We’re in the summer travel season. TSA will be eliminating its “shoes off” policy, and many will be sampling today’s rollout of Spicy McMuffin breakfast sandwiches at Mickey D’s. My cat Myrtle was never a fan of the TSA, believing, perhaps, given her cynical nature, that their staff was filled with Walmart security guard rejects. (Did you know that you can opt out of the TSA taking your photograph every time you go through security, with no consequences? You should.) If you travel to Washington, D.C., know that a) there are periods between the D and the C, and b) Fed Chair Jerome Powell heads up spending $2.5 billion renovating the D.C. office, with a “b.” The chances of a Fed rate cut in at the next policy meeting in late July plunged to just 5 percent following the jobs report because the Fed is seen as unlikely to lower its policy rate until the labor market weakens. On today’s episode of Capital Markets Wrap presented by Polly, panelists break down the latest jobs data and how the market responded, including what it could mean for the Fed’s next move. They’ll also cover current lock volume trends, along with a look at recent headlines around appraisal fraud in Baltimore and the importance of maintaining a diversified investor base. (Today’s podcast can be found here and this week’s is sponsored by Truework, the only all-in-one, automated VOIEA platform that helps mortgage providers achieve up to 50% cost savings with an industry leading 75% completion rate. Today’s has an interview with Polunsky Beitel Green’s Peter Idziak on the recent Senate Parliamentarian’s decision blocking efforts to defund the Consumer Financial Protection Bureau via reconciliation and the implications for the agency’s independence and the broader mortgage lending framework.)

Products, Software, and Services for Lenders and Brokers

Mortgage litigation & enforcement defense that means business! Cornered by repurchase demands? Watching key employees walk out, straight to a competitor? State or federal regulators knocking? Aggressive vendor claiming breach? Garris Horn LLP delivers strategic litigation prowess tailored to the mortgage industry. From repurchase claims and poaching disputes to enforcement actions and contract battles, we help C-suite leaders manage risk, respond quickly, and protect enterprise value. Put decades of focused experience to work for you to contain exposure, resolve matters efficiently, and move your business forward cost effectively. Make the call today that will help you sleep more peacefully tonight. Talk with any of the attorneys at Garris Horn LLP, or reach out to David Ross, Rich Horn, or Troy Garris for more information.

Laminr Technologies’ Automated Bank Statement Income Analysis Now Accepted by Onslow Bay! Laminr Technologies, the leading automated decisioning platform serving the non-QM market, is excited to announce that its fully automated bank statement income analysis is now accepted by Onslow Bay Financial LLC. This expands upon the existing acceptance by Long Run Partners. Both investors consider Laminr bank statement results valid and approved when specific guideline conditions are met. The workflow is simple: originators upload 12-24 months of bank statements, Laminr automatically analyzes income and generates a summary page to include in the credit package to Onlsow or Long Run. Users report over 50% gains in bank statement underwriting efficiency and improved secondary market execution. This milestone reinforces Laminr’s commitment to accelerating and simplifying non-QM underwriting, origination, and secondary marketing. For more information, and to request a demo, visit www.laminr.ai.

“Banking should be personal. At Servbank, we go beyond transactions to build lasting partnerships, delivering white glove service with a dedicated team by your side. Whether you're a consumer or a commercial client, we deliver tailored solutions to meet your unique needs. No phone trees, no runaround… just real people, real support, and a better way to bank. Experience the difference.”

Curious how technology is impacting the lending landscape and reshaping borrower expectations? Dale Vermillion, CEO of Mortgage Champions, recently sat down with Tim Bowler, President of ICE Mortgage Technology, for an insightful discussion on the future of lending. Together, they explored the transformative role of AI, evolving borrower demands and the delicate balance between technological innovation and human connection. Watch the full conversation now to learn how personalized experiences and innovative solutions are transforming the mortgage industry.

