We’re two days into the 4th quarter of the 2025, two days into another government shutdown, and… companies are relishing their September numbers. I have been hearing from a few companies that had strong performance in September. For example, Union Home Mortgage has been in the news lately, and the company had a record lock month with over 5,000 units and $1.67 billion over all channels. As we noted here a couple of weeks ago, UHM announced the acquisition of the origination assets of Sierra Pacific, whose lock volume totaled $521 million for the month, so combined that puts UHM with a total of $2.18 billion. (The asset acquisition, led by STRATMOR, became official on October 1st.) Residential lending is always changing, and in The Big Picture, today at noon, PT, Dustin Owen, host of The Loan Officer Podcast, will touch on the potential for Fannie and Freddie re-public offerings, explore how the Trump Administration and FHFA could shift the landscape, and dig into hot-button topics like LO comp, and increasing non-QM production. (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 AHMC’s Matthew VanFossen on his new role as Chair of State and Local for MBA, key agenda items, and how people can get involved with advocacy.)

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

It’s a critical crossroads for every lender: the decision to service loans in-house or utilize a subservicer. On one hand, a subservicer can offer significant cost savings by eliminating the need for a lender to hire its own servicing staff and pay for employee training, software development, and systems maintenance. But by opting to service loans in-house, lenders maintain control over communications with their borrowers, which can lead to more opportunities for repeat business from their existing customers in the future. Each path will distinctly impact your portfolio's performance, compliance management, and long-term growth potential. Read ICE’s blog to help you better understand the benefits and trade-offs of servicing a loan in-house versus using a subservicer.

“Most LOS platforms are stuck in the past, built on outdated tech stacks, patched together over decades and unable to keep pace with today’s lending demands. Blue Sage is different. We’re not the LOS of yesterday. We’re the LOS for today and tomorrow: a true, cloud-native Digital Lending Platform designed from the ground up to deliver speed, flexibility, and innovation from point of sale through servicing. At this year’s MBA Annual, stop by our booth to see how Blue Sage helps lenders lower costs, boost productivity and stay ahead in a rapidly changing market. And don’t miss the exclusive sneak peek of our new AI Sales Agent during the Tech Demo at the Hub on Tuesday at 1:30pm PST, a first-of-its-kind, voice- and text-enabled assistant that transforms the way loan officers work. Visit booth 307 and schedule a demo to see the future of mortgage lending in action.”

Asset Based Lending (ABL) recently launched “Calculated Interest,” a new podcast designed to empower real estate investors with advanced strategies, real-world insights, and success stories from experienced borrowers. Each episode features industry experts, including ABL’s seasoned loan officers and long-term clients, who share practical guidance on flipping, BRRRR techniques, portfolio growth, and navigating today’s market trends. For lenders, the podcast offers more than investor education. It reinforces ABL’s commitment to supporting borrowers at every stage of their journey. By showcasing real success stories and deep industry expertise, the podcast strengthens trust with real estate investors while positioning ABL as a long-term partner in their growth. Available on Spotify, Apple Podcasts, and YouTube. Calculated Interest extends the company’s reach while creating new opportunities for lenders to connect clients with valuable resources.

“As rates begin to dip, do you have the tools to spot every homeowner in your market who’s ready to save money? With Model Match’s Borrower Insights, loan officers can see exactly who’s in position to refinance, drop PMI, or tap equity, with precision targeting that’s never been this easy or affordable. Our platform unlocks loan transaction data nationwide from 2017 forward, revealing borrower intel like current interest rate & equity position, home valuation trends, borrower contact details, and connected real estate agents. Whether you’re looking to reconnect with past clients or build a brand-new pipeline, Borrower Insights arms you with the right data to reach the right borrower at the right time. Hundreds of loan officers are already leveraging this AI-powered tool to drive more refinance conversations and close more loans. Model Match starts at just $29/month with a 14-day free trial. Sign up today and join the Borrower Insights early access list to be ready as this next wave of opportunities hits.”

When you think of “Las Vegas,” you probably picture neon lights, world-class entertainment, and endless desert horizons. But here’s a surprise: “Las Vegas” actually means the meadows, so named by early Spanish explorers for its lush grasses and abundant water, an oasis along the Old Spanish Trail. Surprises like this aren’t just found in history; many lenders and real estate pros are surprised to learn that down payment assistance (DPA) can provide an average $18,000 for a range of homebuying needs and that there are 2,550+ programs available nationwide. Because these programs can reduce a borrower’s LTV by an average of 6%, they can help you qualify more buyers. Surprised? Down Payment Resource can show you how to connect buyers with these powerful assistance programs. Meet DPR at MBA Annual, October 19–22 in Las Vegas.

