Tomorrow I head from Boise to Jackson for the Mississippi Mortgage Banker’s Fall Conference. Certainly a topic in my email in-box and at events is how Freddie and Fannie’s market share is ebbing, and at noon PT, 3PM ET, Capital Markets Wrap (presented by Polly) will explore if F&F are fading from prominence amid the rise of alternative products, whether the market is getting ahead of itself in expecting mortgage rates to come down and what that means for lenders and investors, take a look at ARM demand and pricing, and discuss how hedging strategies shift during Fed easing cycles. At “the top of the funnel,” all of the news about occupancy fraud inspired attorney and Mortgage Musings author Brian Levy to provide his thoughts about the nuances of the topic in his latest Mortgage Musing. Sign up here to receive Levy’s Musings delivered directly to your email or you can find it on the Chrisman Commentary’s Thought Leadership page. And while we’re at the “top of the funnel,” according to Curinos’ new proprietary application index, refinances increased 47 percent in August while the purchase index decreased 2 percent for August as a whole. August 2025 funded mortgage volume decreased 4% YoY and decreased 6% MoM. Curinos sources a statistically significant data set directly from lenders to produce these benchmark figures. We drill into this data further here. (Today’s podcast can be found here and this week’s are sponsored by Indecomm. Streamlining operations with the genius blend of automation, AI, and services. Achieve practical digital transformation and real operational impact with Indecomm’s purpose-built mortgage solutions. Hear an interview with Call Equity’s Mel Lund on how operations and sales can assist one another to drive origination volume.)
Services, Software, and Tools for Lenders and Brokers
Achieving meaningful transformation in the mortgage industry requires innovation and collaboration. The integration of Freddie Mac’s Loan Product Advisor® (LPA®) asset and income modeler (AIM) Check API into Encompass and the ICE Income Analyzer marks a pivotal step toward automating borrower income verification. This new integration aims to accelerate the underwriting process by providing lenders with another powerful option for verifying borrower income within Encompass, helping to reduce loan quality issues and shorten cycle times. Explore the broader impact of this integration in this ICE Mortgage Technology blog post.
In the Classic Tetris World Championship, having the right piece at the right time can change the entire game. Tropos does the same for digital lending. The borrower portal is smooth, intuitive, and designed to fit neatly with any tech stack. And now, with its new admin portal, lenders can adjust settings, manage brand experiences, customize loan applications, and adapt workflows, all without developer support. Plus, be among the first lenders to get a sneak peek at the platform’s soon-to-launch loan officer experience. To see how Tropos delivers the perfect fit, grab a meeting with Carissa Orozco at National Mortgage News’ Digital Mortgage conference in San Diego, Sept. 16.
We know M&A is picking up in 2025. Recent reports show deal activity is climbing, especially among smaller and mid-sized institutions looking to stay competitive. When First Merchants Bank merged with Level One Bancorp, they weren’t just combining names; they had to merge two LOS and PPE setups, align execution strategies, and preserve secondary-market profitability in a climbing-rate environment. It’s the kind of complexity many of you face every day. Vice Capital Markets stepped into the chaos and made it look easy. Eric Brennan, Secondary Market Manager at First Merchants, says, “They couldn’t have made it easier on us during such a hard process and helped me look like a rockstar.” Read the full case study here. Ask them about solutions like this at Cheers! TMC in Boston, Sept. 14–16. Vice Capital President Troy Baars will be there.
“For 40 years, Richey May has gone deep in the mortgage industry: it’s where we came from and it’s what we know. This singular intent has created a full suite of services and products designed specifically for mortgage banking leaders by people who truly know the ins and outs of your operations. Our depth of experience, built through decades of collaboration, helps clients tackle complex challenges and stay ahead in a fast-moving market with specialized audit, tax, advisory, technology, and cybersecurity solutions. We go deep so you can go beyond, equipping mortgage leaders with tailored insights and tools to drive success. Contact us today to go beyond with Richey May.
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.
