If you want to see an unscripted moment where politics and the central bank collide, thank Ken Sonner for sending over this clip of President Trump and Fed Chair Powell addressing the press. (Complete with pressure for lower rates, a misstatement of the cost, and with the President taking his hard hat off because “there’s not too much danger.”) Every president through history has wanted lower rates to spur growth; Robbie Chrisman is in Rapid City, South Dakota, where he reports that growth is surging, which appeals to some but not those who “liked it the way it was.” Interest rates may be a topic on today’s episode of Last Word at 10am PT, Brian Vieaux, Christy Soukhamneut, Kevin Peranio, and Courtney Thompson. They will certainly explore the real factors driving up loan origination costs, focusing on sales compensation rather than just credit or insurance. They'll also examine the housing market’s mixed signals, including rising refi activity, steady rates, and the implications of record-high home prices amid growing inventory and price cuts. (Today’s podcast can be found here and this week’s podcasts are sponsored by Wholesale Mortgage Direct (WMD), whose mission is to deliver high demand, innovative products unique to the wholesale industry, including MyEQNow, which is one-of-a-kind TraDigital HELOC platform. WMD is your trusted partner for innovative HELOC, NonQM and/or Reverse options. Today’s has excerpts from an interview with the MBA’s Bob Broeksmit on Mortgage Matters earlier this week addressing a variety of current action items on MBA’s docket.)
Products, Services, and Software for Lenders and Brokers
Homebridge + NFTYDoor: Ushering in the AI Mortgage Revolution! Homebridge is redefining the future of mortgage lending with its acquisition of NFTYDoor, an AI-powered fintech platform that’s transforming the industry from the ground up. This bold move positions Homebridge not just as a lender but as a true fintech leader. By integrating NFTYDoor’s instant credit decisioning, automated underwriting, and digital closings, we’re reducing costs by over 90 percent and shrinking loan cycles from weeks to days. Why does this matter? Over 30,000 MLOs are already leveraging the platform to close loans faster and more profitably. Borrowers experience lightning-fast HELOCs with “Fast Pass” approvals. AI-driven underwriting means smarter, tailored lending at scale. Read Press Release
Your lock desk is more than just a pricing function; it links front-line sales and investors and plays a central role in optimizing and protecting your profitability strategy. Optimizing lock desk operations is critical not just for lenders looking to move from best efforts to advanced executions, but also for firms that have been hedging for years. Vice Capital Markets’ free white paper Lock Desk Best Practices explores what that looks like: how to structure the team, what to track, how to align with sales, and how your lock desk team is the front-line sheriff protecting your hard-earned profitability. It’s a quick, practical read with takeaways you can put to work immediately… no email required. Read the white paper here.
“Accelerate Your Growth with MAXEX’s Expanded Non-Delegated Program! MAXEX is unlocking significant liquidity for non-delegated origination by expanding our Non-Delegated Program across all available flow programs and buyers. Experience fast pre-close underwriting, effectively manage risk, and capitalize on diverse market opportunities including Jumbo, Agency-eligible, Non-QM, and DSCR programs. Join our upcoming webinar, “Unlocking Expanded Credit: Proven Strategies for Growing Your Non-QM and DSCR Business,” on Thursday, August 7 at 2pm ET. Gain practical insights, explore winning scenarios, and learn about comprehensive origination options designed to propel your business forward. Register Now for the Webinar or Learn More about MAXEX’s Non-Delegated channel.”
The Chrisman Marketplace is 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.
FHA, VA, and HUD: Government Product News
The weekly MBA application data shows that about 30 percent of new apps are government program loans, so it is good to know what’s happening out there. In fact, Ginnie Mae Mortgage-Backed Securities Portfolio reached $2.78 Trillion in June. View the Press Release for details.
With possible ramifications for the single-family biz, perhaps the big news for lenders in general recently was the U.S. Department of Housing and Urban Development (HUD) proposing changes to the Mortgage Insurance Premiums (MIPs) for FHA Multifamily Insurance Programs. This proposal aims to address current economic challenges and stimulate the development of rental housing across the country.
Recall that in 2016, HUD reduced MIPs for loans under three categories: Green and Energy-Efficient Housing, affordable housing, and broadly affordable housing. However, market-rate properties were left with significantly higher MIP rates. Earlier this year, President Trump signed a presidential memorandum titled “Delivering Emergency Price Relief for American Families and Defeating the Cost-Of-Living Crisis,” which prompted HUD to propose reduced MIP rates for all loans under the FHA Multifamily Mortgage Insurance Program.
Over the past couple of years, rising construction costs and elevated borrowing rates have led to a decline in market-rate property loans. The proposed expansion of MIP cost-savings to all property types aims to lower financing costs and encourage rental housing development.
High MIPs have traditionally been a disadvantage for loans under these programs, and the proposed decrease seeks to provide a long-term debt solution for multifamily borrowers.
HUD’s proposal includes a uniform upfront capitalized MIP of 25 basis points for all FHA multifamily mortgage insurance programs, replacing the current range of 25 – 100 basis points. Additionally, the annual MIP would be reduced to 25 basis points from the current range of 25 – 95 basis points.
