“Pro Tip: Here’s a friendly 4th of July reminder that absolutely no one is going to watch the videos of the fireworks you record on your phone.” You can bet anyone flying some place is watching the flight delays due to staffing and weather. You can bet that people are watching home price appreciation, especially in terms of home equity, HELOCs, and cash-out refinancing. Expect home price appreciation to slow (which isn’t necessarily a bad thing) due to increased supply, steady interest rates, and weaker economic conditions. (No one wants to go back to the 20 percent gains we saw in 2020 and 2021.) The Fannie Mae Home Price Expectations Survey forecasts average home price growth of 2.9% in 2025 and 2.8% in 2026. Zillow projects a 0.7% decline in U.S. home prices between May 2025 and May 2026 due to increased housing inventory. The Mortgage Bankers Association expects home prices to rise by 1.3% in 2025, followed by a 0.3% increase in 2026 and 2027. (Today’s podcast can be found here and this week’s is sponsored by Figure, which is shaking up the lending world with their five-day HELOC, offering borrower approvals in as little as five minutes and funding in five days. Figure has hundreds of partners in the banking, CU, home improvement, and (of course) IMB space embedding their technology, giving borrowers an experience they will rave about. Today’s has an interview with Halcyon’s Kirk Donaldson on the question, “Why is it so expensive to originate a mortgage?” as well as an exploration of how automation, compensation models, regulatory burdens, and tech interoperability could reshape costs and lead to a more efficient future.)

Products, Software, and Services for Brokers and Lenders

PMR Launches Specialty Products Division! Cory Swain, CEO of Premier Mortgage Resources, is proud to announce the launch of its new Specialty Products Division, expanding access to tailored financing solutions in the 49 states PMR is licensed in. This division supports real estate investors, builders, and non-traditional buyers through four specialized verticals: Commercial Lending led by Victoria Markowski, Construction Financing led by John Neil, Builder Financing led by Rebekah Dobbs, and Creative Buyer Financing including DPA, solar solutions, and rent-to-own options. Backed by PMR’s speed and service, this team is ready to say “yes” to deals that fall outside the box. Learn more here.

Guild Mortgage enhances loan officer lead generation through Evocalize partnership! Guild Mortgage has teamed up with Evocalize to revolutionize how its loan officers generate leads and engage with agent partners. This powerful partnership introduces patented co-marketing technology that makes compliant loan officer lead generation turnkey for Guild’s network. Read more.

CXOs, ever feel like your borrower experience only works when conditions are perfect? In aviation, that’s called flying visual flight rules (VFR), relying on visibility and clear skies. But pilots are trained for IFR too, where instruments take over when the weather turns. That’s the kind of flexibility Tropos brings to mortgage lending. Whether you’re navigating smooth operations or facing complexity, Tropos keeps borrowers on a clear path from application to disclosures and keeps your team in control. It integrates cleanly, adapts in real time, and evolves with your needs. Whatever conditions you’re flying in, Tropos is built to land it.

Lenders can’t afford to operate in silos. When sales, marketing, and operations work on disconnected systems, it leads to inefficiencies, missed opportunities, and a fractured customer experience. Total Expert’s latest blog explores why leading lenders are shifting to shared platforms that unify teams, centralize data, and align around common goals. A connected ecosystem doesn’t just improve collaboration… It drives growth, strengthens compliance, and builds deeper customer relationships. Read the full blog, From Lone Wolves to a Unified Pack, to learn how to break down silos and create a more powerful, purpose-driven team. Ready to see it in action? Schedule a demo today.

The Chrisman Marketplace is now “up and going,” a centralized hub for vendors and service providers across the mortgage 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.

HELOCs, 2nds, and Non-Agency Products

Want to help your borrowers buy first with $0 down and make cash-like offers to win? Flyhomes is hosting a live webinar on July 17 to walk through Flyhomes Cash Offer, a purchase bridge loan that helps unlock equity from both your borrower’s current and future homes, enabling up to 105% LTV with no contingencies and no asset liquidation. 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. Save your spot now for the July 17 webinar or book a call to learn more.

“Manufactured Homes and most second mortgage lenders don’t usually get along… Symmetry allows certain MH’s to be financed on our HELOC product line. No additional CLTV restrictions or price adds. Available on all program types: Piggy-Back, Post Close Piggy-Back, Second Home, First Lien, and Investment Property. We closely follow Fannie on MH requirements (76 or newer, double wide, never moved after installation). Symmetry Lending: solving your borrowers’ issues, one loan at a time!

