today’s podcast can be found here and Sponsored by TRUE and its Mortgage Operations Service (MOS) AI background worker, which transforms borrower documents into instant, trustworthy data for real-time decisioning. TRUE helps lenders accelerate decisions, cut costs, and deliver superior borrower experience, all without a $100M tech budget. Hear an Interview with Servbank’s Luke Jensen on how servicers are leading the way in AI and automation, and revolutionizing customer experience with innovative, loan-level customized correspondence solutions.)
Software, Products, and Services for Lenders and Brokers
Ever watch a chess master in action? They analyze the board with precision, understanding every piece's position to make the best move. Optimal Blue’s Market Advantage report and podcast offer that same level of clarity to mortgage professionals, combining direct-source mortgage data with insightful analysis. Unlike self-reported survey data, Market Advantage leverages lender rate lock data direct from the Optimal Blue® PPE, the industry's leading product, pricing, and eligibility engine, providing a clear view of early-stage origination activity. Just as a chess master uses every piece strategically, mortgage professionals can use these insights to make informed decisions and stay ahead of the competition. The report and podcast featuring April mortgage lock data and insights from Optimal Blue CPO Erin Wester are out today, May 13. Subscribe to the Market Advantage today to stay informed and view this month’s report.
“Let Cotality help you keep clients connected and build lifelong relationships. Did you know that within a year of purchasing a home, 70% of homeowners can’t remember their LO’s name? Which is why 80 percent of homeowners will eventually transact with a different originator when they need another home, refinance, or HELOC. The transactional nature of the homebuying process represents a missed opportunity that you can capitalize on, building your business and becoming a trusted resource for your clients. If you’re attending UWM Live this week, stop by, and see Cotality and check out our latest solution: OneHomeOwner. OneHomeOwner empowers your homeowners with tools and intelligence, while helping you retain their business. Come by, see a demo, claim your homeowner hub, and enter our drawing to win a $7,500 dream vacation! To see more about how we’re helping originators succeed in any market, check out our comprehensive suite of solutions and schedule a demo with us today!”
“Inglet Blair’s Enhanced Client Portal: Real-Time Control, Smarter Decisions! Experience a smarter way to manage risk. Inglet Blair’s upgraded portal delivers real-time insights, interactive dashboards, and advanced analytics all in one streamlined interface. Built for flexibility, our tailored dashboards put control in your hands. Track portfolio and client performance instantly, respond to exceptions in real time, and dive deep with drill-down reporting and dynamic filtering tools. At Inglet Blair, a QC Ally company, we provide the tools you need, the insight you want, and the experience you deserve. Ready to elevate your workflow? Let’s talk!”
“Compliance questions have a way of stacking up, especially when regulations change and new risks emerge faster than ever. That’s why we created the MQMR FAQs: a free, bi-weekly email series that breaks down timely, frequently asked questions with clear, practical insight from a team that lives and breathes mortgage compliance. From regulatory updates to loan-level details, there’s always something new to keep track of. The FAQs are designed to help you stay informed, spot trends, and move forward with confidence… No digging required. If you’ve ever wished you had a compliance expert in your corner (but without the calendar invite), this is for you. Sign up now to start receiving our FAQs: short, smart, and free. Need more support? Ask us about MQMR’s Monthly Compliance program.”
eNote Products and Training
“Click n' Close is leading the way in eNote adoption. While large mortgage aggregators are just getting started, we’ve spent years streamlining digital mortgage transactions for our correspondent partners, helping them close faster, reduce costs and increase efficiency. Now, Click n’ Close correspondent partners can also deliver eNotes for SmartBuy™, our powerful suite of proprietary DPA loan products. With seamless MERS integration and secure eVaulting, we ensure compliance and transparency from start to finish. Plus, through year’s end, lenders can earn a 10-bps bonus on the first mortgage if both notes are delivered as eNotes. Step into the future of mortgage lending with Click n' Close, the industry’s eNote leader. Reach out to Kim Schenck at the MBA Secondary Market Conference to discover how SmartBuy™ with eNotes can accelerate your business.”
Yes, there is a nationwide trend toward eNotes. Join MERS® this Thursday at 2pm ET for eNote Success: Insights from Leading Originators. Harry Gardner, Director of Digital Services for ICE Mortgage Technology, hosts a wide-ranging discussion with three leading eNote originators. Teri Pansing of Fairway Independent Mortgage, Jeff Reeves of Canopy Mortgage, and Jennifer Solis of Atlantic Bay Mortgage Group will share their insights and lessons-learned from real-world experience rolling out eNotes in their origination operations.
Some Light Economic Reading
R.C. Whalen, aka Christopher, is out with a new book: “Inflated: Money, Debt and the American Dream.” As one reviewer wrote, "A gripping biography of American finance. Whalen chronicles Credit as a main character in the U.S.’ journey from colonial outpost to economic superpower. An erudite and engrossing work of monetary history that illuminates the recurring patterns of boom and bust, “Inflated” belongs on the bookshelves of those who seek to understand the volatile financial landscape of the 2020s and beyond."
