Economies and strategies impact various groups differently. Remember Mervyn’s, Montgomery Ward, or a dozen other large department stores that are no longer? Saks Fifth Avenue is now rumored to be potentially joining them. Residential lending is obviously impacted by the slowing economy: if you want lower rates, a government shutdown is one way to negatively impact the U.S. GDP. Interest rates were a topic at the MBA Annual, and thousands of lenders and vendors have headed home. (Nadia Evangelou, Senior Economist & Director of Real Estate Research at the NAR, is the guest on today’s Big Picture at noon PT.) Vendors, including Byte Software with its fabled baked goods, have packed up their booths. Next year it’s off to Chicago. Where will Freddie and Fannie will be then? The FHFA sent out a note saying that Bill Pulte is donating his salary to wounded veterans. It is a nice gesture, but prompted one reader to write, “Let’s say the FHFA Director makes $300k a year. Maybe a little more, maybe a little less. Bill Pulte is worth $100 million. If you invest $100 million at 3 percent per annum, the yearly income is $3,000,000, or $8,200 a day. Context is good.” (Today’s podcast can be found here and this week’s are sponsored by nCino, makers of the nCino Mortgage Suite for the modern mortgage lender. nCino Mortgage Suite's three core products nCino Mortgage, nCino Incentive Compensation, and nCino Mortgage Analytics, unite the people, systems, and stages of the mortgage process into a seamless end-to-end solution embedded with data-driven insights and intelligent automation. Hear an interview Click n' Close's Ian Kimball on how originators prioritize strategic growth initiatives, operational execution, and go about market expansion.)

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

Borrower needed speed and savings? A Flyhomes partner LO closed in just 10 business days and saved his client $12,500 using Buy Before You Sell with Instant Equity. Because fees are based on the loan amount, not the departing home’s value. The borrower paid far less than other BBYS options. This solution lets clients tap into their home equity before selling to cover the down payment and closing costs for their next home, with no second underwriting and no monthly mortgage on the old one. Bonus: Now through Dec. 31, 1st lien loans get a reduced 1% origination fee plus an extra 50 bps off the interest rate on all bridge loans locked by Oct. 31. Over the past 10 years, Flyhomes has helped 5,000+ buyers move into their next home. On average, LOs close 1.2 more loans per month with Buy Before You Sell, now available nationwide. Book a call today to learn more or sign up for the weekly open house for a live walkthrough and Q&A.

“If your luck ran out and you missed us in Vegas, don’t worry: Planet is still all in on your success. Planet’s team is ready to help you grow with Renovation, Manufactured Home loans, eNote, Co-issue, and exceptional Sub-servicing. Let’s talk about how we can strengthen your execution and expand your correspondent business. To put Planet to work for you today, connect with SVP Correspondent Sales Jason Mac Gloan at 843-625-6869.”

“The Citi Correspondent Lending team would like to convey our appreciation to each client and prospective client who met with us at the Annual MBA Convention and Expo earlier this week. Those in-person conversations are priceless, and we thank you! Hot topics discussed at the convention included our competitively priced Non-Agency Jumbo program and Community Lending product suite. If we didn’t get to connect with you at the conference and you’re ready to learn more, we’re ready to answer all of your questions! Whether a current or prospective client, reach out to the Account Executive supporting your location to learn more. Prospective clients can also complete and return our Prospective Client Questionnaire.”

As the spooky season rolls around, it’s not just ghosts and goblins you need to worry about. There are haunting mortgage compliance pitfalls lurking in the shadows of your social media strategy! See ActiveComply’s latest blog post 2025 Social Media Scaries for real social media posts that highlight the sometimes darker side of social media advertising in our regulated industry. Findings range from RESPA Section 8 violations to consumer complaints to good old fashioned brand reputation issues. Take a peek, if you dare, at these frightening social media violations to ensure similar Social Media Scaries won't haunt your institution. Head to the blog and comment which post you think is the spookiest for a chance to win a $50 Amazon gift card to help fill your candy bowl! Do you know what might be lurking under the bed at your institution? Reach out to hello@activecomply.com or schedule a virtual demo today to see real-time social media findings.

An integrated approach to mortgage technology is transforming how lenders and servicers grow their business. In a new conversation with National Mortgage News, Matt Dowd, VP of Product Management at ICE Mortgage Technology, details how engaging borrowers, recapturing opportunities, and preparing for the next market cycle can help you stay competitive. Discover how ICE’s seamless, end-to-end platform helps lenders and servicers of all sizes deliver exceptional customer experiences that drive new and repeat business. Listen now.

Follow the Zero-Click Road, and stop worshiping dashboards behind the curtain. With ChatMMI, you skip the Yellow Brick UI: ask → answer → done. Retention math, PMI-drop candidates, agent targets, competitive shifts, in seconds. Meanwhile, is other “AI” just the Scarecrow in a new hat? Filters and exports posing as intelligence, propped up by 1920s personality typing? HBR and SHRM don’t buy it; neither should recruiters. Use what works: find movers fast; target upside; map networks; act now: push lists to Bonzo. Examples: “Who switched in the last 60 days near 75201? Rank by purchase volume.” “Which LOs co-work with our top 50 agents but aren’t in our system?” Ask one question: Is it the OG (MMI) or just a smoke machine behind a “Better” curtain? MMI: One platform, one price. MMI Recruiting and ChatMMI included. No crystal-ball scores. No sepia-tone pseudoscience. Don’t nap in the poppies and wake up having paid a lot more for recruiting basics. Pretty much anything is “Better” than that… even 1,000 flying monkeys pounding on your window at 3am. Learn more.