Correspondent and Wholesale News and Products
“Servbank Subservicing and TMS Correspondent are heading to MBA’s Annual Convention & Expo at the iconic Fontainebleau Las Vegas! We’d love to connect at our dedicated meeting space open October 20th and 21st. Discover how TMS Correspondent can grow your production through our DSCR, renovation, and HFA programs in AZ, CA, CO, OH, and TX. Learn about expanding your builder business through our builder forwards and extended lock program. As the nation’s premier bank subservicer, Servbank delivers tailored solutions designed to meet your unique needs by enhancing customers’ experience, fostering long-term loyalty, and seamlessly operating as an extension of your brand. Whether you're looking to strengthen your strategy or explore new partnership opportunities, our team is ready to share insights and solutions tailored to your business. Let’s talk about what’s next, and how we can help you get there. Schedule time with Servbank: partnership@servbank.com Schedule time with TMS: correspondent@themoneysource.com.”
“Join eRESI's webinar tomorrow, September 10th, Grow Your Business with Non-QM, for practical, results-driven strategies designed for growth. Unlock year-end success and sign up today. Our informative session covers how to 1) Identify ideal borrower profiles for non-QM products; 2) Locate these borrowers and position non-QM as their best solution; and 3) Leverage Non-QM to boost volume and secure long-term referrals. Can't make our webinar? Meet with our team at the MBA Annual in Las Vegas to take a deep dive into your non-QM growth strategy. Contact us at sales@eresimortgage.com to schedule a meeting.”
Sure, mortgage lending can be a dog-eat-dog world… but with Down Payment Resource (DPR), you won’t feel like you’re wearing Milk-Bone underwear (IYKYK). DPR takes the bite out of down payment assistance (DPA) by saving lenders hundreds of staff hours every year to match borrowers with programs that can lower their LTV by an average 6 percent and turn “maybe” into “yes.” Plus, lenders using DPA report saving up to 10 hours per DPA program rollout with DPR’s automated, standardized process. Or, as Cliff would say, it’s simple mortgage science. Catch DPR’s Brad Cardwell at TMC’s Boston Conference during the Partner Showcase on Tuesday, Sept. 16 at 9:30 a.m. ET in Room 2 to see how DPR helps lenders close more deals, build stronger borrower relationships, and lead the pack in a competitive market. Book today and join us where everyone knows your name.
“From F1 to Mortgage Tech. The F1 Italian Grand Prix at Monza is all about speed, precision, and strategy. One wrong turn and you lose the race. One perfectly timed pit stop, and you’re miles ahead. At NFTYDoor, we think the same way about home equity. Borrowers don’t want 4–8-week delays. They want a seamless, digital-first HELOC that closes at record pace. MLOs don’t want clunky tools. They want a finely tuned machine that helps them win more deals. We’ve built a fintech “race car” in the cloud: 1-minute Fast Pass approvals and plug & play access for 30k+ MLOs. At F1, fractions of a second matter. In mortgages, days and weeks matter even more. That’s why NFTYDoor is redefining the race for home equity. The checkered flag belongs to those who move fastest. Email seth@nftydoor.com.
PennyMac Financial Services, Inc. (NYSE: PFSI) and Vesta Innovations, Inc. announced a strategic partnership to streamline the mortgage application process and enhance the customer experience. Pennymac is the first large mortgage client to go live on Vesta’s modern platform, marking a significant industry milestone. As part of this venture, Pennymac has made a long-term minority equity investment in Vesta.
“Our partnership with Vesta is a great example of how Pennymac continues to lead the industry through innovation,” said Doug Jones, President and Chief Mortgage Banking Officer. “Investing in and integrating Vesta’s platform will further strengthen our technology ecosystem, allowing us to deliver an even faster, more intuitive mortgage experience for customers. Early results are very promising, with an increase in efficiency and improvement in our customer experience. This collaboration sets a new standard for the industry as a whole and truly elevates the customer journey.”
“Pennymac's adoption of Vesta's platform establishes it as one of the strongest players in the Loan Origination System (LOS) space. The LOS innovator’s cloud-based platform, built on a flexible, open architecture with best-in-class APIs, empowers Pennymac to extensively configure dynamic workflows around its unique business needs. By layering on data-driven tasks, native automations, and advanced AI to structure and interpret loan data, Vesta’s implementation has delivered meaningful efficiency gains across the entire mortgage lending process, from application to closing.”
Vesta's platform has been rolled out in Pennymac's Consumer Direct Channel, with plans to extend the technology across the company’s multi-channel production platform, including its Correspondent and TPO groups.
UWM’s Mat Ishbia took a good look at the current environment, and came out with a video discussing Trump firing a Fed Board Governor, refinances being up sharply, and the CFPB possibly continuing to shrink.
