Residential business is coming through in dribs and drabs for many lenders, but that doesn’t stop all the random news out there. To no one’s surprise, Compass is suing Zillow, the owner of Zillow Home Loans which has seen its volumes expanding nicely as of late. The inventory crunch is definitely behind us, as evidenced by Lennar (home of MBA Chair Laura Escobar) seeing its average sale price drop 8.6 percent. The U.S. House of Representatives passed the Homebuyers Privacy Protection Act (H.R. 2808). It will be matched up with the Senate’s version to iron out any differences, and then hopefully move up the food chain. It’s trendy to own a stadium’s naming rights, or a professional sports franchise. Think loanDepot, FBC Mortgage, Rate, or Dan Gilbert (Cavaliers), Mat Ishbia (Suns), and now… Union Home’s Bill Cosgrove? Yup, his name is in the mix along with Dream Finders Homes CEO Patrick Zalupski as being in “exclusive discussions” to purchase the Tampa Bay Rays baseball team. (Dream Finders had a busy 2024 reaching company records of 8,583 closings, a pre-tax profit of $438 million, and home building revenue of $4.4 billion, which is an increase of 18% compared with 2023.) (Today’s podcast can be found here and this week is sponsored by Optimal Blue. OB bridges the primary and secondary mortgage markets to deliver the industry’s only end-to-end capital markets platform, helping lenders maximize profitability and operate efficiently so they can help American borrowers achieve the dream of homeownership. Today’s has an interview with Duke professor Marvin Chang on how mortgage lenders should prioritize AI, aligning LO incentives with company incentives, driving costs down, and securing a return on investment.)

Products, Software, and Services for Brokers and Lenders

“What’s on Your Desk Today? You’re managing margin compression, an ever murkier compliance world, aggressive state regulators, and tight execution timelines. You don’t have time to explain mortgage to your law firm. We see what you are seeing… Government enforcement team at your doorstep? Real estate agents want to be your loan officers? Builder forward commitment opportunity you can’t miss? Joint venture structure creating issues? Warehouse or investor agreements need review/negotiation or an opinion letter? RESPA complicating your business relationships and marketing? TRID creating questions at closing? LO Comp/wage-and-hour rules complicating your employment agreements? Employee poaching or trade secret litigation causing you grief? 50-state question on disclosures, prepayment penalties or state law requirements? Whether you’re scaling, troubleshooting, or protecting what you’ve built, we focus on fast, practical legal guidance that works where you work. Contact Rich Horn, Troy Garris or anyone on our team at garrishorn.com/people to talk to your go-to mortgage counsel.”

Six standard Lego bricks is all it takes to create more than 900 million combinations; they’re simply built to connect. That’s the magic of modularity, magic that Tropos embraces to help digital mortgage transformation leaders. This borrower portal isn’t some rigid, one-size-fits-all solution. Tropos lets you snap in just what you need, whether you're supporting a single product line or a full suite of offerings. Real-time updates? Integrated support handoffs? Custom workflows? All in your control. No rip-and-replace. No overhauls. Just a smart, flexible platform that grows with you and delivers a borrower experience that actually clicks. Want to build a better lending journey? Start with the right pieces. Start with Tropos.

“TMS proudly serves as the master servicer for the Arizona Industrial Development Authority (AZIDA) Down Payment Assistance programs. Through the Home Plus and Arizona Is Home programs, buyers can benefit from no-payment, 0% interest, 5-year forgivable loans. For the latest program guidelines, visit our HFA page and log in to the lender portal on AZIDA’s website.”

Arizona Financial Credit Union Cuts Exception Resolution Time by 80%! After replacing its manual QC process with ACES Quality Management & Control Software®, Arizona FCU experienced the benefits within the first week of implementation; saw a 66 percent increase in audit throughput; and cut their exception resolution time from 5 days to 1 day, which is 80 percent faster. "If you want to automate your QA platform and make meaningful business decisions, ACES is where you need to be", said Patrick Smith, Sr. Director of Operations Administration at Arizona FCU. Watch the success story.

