As I type these words, I am sitting in front of one of Chuck Berry’s early residences in St. Louis. STL has a good musical reputation, a fine mortgage association, a Fed that puts out great research, and has many nice neighborhoods. But to call this specific area where I am sitting a “transitional” neighborhood would be generous. Although there is potential, nearly every house standing could use an immense amount of work, and the residents probably aren’t regulars at home improvement stores. In fact, across the nation people aren’t rushing off to specifically Home Depot, either because of consumers slowing down or because people are boycotting it and view it as a “threat to democracy.” Strange times. Indeed, HD missed earnings estimates and took down its forecast for the fourth quarter, either because of consumer uncertainty or because consumers are going elsewhere. In other trends, how’s your companies loan products for cities? A new study shows that 80 percent of the world’s population now lives in urban areas, like St. Louis and Kansas City. (Today’s podcast can be found here and this week’s are sponsored by Figure. Figure is shaking up the lending world with their five-day HELOC, offering borrower approvals in as little as five minutes and funding in five days. And, embedding their technology is easy. Hear an interview with HomeLight’s Nick Friedman on lender sentiment heading into 2026, with optimism rising and new buyer behaviors taking shape that could reshape the housing market.)

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

“Did you know Thanksgiving hasn’t always been the fourth Thursday in November? In 1863, President Lincoln made it a national holiday, but nearly 80 years later FDR moved it up a week to boost holiday shopping, a move critics dubbed ‘Franksgiving.’ Two years (and a few confused turkeys) later, Congress made it official: the fourth Thursday it is. Thankfully, teamwork has come a long way since then, especially in lending. At FirstClose, we’re grateful for our ongoing partnership with MeridianLink. Together, we’ve connected the FirstClose Digital Home Equity Solution with MeridianLink One, helping lenders move from application to funding faster, with less back and forth and a smoother borrower experience. Here’s to partnerships built on clarity, collaboration, and shared goals, the kind that make every day run a little smoother. Learn more about how FirstClose and MeridianLink are working together.”

“As Thanksgiving approaches, we’re reminded of the importance of gratitude, giving, and togetherness. At Newrez Correspondent, we care fiercely, and these sentiments help guide how we work with our partners and support our communities throughout the year. In collaboration with the broader Newrez family, we’ve proudly contributed to meaningful causes and made a lasting impact. Together, we’ve volunteered over 30,000 hours of community service, donated more than $650,000 to employee-nominated charities through our Grassroots Grant program, and matched employee contributions to over 4,000 charities, totaling $6 million donated since 2020. This season, if you’re able, we invite you to join us in giving back. Learn more about how you can make a difference here.”

Ever wish you could lock a loan as fast as you send a text? Traditional loan locking ties you to a desktop, slowing decisions and limiting instant action. With Mobile Locking in the Optimal Blue mobile app, you break free from the desk. Access your live loan pipeline, update details, run pricing, and lock loans, all from your phone. No delays. No extra steps. Just speed, accuracy, and confidence in the palm of your hand. Stay organized by syncing reminders with your calendar and enjoy a secure, native mobile experience on iOS and Android. When borrowers expect instant answers, you deliver, anytime, anywhere. Start locking smarter. Learn more about Mobile Locking or check it out in the Optimal Blue Mobile App for iOS and Android today.

ACES Q2 2025 Mortgage QC Industry Trends Report shows modest rise in critical defect rate as refinance complexity tests loan quality. “The rise was mainly in specific categories such as appraisals and eligibility-related areas. Meanwhile, other key underwriting areas saw notable improvements. This mixed performance demonstrates the importance of continuous monitoring and targeted quality control efforts,” said Nick Volpe, executive vice president at ACES Quality Management. Notable findings: The overall critical defect rate increased 15.27 percent, appraisal defects surged 156.5 percent while borrower/mortgage eligibility defects more than doubled, income/employment defects improved, loan documentation and insurance defects declined, purchase defect share decreased while refinance defect share climbed amid increased cash-out activity, and conventional loan quality improved, while FHA and VA findings rose modestly. Read the full report.