In the early 2000s, a new movement redefined how people saw the world. Also known as “the art of movement,” Parkour turns everyday spaces into playgrounds of possibility. Tropos brings that same agility to mortgage lending. More than just a portal, Tropos reads the terrain ahead and adapts as borrowers progress, helping your team navigate obstacles that derail other platforms. With a clear, guided experience, borrowers stay focused, confident and in motion from application to disclosures. Move freely with Tropos.

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.

Broker and Correspondent Loan Products

The summer solstice is behind us, and for the next 166 days, the daylight hours will only get shorter. We’ve all heard of Seasonal Affective Disorder, but for homebuyers, there’s another kind of solar-induced SADness: Solar Anxiety Disorder. It kicks in when buyers face steep solar costs, sky-high financing, and fly-by-night installers. That’s where Arcasa helps power the Energy-Smart DPA Program. Now available in Down Payment Resource’s DPA Directory, it combines a market-rate FHA first mortgage with down payment assistance and energy-efficient upgrades like solar to reduce the buyer’s upfront origination costs, monthly utility bills and potentially even their PITI. There are no AMI caps or geographic restrictions, and lenders can white label the program to match their brand. After closing, Arcasa works with trusted local installers to handle the solar upgrades, with no liens involved. Not a Down Payment Resource customer? Just reach out to Arcasa’s Chris Gassel to get started.

Exciting changes are non-stop at Carrington Mortgage Services. First came the announcement that Carrington accepts DSCR loans from more than 35 states that do not require a broker license for those loans. Then came dramatic pricing improvements on June 25th. Now, beginning July 10th, Carrington will accept DSCR loans for properties in the state of Massachusetts. And coming soon, Delegated Correspondent will be a delivery option for non-QM. It’s Non-Stop Non-QM at Carrington… Make sure you’re a part of it! They’ll be on the road at the Arizona Mortgage Expo, the California Mortgage Expo in San Diego, the Western Secondary, FAMP Annual Convention, and OriginatorConnect over the next six weeks. Contact them to learn more about this exciting time, or schedule time to speak at one of these events with Carrington today!

LO Comp Reform

Over the weekend I received an “MLO VieauxPoint” from Brian Vieaux, CMB, President & COO of FinLocker & Founding ‘Expert’ of MLO Live, suggesting that LO compensation reform is the most important industry conversation that we’re not having yet. “It started with a simple LinkedIn post. I asked, ‘What’s your take on LO Comp reform?’

“What followed was a tidal wave of responses, from brokers, independent mortgage bankers, compliance experts, credit union leaders, trade groups, regulators, and C-suite executives. Over 30 in our industry ranks reached out to share how LO Comp is affecting the people who originate loans and, more importantly, the consumers they serve. Some saw opportunity. Some saw overreach. Many saw the same thing: a broken system with no clear path forward.

What reignited this conversation? A white paper from the Community Home Lenders of America (CHLA), published in late June. It argued that the current LO Compensation rule, originating from the Dodd-Frank Act, has strayed far from its original intent and is now harming consumers by limiting flexibility, reducing access to bond and affordable loan programs, and creating inconsistent enforcement across channels. The CHLA’s proposed reforms include allowing loan officers to reduce compensation to match competing offers, exempting bond/HFA loans from rigid comp restrictions, and allowing adjustments for LO errors or brokered loan structures.

“It was a bold move, and it sparked an even bolder response from across the industry. David Kittle, CMB, former MBA Chair, didn’t mince words: ‘LO Comp is too high. We need flexibility to reduce comp to get a deal done. I did that my whole career.’ Greg Sher, NFM Lending, pointed to a morale crisis among LOs: ‘They become discouraged and leave the business because they can’t compete like every other line of work.’ Dana Peznowski, Chief Risk Officer at Towne Mortgage, flagged unintended consequences: ‘The rule removes incentives for accuracy and forces lenders to eat the cost of mistakes. That becomes priced in, and consumers pay for it.’ Ken Perry, CEO of Knowledge Coop, highlighted a core compliance problem: ‘Without real enforcement, the rule gives violators the upper hand and punishes ethical originators. That’s the opposite of consumer protection.’

