“I've been experimenting with breeding racing deer. People have accused me of just trying to make a fast buck.” There are no fast bucks to be made in residential lending, and the correct compensation is a continuing topic. (A recent STRATMOR blog was titled, “Compensation is Still Lender’s Largest Expense.”) A veteran LO wrote, “My belief is that most LOs can make the same amount of money with lower rates and lower comp: grow their business and have less drama. LOs state they lose 3 out of 10 loans due to rate. If you make 100bps on 7 loans at $350k per loan, that’s $24,500. If you make 70 bps on 10 loans at $350k per loan, that’s $24,500. Most business, however, is done in communities, and as you do more loans your community grows, and you get more opportunities. It also eliminates a lot of stress of quoting when you win the deal on the quote.” Today two great webinars: The MBA is producing, “Can You Pay That? Navigating LO Compensation, Competition, and Compliance in 2025” at 2PM ET, and “The Big Picture” at 3PM ET featuring Meredith Whitney, “The Oracle of Wall Street.” (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 Optimal Blue’s Sara Holtz on how Optimal Blue approaches marketing as a market leader, keeping pace with product innovation, evolving with industry needs, and charting the future of strategic brand engagement.)

Products, Software, and Services for Brokers and Lenders

Buy a $1.6M home with no money out of pocket? One California LO helped their client do just that and beat a competing cash offer despite limited liquid funds. By leveraging Flyhomes Buy Before You Sell, they unlocked 105% LTV using equity from both current and new homes, covering the full down payment and even closing costs. The borrower closed in 10 days without selling first or liquidating assets. As a wholesale lender, Flyhomes has helped 5,000+ borrowers and enabled LOs to close 1.2 more loans per month on average. Now offering 25 bps off Bridge Loan origination fees—this limited-time offer ends June 30. Book a call to see how you can help more clients win competitive deals today!

“Better Than “Better” Since 2008! In a world of table-setting, rhymey slogans and curiously low pricing, it’s worth asking: Better than what, exactly? MMI has been setting the gold standard in mortgage intelligence since 2008, not by copying others, but by defining what comes next. We’re the OG. Our platform wasn’t whipped up in a weekend. It’s the result of 17 years of vision, innovation, reliable data, loyal customers, and measurable results—still led by the original founder. Today, 450+ enterprise lenders, banks, and brokers (including over half of the Top 100 U.S. lenders) trust MMI. And with the combination of MMI, Bonzo, MonitorBase, and Pathways Home (launching soon), we’re not just the OG… We’re what’s next. Again. No gimmicks. No karaoke taglines. Just results. We set the bar for “Best” back in 2008, when the first iPhone was for sale. Just wait ’til you see what we have in store. The OG is still the future.

“Did you know that bungee jumping in Australia or singing karaoke in Tokyo could make retirees healthier? Research found that seniors who travel regularly experience improved mental agility and a lower risk of dementia. Help your clients travel more without using their savings or investments. With HomeSafe Second from Finance of America, borrowers can access home equity to improve cash flow without impacting their current mortgage. Fill out this form to see how many of your clients are eligible for our second-lien reverse mortgage loan. 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

In a fast-evolving mortgage landscape, efficiency and adaptability are more critical than ever. In MCT’s newest video, Traci Husslein, SVP of Capital Markets at Waterstone Mortgage, shares how they partnered with MCT to scale operations efficiently while navigating the unique challenges of their business model. As a growing IMB owned by a small bank, Waterstone operates within a hybrid structure that comes with specific regulatory and reporting requirements. Husslein highlights how MCT didn’t just offer a one-size-fits-all platform and instead worked closely with Waterstone to create custom policies and reporting solutions that aligned with their needs. “What I didn’t expect with MCT was the collaboration they have,” Husslein shares. “They really work with you when you have different needs.” From real-time responsiveness to forward-thinking tech, MCT helps Waterstone stay efficient while navigating growth. Watch the full video or subscribe to MCT’s newsletter for real-world insight into how MCT provides customized support for lenders.