“Nearly 1 in 3 homeowners are considering home equity loans amid economic uncertainty. Is your lending strategy ready? Join us on Wednesday, July 16 at 1:00 pm CT for Lending 2025: Merging Intelligence, Speed, and Trust, a webinar from FirstClose. Ramiro Castro and Prachi Gadiya will break down what today’s market means for lenders, how borrower expectations are shifting, and why balancing innovation with compliance is key to delivering a better experience. You’ll also have a look at the FirstClose platform in action, followed by an open Q&A. Whether you’re just getting to know us or already exploring home equity solutions, this is a chance to hear directly from our team and get insight into what’s ahead. The future of lending is faster, smarter, and more strategic. Let’s talk about how to get there. Register now.”

More assets than qualifying income? JMAC Lending’s Asset Utilization Non-QM program allows borrowers to use their portfolio assets for purchase, refi, or cash-out while keeping the assets in place to perform and earn money. Take a look at JMAC Lending Asset Utilization Product Page.

Champions Funding offers non-QM and DSCR programs and is a certified CDFI lender proudly presenting Ally, its signature Owner-Occupied No Ratio mortgage program. Designed specifically for borrowers who don’t meet traditional income or employment requirements, Ally helps you say “yes” more often and grow your pipeline with confidence. Champions has a flexible DSCR program that gives investors a clear path to the closing table. Program highlights include up to 85% LTV with DSCR score of > 1.0, FICOs down to 620 with 1.0+; 640 FICOs <1.0 DSCR, no cash-out seasoning requirement, Use 1007 or actual rents whichever is higher. Plus, Champions Funding offers DSCR with Asset Depletion! Use rents plus assets divided by 60 months to improve DSCR scores.

AmeriHome announced additional expansions to its Non-QM Expanded and DSCR product offerings. Effective immediately, non-QM products are available to approved Sellers for Delegated Underwriting. Additionally, LLCs are now an eligible entity for the non-QM DSCR product offering. For details, view AmeriHome Mortgage 20250603-CL Product Announcement.

PHH Mortgage announced updates and clarifications to its non-Agency Silver products. Review PHH announcements for details.

Level up your lending game with The Lender’s superNONI. Designed for experienced investors, the superNONI features asset depletion on DSCR, loan amounts up to $2.0M, and LTVs up to 80%. With better pricing and flexibility than the nearNONI, the superNONI delivers serious strength for long-term rental financing, all while keeping the same great NONI guidelines you know and trust.

Logan Finance has updated Legacy guidelines to provide more ways to qualify and close your non-QM loans. The No Ratio program has been removed from the Legacy Program Guide and rebranded and is now available under the new product suite “Open Road.” CDA/ARR Variance in Section 2.1.6 language has been updated to the following: the enhanced desk review product (ARR, or CDA) must reflect a value within 10% of the appraised value.

Introducing Logan Finance Open Road series: seven specialized mortgage solutions transforming how mortgage brokers and correspondent lenders approach challenging loan scenarios. The suite addresses the financing gap affecting millions of creditworthy borrowers who don’t meet conventional lending requirements.

Close more loans with Loanstream Wholesale’s Zero Ratio DSCR. Gross Income is divided by PITIA/ITIA Interest Only. Max loan amount $2,500,000, 1-4 family properties and condos permitted. 70% LTV for Purchase, 65% LTV for Rate/Term, 60% LTV Cash Out, down to 700 FICO, Investment Properties Only. Note: Short Term Rentals and Temporary Buydowns not allowed.

Unison will be offering first-ever Equity Sharing Home Loans in California that enables homeowners to convert their home equity into cash at below-market rates without selling assets or increasing debt, addressing a significant gap in the home loan market. Unison Mortgage Corporation, a Unison company, launched its Equity Sharing Home Loan. “High credit card balances and early 401(k) withdrawals are becoming common coping mechanisms for U.S. households with finances stretched thin. The innovative Unison Equity Sharing Home Loan combines the benefits of home loans and home equity sharing agreements into a unique mortgage solution that allows homeowners to convert their home equity into cash with low monthly payments.”

Jet Mortgage is launching July with broker incentives on NON-QM 1st Lien. Available Doc Types: Full Doc, Bank Statement, DSCR, P&L Only, 1099 Only, WVOE Only. Loans must be locked and funded in July; loans must be initially approved in order to lock. Excludes Elite Plus Program.

H.R. 4231, the Downpayment Toward Equity Act, has been introduced by House Democrats. The proposed law would provide $100 billion in direct assistance to help first-time, first-generation homebuyers. Up to $25,000 would be made available to qualified homebuyers. Miki Adams, President of the CBC Mortgage Agency, has thoughts. “We support efforts that help American families, especially those in low-income and historically underserved communities, achieve the American Dream. With high interest rates and soaring home prices, down payment assistance is more essential than ever. It has the power to make homeownership more inclusive and attainable. CBC Mortgage Agency is very pleased to responsibly provide DPA that is privately funded, as we continue to make homeownership both attainable and sustainable through our Borrowers Success counseling program.”