“But not everyone saw CHLA’s white paper as a step forward. Brendan McKay, Broker Action Coalition, fired back: ‘This wasn’t reform. It was a tired ‘blame the broker’ narrative… lazy, inaccurate, and frankly disappointing.’ Rob Pieklo, President & CEO of AFR, was even more direct: ‘This was a poorly crafted attempt to take shots at a channel. Competition, not a fulfillment method, should drive this conversation.’

“Some leaders reminded us that real reform must be done carefully, and with an eye on legislative realities. Al Pitzner, Managing Director at Conforma Compliance Group, cautioned: ‘If the CFPB rescinds the rule without a statutory replacement, the industry loses its safe harbors and becomes subject to vague Dodd-Frank prohibitions. That would create more confusion, not less.’ Justin Wiseman, Managing Regulatory Counsel at MBA, agreed: ‘We support thoughtful reform, but let’s be clear, this isn’t just a regulation; It’s embedded in statute. Any change must protect both consumers and competitive fairness.’

“Even so, nearly every contributor agreed on one thing: Reform is overdue, but it must unite, not divide. As Paul Flynn put it: ‘Reform shouldn’t change how you show up. It should allow you to show up more flexibly, more competitively, and with more trust.’ This conversation isn’t about brokers vs. bankers. It’s about whether we’re willing to build a framework that works, for all channels, all loan officers, and most importantly, for every homebuyer. Read the complete article for insights. Any regulation on LO comp (which I don't think is needed any longer) should result in the same handling at LO level regardless of channel that LO originates in. My objective with this note is to be a vehicle for conversation across the industry that results in more of us getting involved to push meaningful, needed reform. #VieauxPoint” Thank you, Brian!

Capital Markets

Connect with MSR buyers/sellers through the ServiceMac Exchange (SMX). Streamline the mortgage servicing rights (MSR) transaction process with one purchase and sale agreement and a single counterparty experience. The ServiceMac Exchange (SMX) is a newly launched online platform that connects MSR buyers and sellers using a sophisticated pricing engine to provide loan-level pricing within minutes. SMX enables clients to leverage capital markets efficiency through an MSR exchange backed by our world class customer support and execution as a subservicer. One of the many features of SMX is a one-to-many relationship that enables buyers to establish a relationship with ServiceMac while gaining access to multiple MSR sellers participating in SMX. The exchange provides the support of consistent operations backed by ServiceMac’s dedicated support groups. Participants also benefit from ServiceMac’s servicing oversight, which provides buyers with access to asset performance and servicing data with our state-of-the-art mortgage servicing quality assurance platform that enables ServiceMac to monitor our full loan portfolio daily for adherence to applicable government agency and business requirements. Click now to learn more about these and the many other benefits of SMX.

In terms of interest rates, mortgage rates more closely track 5- or 10-year Treasury securities, but yesterday long-term U.S. Treasury bonds were sold off to begin the week causing the spread between short- and long-term yields to widen slightly. The movement came after President Trump signed his major economic bill to close last week and sent warning letters to countries like Japan and South Korea about potential tariffs starting next month to begin this week. With little new economic data, market sentiment was focused around on trade policy, labor trends, and the potential for a new Fed Chair in September. Kevin Warsh and Christopher Waller are seen as leading candidates to replace Jerome Powell. Concerns about inflation and upcoming Treasury debt sales also added pressure to bond prices.

NFIB small business optimism for June (98.6, as expected) kicked off today’s economic calendar. It’s a fairly uneventful day from a data perspective, with other releases limited to Redbook chain store sales, consumer credit for May, the New York Fed’s Consumer Expectations for June, and Treasury activity that will be headlined by an auction of $58 billion 3-year notes. We begin Tuesday with Agency MBS prices slightly worse than Monday’s close, the 2-year yielding 3.90, and the 10-year yielding 4.41 after closing yesterday at 4.39 percent.