Often the economy and general business trends are separate from management and business acumen. Like Block Buster, which at the high point had over 9,000 stores, Rite Aid had 5,000. Now it has… zero, despite people always needing drugs and toothpaste. Companies have to react to changing times… remember when CVS began locking its shelves to stop theft, and then made users add its app to help unlock them? The government shutdown is impacting lender’s business but is not impacting M&A news: Independent mortgage banks who need warehouse facilities are taking note that Fifth Third announced it will acquire Comerica in a $10.9 billion stock deal. It would create the nation's ninth-largest bank… and could be the start of a long-anticipated consolidation among the bigger regional banks since there is an expectation that the Trump administration will look favorably on such deals. (Today’s podcast can be found here and this week’s are sponsored by Truework, the only all-in-one, automated VOIEA platform that helps mortgage providers achieve up to 50 percent cost savings with an industry leading 75 percent completion rate. Today’s features an interview with CHLA’s Taylor Stork on why FICO’s direct licensing pricing creates more options for consumers and lenders, but the mortgage industry should remain wary of FICO's monopolistic pricing and practices.)

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

Las Vegas has a new icon: the Sphere. With its 580,000-square-foot LED exterior lighting up the Strip, it redefines what’s possible in entertainment and innovation. FirstClose™ has done the same for lending through its certified integration with Optimal Blue’s product, pricing, and eligibility (PPE) engine. By linking FirstClose’s advanced point-of-sale platform with Optimal Blue’s trusted pricing data, lenders can accelerate home equity closings from 45 days to 10 or fewer. The integration delivers a seamless borrower experience by combining real-time property data, eligibility insights, and precise loan pricing in one transparent, branded application journey. The result: faster approvals, stronger borrower trust, and more opportunities to serve the surging demand for home equity lines and second mortgages. Heading to Vegas for MBA Annual? Meet with the FirstClose team and see how we’re helping lenders achieve iconic results in home equity lending. Book your meeting here.

Two maestros leading the same Brahms symphony can deliver wildly different experiences through choices in tempo, phrasing and gesture. The same applies to mortgage lending: technology may provide the notes, but orchestration determines the time and feel. Don’t miss Craig Rebmann, product evangelist at Dark Matter Technologies, presenting “Using Orchestration to Provide Human Touch in an Automated Process,” tomorrow, October 7 at 1:45 p.m. at the Housingwire Mortgage Banking Summit in Dallas. Craig will demonstrate how Empower’s task-based orchestration engine acts as that conductor by automating and managing business processes and coordinating workflows, integrations, and verifications, while leaving space for human engagement and judgement when it matters most. Because you see, with the right conductor, every process deserves a standing ovation. Reserve time on your calendar to join us at the event to see our maestro in action.

Looking to cut verification costs by up to 50 percent, while improving borrower experience and pull-through? Truework helps lenders streamline income and employment verification through a single VOIEA platform used by four of the top five lenders. With an industry-leading 75 percent completion rate, our singular platform consistently outperforms competitors and manual waterfalls in speed, cost, accuracy, and R&W relief. We also offer free pre-approvals to help you qualify borrowers faster… Only pay when we complete a file! Used with First and Second liens as well as in Wholesale. Fast to implement, easy to use, and built to drive ROI. Let’s talk.

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

“Citi Correspondent Lending continues on a path of sustainable growth, remaining focused on expanding our seller base and client-centric approach to continuous improvements to the overall loan delivery experience. In the current mortgage landscape, working with a quality-focused investor is an important consideration. Citi’s pre-purchase loan review can assist you in navigating a dynamic environment by helping you minimize repurchase risk and identify best practices that can be leveraged to maximize loan manufacturing quality across your larger book of business. We will be at the upcoming MBA Annual Convention and there’s still time to get on our meeting schedule! Whether a current or prospective client, reach out to the Account Executive supporting your location to schedule some time to meet (at the convention or via phone another time). Prospective clients can also complete and return our Prospective Client Questionnaire.

Get an edge on the Competition with LoanStream, (DBA of OCMBC, Inc.) Lender Paid Compensation (LPC) now available on non-QM loan programs! It means more flexibility, better control over pricing and the opportunity to maximize earnings. No borrower-paid fees, competitive pricing, Max Price 102 Lender Credit, available on 1 – 4 units, paid to broker or borrower, business purpose loans only and Lender Credit is paid to the broker on TRID loans. Plus, LoanStream also offers 12 Month Bank Statement and P&L programs with 90 percent LTV to $1.5M, 85 percent LTV Rate/Term and 80 percent LTV Cash Out with a min FICO of 600. Use 100% of deposits on Personal Statements and 85 percent deposits on Business Statements. Loan Amounts up to $4 million. The possibilities are endless with LoanStream. Contact your AE to learn more. Non-QM / NanQ Wholesale Loan Programs LoanStream Wholesale - Wholesale Mortgage Lending.

Level Up. Stand Out. Close More. Forget the boring webinars. This October, Kind TPO is bringing you a no-fluff training series that packs a punch. Every Thursday at 11:30 am PDT, we’re breaking down the programs that move the needle fast. October 9th: FNMA ARMs Advantage: Flexible Conventional Options. October 16th: Turning Assets into Approvals: Mastering Non-QM Asset Utilization. October 23rd: Cracking the Condo Code: Limited vs. Full Review. October 30th: Investor Goldmine: Mastering Non-QM DSCR Loans. If you’re ready to sharpen your edge and outpace the competition, this is where you show up. Register now by clicking here! Not an approved broker? Let’s change that. Click here to get started!

