About 25 miles to the north of the California MBA’s Western Secondary, a mobile robotic microfactory is building fire-resistant homes in Palisades Fire burn zone. The repercussions of disasters is certainly a topic here in the hallways here at the conference, along with the eventual fate of Freddie Mac and Fannie Mae (which may include merging them… follow the money: both have enormous backing from hedge fund investors, so much of the proceeds of a stock offering would go to wealthy financial backers, not taxpayers). Tech is also always a topic… AI in the capital markets? Yup: Sun West Mortgage Company, Inc. (SWM) and its affiliate Celligence International, LLC, creators of the advanced AngelAi technology, set up Sun West Investments Trust (SWIT) and a strategic expansion of AI-powered mortgage-backed assets into international markets, beginning with Japan. (Today’s podcast can be found here and this week’s is sponsored by ICE. By seamlessly integrating best-in-class solutions, ICE optimizes every stage of the loan life cycle, setting the standard for innovation, artificial intelligence, efficiency, and scalability, and defining the future of homeownership. Today’s has an interview with Better.com’s Kevin Ryan on how companies are driving growth and operational momentum through AI adoption, channel expansion, and fintech product innovation.)
Products, Services, and Software for Lenders and Brokers
On today's episode of Now Next Later at 10am PT, Sasha and Jeremy are joined by Christy Soukhamneut, Chief Lending Officer at UFCU, for a conversation about the shifting credit landscape. They explore how lending strategies are evolving, what’s driving credit modernization, and what financial institutions can do to stay competitive.
“State Fair Lending Enforcement Is Heating Up: Massachusetts Hits Lender with $2.5 Million Settlement. In the absence of aggressive federal enforcement, the states are stepping up. And now it’s happening, loudly and clearly. The Massachusetts Attorney General just announced a $2.5 million settlement with Earnest, a student and personal loan lender, for violations related to fair lending, AI-driven underwriting, and consumer disclosure requirements. This case is part of a growing trend: states are filling the regulatory void with their own enforcement, creating a patchwork of requirements that can be confusing and inconsistent. And Massachusetts isn’t alone. State-level scrutiny is expanding, with other states also ramping up their fair lending oversight. For financial institutions, including lenders relying on AI models, this is a moment to pay close attention. Learn more in our latest article.”
“Starting August 18, strengthen your builder and real estate agent partnerships with Click n’ Close Correspondent’s latest product enhancements, designed to drive more volume and deliver greater flexibility. Our new 5/1 FHA ARM paired with SmartBuy Down Payment Assistance is ideal for new construction purchases and includes support for Builder Forward Commitments to help you compete more effectively. We’re also expanding SmartBuy with a new 3-Year Forgivable Option, offered alongside our popular 5-Year Forgivable program. Both are competitively priced and, like all SmartBuy offerings, include no income limits and no first-time homebuyer restrictions, making them an excellent fit for a broader borrower base. And don’t forget, we pay up for eNotes, rewarding lenders who embrace digital closings. Click n’ Close Correspondent continues to deliver practical, production-ready solutions that help you better serve your builder and real estate agent partners while growing your business. Contact Kim Schenck to get started.”
AI can extract data from documents, calculate income and flag inconsistencies with the application, but it can’t replace the human touch and empathy required to guide a first-time homebuyer. Dark Matter Technologies gets this. Dark Matter makes strategic, enduring investments in the Empower Platform to fuel measurable productivity gains, like investments in AI. Dark Matter is a model for how to apply advanced technologies with precision and purpose. The AIVA® suite of AI powered tools, which operate seamlessly with the Empower® loan origination system (LOS) or as stand-alone solutions, tackle tedious, error-prone tasks like document classification, data extraction, income and asset review and loan quality assessments, leaving complex decision making to humans. It’s this balance of machine efficiency and human insight that gives lenders a competitive edge. A free whitepaper explores how Dark Matter’s AI strategy is shaping the future of loan origination.
Webinar: Navigating the Evolving Landscape of Digital Asset Regulation. In the wake of a blizzard of new digital asset policies and initiatives adopted by the Trump Administration, you can’t afford to be in the dark. Next week, leading digital asset experts from Falcon Capital Advisors and Steptoe LLP will discuss the emerging opportunities and challenges that digital assets present to the financial services sector, including payments, banking, finance, capital markets and the mortgage industry. With the role of digital assets in finance rapidly expanding while also still very much in flux, this session will help your organization get ahead of the curve to understand how this newly legitimized form of payment for goods and services will impact the housing market and what mainstream adoption will look like. Register here.
If you're even slightly worried about pre-approval compliance, you need to watch this. LenderLogix recently hosted a webinar with Ed Miller from Conforma Compliance Group, diving into the compliance risks that come with routine pre-approval letters. Especially when every LO has their own flavor and the audit trail is... a Word doc. The session walks through what lenders are getting wrong, how varying state rules are adding complexity, and how some shops are using tech to get ahead of it all without slowing down borrowers or agents. You can catch the full 30-minute replay on-demand here.
