“Two lawyers walk into a pub. They order a couple of drinks and take subs out of their brief cases. They begin to eat. Seeing this, the angry pub owner exclaims, ‘Excuse me but you cannot eat your own sandwiches in here!’ The two look at each other, shrug, then exchange sandwiches.” Legal news leads off the Commentary today as Optimal Blue and nearly 30 originators were hit with a lawsuit alleging price collusion impacting millions of borrowers, noting these lenders' spreads were 2.68bps (49.2 percent somehow) higher than others and that mortgage payments surged 54 percent from 2022 to 2025. “The sooner you fall behind, the more time you'll have to catch up.” For originators who don’t want to fall behind, yesterday’s Commentary discussed the countdown to Halloween, and thank you to Rate’s Jennifer N. who wrote, “In the mortgage world, Halloween is celebrated by Licensing and Compliance folks as, ‘Renewal Eve’ as NMLS opens the renewal window on November 1. All licensees should make sure their CE is done before then so they can renew ASAP and avoid lapses in licensure!” While we’re on rules and regulations, do the number of working IRS employees correlate with the chances of being audited? Some hope so, as 50 percent of IRS employees are expected to be furloughed. The shutdown will be a topic on today’s “The Big Picture” at 3PM ET features Meredith Whitney, “The Oracle of Wall Street,” of the Meredith Whitney Advisory Group. She will discuss “Stuck in Place” dynamics, CRE stress, and whether policy can help unlock supply. (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 Cotality’s Thom Malone on home price trends across various regions of America and what that portends for affordability as we move towards 2026.)

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

Turning Credit Insight Into Lending Growth: From insight to impact, see how CreditXpert helps lenders optimize credit, increase approvals, and grow business smarter. Download Now.

As the mortgage industry continues to evolve, mastering eNotes is essential for staying ahead. The second installment of the MERS® eNote Success Webinar Series is now available on demand, offering invaluable insights from industry leaders who have successfully implemented investor delivery and acceptance processes into their eNote programs. Hear how these innovators built scalable strategies, harnessed advanced technology and strengthened relationships to drive progress in the digital mortgage space. Click here to watch the webinar recording now.

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

Don’t roll the dice on growth: Let Planet deal you the winning hand at MBA Annual. Turn fixer-uppers into a sure bet with Renovation. Hit the jackpot with Manufactured Home lending. Take chance out of the equation with exceptional Sub-servicing. Add in smooth Correspondent funding through Co-issue, digital certainty with eNote, and flexible delivery options across delegated, non-delegated, best efforts, and mandatory AOT to shift the odds of success firmly in your favor. Reserve time with our Correspondent team today or connect directly with SVP Correspondent Sales Jason Mac Gloan at 843-625-6869.

Bright lights, new products… Las Vegas sets the stage for Click n’ Close at MBA Annual. CNC is bringing affordability front and center with the 5/1 FHA ARM with SmartBuy™ Down Payment Assistance, designed for new construction and builder commitments. But that’s not all: CNC has launched a 3-Year Forgivable Option, complementing its proven 5-Year Forgivable program. With no income restrictions, no first-time buyer requirements, and highly competitive pricing, SmartBuy is expanding access and creating pathways for more borrowers. Meet the Wholesale or Correspondent teams, alongside CNC’s new President Ian Kimball, to discover how these solutions can help you strengthen relationships, compete more effectively, and drive volume. Don’t roll the dice; schedule your meeting at the MBA Annual today.

Conventional Conforming News

The official Freddie Mac and Fannie Mae conforming loan limits are traditionally not announced until soon after Thanksgiving. That was changed a few years ago when United Wholesale tabulated the new loan amounts and “front-ran” the FHFA. Now investors almost have to.

U.S. Federal Housing September 25, 2025, New Release confirmed the formalization of its

its withdrawal from the Network of Central Banks and Supervisors for Greening the Financial System (NGFS) in a letter to the Chair of NGFS. In the letter, the Agency states that employees will no longer engage in NGFS committees, taskforces, or working groups, and further requests to be removed from the NGFS website and other public materials.

To further support lenders in making confident decisions, in November Fannie Mae will replace the minimum credit score requirements with Desktop Underwriter® (DU®)’s proprietary credit risk assessment, update policies for borrowers without traditional credit, and update DU messages in support of Uniform Appraisal Dataset (UAD) 3.6. Learn more about integration impacts for the November release here.

Fannie Mae Servicing Guide update helps you serve borrowers more effectively and stay compliant with greater ease. Key changes include updates to policies for mortgage loans subject to a temporary interest rate buydown plan, revised requirements for sending a Payment Reminder Notice, and other miscellaneous updates.

Enhance your lending experience with Fannie Mae’s improved Project Eligibility Review Service (PERS) approval process for phased projects. Effective Sept. 1, 2025, PERS approvals will be granted at the project level, eliminating the need for separate Fannie Mae approvals at each legal phase. This streamlined approach increases flexibility for lenders and brings certainty to project approvals through loan closing. For additional details, review the FAQs.

Navigate the latest appraisal policy updates with Fannie Mae expert insights. Discover how the Uniform Appraisal Dataset (UAD) 3.6 and recent Selling Guide changes streamline your workflow and explore resources to support your success.

Fannie Mae Servicing Guide update helps you serve borrowers more effectively and stay compliant with greater ease. Key changes include updates to policies for mortgage loans subject to a temporary interest rate buydown plan, revised requirements for sending a Payment Reminder Notice, and other miscellaneous updates.

