While M&A continues (the latest example being Berkshire Hathaway buying homebuilder Taylor Morrison for $8.5 billion!), I find myself in San Juan Capistrano at the Insellerate Experience Summit but keeping an eye out for returning swallows. Lenders are keeping an eye out for loans: Although lenders generally had a good April and May, pipelines for June fundings and beyond appear to be down significantly. Insellerate’s Summit is focused on AI and tech. Mortgage has spent decades layering technology onto a system that still costs too much, moves too slowly, and frustrates nearly everyone involved, says Figure CEO Michael Tannenbaum. In an exclusive Q&A for Chrisman Commentary, he explains why he believes most mortgage technology has failed to solve the industry’s core problems, how Figure is trying to rebuild parts of housing finance from the infrastructure level up, and why Wall Street increasingly views the company less like a lender and more like a financial network. The conversation also touches on AI hype, blockchain skepticism, the psychology of running a newly public company, and why mortgage may be entering its most important transition since the rise of securitization itself. (Today’s podcast can be found here and this week’s ‘casts are sponsored by Experian and the Experian Verify Hub. The platform brings manual submissions in-house and consolidates post-submission activities into a single environment, aiming to provide more streamlined access, faster insights, and a more cohesive user experience. Today’s has an interview with Movement Mortgage’s COO Lyra Waggoner on breaking into mortgage banking, what it actually takes to run a lender day-to-day, and thinking differently about building careers, culture, and long-term success.)

Lender and Broker Products, Software, and Services

In a courtroom, forensic evidence without a documented chain of custody gets thrown out immediately. An eNote managed outside a certified eVault faces the same risk. Every transfer, every controller change, and every status update needs to be documented and defensible. DocMagic's SmartSAFE eVault technology has been maintaining that integrity for more than 20 years, with direct MERS eRegistry connectivity, tamper-evident audit trails, and automated validation from signing through investor delivery. And now, MISMO has awarded SmartSAFE its eVault System Certification, independently validating what lenders have known for years. When digital collateral needs to hold up to scrutiny, rest easy knowing your eVault already does. Learn more.

“Lending today needs to move fast, but a clunky LOS holds teams back. That’s why Figure rolled out updates to our LOS that bring precision and speed to loan officers, assistants, and administrators, at scale. Figure’s LOS serves as a centralized hub where loan officers, assistants, and account executives can track, manage, and convert leads in real time. Real LOs inspired the enhancements: instant application assignments, smart bulk data uploads, and real-time SMS status updates. By replacing manual friction points with automated workflows, we’re helping our partners move faster, eliminate bottlenecks, and have greater pipeline clarity. All so they can meet today’s borrowers where they are. But it’s just the beginning. Be part of the Figure ecosystem when Part 2: Intelligence releases later this summer. Give your team the tools to win: figure.com.”

The mortgage industry has gone from asking "What is AI?" to "How do we actually use it?" If you missed the live session, the on-demand recording of The Hitchhiker’s Guide to AI in Mortgage Lending is available now. LenderLogix CEO Patrick O’Brien breaks down what AI actually looks like inside mortgage tech today, where it is already driving efficiency and improving borrower experience, and how to spot real value inside the systems lenders already use. Watch the on-demand recording here.

Most mortgage AI automates tasks. JazzX demonstrates what it looks like when AI actually understands the work. Join JazzX AI live at MISMO Spring Summit in Louisville, KY for an on-stage demo of end-to-end intelligent automation in action. See how workflows from application to underwriting with built-in AI that checks, verifies, and explains every decision, driving speed and efficiency without sacrificing quality. Check us on-stage at 2:40PM on June 2nd. Not at the show? Check the livestream, or set up dedicated time with our team.

Less back-and-forth. More first-time-right verifications. Truework replaces manual verification waterfalls with a single automated platform, so underwriters, LOs, and ops can cut down the document chasing, conflicting numbers, and last-minute corrections. Lenders see up to 50 percent cost savings on verifications, with faster turn times, higher accuracy, and stronger R&W relief. Trusted by top lenders in the U.S., Truework gives your team verification results they can rely on. Learn more.

The Chrisman Marketplace is a centralized hub for vendors and service providers across the 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.

