I received this note from Dallas. “I like ‘dillos, but I don’t support giving them guns because... I would never armadillo.” Speaking of which, Texas is slowing down: The Dallas Fed tells us, “Texas’ overall pace of economic growth, much of it due to jobs in innovation, is trending lower, with payroll employment declining in June, a marked turn from robust job gains earlier in 2025.” Texas lenders, or at least banks and credit unions, do their share of adjustable-rate mortgages, so may be okay with lower short-term rates via the Fed and stable long-term rates. Last week’s MBA application data reflects increasing ARMs: “Given the relative attractiveness of ARM rates compared to fixed rate loans, ARM applications increased 25 percent to their highest level since 2022, and the ARM share of all applications was almost 10 percent. (The refinance share of mortgage activity increased to 46.5 percent of total applications from 41.5 percent the previous week. The ARM share of activity increased to 9.6 percent of total applications.) (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 interview with HomeLight’s Sumant Sridharan on the latest surveyed trends among real estate agents a year after the NAR settlement and how technology is shaping their interactions with both lenders and borrowers.)

Products, Services, and Software for Lenders and Brokers

ICYMI: This week, Optimal Blue announced a new brand identity that reflects its leadership in mortgage technology including a new logo, visual identity, and messaging that emphasize the company’s role as a trusted partner in the capital markets ecosystem. The new tagline (“Modern. Proven.”) captures the unique, dual promise that only Optimal Blue can deliver: technology built on a foundation of modern innovation and proven, trusted expertise. With a cloud-native platform built for speed, scale and resilience, Optimal Blue integrates AI-driven automation and real-time data to help lenders navigate market volatility with precision. The company also draws on more than 20 years of proven expertise and pricing accuracy, reinforcing its reputation for reliability. Learn more about Optimal Blue’s new brand and its commitment to innovation and trust at OptimalBlue.com.

What does a modern, streamlined home equity process really look like? For one credit union, it meant cutting application to decisioning time from a full week to under 24 hours. Using the Blue Sage Digital Lending Platform, they were able to automate the entire HELOC workflow, from application to funding, resulting in faster cycle times, happier members, and less operational strain. With home equity continuing to be a bright spot in the market, there’s never been a better time to enhance your process. Read the full case study here.

In improv, Yes, and means building on the suggested concept. In lending, it’s what makes you shine: saying yes to buyers who want energy-efficient upgrades like solar rolled into their loan, while keeping it simple. Thanks to a partnership between Arcasa and Intercap Lending, you can create your own yes, ands using Intercap’s SunStart with Arcasa’s Energy-Smart DPA. Energy-Smart pairs a market-rate FHA first mortgage with a DPA grant for use with down payments, closing costs or rate buydowns. The program, available in the continental U.S. and with no AMI caps, can be white labeled to match your brand. After closing, Arcasa works with trusted local installers for the upgrades, with no liens involved. Arcasa also provides strong customer service and third-party warranty support, a key selling point for lenders. Make Arcasa your yes, and to boost business by building on a great idea. Learn more.

Deliver the Best in Mortgage Servicing with LoanCare®. LoanCare® enables lenders and servicers to provide exceptional customer experiences at a fixed servicing cost. Its private label program enhances brand engagement, while HELOC servicing expands product offerings. Backed by proprietary technology, LoanCare’s award-winning digital experience includes a private label website and mobile app, multilingual support, omni-channel marketing, and robust oversight tools to help drive retention and long-term customer loyalty. Attendees of the MBA Annual Convention & Expo are invited to meet the LoanCare team in person at the Fontainebleau Las Vegas, October 19–22. To explore LoanCare’s servicing solutions, schedule a demo today.

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.

CFPB News and Regulation Updates

One way to make government agencies less powerful is to cut back their scope, reduce their range. Richard Horn, of Garris Horn, writes, “On August 8, 2025, the CFPB published four “advance notices of proposed rulemaking” (“ANPRs”), in which the CFPB announced that it was considering amendments to the definitions of “larger participant” in the automobile financing, consumer reporting, consumer debt collection, and international money transfer markets. The ANPRs indicate that the CFPB is considering proposals to substantially raise the numerical thresholds for entities to fall under the “larger participant” definition in each market, which would, in turn, substantially decrease the amount of nonbank entities the CFPB would supervise in each market. The comment deadline for each ANPR is September 22, 2025. Richard Horn, or Co-Managing Partner, has authored a new a blog post summarizing these ANPRs and the new thresholds the CFPB is considering.

Meanwhile, at the Western Secondary, attorney Mitch Kider reminded the audience that we will see less supervision and enforcement from the CFPB. The Consumer Finance Protection Bureau has undergone drastic changes, having its effective workforce cut by 90 percent, its funding reduced, and no nominee for Director. It has dismissed many of its enforcement actions and withdrawn rules and requirements.

Mitch believes that the top priorities going forward will include mortgages (the highest priority), data furnishing and accuracy under FCRA, fraudulent overcharges and fees, and data security.

