I was recently doing some bike riding in the Napa Valley and spent some time speaking with a wine maker. She told me that because of the increase in temperatures, growers are buying land to the south and planting vineyards there, nearer the San Francisco Bay where it is cooler. Their livelihood is at stake “up Valley.” In addition, this year’s harvest is a full month earlier than historical harvests as the grapes ripened quickly. Other fruit growers are seeing the same thing: products are ripening earlier in the year. One state over, Phoenix’s high temperatures this weekend will be around 115 F. Lenders and servicers, who have money at stake as well, are acutely aware of climate-related events and their impact on borrowers. The climate is changing, but human nature is stubborn: “Morgan Stanley Bankers Were Pressured to Approve Mortgages for Wealthy Clients” … Mortgage employees faced backlash when questioning or rejecting loans but the bank says it hasn’t ‘compromised its underwriting standards.’ Today’s The Big Picture at noon PT features Jennifer McGuinness-Lubbert, CEO of Pivot Financial, for a conversation on leadership, market strategy, and the forces shaping today's mortgage industry. (Today’s podcast can be found here. This week’s ‘casts are sponsored by Experian Verify, providing mortgage lenders with automated income, employment, identity, and asset verification solutions that help accelerate underwriting while reducing fraud risk and manual documentation. Today’s has an interview with ALTA’s Chris Morton on first-quarter title insurance premiums, and the industry's preventative role in resolving title defects before closing as a form of reducing long-term underwriting risk.)

Lender and Broker Software, Products, and Services

Automating individual tasks isn't the same as transforming mortgage operations. Real efficiency comes from connecting people, policies, systems, and decisions across the entire loan lifecycle. JazzX AI creates a governed intelligence layer that orchestrates work from application through post-close, without replacing your LOS. See how leading lenders are reducing cost per loan and increasing throughput. Book a demo with our team to see JazzX in action.

The biggest obstacle to growth may not be the market. It may be your mindset. Retirement does not end your clients’ financial needs, so why should it end the ways you serve them? Homeowners age 62+ control more than $14.5 trillion in home equity, creating one of the largest underserved lending opportunities in the industry. Finance of America partnered with HousingWire to release a new white paper, “The Profit Mindset Shift Hiding in Plain Sight”, to help mortgage professionals rethink what growth can look like beyond traditional lending. The report explores how reverse mortgages could help brokers deepen borrower relationships, expand production, and serve clients throughout the full homeowner lifecycle. Download the white paper to rethink what’s possible beyond traditional lending. Finance of America, NMLS 2285.

With the 30-year fixed touching roughly 6.85 percent, its highest in over a year, and Agency MBS selling off on renewed inflation and geopolitical pressure, correspondent investors have little room for pricing error when competing for loan share. In MCT's recent case study, How Freedom Mortgage Drives Efficiency and New Opportunities as a Correspondent Investor, Rich Valentine, SVP of Pricing and Counterparty Risk at Freedom Mortgage, shares how Investor Analytics sharpens correspondent pricing and builds share at the aggregate, lender, and loan level, and how co-issue opens new opportunities to win additional sellers, all on the largest U.S. residential loan trading exchange. For aggregators navigating thin liquidity and volatile spreads, it's a practical look at turning market data into buy-side decisions. Join MCT's newsletter to stay informed with the latest market commentary and mortgage capital markets education.

FraudGuard®: Proven Intelligence. Enduring Innovation. Effective fraud prevention is built on experience, sustained through innovation, and strengthened by trusted intelligence. For more than two decades, FraudGuard from First American Data & Analytics has helped lenders identify and mitigate fraud risk before closing. Powered by the National Fraud Protection Database (more than 30 million loans contributed by over 1,100 lenders) plus FLEX consortium intelligence, property data, occupancy analytics, watchlists, and ongoing monitoring, FraudGuard delivers actionable risk intelligence across more than 30 loan origination systems. As fraud schemes and borrower risk indicators change, FraudGuard continues to evolve with the market. Lenders need more than data verification; they need validation and actionable risk intelligence. FraudGuard remains the gold standard because leadership is earned through proven results, not announcements. Learn more here or call (800) 333-4510.

Rhyze recently enhanced its market-leading True HELOC by allowing line amounts up to $1.5M. With more exciting developments on the way, it’s time to grow the team! Current openings include Credit and Program Compliance Analysts and a Business Development Manager. If you are interested in joining the team that is powering IMBs throughout the country with the best HELOC program in the market, please email us directly.

