“Remember how when you were little you could just rip off your diaper and run around naked and everyone thought it was so cute and funny? Anyway, I need bail money.” Money makes the world go ‘round. Fed President Lisa Cook was fired earlier this week based on claims of occupancy fraud, and while I agree with many of you that this Commentary has been writing too much about politics lately, politics and the mortgage industry are certainly intertwined. There’s a nearly identical occupancy story coming out of Texas. “Texas Attorney General Ken Paxton and his wife, state Sen. Angela Paxton, are longtime owners of a $1.5 million house in a gated community in McKinney. In 2015, they snapped up a second home in Austin. Then another. The problem: Mortgages signed by the Paxtons contained inaccurate statements declaring that each of those three houses was their primary residence, enabling the now-estranged couple to improperly lock in low interest rates…” Of course, things should be equal in the eyes of the law, right? I’d like to believe enforcing it isn’t a political thing. Maybe things have gotten too political, or maybe people like being pissed off these days more than normal? Just ask a couple of former Phoenix Suns minority owners. A pair of them who were holdovers from the previous ownership group are suing the team, alleging that current Suns owner, and head of UWM, Mat Ishbia has refused access to internal records. It's the sixth lawsuit against the team since November 2024. I think we had a national election around that time. (Today’s podcast can be found here and this week’s is sponsored by Arrive Home. Arrive Home helps mortgage lenders connect creditworthy buyers with down payment assistance and affordable homeownership solutions, offering tools that empower lenders and uplift communities. Hear an interview with Trueworks Victor Kabdebon on data from recent homebuyer surveys pertaining to products and lender decisions.)
Products, Services, and Tools for Lenders and Brokers
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Correspondent lending is often the logical next step when brokers and originators look to scale, but mastering the model is what reduces inherent risk. In MCT’s blog post, Correspondent Lending 101, they break down what correspondent lending is, how it works, and why it can be a strategic inflection point for originators seeking more control, competitive products, and additional revenue streams. Discover how correspondent lenders earn fees from originating loans and then sell them to investors or GSEs to capture margin on the sale. Whether you’re just beginning to explore correspondent lending or aiming to sharpen your strategy, this post delivers both foundational insights and practical guidance to scale. Looking for more resources to fuel growth? Subscribe to MCT’s newsletter for secondary market strategies, market updates, and educational tools built to help you succeed in mortgage capital markets.
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.
News From Government Programs
Ginnie Mae’s mortgage-backed securities (MBS) portfolio outstanding grew to $2.8 trillion as of July 2025. In addition, Ginnie Mae issued $47.7 billion in total MBS, resulting in net portfolio growth of $20.3 billion. Ginnie Mae facilitated the pooling and securitization of more than 409,000 loans for first-time homebuyers’ year to date.
On May 5, 2025, the Single-Family Housing Guaranteed Loan Program (SFHGLP) expanded the list of eligible property types to include existing manufactured homes. To qualify, existing manufactured homes must meet the following (not all-inclusive) criteria:
The comprehensive list of requirements for financing existing manufactured homes can be located in Chapter 13 of Handbook 1-3555.
The Single Family Housing Guaranteed Loan Program (SFHGLP) announced an increase in the elderly family deduction. HB-1-3555, Chapter 9, Attachment 9-A permits applicants who are age 62 or older to benefit from an elderly family deduction when calculating adjusted annual income. Effective immediately, this annual deduction has increased from $400 to $525 per household. Handbook changes to reflect the new deduction amount will be forthcoming, however the Guaranteed Underwriting System (GUS) is correctly applying the increased deduction.
How to qualify for FHA PREMIER with Jet Mortgage: if DU indicates Paystubs, W-2s, and 4506-C are not required; only a written verification of employment is needed.
The Single Family Housing Guaranteed Loan Program (SFHGLP) announced revisions to technical Handbook 1-3555 and Form RD 3555-21, Request for Single Family Housing Loan Guarantee. These changes became effective upon the recent issuance of a Procedure Notice (PN).
Pennymac Announcement 25-80: Updates to Government LLPAs, effective for all Best Efforts Commitments taken on or after Friday, August 15, 2025.
With FHA ML 2025-19, FHA announced that it is rescinding the requirements for mandatory pre-endorsement inspection applicable to properties located in Presidentially Declared Major Disaster Areas (PDMDAs). AmeriHome’s Disaster Policy for FHA was updated accordingly. See Product Announcement 20250713-CL for details.
Pennymac Announcement 25-76: FHA Section 247 Hawaiian Homelands Product Release.