But nature, and regulators, abhor a vacuum, and the states are stepping up. They have many tools to pursue the same types of violations. Some states are enacting new laws that go beyond federal protection. Recent areas of state focus include artificial intelligence, trigger leads, cybersecurity, and “junk” fees.

For example, Georgia recently made internal audit, corporate governance, and risk management legal requirements for mortgage lenders, servicers, and brokers. MQMR reports that, as of 7/1/25, state law requires institutions to do each of the following: Establish a corporate governance framework, implement an internal audit program with board oversight, maintain a risk management program, and conduct an annual risk assessment, covering all aspects of the organization. All of these elements must be documented with reports, which must be made available to state regulators upon request. Georgia also allows the use of third-party providers, such as MQMR, to assist with these responsibilities.”

But the states don’t stand alone. Don’t forget private litigants and class action lawsuits. The fun never ends…

Capital Markets

Tired of dealing with frustrating and sometimes costly TBA settlement issues? Whether it's mismatched trade amounts, incorrect coupons, or the wrong settlement month, manual trading over the phone leaves too much room for error. Agile Trading Technologies offers the solution in its award-winning Electronic TBA Request for Quote (RFQ) Platform. Purpose-built for lenders and the dealers who serve them, Agile eliminates human error, reduces risk, and brings confidence back to your TBA trading process. “Lenders or hedge providers trading on their behalf are constantly running into TBA settlement issues when executing trades over the phone. It’s amazing how much time Secondary teams, Finance teams, and Dealers spend reconciling these issues across the industry,” said Greg Vacura, President of Agile. “The Agile platform eliminates these inefficiencies by digitizing the process of buying and selling TBAs.” Ready to say goodbye to settlement headaches? Contact Agile to get started.

The July Consumer Price Index (CPI) report understandably dominated headlines yesterday, and it presented a mixed picture, showing that while overall inflation (+0.2 percent month-over month) printed roughly in line with expectations, hotter-than-anticipated core inflation (+0.3 percent month-over month) will add some complexity to the Federal Reserve’s decision-making process. One concerning trend for the Fed is the modest but notable rise in prices for services excluding energy and housing, which are considered "sticky" and a key indicator of underlying inflation.

Overall, this relatively benign report suggests that future jobs reports will be the primary factor influencing whether the Fed cuts interest rates in September. Markets are now pricing in nearly 90 percent odds of a Fed rate cut on September 17, impacting short-term rates, up from about 80 percent before CPI was released. With a September rate cut essentially fully priced in, investors’ attention now turns to how the Fed will approach its October and December meetings in the event that the trend of softer employment and benign inflation continues.

Ironically enough, the recently under-fire Bureau of Labor Statistics (BLS), most notably known for its monthly payrolls report, is responsible for the CPI figures (as well as PPI figures, the employment cost index, unit labor costs, import/export prices, and a slew of other data points).

Yesterday’s largely uneventful CPI figures came in the wake of President Trump's decision to fire the agency's nonpartisan commissioner on August 2 and appoint a new head (EJ Antoni) with what many are calling a politically charged background. He has previously advocated for ending the monthly jobs report. This move has raised concerns that the BLS's reputation for unbiased, data-driven reporting may be compromised by political influence, potentially undermining the credibility of its economic data. However, continuous back-month downward revisions (these move markets less than the first-estimate payroll figures, released the first Friday of each month) have also hurt the credibility of the report. It has been widely reported that a decline in survey response rates has affected data quality.

Mortgage rates and prices are set by supply and demand. Few investors want to own loans on properties whose value is declining. Fitch Ratings reports that U.S. home prices were 10.5 percent overvalued in Q1 2025, down slightly from 11 percent the prior quarter, as higher personal incomes and lower unemployment lifted sustainable price estimates, while other factors like rents and mortgage rates stayed steady. Despite the moderation, Fitch reports that 86 percent of metro areas remained overvalued, with more than half overpriced by 10 percent or more. Overpriced metros were led by Buffalo-Cheektowaga (NY), Rochester (NY), and McAllen-Edinburg-Mission (TX). Fitch projects national home price growth to slow to 1.5 percent to 3.5 percent in 2025 from 4 percent in 2024. The forecast also calls for mortgage rates to end 2025 between 6.3 percent and 6.7 percent before easing further in 2026, which could potentially boost refinancing and improve affordability late next year.

Today’s economic calendar kicked off with mortgage applications increasing 10.9 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey. Unless you care about the EIA Weekly Petroleum Status Report (I, and most capital markets folks, don’t), the rest of the calendar is about Treasury and Fed speakers. Treasury activity will be headlined by a buyback for liquidity purposes in 7.5-year to 30-year TIPS for up to $500 million. Three Fed speakers are scheduled: Richmond President Barkin, Chicago President Goolsbee, and Atlanta President Bostic. Corporate earnings also continue from Wall Street. We begin the day with Agency MBS prices nearly .125 better than Tuesday’s close, the 2-year yielding 3.71, and the 10-year yielding 4.25 after closing yesterday at 4.29 percent.