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Apologies first! Yesterday I mistakenly wrote, “ARMs now account for nearly 50 percent of applications…” Thank you again to those who wrote, questioning that stat. I was thinking refis. “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.” That said, I heard an official from JPMChase tell an audience that 70 percent of Chase’s pipeline last month was adjustable-rate mortgages! Chase has, plus or minus, a trillion in its residential servicing portfolio, and people sometimes ask, regarding owning servicing, “What’s all the fuss about?” STRATMOR has a primer on why companies want to own servicing. Servicing is a “touchpoint” for regulators, due to its consumer exposure, and in today's episode of Mortgage Law Today at 12pm PT, Brian Levy, Loretta Salzano, and Peter Idziak are joined by Justin Wiseman of the Mortgage Bankers Association, who will break down important regulatory and legislative developments shaping the industry. The conversation will explore anticipated compliance challenges, recent policy shifts, and how the MBA plans to engage through advocacy and legal efforts. (Today’s podcast can be found here and this week’s is sponsored by FirstClose. FirstClose provides fintech solutions to HELOC and mortgage lenders nationwide, increases profitability, and reduces costs for mortgage lenders through systems and relationships that enable lenders to assist borrowers more effectively and ultimately shorten closing times. Hear an interview with FirstClose’s Ramiro Castro on how lenders can more effectively assist borrowers, reduce closing costs, and shorten closing times.)

Products for Lenders and Brokers

“Psst… Got 10 Minutes in Denver? Visit our booth and have an honest conversation about how credit unions are tackling today’s lending challenges and winning with smarter, faster processes. FirstClose is built for credit unions that want to make home equity and mortgage lending faster, easier, and far less stressful for members and staff. From instant property valuations to automated settlement services and a seamless borrower experience, we help you close loans in days, not weeks, without sacrificing accuracy or compliance. We’ll be at ACUMA Annual, Sept. 21–24. Let’s grab coffee, swap ideas, and share what’s working in the market. Ten minutes might be all it takes to spark your next big lending win.”

“Verus Mortgage Capital just wrapped up two productive days at the 2025 Western Secondary Market Conference in Palos Verdes, CA. The energy and conversations were nonstop, with one topic taking center stage for mortgage originators: non-QM. And the buzz around non-QM isn’t slowing down. In fact, with market demand and origination volume continuing to climb, it’s clear this sector will remain a driving force this year and beyond. Lenders are eager to explore innovative ways to serve borrowers outside the traditional box, and Verus is at the forefront of delivering the products, expertise, and service you need to succeed. Our team came away from the event energized, inspired, and more confident than ever that we’re on track to reach our goal of $10 billion in non-agency production this year. Interested in partnering with the undisputed non-QM leader? Contact Jeff Schaefer, EVP of National Sales (202-534-1821).”

HomeLend, the direct investment platform and liquidity hub of the mortgage industry, has launched its new RTL Platform. This uniquely designed, commercially available solution enables RTL investors to manage and offer programs to the market, while giving sellers access to multiple RTL pricing options through the centralized HomeLend portal. Current programs include Fix and Flip, Bridge, and Ground-Up Construction. Available features include options for foreign national borrowers, multi-family and mixed-use properties, and high loan limits – up to $5 million for larger properties. Credit score minimums start at 600, with flexible LTVs and interest-only terms of 12 or 24 months. Purchases, refinances, and cash-out options are supported, and borrower experience is not required. The platform is designed to streamline transactions and bring increased access and efficiency to both investors and sellers across the RTL space. For details, contact Gerry Walker or Doug Potolsky. Visit online at www.homelend.com.

Have a borrower without enough cash for a downpayment? That was the challenge Tracy’s family faced when they needed to move quickly into a better school district. Most of their wealth was tied up in their current home and long-term investments. Using Flyhomes Buy Before You Sell, they were able to move forward with as little as $0 down, leveraging equity from both their current and future homes with up to 105% LTV. That meant no need to sell first, no need to liquidate stock, and no lost time. Over the past 10 years, Flyhomes has helped 5,000+ buyers purchase their next home and enabled LOs to close 1.2 more loans per month, with Buy Before You Sell now available in 30+ states. Book a call today to learn more.

Services and Tools

One tiny rate dip. A massive market shift. In Q2 2025, a brief April rate drop triggered a 12x spike in refinance eligibility, driving more than half of all first-lien applications that quarter, according to Ardley’s latest Mortgage Market Insights. The data shows how quickly borrowers react to even minor rate changes. During a short-lived “boomlet” from late March to mid-May, and peaking in late April, rate-and-term eligibility surged, and applications tripled compared to March. First-lien share climbed to 15 percent, up from just 3 percent in Q1. With a potential rate drop ahead, Ardley’s analysis suggests R/T eligibility could double almost overnight. In this environment, speed and precision are everything. See the full analysis and data: Download the report.

On August 27, Servbank’s SVP of Experience, Johnny Spagnola, will lead an ACUMA Inside Track webinar focused on how subservicing can be a powerful driver of lifelong member loyalty. This session will explore why partnering with the right subservicer with member-friendly technology, exceptional performance, and values that align with your credit union’s mission will enhance your members’ experience. Learn how to foster emotional connection, deliver seamless experiences, and measure success through meaningful KPIs, all with complete oversight and full transparency. Whether you’re evaluating your current approach or seeking to enhance member retention, this webinar offers practical insights to help you create members for life. Register now to secure your spot on August 27th at 1pm CT for our ACUMA Inside Track, sponsored by Servbank.

