The new phone books are here, the new phone books are here! Oh, wait a minute. The new conventional conforming loan limits are here! The new conventional conforming loan limits are here! True, lenders that are entirely focused on non-Agency products like non-QM (without many of the loan level price adjustments or gfees) may not care too much, but for most, Freddie Mac’s and Fannie Mae’s changes are followed closely. For 2026 we’re up from 2025’s $806,500 to $832,750. This beats the $819,000 by about $13k that many lenders and investors moved to in late September/early October. They can all rejigger their systems. (More conforming news below.) All this focus on conventional conforming programs reminds me that LO comp is still a huge issue, and the source of litigation; it shouldn’t be put on the backburner. I continue to hear promises that made to potential recruits that are in violation of LO comp rules. Who is going to research and penalize infractions? The CFPB? Lenders shouldn’t have to pay the same for a conventional conforming loan as a bond program, and most agree that change is needed: LO comp rules being ignored can hurt companies. (Today’s podcast can be found here and this week’s are sponsored by The Big Point of Sale, which delivers a fast, flexible, and low-cost mortgage POS that gets lenders up and running in hours (not months) while empowering loan officers and consumers to collaborate seamlessly from any device. Hear an interview with Panorama’s Hector Amendola on home sales trends, borrower sentiment, rate psychology, and how originators are winning business in the current environment.)

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

“Express our Gratitude! We are overwhelmed at your continued support this year. On this day, and all year long, we want to express our gratitude. Here is a quick reminder of a few of Symmetry’s recent enhancements. AVMs are now available on certain HELOCs $300k or lower. We have dropped our FICO on primary residence Standalones to 680 at 80% max CLTV. We now allow 2nd liens on NOO, and we also allow the most recent 1-year tax return on SE borrowers with a business in existence for 5+ years. Happy Thanksgiving to you and your loved ones. Now eat up!! Symmetry Lending.”

Spring EQ Presents: Giving TWO-SDAY. This year, Spring EQ is celebrating the spirit of Giving Tuesday in a new way with Giving TWO-SDAY, a two-day initiative taking place December 2 and 3. During these two days, Spring EQ CEO Joe Steffa will personally donate $10 for every Consumer Direct submission, every Wholesale registration, and every Correspondent loan that is locked. All funds raised will be evenly split between two incredible charities: Hire Heroes USA, which supports veterans and spouses as they build meaningful careers, and The Valerie Fund, which provides care and support for children battling cancer and blood disorders. Giving TWO-SDAY is our way of turning everyday business activity into something bigger. Let’s make these two days count. Log in to EMMA to price, process, and manage your loans. Not a partner yet? Join us today!

As credit unions navigate new challenges, compliance expectations are evolving to meet them. Compliance today is more than meeting requirements; it’s about reducing risk and building long-term trust. Join MQMR on December 4th at 1:00 PM CST for a webinar focused on the most important compliance challenges and opportunities facing credit unions right now. We’ll explore how shifting expectations, regulatory pressures, and operational demands are shaping today’s compliance environment and discuss what these changes mean for your institution. You’ll gain practical insights, broader perspective, and actionable ideas to help strengthen your program, whether you’re refining a particular area or approaching risk from a big-picture perspective. This session will help you prioritize what matters most, stay grounded in what’s changing, and move into 2025 with a clearer, more confident path forward in your compliance strategy. Register here today!

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.

Conventional Conforming Shifts

Yesterday the U.S. Federal Housing/Federal Housing Finance Agency (FHFA) announced the conforming loan limit values (CLLs) for mortgages Fannie Mae and Freddie Mac (the Enterprises, aka Government Sponsored Enterprises) will acquire in 2026. In most of the United States, the 2026 CLL value for one-unit properties will be $832,750, an increase of $26,250 from 2025. Companies like Pennymac and AmeriHome quickly “followed suit.”

Recall that the Housing and Economic Recovery Act (HERA) requires FHFA to adjust the Enterprises’ baseline CLL value each year to reflect the change in the average U.S. home price. Yesterday the FHFA published its third quarter 2025 FHFA House Price Index® (FHFA HPI) report, which includes statistics for the increase in the average U.S. home value over the last four quarters. According to the nominal, seasonally adjusted, expanded-data FHFA HPI, house prices increased 3.26 percent, on average, between the third quarters of 2024 and 2025. Therefore, the baseline CLL in 2026 will increase by the same percentage.

Lenders in “high-cost areas” are well aware of a caveat. Namely, “For areas in which 115 percent of the local median home value exceeds the baseline conforming loan limit value, the applicable loan limit will be higher than the baseline loan limit. HERA establishes the high-cost area limit in those areas as a multiple of the area median home value, while setting the ceiling at 150 percent of the baseline limit. Median home values generally increased in high-cost areas in 2025, which increased their CLL values. The new ceiling loan limit for one-unit properties will be $1,249,125, which is 150 percent of $832,750… For Alaska, Hawaii, Guam, and the U.S. Virgin Islands, the baseline loan limit and the ceiling loan limit for one-unit properties will be $1,249,125 and $1,873,675, respectively.”

If you’d like to do some research, there’s the List of 2026 conforming loan limits for all counties and county-equivalent areas in the United States, a map showing the 2026 conforming loan limits across the United States, a detailed addendum of the methodology used to determine the conforming loan limits, and a list of FAQs that covers broader topics that may be related to CLL values.