“Exceptional non-QM sub-servicing exists at Planet! If you need smarter, more efficient Sub-Servicing, Planet is the partner to trust. Backed by a Net Promoter Score of 94, Planet delivers what investors care about most: sub-servicing that’s cost-effective, reduces delinquency, and protects your bottom line. Let’s talk: 214-983-2288, or subservicing@planethomelending.com.”

“The smartest lenders aren’t waiting on AI. They’re winning with it. At Optimal Blue, we’re not just talking about transformation, we’re delivering it. From assistants that eliminate human bias to tools that surface smarter loan options in seconds, OB’s AI is built for real-world impact. As CEO Joe Tyrrell puts it, ‘By using this opportunity now, really use-case-specific deployment of artificial intelligence, you're giving yourself the ability to scale your business in a way you've never had the opportunity to do so in the past.’ That’s not hype. It’s how we help lenders move from reactive to proactive. We don’t just promise ROI. We power it through automation that works, accuracy that matters, and insights that drive decisions. The result? Faster closings, better borrower experiences, and innovation that delivers for your bottom line. Visit the AI at Optimal Blue page to see what AI built for mortgage lending can do.”

“Who is attending the upcoming Western Secondary conference? Citi Correspondent Lending will be there, and we’ve got a lot to tell you about! We remain committed to continued responsible and sustainable growth. Citi’s product suite continues to expand, including our Community Lending platform which includes several product/program options and a variety of underwriting options, features, and pricing incentives for qualified loans as well as our Non-Agency Jumbo program. In addition, we continue to offer a robust set of CRA incentives, a quality-focused pre-purchase loan review process and both Mandatory and Best-Efforts loan delivery options. To learn more, current or prospective clients can reach out to the Account Executive supporting your location to schedule a meeting at the conference. Prospective clients can also complete and return our Prospective Client Questionnaire.”

Today’s fluctuating market conditions spotlight the importance of strategically building and maintaining long-term relationships with customers. For servicers, that starts with providing customers with advanced digital self-service capabilities that simplify the homeownership journey, and it extends into leveraging data to uncover recapture opportunities within existing portfolios. ICE has identified four key strategies servicers should consider as they navigate evolving consumer expectations and changing market conditions. Read the blog to explore the four ways servicers can fortify operations to adapt to any market.

Are you an operations leader looking to squeeze more juice from your team? The human brain runs on just 12-25 watts of power. That’s less than it takes to power a nightlight, yet it processes billions of signals every second without overheating or slowing down. Tropos brings the same kind of power-to-performance ratio to mortgage lending. It’s built to do more with less: less onboarding friction, less ops overhead, less bloat. Borrowers get a sleek, intuitive experience. You and your team get real-time control and clean integrations without burning out. Whether you're supporting one loan product or orchestrating a multi-channel experience, Tropos adapts to keep things simple. Smarter tech should mean clarity, coordination, and speed, with just the right amount of wattage. Light up your borrower experience with Tropos.

Your team doesn’t need more tasks; they need better tools. LiteSpeed by LenderLogix is more than just a sleek borrower experience, it’s a fully integrated Encompass®-connected point-of-sale designed to streamline every step of the mortgage process. One feature users love? The built-in Letter of Explanation generator. Loan officers can request LOEs directly from Encompass and have them sent straight to the borrower’s dashboard. No chasing emails or juggling PDFs. It's just a better experience for everyone. Take a closer look at LiteSpeed's LOE Generator.

Capital Markets

“As we pass the midpoint of 2025, mortgage rates remain trapped in a narrow range, adding to the market’s sense of prolonged stagnation. National mortgage originations declined from approximately $465.4 billion in Q4 2024 to $425.6 billion in Q1 2025. However, Flatiron clients continue to see year-over-year volume growth by focusing on customer retention and taking advantage of consistently strong best efforts to mandatory spreads. Unlike rigid, one-size-fits-all models, Flatiron’s proprietary hedging approach is tailored to each client’s unique needs and market strategy. We don’t box clients into predefined structures. Instead, we deliver highly personalized solutions backed by over 25 years of proven performance. To schedule a demo, contact Mike Francis at Michael@FHAnalytics.com or visit our website.”