“Navigating SOC reports can feel overwhelming, but for organizations relying on third-party vendors (especially those managing financial or sensitive data) mastering these reports is essential. In this episode of SOC Simplified, Richey May’s experts break down five must-know tips for reviewing SOC reports, including how to interpret the auditor’s opinion, findings, and the complementary user entity controls. Whether you’re new to SOC or just need a quick refresher, this concise, 4-minute video will empower you to approach SOC reports with confidence. Tune in to our SOC Simplified series today and connect with our experts at info@richeymay.com for personalized guidance.”

“AI isn't coming for your job… But originators who use AI will be coming for your leads and your customers. As market pressures grow and customer expectations rise, you need more than intuition and spreadsheets to thrive. That’s where Total Expert’s AI Sales Assistant comes in. We’re transforming daily workflows by providing an AI tool that automatically engages leads and contacts to vet them, gather key information, and determine when to hand the opportunity to back to you. Because it’s not about replacing human connections… It’s about enhancing them. Catch our Founder & CEO Joe Welu’s conversation to learn how AI-enabled tech leads to faster growth and stronger relationships. Ready to see the AI advantage in action? Let’s talk.”

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 Verification Trends

STRATMOR Group is conducting new research on how mortgage lenders are using Verification of Income, Employment, and Assets (VOIEA) tools, and they’re looking for input from mortgage lending executives. This study digs into what’s driving adoption, where lenders are hitting roadblocks, and how these tools are performing in day-to-day operations. Your perspective as a leader will help shape industry conversations and guide technology providers in developing solutions that better meet lender needs. Participants will receive a summary of the findings, a valuable look at how peers across the industry are approaching VOIEA and where the market is headed. The survey only takes a few minutes, and all responses will remain confidential. Take the VOIEA Survey.

LOs and the HELPER Act

Over the weekend I received an “MLO VieauxPoint” from Brian Vieaux, CMB, President & COO of FinLocker & Founding ‘Expert’ of MLO Live, suggesting that Why the HELPER Act Deserves More Than Silence

“Teachers. First responders. Firefighters. EMTs. They show up for our communities every single day, yet many of them still can’t afford to live in the neighborhoods they serve. The HELPER Act aims to change that.

“This bipartisan legislation proposes 100 percent FHA financing with no monthly mortgage insurance for qualified public servants. It's modeled after the VA loan program, without affecting veterans, and could be a game-changer for housing accessibility. So why isn't it already law? In a recent Loan Office Life podcast episode, I talked with Marine veteran and mortgage advocate Sam Royer, the bill’s original champion, and explore the political resistance, institutional silence, and real-world stakes of this long-overdue legislation. (Read the full article: Why the HELPER Act Deserves More Than Silence.)

“Readers should be reminded that ‘Advocacy in August’ is happening now! This summer, as members of Congress return to their home districts, the Mortgage Action Alliance (MAA) is calling on all industry professionals to engage locally. Now through Sept 1, schedule a meeting, virtual or in-person, and make your voice heard. Let’s turn policy into progress. Get involved now!” Thank you, Brian! #VieauxPoint”

Capital Markets

“While no one is quite ready to start thinking about back-to-school, we’re just 12 days away from the first day of class at Panoramic Capital Academy! Coming this fall, Panoramic is excited to announce that we’ve expanded our offering, launching an 8-week Executive course to accompany our 14-week Masterclass. Designed as a math-light alternative to our in-depth mortgage capital markets curriculum, the Executive course is perfect for those interested in strategy and execution but who may not want to deep dive into the more advanced analytics covered in the Masterclass. This new class is an ideal fit for everyone from branch managers to C-suite leaders. The Masterclass course begins on 8/31/25 and the Executive course will begin on 9/14/25. For more details about our comprehensive mortgage capital markets courses covering rate sheet pricing, hedging, servicing valuation and more, reach out to Rob Kessel at Rob Kessel, visit www.panoramiccap.com, and enroll now.”

Markets are closely watching the Federal Reserve this week, with attention centered on tomorrow’s release of the Federal Open Market Committee minutes from July and Chair Jerome Powell’s Friday speech from Jackson Hole, both of which should hint at the likelihood of a September rate cut. While Powell is unlikely to explicitly commit to a policy move, any lack of pushback could reinforce current market expectations, with rate cut odds holding around 83 percent for a 25-basis point reduction next month. Recent commentary from Fed officials signals openness to adjusting rates amid real tariff impacts and a shifting inflation landscape. With mixed economic data and August CPI still pending, the Fed is expected to preserve flexibility while laying the groundwork for a quarter-point cut next month.

U.S. homebuilder confidence fell in August to its lowest level since 2022, as rising mortgage rates and persistent affordability challenges continue to strain the housing market. The NAHB/Wells Fargo index showed a record 66 percent of builders reported offering sales incentives and over a third are cutting prices to attract buyers. Meanwhile, foreign investment in U.S. real estate rose for the first time in eight years, driven by cash buyers less affected by domestic borrowing costs or location constraints. Although foreign purchases still represent just 2.5 percent of the market, their growing presence could add to affordability woes amongst American homebuyers.

Today’s economic calendar kicked off with housing starts and building permits for July. Starts were +5.2 percent (1.428 million), lower than expected, permits were -2.8 percent (1.394 million annualized), lower than expected. Later today brings Redbook same store sales, Treasury activity that will be headlined by a buyback in 1-month to 2-year coupons for up to $4 billion, and remarks from Fed Vice Chair for Supervision Bowman. We begin the day with Agency MBS prices roughly unchanged from Monday, the 2-year yielding 3.76, and the 10-year yielding 4.32 after closing yesterday at 4.34 percent.