“For 40 years, Richey May has gone deep in the mortgage industry… It’s where we came from and it’s what we know. This singular intent has created a full suite of services and products designed specifically for mortgage banking leaders by people who truly know the ins and outs of your operations. Our depth of experience, built through decades of collaboration, helps clients tackle complex challenges and stay ahead in a fast-moving market with specialized audit, tax, advisory, technology, and cybersecurity solutions. We go deep so you can go beyond—equipping mortgage leaders with tailored insights and tools to drive success. Contact us today to go beyond with Richey May.”

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.

Aggregator and Non-Agency News

Some of the conference chatter was about how Agency loans, normally bound for Freddie and Fannie, were being sold to aggregators. Whether intentional or not, the Agencies are losing market share. Case in point… PennyMac reported good earnings numbers this week, with volume up 15 percent year-over-year to $36.5 billion. Chairman and CEO David Spector, a contributor to this Commentary, said, “In production, profitability nearly doubled from the prior quarter. The increase reflected strong recapture in our consumer direct lending division combined with the continued expansion of our presence in broker-direct as our partners increasingly recognize the value of entrusting us with their borrowers' mortgage experience." The company also sold $12 billion UPB of low coupon mortgage servicing rights (MSRs) to Annaly.

Pennymac 25-106: AUS Jumbo Virtual Currency as an Eligible Source of Funds.

Pennymac 25-107: Updates to Conventional, Government and Non-QM LLPAs.

Pennymac 25-110: New Flexibility for Disabled Veteran Property Tax Exemption.

Logan Finance issued temporary guidance and process adjustments related to underwriting and purchase requirements for loans impacted by the federal government shutdown. This Guidance applies to all Legacy and Open Road products.

PHH Mortgage announced the release of its NEW FlexIQ Non-Agency program suite, effective Monday, October 20. Yes, PHH Mortgage, a subsidiary of Onity Group Inc. (NYSE: ONIT) and a leading non-bank mortgage servicer and originator, announced the launch a new suite of proprietary non-qualified mortgage (non-QM) products known as FlexIQ. The product suite will be available through the Company’s Correspondent Lending channel for delegated and non-delegated loans. FlexIQ will replace PHH’s previously offered Gold/Silver/Bronze non-QM programs. For more information on PHH Correspondent products.

As a reminder, PHH Mortgage retired the Non-Agency Gold, Silver and Bronze programs, effective Friday, October 17.

PHH Mortgage announced the release of its NEW FlexIQ Non-Agency program suite, effective Monday, October 20.

JMAC's new Limited Docs Non-QM lets borrowers qualify using a Streamline WVOE. JMAC Lending’s LIMITED DOCS NON-QM program offers a fast and easy qualification using a simple 4-question STREAMLINE WVOE that is completed by the Employer/Accountant. Forget those traditional complex forms. JMAC makes it easier than ever to qualify.

Capital Markets

Privatization, credit access, and the future of agency relationships took center stage at this week’s MBA Annual in Las Vegas, where industry leaders debated what’s next for Fannie Mae, Freddie Mac, and credit reporting. As lenders weigh how potential structural changes could impact approvals and execution strategies, now is the time to ensure your organization’s agency relationships are built on a solid foundation. MCT’s Whitepaper: Getting Started with Agency Approvals walks through the steps, documentation, and best practices for obtaining approvals with Fannie Mae, Freddie Mac, and Ginnie Mae. Download the whitepaper and learn how lenders are strengthening their position no matter how the conversation around privatization evolves.

Remember when the Fed stepped in and bought Agency MBS? It drove the price up, and rates down, relative to Treasury securities. Wanna try it again? It turns out that amending the Preferred Stock Purchase Agreements (PSPA) would enable the GSEs (namely Freddie Mac and Fannie Mae) to purchase up to $300 billion of their own securities backed by mortgages, as well as those of Ginnie Mae.

The action would kick in when the yield spread between the 30-year mortgage rate and the 10-year Treasury exceeds 170 basis points. (Right now the spread is based on credit differences as well as prepayment risk.) So a couple mortgage industry groups are pushing for the GSEs to be able to purchase MBS in order to bring down mortgage rates.

Once again, not much to report for you. U.S. Treasury bonds saw small price gains on Wednesday, ending close to where they started. The key short-term borrowing rate (SOFR) increased slightly to 4.23 percent. Treasuries dipped early but recovered as stocks weakened, and a strong $13 billion auction of 20-year bonds boosted prices further in the afternoon. Sentiment was driven by reports that the Trump administration is considering a plan to restrict exports to China containing US software in response to China’s recent rare earth export restrictions.

The Federal Reserve has presented U.S. regulators with a revised plan to significantly ease a Biden-era proposal that would have raised capital requirements for major Wall Street banks. The new version could result in only a 3 percent to 7 percent increase in total capital for most large banks, far less than the roughly 19 percent hike proposed under the 2023 draft of the Basel III capital rules. These international standards, created after the 2007–2009 financial crisis, set capital, leverage, and liquidity requirements for banks. The earlier proposal had faced strong opposition from major lenders, who argued it would restrict lending and hurt business operations.

Surprise, surprise: jobless claims and the Chicago Fed National Activity Index releases that were scheduled for this morning will be delayed due to the government shutdown. However, there will be some data points to digest, starting with existing home sales for September at 10:00am ET, Kansas City Fed manufacturing for October, and Freddie Mac’s Primary Mortgage Market Survey; Treasury will announce month-end supply (consisting of $69 billion 2-year, $70 billion 5-year, and $44 billion 7-year notes as well as $30 billion new 2-year FRNs) before auctioning $26 billion new 5-year TIPS. Despite the Fed blackout, Fed Governor Barr will speak on "Community Investment" at a tax conference. We begin hump day with Agency MBS prices slightly worse than Wednesday’s close, the 2-year yielding 3.46 percent, and the 10-year yielding 3.98 percent after closing yesterday at 3.95 percent.