AmeriHome Mortgage General Announcement 20250807-CL summarizes previously published changes made during August, additional changes made with this announcement, and recent Agency and regulatory news.
Citi Correspondent Lending Bulletin 2025-08 content includes 2025 MFI Limits - Citibank Assessment Areas & SPCP Updates, Appraisal Updates – ANSI Terminology, Interested Party Contributions – Agency and Non-Agency, and Depreciating Markets – Monthly List Updates. Also, clarifications on Ineligible Projects, Hazard Insurance – State FAIR Plans, and Internet / Email Verifications.
The Importance of Coaching and Consistency
Over the weekend I received an “MLO VieauxPoint” from Brian Vieaux, CMB, President & COO of FinLocker & Founding ‘Expert’ of MLO Live, suggesting to LOs that coaching and consistency, while often overlooked, are an integral part of success.
“Two recent conversations on my Loan Officer Life podcast reminded me that while tools and markets change, fundamentals don’t. Darren Copeland of Summit Lending built his career by protecting his ‘Green Zone,’ time-blocked hours for building and maintaining relationships. His point is simple: distractions kill production. Guard your calendar or it will run you.
“Rebecca Richardson, known as The Mortgage Mentor, shows how social presence creates trust well before the point of sale. For her, a third of production is tied to social media, often from consumers who engaged months, or even years, earlier. Her advice: start now, stay consistent, and don’t overcomplicate content.
“The common thread? Coaching and consistency. Darren invests in mentors and accountability. Rebecca coaches loan officers to overcome fear and find their authentic voice. Both prove that showing up daily, whether through disciplined calls or steady content, outperforms chasing shortcuts. Read the full article with deeper takeaways from both interviews.” Thank you, Brian! #VieauxPoint
Capital Markets
President Trump said that Christopher Waller, Kevin Hassett, and Kevin Warsh are the three finalists for the Fed Chairman nomination. Maybe they can duke it out like Pulte and Bessent want to and determine a winner. We also learned yesterday that consumer credit increased by $16.0 billion in July, well above expectations following a downwardly revised $4.3 billion decline in June. And the New York Fed released its latest Survey of Consumer expectations, revealing a slight uptick in year-ahead inflation expectations to 3.2 percent from 3.1 percent while three-year and five-year expectations remained at 3.0 percent and 2.9 percent, respectively.
In August, MBS prepayment speeds were generally in line with expectations, with FN30s slowing slightly, GNIIs performing better than forecasted, and FN15s underperforming. The average CPRs reflected modest month-over-month changes, influenced by a mild drop in mortgage rates and a 7.5 percent rise in the MBA’s Refi Index. Gross MBS issuance hit a year-to-date high of $108.6 billion, driven by gains across most segments, including FN30s and FH30s, while GNII30 issuance declined for a third straight month.
Notably, Fannie Mae net issuance remained negative for the seventh consecutive month, and Fed MBS paydowns stayed well below the taper cap. Looking ahead, speeds are expected to remain stable through September and October, with seasonal slowing countered by recent refinancing momentum due to falling mortgage rates. Should the Fed begin cutting rates, further drops in mortgage rates could trigger stronger refinance activity and increased prepayment speeds.
Also, note, aggregate gross agency MBS issuance rose 7.7 percent on a month-over-month basis in July, and even managed a 0.7 percent increase from the same time in 2024. This was the strongest annualized increase for sector supply since May and, as was seen in July, the supply total came very close to the average seen from 2000-2019 ($112.0 billion for August.) While supply isn't budging too much, the world of agency MBS is slowly getting back to normal. In terms of the daily average supply, last month's $5.3 billion was a solid bump over July's $4.7 billion. The August through November period tends to see the most issuance of any year, so despite being at only $768 billion as of the end of the month, gross forecasts for 2025 as a whole remain around $1.1 trillion, which wouldn't be much of a change compared to 2024's total.
Today’s economic calendar got underway before the open with NFIB small business optimism for August: The NFIB Small Business Optimism Index rose 0.5 points in August to 100.8, nearly 3 points above the 52-year average of 98. Later today brings Redbook same store sales for the week ending September 6 and Treasury activity that will be headlined by $58 billion 3-year notes. We begin the day with Agency MBS prices roughly unchanged from Monday’s close, the 2-year yielding 3.52, and the 10-year yielding 4.06 after closing yesterday at 4.05 percent.
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