Pennymac Announcement 25-77: Updates to Conventional and Government LLPAs, effective for all Best Efforts Commitments taken on or after Tuesday, August 12, 2025.
USDA Rural Development Bulletin announced an August 1, 2025, Interest Rate Increase for SFH Direct Programs.
175 words: Non-Agency news: think non-QM, jumbo, seconds…
Pennymac Announcement 25-81: updates to Jumbo LLPAs, effective for all Best Efforts Commitments taken on or after Wednesday, August 20, 2025.
Effective immediately, Logan Finance is offering improved rates on Legacy Full Doc & Alt Doc.
Champions Funding updated its Ally loan product guidelines. Loan amounts increased to $2.5M, FICOs down to 620, Tradelines not required with 3 credit scores, Lower reserves requirements, including only 2 months for FTHB, and more.
Citi Correspondent Lending reduced the HomeRun program's LLPA, effective with new Best Efforts locks completed on/after Monday, August 18, 2025, as shown below.
Effective with new Best Efforts locks completed on/after Monday, August 25, 2025, Citi Correspondent Lending is making changes to CRA Incentives, Non-Agency Jumbo Purchase LLPA and MFI Limits.
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CFPB Proposed Rule
On August 26, 2025, the CFPB proposed a rule to formally define the phrase “risks to consumers with regard to the offering or provision of consumer financial products or services” under the Dodd-Frank Act, which empowers the agency to supervise certain nonbank companies. This is the first time the CFPB has attempted to define this key phrase, despite using it previously to justify supervisory designations, writes Richard Horn of Garris Horn LLP. Two previous supervisory designations, involving Google and World Acceptance, were recently withdrawn. The proposed definition would limit the phrase to conduct that presents a high likelihood of significant consumer harm and has a direct connection to a consumer financial product or service.
This move follows a May 2025 proposal to eliminate public disclosures in contested designation cases and reflects the CFPB’s broader effort to narrow its regulatory scope, possibly in response to the Supreme Court’s 2024 decision in Loper Bright, which curtailed agency deference under the Chevron doctrine. The CFPB cited concerns about inconsistent standards and overbroad interpretations in past actions and emphasized that it seeks a clearer, more consistent, and statutorily faithful approach. While the proposal may not directly affect companies already under CFPB supervision, it signals a potential downsizing in agency scope and workload, and stakeholders are encouraged to submit comments by September 25, 2025.
Capital Markets
I, for one, enjoyed the relative peace and quiet in the bond markets yesterday, as we did not receive any top-tier domestic data while the news flow from overseas was also on the light side, and traders everywhere looked ahead to the long weekend. Yes, discourse around the attempt to dismiss Fed Governor Cook still had some market impact, as did the day's $70 billion 5-year note offering meeting weak demand.
Amid mounting expectations for Federal Reserve rate cuts, the U.S. Treasury yield curve has been undergoing a significant steepening. The front end of the curve, particularly 2-year yields, has fallen sharply due to a soft labor market and benign inflation data, reinforcing the view that the Fed will likely ease monetary policy. However, this optimism has not extended to the long end of the curve. 30-year yields have remained pressured as investors grapple with growing concerns over threats to the Fed's independence and the potential for a more politicized central bank. This divergence has led to steepening levels not seen in over two years, reflecting a new, more cautious risk premium for longer-term bonds.
And the market's focus has clearly shifted away from a "Goldilocks" economic scenario toward something more complex. While a strong summer stock market was driven by the earnings of a few select tech companies, underlying economic fundamentals, especially a cooling labor market, have raised alarms. Couple that with investors actively weighing how the Fed will navigate new inflationary pressures from tariffs, and it makes for a muddled picture. Although a direct link between tariffs and a massive inflation spike is unlikely, the potential for even a modest increase could complicate the Fed's decision-making. All in all, the market's bullish pivot from a few weeks ago has now become a more nuanced bet on a slowing economy, while also incorporating the newer politically charged risks to monetary policy.
Today’s economic calendar kicked off with the second look at Q2 GDP (3.1 percent, roughly as expected) and weekly jobless claims (230k versus 235k previously). Later today brings July pending home sales, Kansas City Fed manufacturing for August, Treasury auctions that will be headlined by $44 billion 7-year notes, Freddie Mac’s Primary Mortgage Market Survey, and remarks from Fed Governor Waller. We begin the day with Agency MBS prices slightly better than yesterday’s close, the 2-year yielding 3.64 percent, and the 10-year yielding 4.24 percent after closing yesterday at 4.24 percent.