In China, red symbolizes prosperity, protection, and welcoming energy, and so is a popular front door color for occupants, especially when facing south. Here in the United States (we’re still united, right?) it doesn’t take long before “occupancy fraud” is on everyone’s lips in residential lending. Occupancy is not a partisan issue, right? And prosecuting it should not be either. Whether it is the Fed’s Lisa Cook, Bill Pulte’s father, three members of the Trump cabinet, suddenly applications on multiple homes are showing discrepancies. (Yes, according to a Bloomberg report citing Treasury Secretary Bessent’s mortgage applications with Bank of America, the Treasury Secretary agreed to occupy two different homes as his “primary residence” simultaneously, a pledge similar to one made by Cook.) Let the authorities take a look. Fed independence is also a hot topic, so it is no coincidence that on today’s The Last Word (10AM PT / 1PM ET), Brian Vieaux, Kevin Peranio, and Courtney Thompson tackle the political and legal drama surrounding the Fed’s independence, political interference, the heightened tension it creates, and how markets are bracing for volatility tied to policy signals and credibility. (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 Gateless’ Mike Brown on how lenders can overcome application surges by automating key underwriting tasks in real time, reducing costs, accelerating approvals, and enabling scalable growth without added headcount.)

Services, Products, Software, and Tools for Lenders and Brokers

Did you know there’s a retiree in Iowa running a rescue for special-needs corgis? It’s a reminder that when homeowners aren’t burdened by monthly expenses, they can focus on what matters most. By really listening and considering new solutions (like a reverse second mortgage from Finance of America), you can help clients find the best fit for their needs. Want to see how many of your past clients might be eligible? Fill out this form (no identifying info needed). The borrower must meet all loan obligations, including meeting all loan obligations under the first lien mortgage, living in the property as the principal residence, and paying property charges, including property taxes, fees, hazard insurance. The borrower must maintain the home. If the homeowner does not meet these loan obligations, then the loan will need to be repaid. Finance of America | NMLS #2285.

“30 percent of all mortgage applications are denied due to credit challenges. And many are just a few points shy of the 620-threshold. With the right follow-up, these borrowers could qualify in months, yet most lenders let them walk away, losing trust and business along the way. In our latest webinar, Building Your Future Pipeline, you’ll learn how a structured re-engagement strategy can turn today’s credit denials into tomorrow’s funded loans. Capturing just 10 percent of these applicants could mean $70–$100 million in additional volume for a $2B lender without chasing a single new lead. We’ll also show you how to turn Credit Improvement Alerts into a goldmine of revenue. With 7,000+ alerts a year representing $200 million in potential applications, the opportunity is enormous… if you know how to act. Watch now to learn how to build a smarter pipeline and maximize ROI.”

Reggora’s making waves with its 24-hour appraisal solution, set to launch October 15th, and it is no small feat. Backed by $18M in new funding from Centana Growth, the company’s gearing up for serious expansion. This isn’t just another tech tweak. It’s a bold move to reshape appraisals, slashing turnaround times without compromising quality. Industry players are already buzzing about how this could streamline operations and boost efficiency. Reggora’s leveraging its tech to tackle a pain point that’s plagued the mortgage world for years. Curious about the details? The full scoop’s in their latest press release, and it’s worth a read for anyone tracking innovation in housing. Check it out here.

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.

Conventional Conforming Program Changes

Despite Freddie and Fannie’s loss in market share to non-Agency channels (non-QM, jumbo, bond programs, private money lending) it is still good to see what F&F and the aggregators are doing. Regarding an actual release from conservatorship, no one really seems to know much of anything, other than it is far more complicated than the wave of a wand or a tweet.

R.C. Whalen of Whalen Global Advisors LLC published a piece of his opinion on how the release of Fannie Mae and Freddie Mac from conservatorship could change mortgage costs.

