Lenders and servicers have entire sets of policies and procedures based on the Federal Emergency Management Agency (FEMA) declaring an emergency in a given area. President Trump says FEMA should be eliminated, which would definitely impact this process. Texas officials weren’t fans of FEMA until they needed it. Unfortunately, FEMA has become politicized. Generally, how does politics work, regardless of political party? President Trump’s spending bill passage was in trouble, and it needed Alaska Senator Murkowski’s vote. And that is how 150 Eskimo whalers saw a fivefold increase in the amount they claim in expenses against tax every year, and the subsidy for Alaska’s rural hospitals was doubled from $25 billion to $50 billion. Meanwhile, professional poker players and sports bettors are demanding a change to the massive tax and spending bill since it changed the way gamblers deduct their losses on their taxes. Currently, gambling winnings can be offset by 100 percent of gambling losses. But the deduction will be lowered to 90 percent of losses in the new bill, which professional gamblers and tax professionals say could lead to taxes on income that gamblers did not earn. So “if they won $100,000 and lost $100,000, they still owe money on the $10,000” because only $90,000 can now be deducted, said Rep. Dina Titus, a Democrat representing Las Vegas who introduced a bill this week to reverse the tax change. (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 percent cost savings with an industry leading 75 percent completion rate. Today’s has an interview with Pennymac’s Kim Nichols on the current state of the broker channel, market dynamics, and strategies shaping the future of third-party origination.)
Services, Products, and Programs for Lenders and Brokers
Home equity lending is gaining momentum, with the 2025 ICE Borrower Insights Survey indicating that nearly a quarter of respondents are considering a home equity loan or home equity line of credit (HELOC) within the next year. As homeowners accumulate unprecedented levels of tappable equity, servicers are positioned to expand their home equity lending portfolios while strengthening customer engagement. ICE understands that a successful approach to home equity lending is meeting homeowners where they are. ICE offers consumer self-service solutions that servicers can offer their customers to help them better understand their home’s equity, explore options and easily start a loan application - all within the same digital experience. Read the blog to learn how ICE is streamlining the home equity lending experience.
Planet Home Lending Reduces Repurchase Exposure with ACES! Since implementing ACES Quality Management & Control Software®, Planet Home Lending has strengthened its audit readiness for GSE reviews, enhanced servicing compliance through call center monitoring, and gained valuable data-driven insights via robust reporting. Learn how ACES helped empower the Planet Home Lending team to elevate loan quality across the board. “If you're still relying on spreadsheets and emails for QC, it's time to automate. ACES is where you need to be,” said Helen Law, Senior Vice President of QC for Originations and Servicing at Planet Home Lending. Watch the success story.
Before GPS, finding your way took work. First, there were the stars: an ancient map written across the night sky. Then came paper maps, handwritten directions, and gas station guesswork. Today, a global network of satellites keeps us on course. Watch them orbit in real time (it’s mesmerizing). Tropos brings that same clarity to lending. It’s more than a borrower portal; it’s a flexible guide. Whether you focus solely on mortgage lending or offer a full range of consumer loans, Tropos eliminates wrong turns to help every application reach its destination. Find your way with Tropos.
Lenders can access Secure Insight's fraud protection data including wire verifications through an integration with Cotality (formerly Corelogic). Anyone using the LoanSafe product offered by Cotality has the option of turning on SARA-Settlement Agent Risk Assessment. SARA pulls real-time data analytics from Secure Insight to provide risk ratings, license and insurance verification, as well as wire account verification. So, if you are using LoanSafe and you want additional fraud data in your existing report, you simply need to request that access be turned on and your report will contain the additional information. For more information about Secure Insight the team at info@secureinsight.com.
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.
Correspondent and Wholesale Loan Programs
Summer is heating up and so are things at AmeriHome! The recent launch of its eNote platform in partnership with Snapdocs is getting a lot attention, so Snapdocs will be hosting a webinar with AmeriHome’s Chief Production Officer, Steve Kolker, and leaders from New American Funding and Valon Mortgage to discuss the benefits of eNotes from their unique perspectives. Join them July 17, 11am PT: Click here to register! AmeriHome also released enhancements to its Non-Agency suite of products, including AUS Jumbo Express with delegated and non-delegated options. Connect with your sales rep to catch up on the latest developments! The team will be out in force at the Western Secondary Conference next month in Palos Verdes, CA! Reach out to CLSales@amerihome.com to schedule a meeting with a member of our sales team. Check here for a detailed breakdown of where AmeriHome will be throughout 2025 and follow AmeriHome Correspondent on LinkedIn to stay in the loop!
