Come on… you don’t believe politics and mortgages are separate? Look at politicized government housing agencies: whoever is running HUD, whether it is Bill Pulte or Scott Turner, posted this note on the website. Wasn’t it just a few weeks ago that all we had in the news were tariffs and Fed Governor Lisa Cook? (By the way, all the living Fed Chairs have come out in favor of Federal Reserve independence and against the firing. And mortgage occupancy fraud involving her and President Trump’s cabinet members? Here’s the latest.) Starting today, the shutdown has necessitated a furlough of certain federal employees and significant curtailment of certain operations requiring agency staff intervention or action at the Department of Housing and Urban Development, Veterans Affairs, and the Department of Agriculture. National Flood Insurance Program (NFIP) authorities have expired today. The MBA continues to advocate for an extension of NFIP’s authority to avoid disruptions to the housing market, including joining other trade groups in a letter to Congressional leadership. (Today’s podcast can be found here and this week’s are sponsored by Spring EQ, one of the nation’s leading non-bank home equity lenders, giving partners more ways to serve customers. Known for speed, service, and innovation, Spring EQ makes tapping into home equity easier. Hear an interview with Spring EQ’s Reno Heine on when and why loan originators should consider HELOC and HELOAN products for clients, key factors in choosing between them, and the future outlook for second mortgages.)
Services, Products, Software, and Tools for Lenders and Brokers
The ‘90s were all about doodling on your Converse sneakers with Sharpies, tie-dyeing T-shirts and personalizing Walkmans with smiley-face decals. Floify is keeping that spirit alive with Dynamic AI, an upgrade to the popular POS that helps users customize borrower application experiences without needing to write a single line of code. Dynamic AI ensures compliance and is backed by U.S.-based support, audit-ready logs, and enterprise-grade security. Think of it like a ‘90s mixtape: customizable, creative, and built to scale as your business needs evolve. It’s personal. It’s flexible. And it’s just … so fly. Catch Floify at MBA Annual, October 19–22, 2025 at the Fontainebleau Las Vegas, as they demo Dynamic AI as part of MBA’s Tech Showcase. Or you can schedule your demo now and yeah, be sure to tell ‘em, I want it that way.
“Mortgage Lenders – The Future of Lending Tech Is Almost Here. Tired of old tech? It’s time for something new. Gridavate is bringing a modern SaaS platform built from the ground up for today’s mortgage lenders. Our solution combines customizable Fraud Detection, automated workflows, and continuous real-time Watchlist Monitoring, delivered as a fully integrated feature or a powerful standalone tool. The result: smarter insights to safeguard your pipeline, protect profitability, and eliminate costly manual errors. With seamless integration and intelligent alerts, compliance and risk management have never been easier. Change is coming. Get to know Gridavate or contact us here.
Adoption makes or breaks a CRM. I’ve seen too many systems gather dust because they’re clunky or built by people who don’t know the mortgage business. Usherpa is different. Built by mortgage pros, it’s quick to launch, easy to navigate, and delivers value on day one. With Done-For-You Marketing, Pipelines, SmartScore alerts, and daily reminders, much of the heavy lifting is already handled so loan officers can stay focused on their past Customers, Prospects, and Referral Partners. Adoption comes naturally because the platform was built with loan officers in mind. Add live support plus weekly and monthly training, and adoption isn’t forced: It happens naturally. When technology is this practical, simple, and effective, loan officers don’t have to be convinced to use it. They actually want to.
“MortgageFlex is heading to Las Vegas for the Mortgage Bankers Association Annual Convention & Expo! We’re excited to join industry leaders, innovators, and decision-makers at the biggest mortgage event of the year. As a trusted provider of cutting-edge cloud origination, servicing, and default solutions, MortgageFlex is proud to demonstrate how our technology empowers lenders to streamline operations, enhance the borrower experience, and stay ahead in a rapidly evolving market. Schedule a meeting with the team to experience live demos and discover how MortgageFlex is driving digital transformation across the mortgage industry. Whether you're a bank, credit union, or independent lender, we’re here to help you flex your potential. Contact John McCrea for a meeting.”