California’s Governor Overhauls Housing

Gov. Gavin Newsom signs housing bill overhauling California's landmark environmental law. Earlier this year, Newsom waived some CEQA rules for victims of wildfires in Southern California, creating an opening for the state to reexamine the law that critics say hampers development and drives up building costs. “A bipartisan legislative majority passed and Newsom signed two bills that will at long last roll back the onerous restrictions on development enshrined in the California Environmental Quality Act (CEQA).”

Maryland’s Lending Problems Continue

Remember in mid-January when the new licensing requirement not only applied on a forward-looking basis but also to all holders of Maryland loans, even if those loans were acquired and held prior to the issuance of the Initial Guidance? Remember that the Initial Guidance did not differentiate between or specify the types of secondary market assignees that were subject to licensing, meaning that even securitization trusts and other passive trusts were ostensibly subject to the difficult and time-consuming licensing process, which the trusts are uniquely unsuited to fulfill.

A number of lenders suspended mortgage operations in Maryland. Maryland loans also saw less liquidity overall, including being excluded from certain securitizations and being deemed ineligible assets on certain warehouse facilities. Maryland Governor Wes Moore eventually signed the “Maryland Secondary Market Stability Act of 2025,” (the “Act”) into law which nullified and reversed the guidance that was initially issued by the Maryland Office of Financial Regulation on January 10, 2025 with respect to passive trusts that hold Maryland residential mortgage loans.

Now, investors, especially non-QM investors, have ceased buying investment properties in Baltimore City and surrounding areas. Lenders have seen investors suspend investment properties (Owner-Occupied and Second Home still allowed) for Baltimore City, and a list of Appraisers and Appraisal companies that are on their suspended list are rumored to be making the rounds.

Rumor has it that there was some kind of a bankruptcy/default event associated with an LLC, or group of LLCs, associated with the same group of investors. This group of investors was “involved with” hundreds of investment properties in Baltimore City and in the surrounding area. These were DSCR loans, business purpose loans, not agency investment properties.

One wrote, “Evidently the LLC/group of investors went under, and Apollo started digging into it.” It turns out there was some kind of appraisal fraud going on where property values were overstated. The rumor is that they were ordering the appraisals through an AMC, but they were flagging these properties by offering to pay $444 for the appraisal. Apparently the appraisers would see the $444 and know they needed to pad the value.

“There is apparently an investigation going on right now. An Apollo-backed entity discovered some appraisal fraud in DSCR properties in Baltimore city. As a result, some investors have suspended lending in the city, at least for investment properties, until they get visibility.” DSCR lenders are a fairly small community, and they talk to each other, so a number of them have been circulating a list of appraisers they won't accept, individuals they won't lend to, as well as the associated entities. Portfolios are, no doubt, being examined to see if they have exposure, and in the interim, the path of least resistance is to cross off Baltimore (and a couple other areas) for a while.

Capital Markets

Does anybody else here love a good spat? After President Trump intensified his pressure on the Federal Reserve to cut interest rates, giving Fed Chair Powell a handwritten note demanding "ultra-low rates" and accusing the FOMC of inaction despite minimal tariff-related inflation thus far, Powell yesterday acknowledged that the Fed might have already lowered rates were it not for the scale of current tariffs, a sentiment echoed amid mixed economic data.

We learned yesterday that job openings surged in May to 7.77 million, suggesting labor market resilience, while the ISM Manufacturing Index showed elevated input prices that complicate the Fed’s path to easing. Meanwhile, political tensions are rising: the Senate narrowly passed the "One Big, Beautiful Bill" with Vice President Vance casting the deciding vote, and Trump signaled he may let the current tariff pause expire after July 9, further clouding the inflation and trade outlook.

Construction data in May marked the seventh consecutive monthly decline in spending, driven primarily by a slowdown in new single-family housing due to high costs and borrowing rates. Both residential and nonresidential construction saw declines, while broader sentiment remains subdued due to geopolitical and trade-related uncertainty. Despite a slight rebound in manufacturing activity, supply chain tensions and the inflationary effects of tariff uncertainty continue to pressure firms’ inventory decisions.

Today’s economic calendar is on the lighter side ahead of a packed one tomorrow and kicked off with U.S.-based employers announcing 47,999 job cuts in June, down 49 percent from May’s 93,816, according to Challenger, Gray & Christmas. However, the second quarter saw 247,256 job cuts, the highest Q2 total since 1,238,364 cuts announced in 2020. We’ve also received mortgage applications from MBA, which increased 2.7 percent from one week earlier. Last week’s results included an adjustment for the Juneteenth Holiday. Later today brings a Treasury buyback in 20- to 30-year coupons for up to $2 billion. We begin the day with Agency MBS prices slightly worse than Monday’s close, the 2-year yielding 3.79, and the 10-year yielding 4.28 after closing yesterday at 4.25 percent.