Every time I use my credit card at the supermarket it can impact my credit score which were invented in 1958. What might be the credit score of the United States with its $1.78 trillion deficit in 2025? Gas stations and supermarkets are two daily places where we see inflation. Trader Joes, with its 630+ locations, is known for many things, not the least of which is its flowers and their prices. “Shrinkflation” has hit the chain, and anyone who has purchased flowers lately know that the bunches have gone down from, say, 12 flowers to 8. Either raise prices or make portions smaller… Yes, inflation is a problem, and lenders should know that, although the Fed doesn’t set mortgages rates, few, if any, experts predict that the U.S. Federal Reserve will cut rates this year. That would add fuel to the inflationary pressures being created by both another foreign war and a deep-in-the-red federal budget that seemingly no one is concerned about balancing. I remember when the Republicans stood for fiscal restraint, but does anyone in politics care about the flood of newly created U.S. Treasury debt or reducing spending? (Today’s podcast can be found here and this week’s ‘casts are sponsored by JazzX. From application to underwriting to post-close, JazzX is a new operating model that helps you scale growth, boost productivity, and transform how your team performs. Hear an interview with The Disciplined Investor’s Andrew Horowitz on how investors assess what assets to invest in, and a portfolio manager’s perspective on the current economic environment, and risk diversification as it pertains to MBS.)

Broker and Lender Products, Software, and Services

“Live Webinar: Deep Dive into Pennymac’s DSCR Product Offering! Join Pennymac TPO for a short and informative webinar, Unlocking Investor Opportunity with DSCR Loans, on Tuesday, June 16th at 10 AM PT/1 PM ET as we take a deep dive into Pennymac’s DSCR product offering. Designed specifically for investors, our DSCR solutions help your clients grow their real estate portfolios based on the subject property’s cash flow without the hassle of traditional income documentation. We will discuss how DSCR loans work, review our product guidelines, cover how to package and submit your DSCR loan for success, and touch on several other DSCR related topics. Register for the webinar here, contact your Pennymac TPO Account Executive or become a partner today to get started. (Equal Housing Lender, NMLS #35953)”

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 4 of the top 5 lenders in the U.S., Truework gives your team verification results they can rely on. Learn more.

Market volatility, subservicer consolidation, AI governance, and rising borrower expectations are reshaping what lenders should expect from their servicing partners. Join LoanCare this Thursday at 2 PM ET for a live, one-hour discussion on how lenders can build a more resilient, future-ready servicing operation in today’s environment. Featuring insights from experts at Richey May, Stockton Mortgage, and LoanCare, this webinar will explore the real challenges shaping servicing decisions right now, and what lenders should be doing next. Register now and reserve your spot.

Automating tasks isn’t the same as fixing mortgage operations. Most delays and costs come from the gaps like handoffs, exceptions, and decisions that span the full loan lifecycle. JazzX AI addresses this directly with digital assistants that coordinate work across processing, underwriting, QC, and servicing, not just within a single step. Every output is grounded in your guidelines and overlays, continuously re-evaluated as new information arrives, and fully traceable back to policy, keeping your team firmly in control. The result is faster decisions, lower cost per loan, and improved loan quality. Book a demo at JazzX.ai.

Why are lenders still generating closing documents in a separate system? This week, Elphi launched Elphi Docs, a native closing document generation solution built directly into the LOS. Already in production with customers, Elphi Docs uses Elphi's rules engine to automatically generate the correct legal closing package with the right data, parties, and state-specific requirements - eliminating duplicate entry, middleware, and data discrepancies between systems. Built in partnership with Peirson Patterson and Escrow Analytics, Elphi Docs supports document generation nationwide and is available as a standalone solution, with no full LOS migration required. Elphi is the configurable, no-code LOS that gives lenders complete control over data, workflows, and integrations. Customers such as Lima One Capital have reduced cycle times by more than 10 days while saving more than 8,000 operational hours annually.

Still searching for mortgage compliance answers online or using generic AI platforms? Stop. Compliance decisions carry real risk. Why spend hours searching for answers that could be delivered in minutes? Search tools return documents. Generic AI relies on unverified information. Internal experts are busy. Outside counsel bills by the hour. Ask VAL. VAL’s answers are based on verified sources and content. Powered by curated regulatory intelligence and leading mortgage attorneys, VAL delivers answers with citations and supporting requirements. No more digging through lengthy PDFs. No more generic AI responses. No more uncertainty. Ask a question in plain business language and get a clear, actionable answer in seconds. RESPA. Servicing. Fair Lending. State regulations. Operational compliance. Whatever question lands on your desk, ask VAL first. The toughest compliance question your team faced this month? Ask VAL. Stop searching. Stop guessing. Start asking. Start your FREE 7-Day Trial today.

Experienced investors don’t wait for perfect market conditions. They find the right financing and move. Logan Finance is built for brokers who serve clients like these. The Open Road Elevated Autobahn DSCR product qualifies on cash flow alone (no personal docs required) with loan amounts up to $4.5M, a 1.25 minimum DSCR, interest-only options on 30-year terms, and no cap on cash in hand. While the market keeps moving, so does Logan. Want to go deeper into non-QM strategies? Join Alex Chavarria for Webinar #6: Navigating the Non-QM Landscape with Logan Finance Resources on Wednesday, June 17th from 1-1:30 PM CST. Seats are still available so don’t forget to register to secure your spot today. NMLS #127722.