“Click n’ Close has again been named a Top Wholesale Lender Champion by the USDA’s Single Family Housing Guaranteed Loan Program. With over $1.1 billion in down payment assistance delivered and nearly 7,000 homeowners served year-to-date, our impact is clear… and growing. From SmartBuy™ to Shared Appreciation Mortgages (SAM), we’re driving affordability through below-market rates and innovative second-lien structures. What’s more, our 100 percent CLTV One-Time Close USDA construction loan helps eliminate additional barriers to homeownership with no down payment or minimum investment requirements. This back-to-back USDA recognition isn’t just a win for us. It’s a win for the thousands of families we help achieve their dream. We’re here to do more than lend. We’re here to lead. To learn more, reach out to our Wholesale or Correspondent divisions today.”
FHA, VA, USDA, and Other Gov’t Updates
All told, FHA, VA, and USDA account for roughly 30 percent of applications every week. Most of those loans go into Ginnie Mae Mortgage-Backed Securities, and Ginnie’s portfolio reached $2.76 trillion in May, view the Press Release for details.
VA Deputy Secretary Paul R. Lawrence breaks down the VA Home Loan program in this video and how it empowers Veterans to achieve homeownership with unique advantages.
USDA Rural Development (RD) is seeking information on how an interested contractor could provide loan servicing (current, delinquent, and terminated loans) and grant servicing: loss mitigation services; bankruptcy and foreclosures services; management and disposition of acquired properties; and provide accounting reports/data for the Single- Family Housing (SFH) Direct Loan portfolio, a complex loan type portfolio. The RFI/Source Sought was posted on SAM.GOV and GSA on June 3, 2025. This RFI is issued solely for information and planning purposes, it does not constitute a Request for Proposal (RFP) or a promise to issue an RFP in the future.
USDA Rural Development posted a Bulletin announcing an Interest Rate Increase for SFH Direct Programs.
The 2025 income limits for the Single-Family Housing Guaranteed Loan Program were published on June 18, 2025, through a Special Procedure Notice (SPN), The Guaranteed Underwriting System (GUS) and the Income Eligibility calculator on the Eligibility Website have been updated with the new income limits.
FHA published a sweeping set of policy retractions for its Single-Family mortgage insurance program, spanning the loan origination process from loan application through endorsement. Policy retractions include the following: Rescission of Outdated and Costly FHA Appraisal Protocols. This ML eliminates several antiquated and burdensome procedural steps an FHA appraiser must complete during each assignment. Rescission of Full-Time Direct Endorsement Underwriter Requirements. This ML rescinds the full-time employment requirement for Direct Endorsement (DE) underwriter eligibility to allow part-time employment with an FHA-approved mortgagee. Rescission of the Supplemental Consumer Information Form Requirement. The SCIF, Fannie Mae/Freddie Mac Form 1103, is used to collect information about the borrower’s language preferences. Rescission of Federal Flood Risk Management Standard (FFRMS) for New Construction Eligibility.
FHA has rescinded ML 2024-20, which required that the lowest floor in newly constructed properties located within the one-percent-annual-chance (100-year) floodplain be built at least two feet above the Base Flood Elevation (BFE).
Rescission of Mandatory Pre-Endorsement Inspection Requirements for Properties Located in Presidentially Declared Major Disaster Areas (PDMDAs). This ML modifies FHA disaster inspection requirements for forward mortgages to align with the industry standard, allowing mortgagees the discretion to assess property condition and determine appropriate risk-based actions prior to endorsement. Provisions of these MLs are effective immediately and will be incorporated into a future version of the FHA’s Single Family Housing Policy Handbook 4000.1.
FHA published a. Request for Information (RFI) regarding buy now pay later unsecured debt in the Federal Register. Docket No. FR-6547-N01 seeks input to better understand how BNPL obligations may affect lenders’ ability to accurately assess risk and the impact of BNPL lending on housing affordability, which will inform whether policy changes are needed to preserve sound underwriting standards.
USDA Rural Development Bulletin, Advance Notice: Revisions to HB-1-3555, describes revisions to Single Family Housing Guaranteed Loan Program (SFHGLP) technical Handbook 1-3555. Expected implementation on August 5, 2025.