Are you looking for a CRM that isn’t built only for enterprise-level companies? Loan officers often tell me their biggest challenge is managing their database and staying consistently connected with clients, especially when they’re busy. Usherpa gives individual LOs a place to manage relationships and keep their business organized, no matter where their career takes them. With tools like LaunchPad for custom emails, Pipeline Technology for automated workflows, and Done-For-You Marketing, you stay in front of leads, prospects, customers, and referral partners before, during, and after the closing. With live training and support, LOs can maintain momentum even on their busiest days. If you want enterprise-level power, Usherpa gives solo LOs the tools and consistent high-impact marketing to grow their business and stay connected to the people who matter. Take a look at Usherpa and see how it supports your growth.

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.

Rethinking Current Topics in Mortgage Banking

Our business is rarely stagnant, and even when things are “quiet” there’s an undercurrent of information flow that should not be ignored.

For example, credit data evolves from a single moment in time into a continuous, behavior-based picture of consumers’ financial lives. TransUnion's Satyan Merchant outlines how trended and alternative data are improving underwriting accuracy, strengthening investor confidence, and helping more borrowers qualify responsibly. The result is a more complete and more inclusive view of credit that reshapes how lenders assess readiness and risk.

This Thought Leadership piece focuses on Zillow’s integration with ChatGPT is changing where homebuyers begin their search. Ethan Vieaux breaks down how agents and loan officers can stay ahead by creating clear, conversational local content and making the next step easy for consumers to take. The message is simple: meet shoppers earlier with readiness, clarity, and genuine expertise.

Rob Chrisman explains why today’s mortgage market is being reshaped by incremental shifts rather than dramatic turns. From the return of ARMs to the debate over LLPAs and the evolution of credit scoring, he highlights how small adjustments ripple through pricing, hedging, borrower behavior, and market structure. Success now depends on understanding these relationships and staying agile as the environment continues to evolve.

Corporate Developments

Clients using PHH’s Liberty Reverse Mortgage Business were notified that PHH Mortgage has entered into agreements with Finance of America Reverse (FAR) to sell certain reverse mortgage originations assets and its reverse mortgage servicing portfolio. The transaction is expected to close in the first quarter of 2026, pending regulatory approval and customary closing conditions. “In connection with this transaction closing, we expect to wind down our third-party originations business, and we will continue to accept new reverse mortgage locks until the transaction closes. As we get closer to a specific closing date, we will provide additional details on dates and funding timeline expectations… PHH will sell reverse mortgage servicing rights (about 40,000 HECM loans as of September 30, 2025) and will become the subservicer for this portfolio.

“Please be assured that we will continue to operate business as usual and honor all of our commitments during this period of time. We remain committed to meeting your reverse mortgage needs.”

CrossCountry Mortgage, LLC ("CCM"), the nation's largest distributed-retail mortgage lender, announced that its direct parent company, CrossCountry Intermediate HoldCo, LLC (the "Company"), priced its upsized offering of $600 million aggregate principal amount of 6.750 percent senior notes due 2032 (the "Notes").

The Notes will be guaranteed on a senior unsecured basis by CCM and any other future wholly owned domestic restricted subsidiary of the Company that guarantees any material corporate indebtedness of the Company or any guarantor of the Notes, subject to certain exceptions. The offering is expected to close on or about November 21, 2025, subject to the satisfaction of customary closing conditions.

Whether it is to continue to finance servicing retention, or someone wanted to “take some money off the table,” the reasons can vary. “The Company expects to use the net proceeds from the offering to repay a portion of the amounts outstanding under CCM's mortgage servicing rights line of credit, to pay related fees and expenses and for general corporate purposes.”

Rate announced the relaunch of the Rate App, “a new wellness-driven experience that brings together financial tools, personal growth resources, and professional guidance to help people thrive in every part of life. Unlike other wellness platforms that charge for access, The Rate App offers more than 1,300 completely free wellness videos created and led by 60+ instructors and experts, alongside personalized tools and insights that help users understand and close their “stress gap,” the space between financial security, emotional well-being, and overall wellness. The Rate App brings wellness directly into the homebuying journey, offering expert guidance from wellness leaders, pro athletes, and mindfulness experts. Users can access free resources, including yoga, meditation, fitness, nutrition, and sleep content to reduce stress and build healthy habits while thriving financially, mentally, and physically.

