Today I find myself in Vancouver, WA, splendid in the autumn, to meet with various mortgage folks and especially the Banner Bank mortgage crew, covering much of the West. Artificial intelligence is on most agendas these days, and I received this note. “I read in your Commentary that AI use in large companies is decreasing. AI is like a GPS. I used to know how to get everywhere, but young drivers just plug it into a GPS. Without it, they are lost… and don’t know how to give directions. I learned loan programs, down payment programs and watched rates, etc. Now new hires plug the loan scenario into AI and wait for the results. Why learn to calculate income when there is an app for that?” Default mortgage servicing is a topic in the background, and on today’s "Mortgage Matters: The Weekly Roundup” presented by Lenders One, Steven Paton, CEO of UCLS (Universal Component Lender Services) will discuss how default mortgage servicing is its own business, and common misconceptions of subservicing. (Today’s podcast can be found here and this week’s are sponsored by CreditXpert. The all-new credit optimization platform that helps you close more loans. CreditXpert is committed to making homeownership more accessible and affordable for ALL. Today’s features an interview with Pylon’s Trent Hedge on why the concept of a ‘mortgage factory’ that requires hoards of people, middleware SaaS, and capital markets intermediaries is no longer the best way to originate a mortgage.)

Services, Software, and Tools for Lenders and Brokers

Remember Lisa Frank folders and the thrill of taping your favorite songs off radio stations? It was all about building personal experiences in the ‘90s, and Floify (so fly) is bringing it all back with Dynamic Apps. This powerful feature allows lenders to build customized borrower application experiences without coding, allowing credit unions to craft loan applications tailored to their members’ needs and specific products with responsive logic, simplified workflows and a vibe that says, “We get you.” It’s like blinging out your favorite denim jacket with sequins to impress the crowd, but now your creative genius is tuned into the needs of your members and the lending team. Meet Floify at the ACUMA 2025 Make Your Mark Annual Conference, Sept. 21–24 in the Colorado Convention Center, Denver. Schedule your demo now and say bye-bye to rigid workflows.

“This isn’t your typical webinar. Join American Heritage Lending’s first-ever LIVE Deal Desk! Bring your most challenging loan scenarios or submit them early for a chance to have them reviewed live on September 24. Any property type, any loan type, any non-QM challenge, our panel will walk through deals in real time, show how AHL structures them for success, highlight solutions you might be missing, and share actionable insights you can use immediately. Whether it’s a borrower profile banks won’t touch or a complex financing request, you’ll see the AHL way to make it work. Don’t miss this unique opportunity to learn, interact, and get real-time guidance from the experts. Register today and be part of the first-ever LIVE Deal Desk.”

The next competitive advantage in mortgage lending is here, and it’s powered by AI. Blue Sage’s AI Sales Agent is a first-of-its-kind, voice- and text-enabled assistant built directly into the Blue Sage Digital Lending Platform. Designed to work the way loan officers actually communicate, the tool streamlines everything from creating contacts and pulling loan data to running borrower scenarios and sending emails. For lenders, that means higher productivity, lower costs and a faster path from prospect to close. For borrowers, it’s a simpler, smarter experience that builds confidence and trust. The mortgage industry is changing. Will your team be ready? Schedule a demo with Blue Sage and see the AI Sales Agent in action.

Every year, thousands of buyers miss out on homeownership simply because they don’t know down payment help exists. Meanwhile, lenders are burning hours chasing outdated data and scrambling through fire drills to keep up with program changes. Down Payment Resource, the OG of all things DPA, changes the script. By automating and standardizing program management, DPR helps lenders quickly connect buyers with funds for closing costs, rate buydowns or that “rainy day” cushion. Plus, lenders report saving up to 10 hours per rollout and hundreds of staff hours annually, with smoother workflows, fewer compliance headaches, and more qualified borrowers. DPR delivers from the start, and with every rollout it keeps proving the value. Ready to see what DPR can do for you? Let the DPR team “show you the money.”

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.