Correspondent and Broker Product News

“More borrowers are falling outside conventional guidelines, and mortgage brokers are finding ways to keep those deals alive. Quorum Federal Credit Union offers the flexibility to say yes more often with niche mortgage and home equity solutions built for real-world scenarios. Approved partners can earn up to 4 percent borrower-paid compensation, with broker-friendly features, including AVMs up to $400K, no initial draw required, and a 10-year draw period. Programs support bank statement income on first and second liens, loan amounts up to $750K (Bridge Loan HELOCs up to $1MM), CLTVs up to 95 percent, and FICO scores as low as 640 across owner-occupied, second home, and investment properties. Offerings include First and Second Lien HELOCs, ARV Renovation HELOCs, and Land Loans, so fewer files get left behind.”

MBA data confirms homeowners are ready to tap their equity. If you aren't offering your borrowers a HELOC, your competitors will. NFTYDoor lets you launch a turnkey HELOC product instantly with zero operational overhead or warehouse lines required. We handle the entire pipeline, from underwriting and processing to closing, delivering close times from 0-6 days. With an expanded buy box (600+ FICO, 90 percent CLTV, $750K max) and an AI + human-in-the-loop workflow, NFTYDoor closes 2.5x more deals than alternative solutions. Stop losing borrowers to the competition. Get started at nftydoor.com/partner-application.

“Close More Non-Warrantable Condo Deals with Pennymac TPO. The modern market demands modern solutions. If you aren't closing non-warrantable condos, you're leaving money on the table. Pennymac TPO’s Non-QM Product Suite is designed to help you capture the lucrative business traditional guidelines leave behind. It's not too late to join our webinar tomorrow on Non-Warrantable Condo Deals with non-QM, and learn how to turn complex properties into closed loans. Discover how our flexible solutions empower you to serve more borrowers. Upgrade your toolkit with our non-QM suite (DSCR, A+, A, & A-). Expand your reach, grow your pipeline, and say "yes" to more borrowers. Register for the free webinar here, contact your Pennymac TPO Account Executive or become a partner today to get started. (Equal Housing Lender, NMLS #35953)”

Government Loan Program Changes

FHA confirmed its intention to enable VantageScore® 4.0 (V4) and FICO® Score 10T (10T) as eligible credit scoring models for FHA-insured mortgage underwriting in addition to Classic FICO®, as was previously announced by Secretary Scott Turner on April 22, 2026.

FHA Minimum Property Requirements (MPRs) are dated, creating unnecessary burdens that increase housing costs, discourage industry participation, limit access to FHA financing, particularly for first time and low- to moderate-income American homebuyers outweighing the benefits they provide. FHA published an RFI seeking stakeholder comment on ways in which to modernize and streamline program requirements. Interested stakeholders are encouraged to review and provide comments following the methods outlined in the RFI (Docket No. FR-6609-N-01) through June 29, 2026.

FHA’s 2026-11 spells out how “FHA Adopts Modern Credit Scoring Models to Boost Competition and Drive Down Costs.” The FHA is confirming its intention to enable VantageScore® 4.0 (V4) and FICO® Score 10T (10T) as eligible credit scoring models for FHA-insured mortgage underwriting in addition to Classic FICO®, as was previously announced by Secretary Scott Turner on April 22, 2026.

“By permitting the use of credit scoring models V4 and 10T alongside Classic FICO®, FHA can catalyze long-delayed competition, reduce systemic dependency on a single legacy model, encourage pricing discipline in the credit reporting market, and better reflect contemporary consumer credit behavior… FHA will continue to require the use of a tri-merge credit report, ensuring a comprehensive and consistent evaluation of borrower credit information across all acceptable scoring models and supporting prudent risk management. Implementation dates and additional guidance will be announced later this year. Mortgagees should continue to utilize the existing policy guidance on credit reports in the HUD Single Family Housing Policy Handbook 4000.1 until this guidance is published.”

Ginnie Mae's mortgage-backed securities (MBS) portfolio outstanding grew to $2.93 trillion as of April 2026. In addition, Ginnie Mae issued $57.3 billion in total MBS, resulting in net portfolio growth of $18.9 billion. Ginnie Mae facilitated the pooling and securitization of more than 209,000 loans for first-time homebuyers’ year to date.

LoanStream Mortgage Wholesale purchase programs, MaxONE, MaxONE Plus, and MaxONE Home Assist are 100 percent CLTV FHA DPA and may help you qualify more borrowers and expand your market reach.