LOs Need the Infrastructure They Don’t See

Recently I received an “LO VieauxPoint” from Brian Vieaux, President of MISMO, addressing the MBA’s MISMO. “Despite thinking I understood MISMO before stepping into his role, I’ve been struck by its unmatched collaboration and its role as the data backbone of the entire mortgage lifecycle, not just a collection of documents or schemas.

“That foundation enables standards like ULAD, UCD, ULDD, SMART Docs®, eNotes, RON, housing counseling data alignment, and the new MISMO–CSBS compliance dataset, all funded by lenders contributing just 75 cents per loan, a cost that delivers exponential ROI through cleaner delivery, fewer integrations, lower tech debt, and better data for automation and AI. With AI, digital identity, and real-time supervision accelerating, the demand for standardized, interoperable data is set to soar, making MISMO’s next chapter more important than ever If you want the deeper dive, including the history, milestones, and where MISMO is heading next, I break it down here.” Thank you, Brian. #VieauxPoint (For those interested in upcoming events, there’s the MCD Tech Sprint Kickoff Dec 3rd and MISMO Winter Summit January 2026.)

Capital Markets

Liquidity in funding markets is tightening as the effective fed funds rate nearly matches the interest rate on reserve balances, raising expectations that the Fed may soon resume reserve-management asset purchases or adjust key policy tools, a view reinforced by Governor Waller’s comments that reserves are nearing scarcity and the balance sheet may need to grow within months. He is one of a dwindling number of FOMC voters that continues to support another rate cut next month, while several undecided FOMC voters remain crucial ahead of the Fed’s December meeting. Treasury yields remain range-bound amid this uncertainty, even as bonds have delivered unexpectedly strong performance year-to-date, on pace for their best year since 2020 and defying fears of a broad investor retreat from Treasuries.

There was a bit of a “risk-off” tone yesterday due to concerns about AI investment, overall valuations, and weaker growth. ADP private payrolls showed yet another negative print, as U.S. companies cut an average of 2.5k jobs per week each week in October, although the figure was slightly better than expected. Initial jobless claims held steady at 232k, similar to mid-September levels. At the same time, worker anxiety is rising, with 55 percent of employed Americans in late-October fearing job loss, according to a Harris Poll. Yields dropped in response. More crucial labor market evidence will come tomorrow, when the Bureau of Labor Statistics releases the September jobs report, which was delayed by the government shutdown. Separately, and on a positive note, November’s NAHB Housing Market Index beat both expectations and the October reading.

The latest October prepayment report showed a sharp 32 percent jump in Fannie Mae 30-year speeds, pushing aggregate CPR to its highest level since May 2022, though overall prepayment activity remains historically subdued and expected to ease again after year-end. With roughly 13 percent of the mortgage universe now holding a rate incentive to refinance, servicer behavior is increasingly important: Rocket/Quicken and United Shore continue to dominate the fastest speeds across most UMBS 30-year coupon and aging-curve buckets, while Provident, Onslow Bay, and Idaho HFA consistently rank among the slowest. In the UMBS 15-year space, United Shore led speeds in half of the tracked coupons, with Quicken/Rocket and PennyMac also showing strong activity, while JPMorgan Chase, NewRez, and Wells Fargo frequently appeared at the slow end of the spectrum.

Today’s calendar kicked off with data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey, which revealed that applications decreased 5.2 percent from one week earlier. We’ve also received the August trade deficit ($59.6 billion, with imports down more than 5 percent). Later today brings a Treasury auction of $16 billion 20-year bonds and remarks from Fed, Governor Miran, Richmond Fed President Barkin, and New York Fed President Williams, before the minutes of the October 28-29 FOMC meeting will be released. We begin the day with Agency MBS prices roughly unchanged from Tuesday’s close, the 2-year yielding 3.57, and the 10-year yielding 4.11 after closing yesterday at 4.12 percent.