Refinance activity is on the rise, and the competition to retain borrowers is heating up. Are your originators prepared to act when rates shift? Join Optimal Blue experts Jared Sammy and Brennan O’Connell on Oct. 7 from 1 to 2 p.m. CT for a live webinar, “Refi Revival: Leveraging Originator Intelligence to Stay Ahead of the Curve.” You’ll learn how to surface high-potential refinance opportunities from your closed-loan data, reconnect with past borrowers through timely, data-driven outreach, and create polished borrower-facing presentations with one click. See how modern technology helps you cut research time from 30 minutes per loan to seconds – so your originators can focus on building relationships and closing deals. This is your chance to give your team the competitive edge they need in Q4 and beyond. Register today and position your team to capture more refinance opportunities.

The commercial lending market is exploding, with $1.5 trillion in maturing loans over the next few years and a shortage of brokers to handle the surge. Oceanview Commercial Lending, led by 25-year veteran Chris Perez, offers a turnkey broker partnership that lets residential brokers tap into this booming opportunity without disrupting their current business. Brokers receive marketing support, AI-powered tools, expert training, and access to a 6,000-lender network. With just a few hours a week, brokers like Claudia in Illinois are earning $20,000–$30,000 monthly. Chris is seeking 5–10 brokers per state to join this exclusive program. Schedule a strategy session: https://calendly.com/oceanviewcommercial/cre-lending-strategy-session. Join the free weekly seminar (Wednesdays, 1PM EST): https://calendly.com/oceanviewcommercial/intro-to-the-money-business-seminar-cloud. The lending landscape is shifting… position yourself to profit.

Snapdocs, the leader in digital closing technology, has partnered with Vesta, a modern loan origination system (LOS), to create a fully integrated digital closing experience. The integration brings Snapdocs' closing infrastructure directly into Vesta's platform. Lenders can manage the entire closing process from sending documents and collecting signatures to tracking real-time status updates without leaving their LOS. By eliminating manual work and disconnected systems, the partnership helps lenders reduce risk, cut down on errors, and significantly accelerate closing timelines.

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.

Back to Law School?

Yesterday we learned that the U.S. Supreme Court has ruled to let Fed Governor Lisa Cook keep her job pending January oral arguments. These oral arguments in January will focus on whether President Donald Trump has legal cause to fire her. Yesterday’s ruling allows the Federal Reserve to carry on with business at least through the end of the year, during which it is expected to approve two more interest rate cuts.

A group of homebuyers filed a class action lawsuit against D.R. Horton Inc., the nation’s largest homebuilding company, and its mortgage lending subsidiary, DHI Mortgage Co., to recover money they allegedly lost in deceptive home-selling and mortgage schemes that led to unexpectedly high monthly mortgage payments. The homebuyers in the lawsuit, filed in U.S. District Court for the Middle District of Florida, are represented by Varnell & Warwick, P.A., Clarkson Law Firm, P.C., and the National Consumer Law Center (NCLC).

The lawsuit seeks to stop the defendants from luring homebuyers into buying more expensive homes with larger mortgages and get back all money the homeowners lost. Under the Racketeer Influenced and Corrupt Organizations Act (RICO), homeowners may be entitled to three times their out-of-pocket losses. According to the lawsuit, D.R. Horton targeted prospective homeowners by promising low, affordable monthly payments. However, the company low-balled the true monthly costs because it excluded the majority of required property taxes.

Meanwhile, Zillow Group and Redfin were sued on Wednesday by five states for allegedly conspiring to thwart competition in online rental listings, including when Zillow paid Redfin $100 million to stop running apartment ads. Attorneys general of Virginia, Arizona, Connecticut, New York, and Washington filed their antitrust lawsuit in the Alexandria, Virginia federal court. The Federal Trade Commission filed a similar lawsuit there on Tuesday.

Both cases stemmed from a February agreement between Zillow and Redfin, which together with Apartments.com owner CoStar account for most revenue from US online rental ads. In exchange for the $100 million, Redfin allegedly agreed to end advertising contracts with managers of larger apartment buildings, stay out of that market for nine years, and display on its platform only rentals that Zillow also displays. “Zillow paying Redfin to exit the market harms renters and property owners by taking away free market incentives to provide high-quality services that businesses and consumers rely on,” Virginia Attorney General Jason Miyares said in a statement.