Fannie Mae and Freddie Mac (the GSEs) recently introduced an overview for using the Uniform Appraisal Dataset (UAD) 3.6 and the Uniform Residential Appraisal Report (URAR) during a limited production period beginning September 8, 2025. Weiner Brodsky Kider PC report, “Lenders may elect to participate in the GSEs’ limited production period, which extends from September 8, 20205, through January 25, 2026, by completing a questionnaire and receiving GSE approval. Beginning January 26, 2026, through November 1, 2026, all GSE lenders can begin submitting UAD 3.6 appraisals without prior GSE approval. During this period, both UAD 2.6 and UAD 3.6 will be acceptable. Beginning November 2, 2026, UAD 3.6 becomes mandatory for all new appraisal submissions on GSE loans.”

Indeed, after over five years of preparation, the limited production of UAD 3.6 and Forms Redesign is finally here. This period innovates the appraisal space with improved data standardization, a simplified review process, and dynamic reporting. Freddie Mac and Fannie Mae (the GSEs) have completed their system and policy updates and are ready to work with lenders and appraisal software vendors to implement UAD 3.6.

Watch the Q3 Policy Highlights Video posted by Freddie Mac for a quick recap of the key changes to our Single-Family Seller/Servicer Guide (Guide) from Bulletins 2025-9, 2025-10 and 2025-12.

Freddie Mac’s Single-Family Seller/Servicer Guide Bulletin 2025-12 provides updates related to: Loan-to-value (LTV) ratios for certain mortgages secured by 2- to 4-unit properties, Reconsideration of Value (ROV), Third-Party Originator (TPO) oversight. Additional updates include MERS® revision, Cash-Released XChange® Document Custodians, and Guide refactoring.

Capital Markets

With yesterday’s economic calendar limited to jobless claims, and today completely void of data, we probably aren’t going to see any shift in investor sentiment in the near-term. And just where is investor sentiment? Well, just when markets thought the Fed had finally given up its recent hawkish ways for good, Fed Chair Powell’s post-meeting press conference tempered market optimism around imminent rate cuts, signaling a more cautious stance by emphasizing that inflation remains a persistent and unpredictable risk to the outlook.

The result: the bond market quickly reversed and began selling off, having previously priced in a dovish Fed into 2026. Tisk, tisk. It felt eerily similar to one year ago, when expectations for a 50-basis points cut never came to fruition and we were left with a mere refi “boomlet.” Fed funds futures projections are still for another 50-basis point reduction by the end of December, but January odds have slipped further below a 50 percent chance of a rate cut.

All that said, the employment data cast doubt on the outlook for further interest-rate reductions by the Fed this year. Initial applications for jobless benefits in the U.S. dropped by the most in nearly four years, reversing an unusually large jump in the prior week. Initial claims decreased by 33k to 231k for the week ended September 13, in line with levels seen throughout this year and not far off the pre-pandemic trend.

Yesterday’s $19 billion 10-year TIPS reopening was a test of investor demand for real yields amid a bullish backdrop, with 10-year TIPS up over 25-basis points since early August and the auction set to price at the lowest yield in a year. However, the auction was a dud, tailing over 4.5-basis points to well below average end user demand. Recent rate moves and limited tariff-driven inflation, mixed with concerns around monetary policy normalization and central bank independence were expected to keep demand for inflation protection strong, but predictions never mean much in the bond markets.

Mortgage rates hit new year-to-date lows versus the prior week and remain at the lowest levels since last October. In Freddie Mac’s Primary Mortgage Market Survey for the week ending September 18, the 30- and 15-year mortgage rates both fell 9-basis points to 6.26 percent and 5.41 percent, respectively. However, both rates remain higher by 17-basis points and 26-basis points from a year ago. (For more accurate and up-to-date mortgage rate info, please see https://www.mortgagenewsdaily.com/mortgage-rates)

A speech from San Francisco Fed President Daly is the lone economic “event” of interest today, though the Bank of Japan was out with its latest monetary policy decision overnight, with no change in rates, as expected. Without any economic data on today’s schedule, we begin Friday with Agency MBS prices slightly worse than Thursday’s close, the 2-year yielding 3.58, and the 10-year yielding 4.13 after closing yesterday at 4.10 percent.