Asset prices, like Treasury securities and mortgage-backed securities, are a matter of supply and demand. The U.S. Federal Reserve unveiled plans to roll back an important capital rule that big banks have complained limits their ability to hold more Treasuries and act as intermediaries in the $29 trillion market. The Fed board voted 5-2 on Wednesday to propose changes to what’s known as the enhanced supplementary leverage ratio, which applies to the largest US banks. The revisions would reduce holding companies’ capital requirement under the ratio to a range of 3.5% to 4.5% from the current 5%. Their banking subsidiaries would see that requirement lowered to the same range from 6%. The belief is that MBS will tag along for the ride…

On today’s episode of The Big Picture at 12pm PT, Rich and Rob are joined by the Oracle of Wall Street, Meredith Whitney, for a deep dive into the true state of the economy, credit markets, housing, rising financial pressures, shifting trends in homeownership, and why Whitney believes conventional wisdom is overlooking critical warning signs.

There is a lot going on impacting everything from overall sentiment to mortgage rates, if I do say so myself. U.S. Treasuries had a bout of weakness early yesterday, likely due to the Israel-Iran cease-fire appearing to be holding and President Trump saying that he will meet with Iran next week, yet buyers emerged after the release of a weaker-than-expected new home sales report for May. New home sales declined 13.7 percent month-over-month in May to a seasonally adjusted annual rate of 623k units (versus 700k expectations) from a downwardly revised 722k in April. That was the weakest pace of sales since October 2024. On a year-over-year basis, new home sales were down 6.3 percent.

Bond buying action was also motivated by the Fed confirming a proposal to modify the supplementary leverage ratio for GSIBs, noted in the first Capital Markets paragraph and which, if adopted, is expected to support Treasuries. The front of the yield curve continued to get pushed downward by burgeoning hopes that the Fed could find a reason to cut rates at the July FOMC meeting if inflation pressures remain contained.

On day two of his congressional testimony, Fed Chair Powell didn't say anything consequential on the rate cut front. However, markets are closely watching to see if more Fed officials break from the current consensus following tomorrow’s PCE Price Index report, which is expected to show modest inflation gains. Some policymakers, like Goolsbee, Waller, and Bowman have already begun softening their hawkish stance amid evidence that tariffs haven't meaningfully raised inflation. On the flip side, Kansas City Fed President Schmid yesterday echoed Powell’s cautious “wait-and-see” approach.

Lingering concerns about how tariffs might affect consumer expectations are likely to keep rates on hold until at least the September 17 meeting, unless labor market data deteriorates sharply. It is worth noting that the probability of a 25-basis point rate cut at the July FOMC meeting has doubled from a week ago and now sits around a 25 percent chance of a rate cut. Longer-dated contracts suggest two to three 25-basis point cuts by year-end.

Today’s calendar is packed and kicked off with a bang starting with the final look (third estimate) at Q1 GDP (-.5 percent, much worse than previous measures but as expected), durable goods orders (+16.4 percent, +.5 percent ex-transportation), Chicago Fed national activity for May, advanced indicators ($96.6 billion overall, more than expected, exports -5.2 percent), and weekly jobless claims (236k, lower than expected; 1.974 million continuing claims). Durable goods orders were expected to increase 7.3 percent month-over-month in May after declining 6.3 percent in April. The advanced goods trade deficit was projected to have deteriorated to $93.0 billion from $87.0 billion in May, with retail and wholesale inventories both expected to increase 0.2 percent versus unchanged and 0.2 percent previously.

Later today brings Pending home sales for May, Kansas City Fed manufacturing for June, Treasury activity that will be headlined by a $44 billion auction of 7-year notes (yesterday’s $70 billion 5-year note auction was met with okay, but not strong, demand), Freddie Mac’s Primary Mortgage Market Survey, and remarks from four Fed speakers. We begin the day with Agency MBS prices roughly unchanged from Wednesday’s close, the 2-year yielding 3.76, and the 10-year yielding 4.29 after closing yesterday at 4.29 percent.