The new 2025 income limits are effective for new submissions or re-submissions to the Guaranteed Underwriting System (GUS) on or after June 18, 2025, and apply to existing pipeline and new applications for manually underwritten and non-GUS transactions. Pennymac is aligning with this change as stated in Pennymac Announcement 25-68.
Pennymac is aligning with the Single-Family Housing Guaranteed Loan Program (SFHGLP) changes, announced on May 5, 2025, to include manufactured home eligibility. View Pennymac Announcement 25-61 for details.
Pennymac is updating Government LLPAs effective for all Best Efforts Commitments taken on or after Monday, July 07, 2025 as described in Pennymac Announcement 25-69.
Capital Markets
Was your mortgage pipeline prepared for the market volatility related to SVB’s failure in 2023? In MCT’s latest blog post, Reacting to Mortgage-Backed Securities (MBS) Market Movement, learn how to navigate a volatile secondary market, and react to MBS market movement to reduce risk exposure. From recognizing key signals in rallies and selloffs to leveraging powerful tools within MCTlive!, this new post illustrates actionable insights to help lenders manage risk, maintain execution discipline, and stay ahead of market shifts. Whether you're a seasoned capital markets professional or refining your secondary execution playbook, it’s essential to refresh your knowledge on best practices and scenario-based strategies to sharpen your approach. Join MCT’s newsletter to stay informed with the latest market commentary and tools tailored for today’s mortgage capital markets.
After a quiet couple of days to open the week (outside of tariff headlines), yesterday packed some market-moving potential with a 10-year Treasury auction and the release of the June FOMC meeting minutes. By the end of the trading session, bond prices unexpectedly rallied as there was renewed rate-cut optimism stemming from chatter about possible replacements for Fed Chair Powell when his term ends, signs of decent dollar demand at the 10-year note auction, and the FOMC Minutes for the June 17-18 meeting conveyed a stronger expectation of rate cuts before the end of the year than no rate cuts at all. The Fed minutes revealed concerns that tariffs could push inflation higher for longer, potentially shifting expectations. A rate cut in July now looks unlikely, and even a September cut is being debated, depending on upcoming inflation data. For now, the market seems set to stay within a stable range.
The true inflationary impact of the tariffs may not be fully visible by the September FOMC meeting. However, the Fed will have three additional CPI prints and greater clarity on the final scope of the trade measures by then. So far, inflation data has not suggested a return to the elevated 2022–2023 levels, and the Fed appears to have successfully re-anchored price stability. While fears of a reflationary shock linger, the lack of realized inflationary pressure may soon shift the narrative around the trade war’s effectiveness. As for today, market attention will remain on any fresh trade updates and how foreign partners respond, but risk assets are largely taking the situation in stride. Much like the budget and deficit concerns earlier this year, which sparked selling ahead of resolution and buying once finalized, the trade tensions may end up having a muted and delayed impact on yields unless economic data confirms real spillover. This could potentially cap Treasury yields in the near term.
The government sold 10-year Treasury notes at a yield of 4.36 percent yesterday, slightly better than expected. Investors, especially direct buyers, showed above-average interest, and overall demand was solid. U.S. Treasury yields have hovered near the top of their recent range, with the 10-year note anchored around 4.40 percent. Despite speculation about a potential buyers' strike, auction demand has remained steady. The recent rise in yields from early July lows reflects a reasonable concession surrounding supply and has brought 10-year Treasuries back into a more attractive valuation range. While the latest round of tariff announcements has added some market noise, the more meaningful drivers of recent yield movements have been a stronger-than-expected June jobs report and the aggregate auction supply.
Weekly jobless claims led off Thursday’s calendar: 227k, 1.965 million continuing claims… more of the same. Later today brings some Fed speak (from St. Louis Fed President Musalem, San Francisco Fed President Daly, and Fed Governor Waller), Freddie Mac’s Primary Mortgage Market Survey, a Treasury auction of $22 billion reopened 30-year bonds, and the NY Fed’s buyback in 5- to 7-year coupons for up to $4 billion for liquidity purposes. We begin Wednesday with Agency MBS prices unchanged from Wednesday’s close, the 2-year yielding 3.86, and the 10-year yielding 4.35 after closing yesterday at 4.34 percent; with long-term bond yields hovering around 4.4 percent to 4.5 percent, many see this as an attractive level to lock in long-term returns, especially if the Fed holds rates steady at its next meeting.
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