“There’s a splendid saying about the definition of an economist being someone who “will know tomorrow why the things they predicted yesterday didn't happen today.” Everyone’s warning everyone about everything these days: Recessions, inflation, housing price collapses, the loss of democracy, Congress becoming unnecessary. The bigger the prediction, the bigger the headlines.” How about predictions on the path into the future of Freddie Mac and Fannie Mae? A safe bet is privatization, but how? FHFA Director Bill Pulte is speaking at the MBA’s conference next week. We’ll see if he says anything different about Freddie and Fannie than this interview on CNBC yesterday… or anything we didn’t already know. Speaking of policy and politics, while he, along with many mortgage lawyers and compliance folks, attends the MBA’s Legal Issues and Regulatory Conference in San Diego this week, Attorney Brian Levy explores the uncertain future of disparate impact theory in mortgage lending as the political tides shift. With a blend of legal insight and sharp commentary, Levy questions whether DI, and by extension, DEI, can survive a second Trump administration. Is this the end of an era, or just another spin on the regulatory merry-go-round? (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 TRUE.ai’s Steve Butler on automating back-end tasks to reshaping the roles of originators with AI, while uncovering the biggest opportunities, misconceptions, and strategic considerations for navigating uncertain markets.)

Software, Products, and Services for Lenders and Brokers

Modern mortgage customers’ needs are changing. Is your mortgage technology changing along with them? The 2025 ICE Borrower Insights Survey reveals critical findings about what today's “digital first” borrowers want from their lender, as well as what they expect from their servicer once their loan closes and the long-term customer relationship begins. Consumer preferences include personalized experiences, clear communication, and convenient access to home and loan information. But the survey also found it's about more than just giving them the right technology—it's about creating a seamless, human-centric experience that addresses the varying preferences of homeowners across different age groups. Read the latest blog to discover key servicing highlights from the survey and learn how you can put your customers first with digital-forward capabilities that fit their unique homeownership journey.

“Q Consulting Group (QCG) is a premier financial consulting and capital advisory firm specializing in mortgage banking, real estate finance, and structured debt solutions. With deep expertise in mortgage lending, servicing, and capital markets, QCG assists mortgage lenders in securing warehouse lines, term debt, and liquidity facilities to drive growth and maximize profitability. Beyond mortgage banking, QCG provides strategic financial consulting, including treasury management, M&A advisory, and operational efficiency improvements. Our team leverages decades of experience in financial services to help businesses navigate complex financial challenges, optimize balance sheets, and secure tailored capital solutions. Whether you need assistance in structuring debt, managing financial risk, or enhancing profitability, QCG offers customized solutions to meet your goals. Visit www.qcgllc.net to learn more and schedule a call or in person meeting at the MBA Secondary with Majed to explore how QCG can provide strategic financial leadership tailored to your needs.”

Your borrowers expect speed. Your team needs efficiency. But your mortgage LOS? Still dragging its feet. It’s time for a change, and MeridianLink® Mortgage is your solution. Simplify your tech stack, boost productivity, and meet borrower demands, all through one integrated, cloud-based platform. Product and pricing engine? Built in. Debt optimization tools? Included. Intelligent cross-sell capabilities? Of course. Direct POS connection? Absolutely. Plus, you’ll gain robust security, accurate data insights, and powerful business intelligence to drive smarter decisions and faster closings. With cost savings, scalability, and market-ready speed, MeridianLink Mortgage is your path to growth. Check out the infographic to discover what’s possible when you upgrade to MeridianLink Mortgage.

With so many valuation products on the market, how do you find the right mix for your home equity lending needs? Join Corporate Settlement Solutions on May 22 at 1 PM CT / 2 PM ET for a data-driven webinar that explores real-world home equity lending strategies to cut costs, speed up turn times, and stay compliant. You’ll learn which valuation products lenders are actually using today, and how to make confident decisions without guesswork. Plus, hear from Luke Tomaszewski, CEO of ProxyPics, on how new tech like borrower-led virtual inspections and improved computer vision is transforming the process. Register here to reserve your spot today and get the tools you need to make smarter, faster valuation decisions.

Don’t get lost in the shuffle. Recent market dynamics mean more changes ahead, but with LoanCare® you can navigate uncertainty with clarity and confidence. LoanCare’s expertise across products, including HELOCs, ensures seamless servicing, tailored solutions, and exceptional customer support. Leverage LoanCare's account-based marketing and advanced data analytics to identify potential HELOC customers before they look elsewhere. Ready to improve your subservicing experience? Meet with their expert team next week in NYC at the W Hotel Times Square Penthouse for the MBA Secondary Conference, or contact David Vida, Chief Revenue Officer, today! LoanCare: Experience you can trust. A partner you can rely on.