Newrez Correspondent posted information on Underwriting Guideline updates for Conforming and Government Loans including recent agency announcements, clarifications and/or corrections to the Newrez Guides, and summaries of previously announced guidelines have now been incorporated into the Newrez Underwriting Guide.

Capital Markets

The U.S. economy is driven by jobs and housing, and this week’s main scheduled economic event arrives Friday with the May nonfarm payrolls report. Economists expect the U.S. economy added 93K jobs during the month, while the unemployment rate is forecast to hold steady at 4.3 percent. We’ll see if it has much of an impact given oil prices and tweets.

Some say that talk of Fed rate hikes is uncalled for, considering home prices and rents (which make up ⅓ of CPI) are falling, oil prices should go down once a peace deal is signed, wage growth continues to weaken in the face of a soft labor demand, there is no fiscal stimulus on the horizon, etc. However, bond traders tell a different story. Every day the Strait of Hormuz stays closed is another day inflation seeps deeper into the supply chain, and manufacturing survey comments from the past couple of months (or Fed speeches from the last several weeks) reveals confidence in the disinflation narrative has weakened.

Even the more dovish Fed participants appear less certain, particularly given that progress toward the Fed's 2 percent inflation target had already stalled before the war. Once a credible resolution is reached and the market can price the path of policy with greater confidence, one would expect the 2s/10s curve to re-steepen toward 50-basis points. For now, the front end of the yield curve is carrying a meaningful uncertainty premium. The 2-year yield remains one of the best gauges of where the market expects Fed funds to be roughly a year from now, and current pricing reflects uncertainty as much as it does the expected policy path.

Recent data has given investors little reason to become complacent. Inflation has risen to its highest level in three years, fueled by tariffs and the economic fallout from the war, while escalating tensions in the Persian Gulf have reinforced expectations that the Fed is unlikely to cut rates anytime soon. Yet risk assets have remained remarkably resilient. Part of that resilience reflects a reluctance to remain defensively positioned if a ceasefire ultimately takes hold, oil prices retreat, and equity market leadership broadens beyond a narrow group of stocks.

The more important question is whether investors are becoming more confident in the outlook or simply less willing to pay for protection against adverse outcomes. Despite recurring optimism surrounding a potential U.S.-Iran agreement, tangible progress remains elusive, with both sides continuing to send conflicting signals. Markets are pricing the possibility of de-escalation more aggressively than the evidence justifies, leaving sentiment vulnerable to disappointment if negotiations (once again) fail to produce a durable breakthrough.

The Fed remains in the enviable position of being able to wait. While growth has yet to deteriorate enough to force a policy response, there are signs that consumers are beginning to feel the cumulative effects of elevated prices and slowing real income growth, with spending barely advancing, income growth stalling, and jobless claims gradually moving higher.

Treasury markets continue to trade largely through the lens of geopolitics and energy prices rather than domestic fundamentals alone, with hopes for lower oil prices supporting demand for duration and reinforcing expectations that the Fed will remain on hold well into 2026. As a result, front-end yields remain anchored near current policy expectations while longer maturities absorb shifting views on inflation, growth, and term premium. The prevailing market dynamic remains one of cautious range trading rather than conviction, as investors balance resilient economic data against persistent inflation pressures and unresolved geopolitical risks, leaving markets caught between stability in the present and uncertainty about what comes next.

Looking at this week, the main focus will be on Friday’s employment report, which is expected to show a labor market mired in a low-fire, low-hire state. Payrolls are forecast to rise 105k in May, with slow hiring in cyclical businesses as well as the bankruptcy of Spirit Airlines influencing the numbers. Unemployment is forecast to inch up to 4.4 percent due to weak demand for new workers. The labor participation rate has fallen each month this year, which has helped keep the unemployment rate essentially flat, reflecting a market that is relatively stable. U.S. statistical agencies have seen declining survey response rates, shrinking budgets and, during the Trump presidency, high rates of staff attrition. Economists worry that, over time, those issues could erode the reliability of government statistics.

This week’s economic calendar kicks off later this morning with Final May S&P Global U.S. Manufacturing PMI which will be followed by April Construction Spending and May’s ISM Manufacturing Index. We begin the this five-day work week with Agency MBS prices little changed from Friday’s close, the 2-year yielding 4.03, and the 10-year yielding 4.46 after closing last week at 4.45 percent, down 11-basis points over the course of the week, but up 6-basis points in aggregate in May.