ACI, a division of First American Mortgage Solutions, is helping appraisers prepare for the future of appraisal reporting with ACI Sky™ Workbench, a GSE-verified platform that supports UAD 3.6 specifications ahead of the November 2, 2026, industry mandate. Built with input from hundreds of appraisers, ACI Sky Workbench provides a connected, cloud-based environment that streamlines the entire appraisal process, from data collection to report completion and submission. Designed to support the industry’s transition to a more structured, data‑first reporting framework, Workbench helps appraisers work more efficiently while maintaining confidence in their reports. As the appraisal landscape continues to evolve, ACI Sky Workbench delivers the modern workflow, flexibility and confidence appraisers need to stay ahead. Learn how ACI Sky Workbench is helping appraisers prepare for UAD 3.6 and beyond.

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.

Bill P. is Pulled

38-year-old Bill Pulte, President Trump's previous selection to run national intelligence and be the country's top “spy chief” who oversees 18 government intelligence agencies, was widely criticized in Congress due to lack of any previous experience in intelligence-gathering. And politically sensitive investigations that he opened against Trump's Democratic enemies. Yesterday the announcement was made that he’s out, and is expected to return to purely focusing on his FHFA duties.

“Bill Pulte has been accused of using his role as director of the Federal Housing Finance Agency (FHFA) to target Trump's perceived enemies by making criminal referrals over claims of mortgage fraud.

“None of the cases have led to successful prosecutions. The Government Accountability Office is now investigating how the FHFA carries out mortgage fraud investigations and how it may have changed its processes recently.”

MISMO and AI Governance

Yesterday MISMO (the real estate finance industry’s standards organization, aligned with the MBA) announced the launch of the MISMO Framework for Responsible AI in the Mortgage Ecosystem (FRAME), an AI governance toolkit designed to help mortgage companies of all sizes establish policies, procedures, controls, and oversight for the responsible use of artificial intelligence. FRAME is now available to MISMO member companies through MISMO Connect.

“FRAME was introduced earlier this month during MISMO’s Spring Summit in Louisville, Kentucky, where attendees received an in-depth review of the framework, its implementation artifacts, and its intended use across the mortgage ecosystem. Initial feedback from lenders, servicers, technology providers, compliance professionals, and other industry participants was overwhelmingly positive.

“As artificial intelligence becomes increasingly embedded throughout mortgage operations, mortgage companies face growing pressure to establish governance structures capable of managing AI-related risks while supporting innovation. FRAME was developed to help organizations meet that challenge.”

Capital Markets

We learned yesterday that producer prices rose a much stronger-than-expected 1.1 percent in May, lifting the year-over-year PPI rate to 6.5 percent from 5.7 percent, while core PPI increased 0.4 percent on the month and held at 4.9 percent year-over-year. Yes, persistent underlying inflation pressures remain, but still with scant evidence of a broad-based acceleration beyond energy-related inputs such as gasoline.

Despite the headline shock, bond markets largely looked through the print, with downward revisions to prior months and the stability of core measures revealing that this month’s move was driven more by volatile goods and energy components than a lasting shift in inflation dynamics.

For the Federal Reserve, the combination of a resilient labor market and relatively contained core inflation provides ample justification for patience. Policymakers are expected to maintain the current fed funds rate range at their meeting next week while signaling a less accommodative policy stance. Debate is expected to shift from rate cuts to whether additional tightening could ultimately be required if inflation remains elevated and economic activity continues to outperform expectations. Declining real wages, shrinking consumer purchasing power, and historically low savings rates suggest the economy's resilience may face more meaningful tests in the months ahead. Can consumers and businesses continue absorbing higher prices and restrictive financial conditions without a broader slowdown in growth, spending, and employment? We’ll see.

No investor in mortgages wants to buy a pool at 104 only to have it pay off three months later at 100. The latest prepayment data points to a mortgage market continuing to be constrained by limited refinance incentives and higher borrowing costs, with aggregate Fannie Mae 30-year prepayment speeds declining 11 percent month-over-month to an 8.2 percent CPR, marking a second consecutive monthly slowdown. Rising mortgage rates reduced the share of borrowers with a meaningful refinancing incentive from 11.5 percent to under 8 percent of outstanding balances, the lowest level since at least late last year and reinforcing expectations that prepayment activity will remain subdued in the near term.

Servicing performance continues to be a key differentiator, with firms such as Rocket Mortgage, Freedom Mortgage, Pennymac, and AmeriHome consistently generating faster speeds, while Bank of America, Citigroup, NewRez, and several housing finance agencies remained among the slowest. Your takeaway? In a market where refinance opportunities are increasingly scarce, servicer behavior and portfolio composition are becoming even more important drivers of mortgage-backed security performance than general prepayment trends alone.

Today’s economic calendar is light, the sole release of note being Preliminary June University of Michigan Consumer Sentiment, which is expected to tick up from a horrendous prior reading when it is released later this morning. We begin the day with Agency MBS prices a touch better than Thursday’s close, the 2-year yielding 4.05, and the 10-year yielding 4.45 after closing yesterday at 4.46 percent.