Lenders are still buzzing about the recent webinar with ICE Mortgage Technology’s Eric Kujala and LenderLogix. The session explored how Encompass® automation extends into the borrower experience, showing how lenders are streamlining fee collection, verifications, and credit ordering through the POS. Attendees left with practical examples of how to reduce manual touchpoints for loan officers while creating a consistent, borrower friendly journey. The full 30-minute replay is now available on demand, and it is a must watch for anyone looking to get more out of their Encompass® workflows. Watch the replay.
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 Products
“With a standard down payment of 3.5 percent, the Link Loan Powered by Essex Mortgage can help you tap into a significant market of underbanked and underserved consumers who do not qualify for traditional financing. The Link Loan provides immediate enjoyment of a home and a structured path to homeownership, with consumers building equity from day 1 using long term financing. Lenders are also reaching new markets and enhancing their current offerings with the Essex Mortgage Down Payment Assistance Program and its many competitive advantages. With up to 101.5 percent LTV, No Income Limits, No Maximum DTI, and No First-Time Homebuyer Requirement, it can help your borrowers unlock the doors to their dream home. Reach out to us today to learn more about these innovative product offerings and how we are expanding access to homeownership for borrowers across the nation!”
Symmetry has rolled out its 3rd phase of enhancements, and we’ve saved the best for last! 2 percent BPC is now available on Standalone HELOCs (on the draw amount). Broker fee options are: Piggyback $0, $500, $1000, 1 percent; Standalone: $0, $500, $1000, 1 percent, 1.5 percent, or 2 percent. Phase 3 includes the addition of a 10-year draw (interest only payments plus annual fee), then 20-year amortizing repayments (0.25 percent margin add on for this option). Call your Symmetry AE for all the exciting ways you can earn more comp!
It’s Non-Stop Non-QM Mania at Carrington Mortgage Services! Carrington is turning up the heat this month in Las Vegas. First meet them at NAMB, either at their booth or during their happy hour event on October 18th at Pronto by Giada at Caesar’s Palace. Then for the MBA at the Fontainebleau to talk Delegated and Non-QM strategies. Carrington is also looking for experienced Non-QM account executives across the country: have a confidential conversation with their VP of Sales, Jeff Massotti to learn more. Want to know why giving Carrington the First Look for Non-QM makes all the difference? Schedule time now or reach out to learn more!
Pennymac CEO Spector Thoughts on the Industry
In the second installment of Voice of the Industry, Pennymac Chairman and CEO David Spector offers a bold, unfiltered perspective on where the mortgage industry stands, and where it needs to go. From reflecting further on the legacy of Dave Stevens to critiquing the Mortgage Bankers Association's diluted focus, Spector doesn’t shy away from uncomfortable truths. He argues for sharper leadership, greater innovation, and a more agile industry mindset capable of adapting to a rapidly evolving economic and regulatory environment.
Spector also pulls back the curtain on Pennymac’s own transformation, highlighting efforts to modernize systems, embrace non-QM products, and lead with substance over spectacle. As he puts it, “Innovation delayed is innovation denied,” and the next chapter in mortgage finance will be written by those bold enough to build it. For a rare, candid look at leadership, policy, and product strategy from one of the industry's most influential voices, read the full article now on our website.
USDA, Flood, Other Verifications Shut Down
Borrowers and lenders and plenty of others suffer in a shutdown. The National Flood Insurance Program's reauthorization runs out today on October 1. Without reauthorization, FEMA cannot issue new flood insurance policies or renew existing ones. New policies can’t be issued during a lapse in authorization. Renewals can’t be processed if they fall during the lapse. Existing policies remain in force, but no modifications can be made. Have one about to close? Sorry: Any loan requiring new NFIP coverage cannot close until reauthorization.
