Is it just a matter of time until insurance companies tell us where to live, what to make out houses out of, and what, exactly, we’re allowed to plant in our yards? We may be entering that world. Lenders and vendors live via rules and regulations. I mention this because attorney Brian Levy really doesn’t like the LO Compensation Rule. In fact, in his latest Mortgage Musing take down of the rule, he says it is “brutal.” Levy offers his thoughts about the CFPB proposal to rescind the LO Comp Rule as well as the recently filed LO Comp class action case against loanDepot (reported in Chrisman Commentary last Thursday). (You can sign up to receive Brian’s Mortgage Musing directly here.) While we’re talking regulations, Weiner Brodsky Kider PC did a write up on how the CFPB terminated a consent order that it had entered into with a Florida-based mortgage servicer concerning allegations that the company had failed to inform borrowers of foreclosure protections while actively proceeding with foreclosures against them and that the company had violated a previous consent order. (Today’s podcast can be found here and this week’s are sponsored by nCino. nCino Mortgage unites the people, systems and stages of the mortgage process into a seamless end-to-end solution embedded with data-driven insights and intelligent automation. Hear an interview with Verisk’s Kingsley Greenland on recent flooding events impact on housing and how insurance company modeling has quickly surpassed government modeling on disasters.)

Products, Services, and Software for Lenders and Brokers

“SG Capital is excited to announce key enhancements to our lending programs, effective August 11th. For Prime/Plus Connect, highlights include 90% LTV/CLTV to $1,500,000, DTI up to 55%, acceptance of Laminr bank statement software, and a new 30% expense factor option for bank statement loans. For DSCR Loans, updates include LTV/CLTV up to 85% with a DSCR of 1.0 or greater, loan amounts up to $3,000,000, unlimited cash-out, and up to 6% interested party contributions. These improvements are designed to offer greater flexibility and expanded borrower options. SG Capital is committed to providing innovative solutions that help you close more deals with confidence. To receive the full list of updates and unlock new opportunities, reach out to our team today. We also invite you to connect with us at the Western Secondary Conference, August 11–13, to discuss how these changes can benefit your business.”

“WEBINAR: Co-Marketing Strategies for Local Growth in a Consolidating Industry. While industry giants like Rocket/Redfin/Mr. Cooper, Guild Mortgage/Bayview, and Lower/Movoto consolidate and control entire customer journeys, the smartest local professionals are fighting back—and winning. Join Matthew Marx from Evocalize and Dan Catinella from Total Expert as we share the strategies and tools local professionals use to outcompete these industry giants. It's time to take control of your lead funnel. Join us to see how!”

“Vista Point Mortgage has closed VSTA 2025-CES2, a $295 million securitization of Non-QM Closed-End Second (CES). It included our innovative DSCR CES, an industry first. Vista Point Mortgage has pioneered the non-QM CES asset class during its development throughout 2022, launching nationally in 2023. Now, with over $1.7 billion in CES production, the company leads the way with five transactions successfully sold into the capital markets. Our correspondent channel has contributed a sizable amount of target “down the middle” characteristic loans into the deal, which has a weighted average coupon in the high 9% area, CLTV in the mid-high 60’s, FICO in the mid 730’s, DTI in the low-mid 30’s, and our pioneering DSCR CES with a 1.24 DSCR ratio. As a true leader in non-QM and CES, VPM looks forward to connecting with its Correspondent Partners at the Western Secondary Market Conference in Rancho Palos Verdes, CA, on August 11-13. For any other inquiries, please email info@vistapointmtg.com or visit vistapointmortgage.com.”

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.

STRATMOR on Servicing Strategy

In STRATMOR’s July Insights Report, servicing takes center stage once again—but this time, the focus is on execution. In “Next Move: Operationalizing Mortgage Servicing for the Future,” STRATMOR Principal Kris van Beever lays out a practical path from strategic intent to real-world results, sharing how lenders can better align people, process, and technology to fully realize the value of their servicing portfolios. If you’ve already embraced the idea that servicing is a strategic lever, this follow-up piece will help you make the leap from vision to action. Read the full Insights Report here.

Fannie Mae Performance; Redwood Trust’s Transition

In mortgage banking, when you say the “Agencies” you think of either Freddie Mac or Fannie Mae. This morning one of them reported its financial results for the 2nd quarter. Fannie earned $3.3 billion of net income, the 30th consecutive quarter of positive net income, and its net worth to $101.6 billion; $88.1 billion in net worth added since the start of 2020. Most of the revenue came from guaranty fee income.