Truework, a Checkr Company, is the unified income, employment, and asset verification platform built for mortgage lenders, replacing slow, manual processes with fast and automated reports pulled directly from payroll providers and other authoritative data sources. Lenders see up to 50% cost savings on verifications, with faster turn times and higher accuracy. Trusted by 4 of the top 5 lenders in the US, Truework delivers verification results your team can rely on. Learn more.

Every lender knows UAD 3.6 is coming November 2nd. Fewer have realized that once appraisal turn times are factored in, the operative deadline is closer to October 1st. Reggora recently hosted Fannie Mae Credit Risk Manager Ken DeFeo and Reggora VP of Account Management Dan English, moderated by Jodi Hall, President and CEO of The Mortgage Collaborative, for a 45-minute working session on what actually changes: five forms collapsing into one dynamic report, roughly 750 new data points, LOS integrations that may quietly break, and why underwriting is a heavier training lift than operations. The recording is now available on demand. Watch it here.

The Chrisman Marketplace is a centralized hub for vendors and service providers across the 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.

More Agency News

Yesterday we all learned that Fannie Mae earned $4 billion in the 2nd quarter, so something is working right for Fannie.

This morning we learned of Freddie Mac’s: Freddie Mac reported net income of $3.8 billion for the quarter ended June 30, 2026, a 61 percent increase from a year earlier, as net revenues reached $6.0 billion and a $0.9 billion benefit for credit losses replaced a prior-year provision.

Pennymac updated Conventional LLPAs effective for all Best-Efforts Commitments taken on or after Tuesday, July 14, 2026. See Announcement 26-78 for details.

Newrez Correspondent updated the Conventional/Conforming guides for Fannie Mae and Freddie Mac loans; effective immediately for all existing pipelines and for new loan applications on and after July 1, 2026.

In Announcement 26-48, Pennymac aligned with the revised manufactured home policy announced in Freddie Mac Bulletin 2026-04; effective with LPA submissions and resubmissions on and after April 12, 2026.

Pennymac Announcement 26-49 describes their alignment with policy updates introduced in Freddie Mac Bulletin 2026-4 regarding age of tax return requirements and clarification on assets, liabilities, and flood insurance. These changes are effective immediately.

Previously, Freddie Mac announced that mortgages with capitalized balances are ineligible. As stated in Pennymac Announcement 26-39, Pennymac policy already prohibits the purchase of these loans, alignment with this change is effective immediately. Refer to Freddie Mac Bulletin 2026-4 for full details.

Citi Correspondent Lending Bulletin 2026-04 describes current credit policy updates on appraisal modernization: UAD 3.6 and forms redesign, gift funds, ACE + PDR, VA + PDC, hybrid appraisals, and more. The bulletin also includes notices and clarifications on various topics.

Pennymac updated Conventional LLPAs effective for all Best-Efforts Commitments taken on or after Friday, May 22, 2026. See Announcement 26-54 for details.

AmeriHome Mortgage General Announcement 20260411-CL summarizes previously published changes made during the month of April and provides news and additional changes made with this announcement.

Fannie Mae recently published SEL-2026-04 and Freddie Mac published Bulletin 2026-D announcing new credit score models, VantageScore 4.0, and FICO Score 10T, approved by FHFA. At this time, AmeriHome Mortgage is only accepting the Classic FICO credit score model. See AmeriHome 20260503-CL Product Announcement for more information.

Citi Correspondent Lending Bulletin 2026-06 includes credit policy updates on Fannie Mae RefiNow & Freddie Mac Refi Possible Programs, 2nd Home and Investment (Agency Loans) Minimum Indicator Score, Gifts of Equity (DU / LPA Loans), Project Eligibility & Review Requirements Update (Agency Loans), Leased Obligations (Agency Loans), and Housing to Income Tax Exemption.

Pennymac updated Conventional LLPAs effective for all Best-Efforts Commitments taken on or after Tuesday, June 2, 2026. View Announcement 26-56 for details.

Pennymac is aligning with Fannie Mae’s multiple income assessment policy updates announced under SEL-2026-02; effective immediately. See Pennymac Announcement 26-57 for more details.

Pennymac updated Conventional LLPAs effective for all Best-Efforts Commitments taken on or after Friday June 12, 2026. View Announcement 26-63 for details.

Newrez Correspondent updated the Area Median Income Limits for 2026 provided by Federal Housing Agency (FHFA), the regulator of Fannie Mae and Freddie Mac.

National MI announced an update to the TrueGuide® reflecting the following change and clarification:​​​​​18-month Construction to Permanent Commitment Period (effective systematically June 6, 2026) revised from 12-months. The change will be incorporated into a TrueGuide® update to occur later this month. For a full list of bulletin announcements, please visit: nationalmi.com/bulletins.