Correspondent and Wholesale Products

Do you have borrowers who are stuck because their equity is tied up in their current property? With Flyhomes Instant Equity (a home equity loan on the departing residence) your borrowers can unlock their equity early to secure their next home, without the hassle of selling first. It also helps your borrowers reduce DTI by excluding the departing residence’s debt - without monthly payments during the transition. As the simplest process in the industry, it requires no income docs, no asset docs, and no mortgage statements for loan approval. For the past 10 years, Flyhomes has been a pioneer and leader in innovative financial products, helping 5,000+ buyers purchase their next home and enabling LOs to close 1.2 more loans per month on average. Now through Q2, get 25 bps off origination fees on any Flyhomes Bridge Loan! (Terms apply.) Book a call to learn more, or send us a client scenario to get started today.

“Quontic Wholesale: Expanding Access with Unique Portfolio Programs! In a market where creative solutions are key, Quontic Wholesale stands out with portfolio lending programs designed to solve income documentation challenges without sacrificing compliance. Our P&L + VOE only loan is ideal for self-employed borrowers who prefer not to provide bank statements, just a CPA or PTIN-prepared P&L and VOE. No 4506, no hassle. For asset-rich clients, our Asset Utilization program uses a 60-month amortization (shorter than most), boosting purchasing power. We also accept retirement and liquid assets, which may stay in place post-close. Forward-thinking borrowers can even leverage crypto as part of eligible reserves or asset utilization, perfect for markets like Miami and Austin. These programs support primary, second homes, and investment properties, on both first and second liens. As an FDIC-insured bank, Quontic blends innovation with reliability, giving brokers direct access to underwriters and no-nonsense support. Visit here or contact your AE to learn more.”

Heading to NY for MBA’s Secondary Marketing Conference? Even if you’re not, AmeriHome has a lot to talk to you about!! AmeriHome has added to its non-Agency Suite of products by adding an AUS Jumbo Express program, a great addition to the Non-QM DSCR and Expanded product lines. Also, AmeriHome is now live with a Builder Forward program to facilitate more effective transaction options for mortgage bankers focused on the builder space. Finally, the eNote purchase platform is now active, so if you are originating eNotes or if you were waiting for AmeriHome to get there, now’s the time to talk to a sales rep about it! If you’re headed to NY next week, make sure to connect with an AmeriHome sales representative to schedule a meeting. Check here for a more detailed breakdown of where AmeriHome will be throughout 2025 and follow AmeriHome Correspondent on LinkedIn to in the loop!

Home insurance premiums are climbing faster than your favorite streaming bill: up 14 percent last year, with some cities seeing 20 percent hikes! Don’t let clients get HELOC’d into a bad deal with monthly payments they didn’t see coming. HomeSafe Second is a second-lien option that delivers a lump sum and leaves their current mortgage untouched. Finance of America has helped partners identify 1 million eligible HomeSafe Second borrowers, representing $10 billion in potential loans. Fill out this form to discover reverse mortgage opportunities already in your database. The borrower must meet all loan obligations, including meeting all loan obligations under the first lien mortgage, living in the property as the principal residence and paying property charges, including property taxes, fees, hazard insurance. The borrower must maintain the home. If the homeowner does not meet these loan obligations, then the loan will need to be repaid. Finance of America | NMLS #2285

Capital Markets

Earlier This year, MCT introduced Atlas, a generative AI advisor built to support mortgage lenders with instant access to expert knowledge and AI-driven workflows that improve speed, accuracy, and profitability. In its debut press release, MCT emphasized the responsible, secure foundation behind Atlas, and the opportunity it creates to enhance decision-making without compromising data privacy. Now, in a new video, MCT’s President & CEO Curtis Richins is joined by Phil Rasori, COO, and Senior Director of Trading, Andrew Rhodes, to share how Atlas is helping clients get even more out of the powerful functionality developed within MCTlive! over the past 11 years by streamlining access to institutional knowledge and surfacing insights on-demand. Atlas is empowering users to make the most of their existing workflows while navigating evolving market demands. Subscribe to MCT’s newsletter for first access to Atlas’ latest features and updates.