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.
Government Program Changes
In any given week, about 20-25 percent of applications, as reported by the Mortgage Bankers Association, are FHA, VA, and USDA. What’s happening out there?
LOs know that eligible surviving wives or husbands can apply for a VA-guaranteed home loan to purchase or refinance a home. In addition to overcoming barriers that make opening the door to a new home more likely, there are other advantages to the VA home loan. Learn more about your borrower’s next steps.
FHA announced that the revised XML file format for ML 2025-12 which is being updated to reflect new data standards and submission requirements needed for implementation of bulk and API submissions in FHA Catalyst will be available on August 20, 2025, on the FHA Catalyst webpage.
In FHA INFO 2025-36, mortgagees are reminded about FHAs Claims Without Conveyance of Title (CWCOT) bidding policy. Rather than conveying the property and title to HUD after a foreclosure, the CWCOT program allows mortgagees to market the property through foreclosure sale or post-foreclosure sale to third parties. This reduces losses to FHA’s Mutual Mortgage Insurance Fund (MMIF) while expediting the return of foreclosed properties to the market and decreasing neighborhood blight. Review the FHA Single Family Housing Claim Filing Technical Guide for requirements.
Pennymac Announcement 25-27 stated Government LLPAs are updated effective for all Best-Efforts Commitments taken on or after Monday, July 28, as follows.
With FHA INFO 2025-30, FHA published policy retractions through a series of Mortgagee Letters (ML 2025-15, ML 2025-16, ML 2025-17, ML 2025-18, and ML 2025-19). The provisions of these Mortgagee Letters are effective immediately. See AmeriHome Mortgage Product Announcement 20250706-CL attached announcement for details.
With PN 640, USDA published updates to HB-1-3555 SFHGLP Technical Handbook. These changes became effective upon issuance of the Procedure Notice (PN) 640. Revisions that impact the AmeriHome USDA Guaranteed Rural Housing Program Guide are described in AmeriHome Mortgage Product Announcement 202407XX-CL.
Capital Markets
“MAXEX Expands Non-Delegated Channel. Unprecedented Liquidity Now Live! As of August 11, MAXEX’s non-delegated channel is now available for all flow programs and buyers: Jumbo, Non-QM, DSCR, and Agency-Eligible. It’s an unprecedented level of non-delegated liquidity. Learn more here. We’re also expanding liquidity with a new major asset manager joining the exchange in September, bringing competitive insurance bids for Non-QM and DSCR loans. Discover how to take advantage of these opportunities and tap into profitable expanded credit niches by watching the replay of our recent webinar.”
A week ago, the Trump administration fired the commissioner of the Bureau of Labor Statistics after revised data showed unemployment on the march in a way not seen since the pandemic. Add to that stirring inflation and anxious consumers. Fortunately, things have settled down over the past week. Lead traders are out of the office en masse for summer vacation (seemingly instructing their understudies to buy/sell U.S. 10-year Treasuries at 4.25/4.20 percent), and equities posted their best week last week since June (driving the Nasdaq 100 to all-time highs and the S&P 500 closing on the brink of a record). The market has settled into a very familiar trading zone with 10-year Treasuries at 4.25 percent and 2-year T-bills near 3.75 percent. Both of these levels are consistent with a Fed that is readying to resume normalization next month and a backdrop of a cooling, but not shrinking, economy.
The Treasury market, recently in a low-volume summer lull, is now preparing for a critical test with the upcoming Core Consumer Price Index (CPI) release next Tuesday. Following recent employment data that has raised concerns, the market has begun repricing, with the 10-year yield consolidating higher. Expectations are for a 0.3% increase in July's core CPI, driven by upticks in used cars, hotels, and airfare prices, which would push the year-over-year inflation rate to 3.0%. This data is a pivotal point for the Federal Reserve; a higher-than-expected CPI print could challenge the case for a September rate cut, while a softer number would reinforce the market's current expectation of a more dovish monetary policy. The outcome will be a key determinant of the market's directionality moving forward, as it directly impacts the Fed's dual mandate of price stability and maximum employment.
This week brings the release of a few noteworthy reports, including July CPI, July PPI, July Retail Sales, and July Industrial Production. Fedspeak is limited. The Federal Reserve is in a precarious position this week as it balances the competing pressures of rising inflation due to tariffs and a softening labor market. With markets fully pricing in a September rate cut, the upcoming inflation data will be critical in determining the Fed's next move. While tariff-related price increases in goods are expected, the key question is whether these will remain isolated or spread to other sectors. The Fed's willingness to prioritize a weakening employment outlook over these inflationary pressures will be a central theme, with the market's bullish outlook on Treasury yields suggesting a belief that the Fed will lean toward a more dovish stance, potentially confirming a rate cut at the upcoming Jackson Hole symposium.
With nothing of note on today’s economic calendar, the week begins with Agency MBS prices little changed from Friday’s close, the 2-year yielding 3.76, and the 10-year yielding 4.27 after closing last week at 4.29 percent.
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