More Bank Mergers

(Editor’s note: There’s a saying: “Loose lips sink ships.” For lenders and vendors, outsiders rushing to send out M&A or product news before management wants it known, can hurt employees and careers. The details of the UHM and SPMC deal were known by many, including myself who worked with management of all parties in crafting a news release, for some time prior to others hastily rushing to put it in print yesterday. This Commentary is run differently, and respects news, the people involved, and what is at stake. Those that don’t, well…)

Union Home Mortgage (UHM), a high-growth independent mortgage banking company with a world-class culture, announced today its acquisition of the origination assets of Sierra Pacific Mortgage Corporation (SPMC). The acquisition, UHM’s second this year, makes UHM one of the 15 largest Independent Mortgage Bankers in the country with over $15B in annual originations. The acquisition includes both the Retail and Wholesale channels of SPMC, and adds all the existing retail branches and wholesale broker relationships to UHM.

"When we look to acquire, we want a deal that makes sense to us, but also is good for employees and customers, and SPMC is a perfect fit geographically and culturally" said Bill Cosgrove, CEO of Union Home Mortgage. "Our company lives by the mantra of "Promises Kept," and we promise that this is a good deal for the employees and customers of SPMC and UHM."

Sierra Pacific Retail branches and Wholesale Brokers will continue their existing relationships, with no impact on existing loan pipelines, and will continue to originate on Sierra’s existing proprietary Loan Express origination system.

"I started Sierra Pacific 40 years ago and have always been dedicated to our brokers and our retail branches. We’ve made big investments in people and technology. I am delighted that legacy lives on with Bill and UHM," said Jim Coffrini, founder and CEO of Sierra Pacific

“It’s business as usual for our brokers, and we are excited for all the enhancements we have planned,” said Jon McCash, head of the wholesale division for Sierra Pacific.

Union Home is an example of a well-balanced IMB having over $25 billion in servicing and originations of over $15 billion a year through growing retail, wholesale, and CD channels. These deals follow other large IMB deals from Rocket and Bayview/Guild earlier this year.

STRATMOR Group was the exclusive advisor to Union Home Mortgage to facilitate the transaction.

Obviously, there may be some very experienced and talented people available due to the inevitable overlap that will occur. For job seekers, joining Chrisman LLC’s Talent Community is completely free. Upload your resume to be visible to hiring companies across the industry and stay connected to new opportunities as they go live.

HELOCs, 2nds, Non-Agency, ARM, and Jumbo Products

“Your borrowers asked you, you asked us, we asked our investors....and our 2nd lien investor has now arrived! Symmetry Lending’s 2nd lien investor HELOC has great pricing as low as prime + 1% margin. Lines available to 500k at 70% CLTV. They are so simple to originate--no assets verified unless used for income. There are no adds for 2-4’s, ADU’s, acreage, Condos, or Manufactured Homes. We require a 720 mid FICO score minimum/43% DTI maximum. Liquidity is the key to owning and managing rentals… Your borrowers will love you for this product! Details on Symmetry’s 2nd lien Investor HELOC: Great pricing as low as prime plus 1% margin, lines available to 500k at 70% CLTV, simple to originate (no assets verified unless used for income), no adds for 2-4’s, ADU’s, Acreage, Condos or Manufactured Homes, and 720 mid FICO score minimum/43% DTI maximum. Liquidity is the key to owning and managing rentals… Your borrowers will love you for this product! Symmetry Lending.”

Champions Funding has broadened its non-QM loan solutions, opening up more opportunities for mortgage brokers to grow production and commissions. With an expanded suite of programs designed to reach underserved borrowers, brokers now have greater flexibility and a sharper edge in today’s competitive market. Key enhancements include the Ally No Ratio program for primary and second homes, requiring no VOI/VOE, with loan amounts up to $2.5M and FICOs starting at 620. Reserve requirements have also been reduced to just two months for first-time homebuyers. Additional options include DSCR with cash-out down to 620 FICO, ITIN solutions, and alternative documentation programs designed to meet the needs of borrowers outside the conventional box. This expansion gives brokers direct access to more borrowers, more loan opportunities, and ultimately more closings. Learn more at ChampsTPO.com.