FICO to Lenders: Wanna Skip the Middleman?

Shares of TransUnion, Equifax and Experian slumped today as FICO said it’s going to license its scores used to assess a mortgage borrower’s credit worthiness directly. Yup, FICO today announced a major shift in the delivery of FICO® Scores to the mortgage industry. With the launch of the FICO® Mortgage Direct License Program, tri-merge resellers have the option to calculate and distribute FICO Scores directly to their customers, eliminating reliance on the three nationwide credit bureaus. “This shift will drive price transparency and immediate cost savings to mortgage lenders, mortgage brokers, and other industry participants. Firms that favor working through the credit bureaus can continue to do so… This change eliminates unnecessary mark-ups on the FICO Score and puts pricing model choice in the hands of those who use FICO Scores to drive mortgage decisions.”

“To increase choice and optionality for industry participants, FICO is introducing two alternate pricing models. FICO’s new performance model is built on successful mortgage funding and reflects the FICO® Score’s critical role in enabling mortgage liquidity and reducing lender costs. Under the new performance model, the royalty fee for the FICO Score will be $4.95 per score, which represents a 50 percent reduction in average per score fees into the tri-merge resellers, a reduction achieved by eliminating credit bureau mark-ups. A funded loan fee of $33 per borrower per score will apply when a FICO-scored loan is closed, recognizing the FICO Score’s downstream utility for mortgage insurers, GSEs, investors, rating agencies, and other market participants. The funded loan fee replaces fees previously charged for re-issue of FICO Scores, enabling broad use by participants in the originating market.

“Alternatively, lenders may opt to continue using the current per score only pricing model, which maintains a $10 per score fee into the tri-merge resellers, the average price previously charged by credit bureaus for the FICO® Score. This model is designed to represent no increase in ‘per score’ fees for lenders.

“The FICO direct license program empowers tri-merge resellers to optimize credit costs for both lenders and borrowers. By streamlining distribution, the direct license program enhances cost transparency and reduces the price of FICO® Scores to the mortgage industry.”

Capital Markets

It’s a common misconception in the mortgage industry that mortgage rates are directly set by the 10-year Treasury yield, but the relationship is a bit more nuanced. So why do mortgage professionals monitor this note so closely? While mortgage rates aren’t based on the 10-year Treasury note, its yield is an important benchmark. MCT’s blog, “How the 10-Year U.S. Treasury Note Impacts Mortgage Rates”, clarifies why mortgage rates and Treasury yields tend to move in tandem, how shifts in the yield curve influence broader bond markets, and what these dynamics mean for lenders. Staying informed on economic trends with newsletters like MCT’s Market Commentary, and working with a capital markets partner who turns those insights into strategies with innovative tools, helps lenders perform under any market condition.

A weak economy equals lower rates, right? Well, a weak ADP Employment Change report for September (-32k actual versus +40k expectations) invited more questions about the state of the labor market and gave another boost to already-strong expectations for a 25-basis point rate cut at the end of this month. The U.S. government shut down, as expected, so there will be no more votes on a continuing resolution until at least tomorrow, which will delay the release of the Employment Situation report from the BLS. Estimates vary about how many billions are lost in gross domestic product every day or week of the shutdown.

Normally, today’s jobless claims and factory orders figures would kick off the economic calendar, but both are expected to be delayed due to the partial government shutdown, which leaves job cuts from Challenger for September as the only data point so far. U.S. employers announced fewer layoffs in September but hiring plans so far this year were the lowest since 2009, continuing the narrative of a labor market standstill as the demand and supply of workers fall because of policy and technology advances. Challenger, Gray & Christmas said planned job cuts dropped 37 per cent month-on-month to 54,064 in September. Employers have so far this year announced 946,426 job cuts, the highest year-to-date since 2020. Hiring plans so far this year have totaled 204,939, the lowest year-to-date since 2009 when the economy was just emerging from the Great Recession.

Later today, Treasury will announce the details of the mini-refunding (consisting of $58 billion 3-year notes and reopened 10-years and 30-years for $39 billion and $22 billion, respectively), Freddie Mac will release its Primary Mortgage Market Survey, and we will receive remarks from Dallas Fed President Logan. We begin the day with Agency MBS prices a touch better than Wednesday’s close, the 2-year yielding 3.54, and the 10-year yielding 4.09 after closing yesterday at 4.11 percent.