Shutdown and Government-Related Lender News

All lenders and originators are trying to do is help their borrowers. Meanwhile…

The USDA has furloughed most of its staff, halting loan guarantees and conditional commitments.

The FHA has a contingency plan and is keeping endorsements moving but has suspended HRAP condominium approvals. Due to a lapse in appropriations, many Federal Government agencies have shut down operations and furloughed staff until further notice. However, the Federal Housing Administration’s (FHA) Office of Single-Family Housing and some of its mortgage insurance programs will be operational but with limited services. Full descriptions and details can also be found in the Department of Housing and Urban Development’s (HUD) Contingency Plan for Possible Lapse in Appropriations document on hud.gov. The FHA Resource Center’s online FAQ site will be available but will not be updated for the duration of the shutdown.

VA lending and Ginnie Mae operations continue, though with thinner staffing, and Fannie Mae and Freddie Mac remain unaffected.

FEMA, meanwhile, cannot issue new or renewal flood insurance policies, leaving borrowers to seek private alternatives.

Pennymac 25-100 provided temporary guidance on policies that may be impacted by the federal government shutdown that began October 1, 2025. These temporary policies are effective immediately and will automatically expire when the federal government resumes full operations. The flexibilities outlined below apply only when the impacted requirements cannot be met due to the shutdown. This guidance is subject to revision.

Fannie Mae issued Lender Letter LL-2025-03 to provide temporary guidance on selling and servicing policies that may be impacted by the federal government shutdown that occurred on Oct. 1, 2025. These temporary policies are effective immediately and will automatically expire when the federal government resumes full operations.

PHH provided temporary guidance for selling loans during the time that the federal government is shut down.

Citi Correspondent Lending will continue business as usual and proceed with review of closed loan packages submitted, which remain subject to the following: all required documentation, and verifications must be present at the time the closed loan file is delivered to Citi. Citi will not purchase loans without all required documentation.

As previously announced, Congressional appropriations expired on September 30, 2025. A partial shutdown of government services deemed non-essential began at 12:01 am, Wednesday, October 1, 2025. View AmeriHome Mortgage Operations Announcement 20251002-CL for updated information provided by Fannie Mae Freddie Mac. AmeriHome Announcement 20251001-CL includes a table providing AmeriHome purchase requirements that are in effect until resolution of the partial government shutdown has been implemented or as otherwise announced.

Capital Markets

“MAXEX is making big moves, adding a powerhouse insurance capital buyer to the exchange, delivering aggressive pricing on ARMs and 15-year fixed loans, and expanding our non-del program. We just hosted a webinar covering these updates and more, offering insights you can’t afford to miss. Stay ahead of the market with MAXEX’s growing liquidity, competitive pricing, and innovative programs. Catch the replay now and see what’s driving today’s opportunities.”

Economic data being delayed due to the ongoing government shutdown is leaving markets navigating uncertainty using alternative indicators. Last week, the JOLTS report revealed layoffs are occurring at their fastest pace since 2009, highlighting a cooling labor market. The ADP Employment report showed private sector job losses, while the ISM Services Index indicated contraction in business activity for the first time since 2020. Despite these signals, consumer spending has remained resilient, though it is partially driven by one-off factors, such as the spike in auto sales ahead of expiring EV tax credits. This resilience is fragile, as prices remain elevated due to tariffs, and signs of labor market weakness suggest the broader economy is teetering between stagnation and slow growth, leaving the Fed and markets in a cautious, data-starved holding pattern.

Beyond the economic uncertainty lies a deeper political risk: the potential for the Trump Administration to exploit the shutdown to enact permanent reductions in the federal workforce. Statements and past policy moves suggest a strategic opportunity is being considered under the guise of fiscal prudence. While the feasibility of such a restructuring remains unclear, the mere possibility is beginning to influence market sentiment, adding political volatility to already shaky economic foundations. This potential shift could reinforce investor wariness in an economy where asset-holding consumers spend freely while lower-income households bear the brunt of growing economic strain.

Even if the government reopens, this week’s calendar will still be light on data, with employment trends, trade, consumer credit, wholesale inventories, Michigan sentiment, and the budget statement. Should the shutdown continue, you can expect the trade deficit, wholesale inventories, and weekly jobless claims to be delayed. The list of Fed speakers is on the heavy side starting tomorrow, and the minutes from the September 16-17 Federal Open Market Committee (FOMC) meeting will be released Wednesday afternoon. Treasury will conduct the mini-refunding consisting of $58 billion 3-year notes and reopened 10-year notes and 30-year bonds for $39 billion and $22 billion, respectively, over Tuesday to Thursday. For MBS, the Agencies will release prepayments today, beginning in the late afternoon and into the evening, with Class A 48-hours on Thursday and Class B out on Friday ahead of the long weekend.

Today’s data sees just employment trends for September, due out midmorning. With a lack of government economic announcements, we begin the week with Agency MBS prices a few ticks worse than Friday’s close, the 2-year yielding 3.59, and the 10-year yielding 4.15 after closing Friday at 4.12 percent.