This uniform rate would eliminate the 2016 loan categories, including Green and Energy-Efficient Housing, Affordable, and Broadly Affordable, as they will be considered economically obsolete. The specialized requirements outlined in the 2016 rules for these categories would also be eliminated.
HUD believes that these changes will simplify the cost-benefit analysis for owners, developers, and lenders, reducing complications and stimulating multifamily development by lowering overall development costs.
The new MIP rates will apply to FHA multifamily mortgage insurance applications submitted or amended on or after the effective date of the notice unless the loan has already been endorsed. The proposed changes are open for public comment until July 28, 2025.
On July 7, 2025, the U.S. Department of Housing and Urban Development’s (HUD) Office of Environment and Energy (OEE) and the U.S. Department of Agriculture (USDA) published a Notice for Comment (Notice), Adoption of Energy Efficiency Standards for New Construction of HUD- and USDA-Financed Housing in the Federal Register seeking public comments on the Final Determination published April 26, 2024, in the Federal Register. Interested parties are encouraged to review the Notice for additional information and details, and provide comments through August 6, 2025, following the methods outlined in the Notice.
FHA INFO 2025-32 Announcement includes the following topics: Mandatory Phishing-Resistant Multi-Factor Authentication for FHA Connection Users implementation requirement date extended from July 28, 2025, to October 27, 2025. HUD Office of General Counsel revised instructions for service of process on HUD including mailing all litigation mail to HUD offices.
Pennymac updated Government LLPAs effective for all Best-Efforts Commitments taken on or after Monday, July 14, 2025. View Pennymac Announcement 25-71 for details.
AmeriHome Mortgage issues a reminder to Sellers that they offer FHA and VA 5/1 ARMs. Sellers are encouraged to check out our improved pricing for Government ARMs. AmeriHome has also published an updated Government ARM Initial Interest Rate Adjustment Dates schedule to clarify our quarterly issuance dates. View AmeriHome Mortgage Product Announcement 20250704-CL for details.
Capital Markets
The U.S. economy is driven by jobs and housing, and we are starting to see undeniable signs of a slowing economy in the latter. June housing data came in weaker than expected, with both new and existing home sales underperforming, signaling continued sluggishness in the housing market. While new single-family home sales rose slightly to 627k, they missed forecasts, and the median new home price dropped 2.9 percent year-over-year to $402,000, the second-lowest level since September 2021. Inventory climbed sharply, with new home listings reaching their highest since 2007 and existing listings hitting a post-2020 high, pushing months’ supply near 2022 levels when prices briefly declined. Despite these headwinds, softer shelter inflation is helping temper broader price pressures and may partially offset the inflationary impact of new tariffs in the second half of 2025, though housing remains a downside risk to GDP growth.
The outlook for a slow decline in yields is supported by easing inflation and prospects of rate cuts, although longer-dated maturities like the 30-year are likely to underperform due to sticky inflation expectations and term premiums. The case for significantly higher 10-year Treasury yields has weakened along with the economy, as markets have largely priced in the peak impact of trade-war tensions and debt supply stress without pushing yields above 4.625 percent. The current environment suggests a prolonged period of range-bound trading, possibly between 4.10 percent and 4.625 percent, before the Fed rate cuts eventually pressure that yield to below 4 percent.
Don’t forget about persistent Treasury supply concerns, expectations of a higher long-run neutral rate, and the likelihood of policy normalization under a new Fed chair. Markets anticipate Powell will gradually lower fed funds rates toward 3.25 percent before his term ends, supporting a base case of easing reflation pressures without triggering a deep downturn or renewed inflation. In the short term, with the FOMC expected to hold steady and Powell likely to maintain a cautious tone, attention is turning to the Treasury refunding announcement, where a potential increase in buybacks could boost demand for long-duration debt.
Mortgage rates are expected to end 2025 and 2026 at 6.4 percent and 6.0 percent, respectively, downward revisions compared with last month’s forecast of 6.5 percent and 6.1 percent, according to the July 2025 Economic and Housing Outlook from the Fannie Mae Economic and Strategic Research (ESR) Group. The ESR Group also updated its home price growth forecast this month and now projects annual home price growth, on a Q4/Q4 basis, of 2.8 percent in 2025 and 1.1 percent in 2026. These are downward revisions compared with the previously projected 4.1 percent and 2.0 percent. Total home sales are forecast at 4.85 million units in 2025 and 5.35 million units in 2026. Mortgage rates fell for the first time in three weeks in Freddie Mac’s Primary Mortgage Market Survey. For the week ending July 24, the 30- and 15-year mortgage rates declined 1-basis point and 5-basis points, respectively, to 6.74 percent and 5.87 percent, and are now just 4-basis points and 20-basis points lower from a year ago.
Today’s lone data point was the always-volatile durable goods orders for June (-9.3 percent, but ex-transportation +.2 percent). We begin the day with Agency MBS prices little changed from Thursday’s close, the 2-year yielding 3.92, and the 10-year yielding 4.41 after closing yesterday at 4.41 percent.
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