What’s happening in the secondary markets? Typical mortgage-backed security (MBS) buyers include asset managers, insurance companies, and pension funds. During the pandemic, the U.S. Federal Reserve stepped in and bought trillions of dollar’s worth of MBS. Like any asset or investment, the value of fixed-income securities is a factor of supply and demand.

I mention this because U.S. regulators are considering changes to the supplementary leverage ratio (SLR), potentially easing capital requirements for banks that hold low-risk assets like US Treasuries. Treasury Secretary Scott Bessent has called the review a high priority. Industry leaders argue that current leverage rules (established post-financial crisis) fail to reflect the low-risk nature of Treasuries and may inadvertently constrain market liquidity and economic growth. Exempting Treasuries from the SLR, they say, could strengthen the resilience of the financial system without compromising safety.

U.S. Treasuries recorded their third consecutive day of losses on Wednesday. Why? Well, the market has adopted a cautious, wait-and-see stance on tariff-driven inflation, even with actual evidence of its impact remaining minimal to nonexistent, despite ongoing speculation from the media. Despite a notable decline in sentiment, hard economic data (particularly labor statistics) has yet to reflect the uncertainty clouding investor confidence. Market participants are now closely watching for signs that this psychological shift might begin to manifest in real-world economic activity.

The outlook seems to hinge on one of two potential scenarios: either the uncertainty from trade tensions has already begun to affect the real economy and the data will soon catch up, or the easing of hostilities (such as the pause in new Chinese tariffs) will reassure business leaders enough to proceed with decisions despite the still-uncertain environment. The first scenario is more likely, and I’d urge caution against assuming the recent de-escalation marks a lasting turning point.

At the same time, it's important to acknowledge that President Trump has retreated from some of his more aggressive tariff proposals, whether due to market pushback or as part of a broader negotiation strategy. If the equity market continues to serve as a key gauge of policy flexibility, volatility may remain a hallmark of this administration's approach, not just in trade but across geopolitical and domestic issues. For now, investors appear inclined to discount incoming data as insufficient to capture the full effects of recent policy shifts, which adds a layer of uncertainty to reports like Retail Sales that were released this morning. Meanwhile, bearish momentum in the U.S. rates market has created a technical gap in 10-year yields that should close soon, reflecting a short-term correction amid this broader macro uncertainty.

The April 2025 prepayment report showed a 13 percent month-over-month increase in aggregate Fannie Mae 30-year prepayment speeds, with 1-month CPR rising from 6.6 to 7.4 (the fastest pace for April since 2022). Despite this uptick, the broader prepay environment remains sluggish, underscored by a rising mortgage rate (to 6.71 percent) and a 25 percent decline in refinance activity, suggesting limited borrower incentive to prepay. Analysis by coupon and loan age (WALA) revealed that Rocket continues to dominate in prepayment speed across both the 30- and 15-year universes, consistently ranking among the fastest servicers. In contrast, Citigroup, CrossCountry, and JPM Chase frequently appeared among the slowest, with prepayment differentials between fastest and slowest servicers narrowing, especially in deeply out-of-the-money coupons. The most active loans are those in the 12–24 month seasoning range, where Rocket and UWM lead, indicating servicers are still targeting in-the-money borrowers despite the moribund overall landscape.

Today’s packed economic calendar kicked off with a bang and started with retail sales (+.1 percent, ex-auto & gas +.2), Producer Price Index (-.5 percent, lower than expected; +2.4 percent y-o-y; -.1 percent ex-food & energy), both NY and Philadelphia Fed manufacturing (-9.2), and weekly jobless claims (229k, as expected). On the subject of retail sales, this first read on Q2 consumption will be closely scrutinized, particularly in light of April’s stock market volatility and its potential impact on household spending. Faltering consumption would suggest the real economy remains vulnerable to financial market swings, but a resilient showing could reinforce the narrative of U.S. economic strength. Later today brings industrial production and capacity utilization for April, business inventories for April, the NAHB Housing Market Index for May, Treasury announcing the auction sizes for next week’s 20-year bonds and reopened 10-year TIPS before conducting a buyback (for liquidity management purposes) in 1-month to 2-year coupons for up to $4 billion, Freddie Mac’s Primary Mortgage Market Survey, and remarks from Fed Chair Powell and Fed Governor Barr. After all the news, Agency MBS prices are slightly better than Wednesday’s close, the 2-year is yielding 4.01, and the 10-year is yielding 4.50 after closing yesterday at 4.53 percent.