Pennymac has aligned with Fannie Mae and Freddie Mac changes on 2026 Area Median Income (AMI) limits with an effective date of June 13, 2026. View Pennymac Announcement 56-58 for more information.

Pennymac announced their alignment with Freddie Mac’s revised gift of equity requirements stated in Bulletin 2026-03, effective with loan applications dated on or after June 3, 2026. View Announcement 26-59 for details.

Pennymac updated Conventional and Government LLPAs effective for all Best-Efforts Commitments taken on or after Monday, June 8, 2026. View Announcement 26-61 for more information.

Newrez Correspondent announced a Freddie Mac GreenCHOICE program for Delegated and Non-Delegated Correspondents. GreenCHOICE Mortgage helps homeowners upgrade their property with energy-efficient improvements while potentially reducing monthly utility expenses.

AmeriHome Mortgage 20260602-CL Product Announcement reminds sellers of upcoming updated Fannie Mae and Freddie Mac property insurance requirements. Some of the upcoming updates to the property insurance requirements include changes to deductible requirements (per unit), coverage sufficiency, and more.

Pennymac announced their alignment with several underwriting updates announced in Freddie Mac Bulletin 2026-6, effective immediately. See Announcement 26-64 for details.

Pennymac aligned with updated GSE property insurance and deductible requirements for units in a project development, effective immediately for new loan applications. Correspondent clients must implement and comply with these policy changes, including, but not limited to the requirements outlined in Announcement 26-76.

National MI’s application process just got easier with its new Mini-Application in AXIS. The new National MI Mini-Application in AXIS works for Non-Delegated, Delegated, and Contract Underwriting.

Capital Markets

As was expected, the Federal Reserve held interest rates steady yesterday but acknowledged internal pressure to tackle inflation by raising rates; Long-term government borrowing costs hit a two-decade high after the Fed’s (in)decision. Chair Warsh said little in his follow-up press conference, and his barebones communication style has led to investors doubting his commitment to curbing inflation. Unlike the highly transparent communication style of recent years, Warsh's reduced reliance on forward guidance has left markets increasingly focused on interpreting incoming data and the Fed's evolving estimate of the neutral interest rate.

While inflation remains above the Federal Reserve's 2 percent target, policymakers view much of the recent price pressure as stemming from tariffs, geopolitical supply disruptions, and temporary AI-related supply bottlenecks rather than an overheating labor market. With inflation expectations still well anchored and several of these forces expected to ease over time, the Fed believes its current policy stance is appropriately restrictive, supporting a gradual return to price stability while maintaining steady economic growth, though risks tied to geopolitical developments and the pace of AI investment remain elevated.

The U.S.-Iran war showed new signs of spreading across the Middle East as the U.S. retaliated against a number of targets. Since the conflict began, investors have shifted back toward safer assets as expectations for rate cuts have faded, widening credit spreads and increasing borrowing costs across riskier segments of the bond market. Fortunately, the U.S. economy continues to demonstrate notable resilience, with GDP growth, a stable labor market, and strong AI-driven investment helping offset headwinds from higher energy prices, weak housing activity, and reduced government spending. The mortgage servicing industry has become significantly more concentrated as higher interest rates and the collapse in refinancing activity have favored firms with large servicing portfolios. Rocket's acquisition of Mr. Cooper has created the dominant conventional mortgage servicer, while the exit of banks from the Ginnie Mae market has accelerated consolidation even further, leaving the top ten servicers responsible for nearly 60 percent of conventional loans and roughly 75 percent of Ginnie Mae servicing. Although this scale provides operational efficiencies and greater resilience, it also concentrates servicing risk among a smaller number of firms, particularly in the more complex Ginnie Mae market, where policymakers will scrutinize the industry's growing concentration.

Today’s economic calendar kicked off with a bang. Inflation returns to the spotlight today with the release of the July core PCE price index (core +.1. percent), the Fed's preferred inflation gauge. We’ve also received the first estimate of second-quarter economic growth in the form of Advance Q2 GDP (+1.5 percent, +2.1 percent Y-o-Y), weekly jobless claims (197k; 1.782 million continuing claims), and June personal income and spending. Real GDP growth was forecast to pick up due to strong nonresidential fixed investment (reflecting the AI boom) and resilient consumer spending. Without any other releases of note on today’s economic calendar, after the slew of economic news we have Agency MBS prices worse .125-.250 versus Wednesday’s close, the 2-year yielding 4.25, and the 10-year yielding 4.67 after closing yesterday at 4.62 percent as analysts still ponder yesterday’s Warsh news conference.