Enhance your lending experience with Fannie Mae’s improved Project Eligibility Review Service (PERS) approval process for phased projects. Effective Sept. 1, 2025, PERS approvals will be granted at the project level, eliminating the need for separate Fannie Mae approvals at each legal phase. This streamlined approach increases flexibility for lenders and brings certainty to project approvals through loan closing. For additional details, review the FAQs.

Navigate the latest appraisal policy updates with Fannie Mae expert insights. Discover how the Uniform Appraisal Dataset (UAD) 3.6 and recent Selling Guide changes streamline your workflow and explore resources to support your success.

Rate announced an increase in its conforming loan limit to $819,000 for select loan products across the contiguous 48 states. The maximum loan amount for properties in Alaska and Hawaii has been raised to $1,228,500. These changes come ahead of the Federal Housing Finance Agency’s (FHFA) official 2026 announcement, reinforcing Rate’s position as one of the first lenders to bring expanded loan access to the market.

Effective with loan applications dated on or after 9/23/2025, LoanStream Mortgage is offering New Conforming Loan Limits up to $819,000. Loan limits vary by state, eligibility and specific requirements may apply.

United Wholesale Mortgage increased its conforming loan ceiling on Wednesday, months before the FHFA is expected to announce official 2026 limits in November. Effective immediately, UWM raised the one-unit conforming loan limit from $806,500 to $819,000 for conventional and Department of Veterans Affairs (VA) loans. The change reflects the company’s forecast of a 1.5% increase in FHFA’s baseline in 2026.

National MI announced updates to the ​​​​​TrueGuide® in Bulletin: UW 2025-05.

National MI announced a temporary increase to the AUS conforming loan amounts. For submissions to National MI on or after 9/17/2025, National MI will insure AUS loans within the increased conforming loan amounts.

AmeriHome Product Announcement 20250906-CL describes an expansion to the eligible states for the AUS Jumbo Express product for Non-Delegated underwriting effective with new commitments taken on or after September 30, 2025.

AmeriHome General Announcement 20250907-CL summarizes previously published changes made during September, additional changes made with this announcement, and recent Agency and regulatory news.

JMAC Lending is now locking the new Conforming loan limits for 2026! $819,000 for one unit; $1,048,500 for two units, $1,268,000 for three units and $1,575,000 for four units.

Pennymac updated Conventional LLPAs effective for all Best Efforts Commitments taken on or after Tuesday, September 16, 2025. View Pennymac Announcement 25-88 for additional information.

Pennymac is aligning Fannie Mae’s updates to limited cash-out refinance transactions. View Pennymac Announcement 25-98 for additional information.

In Announcement 25-93, Pennymac Correspondent announced, effective Friday, September 19th, the increase of conforming loan limits from $806,500 to $819,000.

Pennymac Correspondent Announcement 25-95 reminded Lenders that the Freddie Mac BorrowSmart program is winding down for 2025. Pennymac has not received confirmation as to whether the BorrowSmart Program will continue in 2026.

Pennymac Announcement 25-99: Updates to Conventional and Non-QM LLPAs, effective for all Best Efforts Commitments taken on or after Wednesday, October 1, 2025.

Pennymac will update Jumbo LLPAs effective for all Best Efforts Commitments taken on or after Friday, October 10, 2025. View Pennymac Announcement 25-101 for more information.

National MI announced a temporary increase to the AUS conforming loan amounts. For submissions to National MI on or after 9/17/2025, National MI will insure AUS loans within the increased conforming loan amounts.

Citi Correspondent Lending is updating policy related to limited cash-out refinance transactions in consideration of updates Fannie Mae is introducing with Desktop Underwriter Version 12.

Capital Markets

A deep understanding of how mortgages are created, priced, and delivered is critical in mortgage capital markets. MCT’s upcoming webinar, Intro to Mortgage Banking, will connect foundational concepts to current strategies shaping secondary marketing. Join industry experts, MCT’s Bill Shirreffs and John Sayre, on October 21 at 11:00 a.m. PT as they walk through the mortgage origination process, examine key loan and borrower characteristics, and discuss how execution decisions are made. The session will also explore the lasting influence of the GSEs and the financial crisis, which continue to shape today’s market dynamics. Whether you’re building your secondary market foundation or elevating your execution strategy, this session will offer non-negotiable practical knowledge essential to the mortgage capital markets industry.

Turning to rates, the U.S. Treasury followed Tuesday's solid 3-year note sale with a weak $39 billion 10-year note reopening yesterday. The auction tailed less than 0.5-basis points, but the price action on the follow was poor and the yield curve remained flatter in the ensuing selloff.

In Federal Reserve news, the Fed minutes from the September meeting were also a bit more hawkish than expected, with significant differences of opinion within the committee and multiple participants in favor of keeping rates on hold, though when it came time to vote almost all supported the 25-basis points rate cut. Most of the participants supported further rate cuts over the rest of the year too.

Jobless claims and wholesale inventories would normally kick off today’s economic calendar but are expected to be delayed due to the partial government shutdown. That leaves the rest of the calendar to Fed speakers and Treasury, along with Freddie Mac’s Primary Mortgage Market Survey. Treasury activity will be headlined by an auction of $22 billion reopened 30-year bonds, and Fed speakers include Chair Powell, vice chair for supervision Bowman, Governor Barr, Minneapolis’ President Kashkari, and San Francisco’s Daly. We begin Thursday with Agency MBS prices little changed from Wednesday’s close, the 2-year yielding 3.59, and the 10-year yielding 4.13 after closing yesterday at 4.13 percent.