Do you have any USDA rural loans? Sorry. The process of approving and closing those loans needs the conditional commitment issued by the USDA field office after their review of the file. The USDA’s staff is now furloughed, so no additional conditional commitments will be issued after close of business at their field offices last night. Apparently if loans already had a conditional commitment issued yesterday or before, those loans can close as normal.
If the last lengthy government shutdown is any indication, loans locked but without a USDA commitment won’t fund. After the shutdown and the furlough ended, lenders could submit the file to USDA, and it can issue the commitment. Most, if not all, lenders covered all lock extensions necessary to protect the rate. To the best of my knowledge no lenders are delegated by USDA to close loans prior to USDA issuing the commitment.
Social Security benefits will be paid as scheduled, and veterans' disability and retirement benefits will continue.
Customer service delays are expected due to staff furloughs, which could slow verification processes. You can expect IRS delays for tax transcript requests and income verifications. Essential IRS functions may continue, but support staff will be furloughed. Plan for extended turnaround times on 4506-T requests.
HUD and VA medical operations are expected to remain functional but reduced staffing could slow appraisal reviews and case number assignments.
Capital Markets
Agile is transforming the mortgage-backed securities market by delivering efficiency, liquidity, and transparency to every trade. As a FinTech innovator, Agile is SEC-registered and a FINRA member, bringing trusted solutions to the residential mortgage lending industry. Exclusively focused on technology, not trading lines or proprietary trades, Agile digitizes and democratizes the TBA trading and BWIC auction process. For the first time, all mortgage lenders can trade TBAs with both regional and primary dealers electronically, replacing outdated phone-based systems with direct access, real-time pricing, and unmatched transparency. Meet the Agile team at the MBA Annual Conference in Las Vegas to explore how MBS trading is being redefined. Schedule time with Agile and experience the future of trading.
Yesterday’s month- and quarter-end brought the customary torrent of economic data, but the impact on markets was muted as traders were more concerned with the U.S. government beginning its first shutdown in nearly seven years. Beyond potentially delaying Friday’s jobs report, some are even saying the shutdown could stretch all the way to the Federal Reserve’s next meeting on October 29, upending the path of interest rates along the way. And the Trump administration’s potential mass firings of federal workers would send jobless claims rising even higher in a troubled job market. The takeaway is that even though mortgage rates enter the fourth quarter lower than where they began it, there is very little clear perspective going forward.
Data released yesterday from the JOLTS report suggests a labor market losing momentum, with job openings in August remaining flat and the vacancy rate holding at a cycle low of 4.3 percent. Hiring demand continues to soften, leading more workers to stay in their current roles, which in turn is easing upward wage pressure. While layoffs remain low, the declining quit rate raises concerns that job cuts could increase. Meanwhile, consumer confidence dropped to a five-month low in September amid growing worries about job prospects and the overall economy, marking the second consecutive month where the number of unemployed workers slightly exceeds job openings, a dynamic not seen since early 2021.
Today’s economic calendar kicked off with Mortgage applications decreasing 12.7 percent from one week earlier, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending September 26, 2025. The drop coincided with the highest mortgage rates in three weeks.
We’ve also received ADP employment for September (-32k, far lower than expected). Also on tap are the final September S&P Global manufacturing PMI, the ISM equivalent (both expected to show the manufacturing sector in continued contraction but the services sector in expansion), construction spending for August (expected to fall for the tenth consecutive month), Treasury activity that includes a buyback in 3- to 5-year coupons for up to $4 billion, and remarks from Richmond Fed President Barkin. We begin Day 1 of the shutdown with Agency MBS prices better by about .125 from Tuesday’s close after the weak ADP numbers, the 2-year yielding 3.55, and the 10-year yielding 4.11 after closing yesterday at 4.15 percent, down 8-basis points from where it began September.
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