Conventional Conforming Changes
Employees of Freddie Mac and Fannie Mae may not know if their jobs will be around tomorrow, but they sure are good at continually tweaking and improving their underwriting, policies, and procedures. Of course investors and lenders “follow suit.”
(In the opposite of F&F, in today's episode of MortgagePros 411 at 11AM PT, industry vet Bill Dallas shares insights from his decades of leadership in mortgage banking and fintech, offering a sharp perspective on today’s evolving market dynamics. From alternative loan products to creative equity strategies, Bill explores how lenders can adapt and thrive beyond the conventional GSE model.)
Single-Family Seller/Servicer Guide (Guide) Bulletin 2025-6 includes updates related to Interested party contributions and lender incentives. Income requirements and calculations. Gold Rush® fee language. Guide refactoring.
Fannie Mae Selling Guide SEL-2025-03 May updates include update interested party contribution definitions, identify items excluded from maximum financing concessions, clarify the treatment of realtor rebates, clarify arrangements subject to the lender incentive policy, increase the incentive limit to $2,500, and require lender incentives from interested parties to be treated as a sales concession; establish that the maximum guaranty fee buyup amount can be found in the lender’s MBS commitment, and clarify how prorated tax credits should be treated when underwriting.
Find out what Fannie Mae economists are projecting for home sales, mortgage originations, and other housing market activity in April 2025 housing forecast.
Discover answers to frequently asked Fannie Mae selling questions on the top trending FAQs page. To help you find what you need, FAQs are grouped by theme, asset assessment, borrower eligibility, insurance, income assessment (rental, retirement, variable), student loan payments, and more.
Single-Family Seller/Servicer Guide Bulletin 2025-A announced the area median income (AMI) limits for 2025. This change is effective May 18, 2025.
AmeriHome Mortgage 20250501-CL Product Announcement covers Fannie Mae’s SEL-2025-02, DU/DO Release Notes announcing changes to several topics.
Pennymac Announcement 25-51: Freddie Mac property eligibility updates and documentation requirements for verification of completion of repairs.
Pennymac is aligning with Freddie Mac’s release of their new income assessment tool, the Freddie Mac Income Calculator, introduced in Bulletin 2025-4. The Income Calculator is a free online tool designed to help calculate borrower income for wage earners and self-employed borrowers and assist lenders in determining stable monthly qualifying income. The Income Calculator will be available for new Income Calculator submissions and Loan Product Advisor (LPA) submissions and resubmissions on or after May 11.
Capital Markets
The Treasury market has seen a divergence, with yields on the benchmark 10-year note having risen since April 2 while short-term yields have declined. The divergence, known as a "steepening twist," is increasing borrowing costs for consumers. The “benchmark” 10-year Treasury yield is easy to follow, but experienced lenders know that mortgage rates are based on much more complicated issues including supply and demand and the yield curve, and thus rate shifts at various maturities are of interest.
After significant progress was made on the U.S.-China front over the weekend, with both nations agreeing to temporarily reduce tariffs by 115 basis points over the next 90 days following meetings in Switzerland, President Trump now pivots toward the Middle East, with his visit to Saudi Arabia expected to yield numerous agreements spanning artificial intelligence, semiconductors, rare earth metals, and infrastructure. The truce with China after last week's UK deal marks a major shift from the previous hardline, tit-for-tat approach that had nearly tipped the global economy into deeper turmoil. The easing of trade tensions has led to a sell-off of bonds and sent global equity markets rallying on hopes that the move signals a broader willingness to de-escalate and negotiate.
Investors appear more focused on the fact that the administration is capable of reaching swift bilateral agreements than on the specific terms of each deal. Still, these diplomatic wins haven’t dispelled the broader sense of uncertainty gripping businesses and investors. With key economic data (like strong job growth and solid consumer spending) pointing to resilience, the U.S. appears positioned to weather further trade-related shocks. Despite a noisy Q1 GDP print, underlying economic data has held up well, with steady job growth and resilient consumer spending supporting a cautious stance. Meanwhile, softening core inflation has helped temper fears of a runaway price surge.
Remarks from Federal Reserve officials this week in the wake of last week’s Federal Open Market Committee meeting should help clarify the range of views within the Committee, but it’s still too early to expect any major changes in the Fed's policy direction. The consistent message from Chair Powell and others is that there’s little urgency to begin cutting interest rates. This cautious tone has contributed to a rise in shorter-term yields since the Fed meeting, reflecting diminished expectations for near-term easing. Still, some analysts suggest the recent bond market selloff may be reaching stretched levels, especially given the current economic backdrop. The Fed’s wait-and-see approach appears firmly in place for now.
Today brings the ever-important CPI for April. CPI increased +.2 percent, +2.3 percent year-over-year, tamer than expected, with core +.2 percent, also tamer than expected. We’ve also received NFIB small business optimism (-1.6 to 95.8). Later today brings Redbook same store sales and some short-duration Treasury auctions. Tuesday starts with Agency MBS prices better than Monday’s close by about .125, the 2-year yielding 3.95, and the 10-year yielding 4.42 after closing yesterday at 4.46 percent.
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