A few years back someone told me, “Two lenders merging in this environment is like two drunks outside a bar holding each other up.” That isn’t quite the case anymore for various reasons (we’re just one big announcement away from yet another block buster strategic deal, right?), not the least of which is certain companies are expanding while talented individuals are looking. I received a note from the head of HR at a well-known lender asking me about people looking. I pointed him to the Chrisman Job Board where job seekers can join the Talent Community for free, and employers can easily add a job listing or forward the listing to the team and they’ll take care of it for you. Do you think your company is going to last forever, like Kikkoman Soy Sauce or the Lowenbrau Brewery? Think again. Here’s a little trivia question for tonight’s happy hour. At its peak in 2004, this company had 9,094 locations. Today, 21 years later, it has just one, in Bend Oregon… This isn’t a contest; don’t write with answers please. (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 ThoughtFocus Build’s Bradley Clerkin on AI scalability in the mortgage industry, highlighting the shift from basic AI functions to agentic AI with background workers.)

Products, Services, and Tools for Lenders and Brokers

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 percent 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. Try the loan calculator today and see how Flyhomes can boost your borrower’s buying power.

“FINOFR solved mortgage retention. The traditional refinance is cumbersome for FIs and unpleasant for homeowners. Over 16 years ago, FINOFR set out to revolutionize the consumer lending landscape by developing a frictionless solution designed to save time and money on the refi process. FINOFR’s Reset platform transforms this traditionally clunky process into a seamless 90-second consumer experience that can fully integrate with your backend systems.

When you partner with FINOFR, you gain a long-term ally. Our very first client, onboarded in 2010, still relies on Reset tech to retain loans and strengthen homeowner relationships. And since its founding, FINOFR has helped institutions deliver over 22,000 mortgage resets and retain more than $28 billion in volume. Benefits of Reset technology include: no need to staff up or down during interest rate cycles; retention rates up to 90 percent; a Reset fee can be collected by FINOFR in the process to generate non-interest income. With rate cuts on the horizon, FINOFR makes retention easy. Reach out to our VP of Business Development, Foster Kelly to learn more today.”

“Luxury Mortgage Corp.® is excited to share that we are now the only lender in LoanSifter offering Non-QM second mortgages up to $1 million with CLTVs up to 70 percent. Our Simple Seconds program is designed to give brokers the flexibility they need, whether it’s helping a client unlock cash through a second lien or structuring a solution for more complex borrower profiles. With both 15- and 30-year fixed terms available, Simple Seconds can be used for primary residences, second homes, and investment properties. Qualification is just as flexible, with options including full doc, bank statements, 1099s only, or DSCR. We accept DTIs up to 50% with a minimum 720 FICO. Better still, there’s no mortgage insurance, no prepayment penalties, and no escrow requirement. Borrower-paid compensation only, with rates starting at 7.999 percent. For those using LoanSifter, you can now price our Simple Seconds instantly, making scenario runs fast and seamless. If you don’t have access to LoanSifter, simply reach out to your Account Executive or apply here to become an approved broker.”

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.

CWDL is now Advisent

CWDL’s Mortgage, Arizona Government, and Tax teams are now part of Crete Professionals Alliance, a fast-growing network of accounting firms. As part of this evolution, CWDL is also rebranding its practice under a new name: Advisent. “This move is about enhancing what we already do best. By shifting from a traditional name based on partner initials to Advisent, we’re embracing a more inclusive identity that reflects the strength of our entire team. Our firm isn’t defined by a few names at the top, but by the insight, empathy, and follow-through our professionals bring to every client. As Advisent, we’ll continue to deliver the same exceptional service and trusted relationships you’ve come to expect, now with even more resources, deeper expertise, and innovative tools to support your success.”

Fair Lending Litigation

A federal judge in California denied class certification in a lawsuit accusing a major bank of racially discriminatory mortgage lending, a decision that significantly limits the scope for class-based fair lending claims. The plaintiffs, comprising Black and Hispanic mortgage applicants, alleged violations of the Fair Housing Act and Equal Credit Opportunity Act, claiming they faced higher denial rates, delays, and costs compared to white applicants. However, the court found no evidence of a uniform discriminatory policy, emphasizing that individual lending decisions involved numerous factors and human discretion, and that the plaintiffs' statistical evidence failed to establish a causal link to racial bias. Troy Garris of Garris Horn LLP argues that this ruling highlights that disparities alone do not equate to discrimination and reinforces that without a shared experience or common policy, class action claims are unlikely to succeed. For mortgage executives and lenders, the case serves as a reminder to maintain clear, consistent lending practices, ensure robust compliance oversight, and proactively monitor for disparities to mitigate legal risks.

Capital Markets

For all the talk of cutting rates by politicians and in the media, September rate cut expectations continued to slip ahead of today's start of the annual Jackson Hole Economic Symposium. Keep in mind that since the FOMC began cuts, starting last September 18 for 100 basis points in total, 30-year conventional, VA, and FHA lending rates are 52, 78, and 48 basis points higher, respectively.

The market-implied odds of a September rate cut may have slipped to around 80 percent from a near-certainty last week. However, the front-end of the yield curve is at risk of a bearish correction if Powell doesn’t deliver on the degree of dovishness that the market is currently anticipating. For a Fed that has gone to painstaking lengths to telegraph its moves in advance, there is a great deal of uncertainty surrounding the tone and content of Powell’s speech. Pre-committing to any future course of action would be uncharacteristic for a Fed in data-dependent mode, especially given that August’s CPI and NFP reports have yet to hit the tape.

And for those still discussing the release of the July FOMC minutes, which showed that a majority of the committee felt that the risk of inflation outweighed the risk of a weakening labor market, keep in mind that meeting was held prior to the weaker than expected August employment report which included some significant downward revisions to previous month’s readings. Pricing in fed fund futures markets is implying around a 75 percent chance that the Fed cuts rates by 25 basis points in September.

Yesterday’s economic calendar was the busiest of the week, but the information did not trigger a meaningful shift in the macro narrative. Probably because data released was a mixed bag. The weekly Initial Claims report (in at 235k during this NFP survey week) and the Philadelphia Fed Survey (-0.3) disappointed while flash Manufacturing PMI (53.3 from 49.8) showed a return to growth and Services PMI remained in expansionary territory. The market’s sensitivity to second-tier employment data has increased, both due to the accuracy of the official BLS data coming into question and growing concerns about the health of the employment market. Both PMI reports showed a sharp increase in input prices, which was attributed to tariffs. The mixed set of economic reports was countered by comments from two Fed officials, who pushed back against the case for a September rate cut.

Today’s calendar is limited to Fed speakers, including Fed Chair Powell’s much anticipated speech at the Kansas City Fed’s Jackson Hole Economic Symposium, which is titled “Labor Markets in Transition: Demographics, Productivity, and Macroeconomic Policy.” According to the Fed’s website, Powell’s speech is titled “Economic Outlook and Framework Review,” where the latter could potentially be more news-worthy. Boston’s Collins is also on the calendar and scheduled to speak. With no data on today's schedule, we begin Friday with Agency MBS prices roughly unchanged from yesterday’s close, the 2-year yielding 3.80 percent, and the 10-year yielding 4.32 percent after closing yesterday at 4.33 percent.