Pennymac Announcement 25-87: Pennymac will update Jumbo LLPAs effective for all Best-Efforts Commitments taken on or after Monday, September 8.

Expand your market reach to clients who own and list short term rentals on short term rental platforms such as Airbnb, VRBO, VACASA or others with LoanStream Wholesale’s DSCR Investor loans.

LoanStream Wholesale’s latest innovation, Non-QM Professional, is designed to help more clients with this cutting-edge Alt Doc solution, ideal for high-earning professionals who might not fit the standard loan mold. Offering 25 BPS Pricing Improvement for Qualified Loans: Purchase and Rate/Term and Cash-Out Refinance allowed, 680 Min FICO, Borrower must be currently practicing full-time in their profession. Copy of active license and/or degree is required.

PHH Mortgage updated product descriptions for Non-Agency Bronze & Silver products.

Click n’ Close, a multi-state mortgage lender announced the launch of its SmartBuy 5/1 ARM Down Payment Assistance (DPA) product, designed specifically to help home builders address affordability concerns and support new home sales. With the National Association of Home Builders (NAHB) reporting that new home sales remain flat amid persistent affordability pressures, builders are seeking financing programs that make it easier for buyers to purchase new homes. The SmartBuy 5/1 ARM DPA program combines a competitive ARM first mortgage with a repayable second mortgage that can be applied to down payments, closing costs, prepaids or rate buydowns. This structure enables builders and their lending partners to present buyers with more approachable monthly payments and lower upfront barriers.

Capital Markets

Struggling with frustrating and sometimes costly TBA settlement problems? 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. “Since transitioning to Agile, we’ve improved trade accuracy and eliminated monthly and quarterly settlement errors,” said Luther Hubbard with Evergreen Home Loans. “The platform streamlines our TBA trading process, removing the inefficiencies and risks we used to face when trading over the phone.” Ready to say goodbye to settlement headaches? Contact Agile to get started.

Ahead of today’s FOMC decision, and expected rate cut, markets took yesterday’s heap of stronger-than-expected economic data in stride, including robust retail sales and rising import/export prices in August. Both reports pointed to ongoing consumer resilience, but emerging inflation pressures. Retail sales beat expectations both with and without autos, suggesting spending remains solid even as prices rise, while a notable 0.4 percent increase in nonfuel import prices raised concerns about potential tariff-related inflation. Industrial production edged up modestly, driven largely by motor vehicle output, while capacity utilization remained below its long-run average.

Despite this economic strength, markets remained confident that the Fed will cut rates by 25-basis points to a target rate range of 4.00–4.25 percent, and signal a belief that current data won’t derail the easing trajectory. A well-received 20-year bond auction and a weaker dollar added support to bond prices, while the Senate’s confirmation of Stephen Miran to the Fed Board and the court’s decision to uphold Lisa Cook’s position set the stage for a fully staffed FOMC vote this week.

Today’s highlight will be the latest FOMC events, with the statement and updated SEP released at 2:00pm ET, followed by Fed Chair Powell’s press conference at 2:30pm. While a 25-basis points cut is a done deal and markets are priced for another two cuts over the rest of the year, market participants will be interested in what the dot plot has to say (median was two cuts for the year previously), while there could very well be a growing list of dissenters with both governors Miran and Cook voting at the meeting. The market is becoming increasingly comfortable with the idea that monetary policy will move below current restrictive levels and settle near neutral (thought to be just below 3 percent) by the end of 2026, barring a significant inflationary or geopolitical shock.

Before the Fed, today’s economic calendar kicked off with mortgage applications from MBA, which increased 29.7 percent from one week earlier, due to rates being at their lows of 2025. We’ve also received August housing starts and building permits (starts -8.5 percent, permits -3.7 percent at 1.312 million annualized, both weak). We begin Wednesday with Agency MBS prices roughly unchanged from Tuesday’s close, the 2-year yielding 3.51, and the 10-year yielding 4.02 after closing yesterday at 4.02 percent.