For those interested in larger projects, U.S. Federal Housing announced the 2026 Multifamily loan purchase caps for Fannie Mae and Freddie Mac.

Freddie Mac posted a press release titled, “Freddie Mac Announces Enhanced Technology to Boost Loan Quality.

Freddie Mac’s Single-Family’s Sonu Mittal posted on the Freddie blog: How Freddie Mac Is Powering Efficiency and Cost Savings Throughout the Loan Lifecycle.

AmeriHome Mortgage General Announcement 20251007-CL summarizes previously published changes made during October, additional changes made with this announcement, and recent Agency and regulatory news.

Capital Markets

Join the upcoming Agile Trader Talk Webinar on December 3rd at 11am PT to explore the Market Outlook for 2025–2026. As 2025 comes to a close, shifting monetary policy, liquidity, technological advancements, and geopolitical developments continue to reshape financial markets. Hosted by Agile President Greg Vacura, this session brings together leading broker-dealer panelists to discuss the year’s key market trends, deal flow, regulatory and compliance considerations, and the opportunities and risks expected in 2026. Attendees will gain timely insights into market structure, trading dynamics, and the forces likely to influence the road ahead. Register today to secure a spot in this forward-looking discussion.

The age-old question for originators: Would you trade worsening economic conditions for lower rates? We’ve had four consecutive days of rallies in the bond market, most recently because Consumer Confidence fell sharply in November to a seven-month low, with both present conditions and expectations weakening, while write-in responses showed growing concern about inflation, trade, politics, and the potential government shutdown. The figure followed a more dire readout from last week, when the University of Michigan showed U.S. consumer sentiment fell to one of its lowest levels on record, with views of personal finances their dimmest since the Great Recession.

Meanwhile, retail sales (not adjusted for inflation) rose a tame 0.2 percent in September after several months of more robust spending. While consumers have pulled back on some big-ticket items, they’re still seeking bargains. Alongside a deeper-than-expected contraction in the Richmond Fed Manufacturing Index and a modest rise in Pending Home Sales, Treasury yields have dipped. Per FHFA, U.S. house prices rose 2.2 percent year-over-year in Q3 2025, with modest quarterly and monthly gains, continuing a long stretch of annual appreciation since 2012. Most states and major metro areas saw rising prices, led by the Middle Atlantic region, while Florida and parts of the Pacific division posted the sharpest declines.

Treasuries remain slightly bullish as investors wait for data that is unlikely to shift expectations already shaped by CPI and labor reports. Despite resilient consumption and mixed risk signals, the market’s tone, and repeated tests of the 4.0 percent level in 10-year Treasury yields suggest investors are ready to lean into any softer data or risk-off moves. Looking ahead, analyst consensus is for a 3.85 percent year-end target for 10-year yields, viewing the December 10 FOMC meeting and its updated projections as the key event that will determine whether this bullish view holds.

In a recent speech, New York Fed President Williams emphasized the need for inflation targeting, which has been essential for maintaining price stability and guiding economies through shocks such as the pandemic and the global inflation surge, during which emerging market central banks often responded more quickly than advanced economies. Targeting is also rooted in central bank independence, transparency, and well-anchored expectations. He noted that while inflation has fallen in the United States, it remains above target due in part to tariff effects, even as labor markets cool gradually without signs of severe deterioration. With inflation expectations stable and underlying inflation trending lower, the Fed has cut rates at its past two meetings to balance growing employment risks against easing inflation risks, and he sees room for another near-term adjustment while stressing that policy will continue to depend on incoming data and the dual mandate.

Gross MBS issuance has jumped in the last few days ahead of the Thanksgiving break and has hit its highest level, $118.3 billion, since it registered $125.5 billion in August 2002. The prior high was last November’s $117.8 billion. Ginnie Mae issuance accounted for 42 percent of the total versus 26 percent for Fannie Mae and 31 percent for Freddie Mac compared with 40 percent, 28 percent, and 32 percent, respectively in October.

Today’s calendar could include some data that was delayed due to the government shutdown, including PCE, durable goods orders, advanced indicators, and new home sales all for October. Even as mortgage rates inched up to 6.4 percent, mortgage applications increased 0.2 percent from one week earlier, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ending November 21, 2025. Purchase applications rose across both conventional and government programs, with the government index seeing its strongest week since 2023 even as affordability remains strained. Refinance activity fell nearly 6 percent as borrowers pulled back after several weeks of rising rates.

We’ve also received durable goods orders (+.5 percent, ex-transportation +.6 percent) and weekly jobless claims (216k, lower than expected, 1.96 million continuing claims). After yesterday’s $70 billion 5-year note sale met underwhelming demand, today’s supply calendar will be headlined by $44 billion 7-year notes. Other items of note include Freddie Mac’s Primary Mortgage Markets Survey, and the Fed releasing the Beige Book ahead of its December 9-10 FOMC meeting. We begin Wednesday with Agency MBS prices unchanged from Tuesday’s close, the 2-year yielding 3.46, and the 10-year yielding 4.00 after closing yesterday at 4.00 percent in the midst of rising expectations of a December 10 Fed rate cut.