“PlainsCapital Bank National Warehouse Lending, a subsidiary of Hilltop Holdings (NYSE: HTH), offers funding for multiple mortgage products and programs with little to no additional requirements. FNMA HomeStyle, FHA 203K Full, Limited, and USDA Rural Housing renovation loans. Mortgage Revenue Bond and DPA loans with extended dwell times. Sub Limits for lower FICO scores, manufactured homes, renovation, construction and other unique mortgage products and programs. With over 30 years’ experience and a well-capitalized diversified financial holding company we provide our customers with confidence to meet their loan funding needs. If you are interested in learning more about PlainsCapital Bank National Warehouse Lending please contact Deric Barnett, (469)955-6786.”

“Navigating SOC reports can feel overwhelming, but for organizations relying on third-party vendors, especially those managing financial or sensitive data, mastering these reports is essential. In the latest episode of SOC Simplified, Richey May’s experts break down five must-know tips for reviewing SOC reports, including how to interpret the auditor’s opinion, findings, and the complementary user entity controls. Whether you’re new to SOC or just need a quick refresher, this concise, 4-minute video will empower you to approach SOC reports with confidence. Tune in to our SOC Simplified series today and connect with our experts at info@richeymay.com for personalized guidance.”

Webinars and Training

Sponsored by Tidalwave, today at 1PM ET/10AM PT there is an episode of Mortgages with Millennials. Kristin and Robbie chat with Mike Yu, CEO of Vesta, about the current state and future direction of mortgage technology. Their conversation highlights the challenges of streamlining the process, the role of AI in supporting sales, and how better back-end systems and inclusive strategies can help lenders meet the needs of tomorrow’s homebuyers.

In today's episode of MortgagePros411 at 11am PT, Audrey and Kevin are joined by Jim Nabors, President of NAMB, who shares insights from his five decades in the mortgage industry and his pivotal role in shaping consumer-focused legislation. With deep experience in advocacy and regulatory reform, Nabors discusses current efforts to protect homebuyers' privacy and the importance of strong industry representation in Washington.

The MBA is producing, “Can You Pay That? Navigating LO Compensation, Competition, and Compliance in 2025” on Thursday, June 26 at 2PM ET. As regulatory scrutiny intensifies, staying compliant is more critical than ever. This session will explore how to structure defensible LO compensation plans, implement sound accounting practices, and prepare for enforcement risks in a climate of evolving federal and state oversight. Join Kasey English, Troy Garris, Joshua Weinberg, and Paul Hubbard. Register now at mba.org/education or here.

Brian Vieaux on MISMO

Over the weekend I received an “MLO VieauxPoint” from Brian Vieaux, CMB, President & COO of FinLocker & Founding ‘Expert’ of MLO Live, about how loan officers can help a new homeowner with the financial transition to owning.

“MLOs should be advising clients to budget like an owner, not a renter. Let’s talk about the advice most homebuyers don’t hear. When a renter becomes a homeowner, something fundamental shifts, or at least it should. But too often, it doesn’t.

“Buyers fixate on their monthly mortgage payment the same way they used to fixate on their rent. They calculate PITI and call it a day, but forget about the busted water heater, the insurance premium spike, the rising utility bills, or the inevitable surprise expense that shows up when the HVAC does not. Six months in, they're overextended, underprepared, and wondering if buying was the right move. That’s not a rate problem. That’s a readiness problem. And that’s exactly where we, as Loan Officers, have a unique opportunity to lead.

“Your role of being an advisor outweighs that of being an application taker. If you think your job ends at quoting a rate and collecting documents, you're playing too small. Today’s homebuyers, especially first-time buyers, need more than a transactional mortgage rep. They need a trusted guide who helps them prepare before the loan, succeed after the close, and stay the course long-term. (Bankrate’s 2025 Hidden Costs of Homeownership study found that the average homeowner now spends $21,400/year on expenses beyond the mortgage. Maintenance alone averages nearly $9,000 annually. That’s not just noise, that’s what’s draining emergency savings and driving buyer regret.)

“Innovative products have a home and we need to be talking more about them. Programs like Click n’ Close’s Smart Buy (an FHA or USDA loan combined with a forgivable 2nd lien) aren’t just about qualifying buyers. They’re about equipping them. And that’s a game-changing difference. Walk buyers through a “full cost” ownership budget. Help them prepare for ongoing expenses, not just upfront costs. Recommend tools like KeySteps, powered by FinLocker to monitor credit, plan finances, and build buffers. Connect them with local pros (insurance agents, maintenance vendors, etc.) Be the one who makes their decision feel smart, not scary.