Redwood Trust reported its second quarter 2025 financial results and “accelerates transition to core operating strategy.” GAAP book value per common share was $7.49 on June 30, 2025, relative to $8.39 per share at March 31, 2025. Economic return on book value of -8.6 percent for the second quarter, and GAAP net loss related to common stockholders of -$100.2 million driven by Legacy Investments. Non-GAAP Core Segments Earnings Available for Distribution ("Core Segments EAD") of $25.0 million or $0.18 per basic common share (refer to non-GAAP reconciliation under the section titled "Non-GAAP Disclosures").

Capital Markets

Rate-wise, a strong $44 billion 7-year Treasury note offering yesterday helped bonds rally in sync with MBS (a rarer occurrence lately), sending yields on the 10-year note and the 30-year bond to their lowest levels since early July. Treasury auctions this week went down without much fuss, signifying strong investor demand. And while we are on the topic of supply, the release of the Treasury Department’s Financing Estimates has further refocused the market on the supply side of the equation. The size of the liquidity buybacks will be released this morning, and earlier in the week the borrowing estimate provided context for the amount of bill issuance the market will need to absorb in the coming months.

Mortgage prices are a result of supply and demand, and on the supply side of the equation, an updated look at July gross issuance and prepayments will be released next Wednesday. Early estimates have FN30 and FN15 speeds increasing 8 percent and 9 percent on average, with GNIIs speeds 4 percent higher, due to a 10 percent increase in collection days and increased refinancing activity. Month-to-date gross issuance ($100.8 billion) has exceeded $100 billion for the third straight month, but is set to fall short of June’s $108.0 billion, which was highest since last November’s $117.8 billion.

Fed Day… it will be a non-event. Andrew Stringer, EVP of Capital Markets with PrimeLending, put a spin on it. “The anticipation is about as palpable as a group of 6-year-olds waiting on a retired circus clown (complete with a 5 o’clock shadow) who’s been roped into making balloon animals for Billy’s birthday. Sure, there’s the promise of cake, but the reality is, you’re going to be forced to endure hours of watered-down lemonade, obnoxious party games, and balloons randomly popping, causing half the children to burst into tears. Sounds like a typical Fed meeting to me.

“It’s a foregone conclusion that rates will remain unchanged. The market’s focus will instead shift to whether a September cut is still on the table. Currently, the Fed Futures market places that probability at around 70 percent. Of course, that could shift quickly depending on how the ‘Dot Plot’ is rolled out (12 voting members projecting where they believe the fed funds rate should be in the future).

“Powell’s commentary will likely center on two key areas. Labor Market: In the last meeting, Powell described it as ‘balanced,’ citing a broad set of indicators and reaffirming the Fed’s commitment to the maximum employment side of its dual mandate. Inflation: After acknowledging labor market strength, he cautioned that inflation ‘remains somewhat elevated relative to our 2 percent longer-run goal.’ Powell’s concern over inflation currently outweighs any perceived risk to the employment landscape. Let’s also not forget that 7 of the 12 members last June projected no cuts at all in 2025. With the stock market at all-time highs and no immediate red flags in employment (despite a slight miss in JOLTS/Job Openings), the bias appears to lean toward stalling future cuts… Pay close attention to Powell’s Q&A session for any hints of forward guidance. In a market this sensitive to tone, even a subtle pivot could be the difference between a balloon poodle and a full-blown parade.” Thank you, Andrew!

Today’s economic calendar, which brings the latest Federal Open Market Committee events (statement and Chair Powell’s press conference), kicked off with ADP employment for June (+104k in July versus expectations of 50k versus -33k in May). We’ve also received mortgage applications from MBA, which decreased 3.8 percent from one week earlier, and the first look at Q2 GDP (+3.0 percent), with the core PCE deflator (+2.5 percent annualized) and personal consumption (+1.4 percent annualized). Later today brings pending home sales (expected to increase 0.8 percent month-over-month in June), Treasury releasing the details of the quarterly refunding, the latest rate decision from the Bank of Canada, and more earnings from Wall Street ahead of the Fed decision. Don’t expect a unanimous FOMC vote based on recent pro-cut comments from Governors Waller and Bowman. Powell’s press conference should provide more light on a cut as soon as the September 17 meeting. After all this news, Agency MBS prices are roughly unchanged from Tuesday’s close, the 2-year yielding 3.89, and the 10-year yielding 4.35 after closing yesterday at 4.33 percent. Don’t forget, it’s still a busy remainder of the week, with job cuts and the PCE inflation index tomorrow and non-farm payrolls, ISM and UMich sentiment on Friday.