“What if you were the one who helped your buyer budget like an owner, not a renter? What if you introduced a program that kept cash in their pocket and gave them the financial margin to breathe after the close? What if you were the reason they stayed in their home and on track with their goals AND came back to you when it was time to upgrade, invest, or refinance? What if that became your brand? That’s the difference between being remembered as a resource… or forgotten as a transaction.

“Be the LO who educates. Who prepares. Who follows up not with ‘just checking in,’ but with value. That’s how we earn trust and future business.” Thank you, Brian!

Capital Markets

Bonds (and thus mortgage rates, by extension) had the benefit yesterday of both a safe-haven trade following the U.S. strikes on Iran over the weekend and a trade grounded in some increased hope that the Fed could cut rates at the July Federal Open Market Committee meeting. The former was driven by the U.S. strikes on three Iranian nuclear facilities over the weekend, while the latter was precipitated by Fed Governor Bowman saying she could support a rate cut in July if inflation pressures remain contained (more on the Fed in two paragraphs). Investors are focused on any potential response from Iran and the price of oil (and thus energy prices, by extension) from any interruption to traffic through the Strait of Hormuz. A ceasefire was announced yesterday that lasted a matter of hours.

Given that the trade war is already expected to add inflationary pressures for U.S. consumers, layering on an energy shock would only further the stagflation risks facing the U.S. However, the response in financial markets has been remarkably muted. Bond yields were pressured higher initially as oil prices surged, but as energy prices have come back into the pre-strike range there has been a relative sense of calm restored to markets. Even the initial down trade in equity futures has been reversed. The takeaway is that should tensions continue to escalate between Iran and the U.S., any knee jerk response in the Treasury market will continue to be bearish for bonds. Another check in the column of uncertainty, at least until there is greater clarity on how far Iran is willing to escalate.

Federal Reserve Governor Waller (on Friday) and Governor Bowman (yesterday) broke from the cautious tone of many of their colleagues by suggesting that the Fed could begin cutting interest rates as soon as July. Citing a lack of inflationary impact from recent tariffs and growing concerns about labor market risks, both argued that policymakers should act preemptively rather than wait for economic deterioration. They emphasized the importance of responding to actual data rather than hypothetical scenarios and encouraged the Fed to consider a rate cut at its next meeting. If upcoming inflation readings, particularly the PCE report this Friday, remain soft, more dovish voices on the Fed may emerge. Meanwhile, Fed Chair Powell’s Humphrey-Hawkins testimony this week in Washington D.C. could bring political pressure for rate cuts, especially as the Trump administration pushes for lower rates.

Yesterday was a relatively quiet day for the U.S. economic calendar. Existing home sales inched up 0.8 percent month-over-month in May, buoyed by slightly lower mortgage rates and increased inventory. However, affordability remains a major hurdle keeping overall activity subdued. The seasonally adjusted annual rate of 4.03 million homes sold last month is still close to the lows seen during the pandemic and not far above last year's trough of 3.9 million.

According to Fannie Mae’s latest Economic and Housing Outlook, sales of existing single-family homes are now expected to total 4.14 million in 2025, a slight downgrade from last month’s 4.24 million forecast due to anticipated higher mortgage rates. Fannie’s report also projects modest economic growth, with real GDP rising 1.4 percent in 2025 and 2.2 percent in 2026, while mortgage rates are now expected to remain elevated through the end of 2026.

Philadelphia Fed non-manufacturing for June and the Q1 current account deficit led off today’s calendar. Later today brings Redbook same store sales, April house prices from FHFA and Case-Shiller, consumer confidence in June, Richmond Fed manufacturing and services, Treasury activity that will be headlined by $69 billion 2-year notes, and Fed Chair Powell heading to the Hill to testify on the Semiannual Monetary Policy Report to Congress before the House Financial Services Committee.

We begin Tuesday with Agency MBS prices unchanged from Monday’s close, the 2-year yielding 3.83, and the 10-year yielding 4.33 after closing yesterday at 4.32 percent. It would appear that the market has settled into a definable range that could prove more durable during the summer months than previously assumed. There seems limited appetite to aggressively sell 10-year Treasuries when yields move above 4.50 percent, with modest dip-buying above this inflection point occurring primarily for duration sake. As for 2-year Treasury securities, any time rates tick above 4.00 percent, that duration looks cheap in the context of the Fed’s rate cut messaging.