I don’t know about you, but a hot shower or bath always sounds good. Tech wizards, however, have created a human washing machine. I’ll pass. At this point it would be impossible to do a home loan without “technology,” and AI is all the rage. For those trying to figure out how to think about AI, or even where to start, this month’s STRATMOR piece is titled, “Artificial Intelligence in Mortgage Lending.” Should an AI loan officer be licensed? In artificial intelligence, “agentic” AI focuses on “autonomous systems that can make decisions and perform tasks with limited or no human intervention. The independent systems automatically respond to conditions to produce process results… “agents” where machine learning models that mimic human decision-making to solve problems in real time.” If a lender has a robot answering questions about programs and terms, how will regulators view that? (Today’s podcast can be found here and this week’s are sponsored by Two Dots, whose conversational screening agent replaces manual underwriting with a streamlined, end-to-end process that reduces risk and fraud while securing safer borrowers, increasing profitable loan volume, and lowering underwriting overhead. Today’s has an interview with Finastra’s MaryKay Theriault on where AI can truly strengthen trust, personalization, and underwriting efficiency without over-automation, and how the evolving intersection of tech adoption, credit policy, and market structure should shape lenders’ preparation for the next lending cycle.)
Lender and Broker Services, Products, and Software
There has been a lot of chatter recently about “AI powered” mortgage technology and how lenders are supposed to make sense of it all, so the folks at LenderLogix put together a free and very easy to access eGuide that many are already passing around. The Mortgage Lender’s Guide to Evaluating AI Powered POS Solutions lays out what lenders should actually be looking for in an AI POS, along with common red flags and a lender friendly checklist you can use during demos or vendor reviews. If you want a straightforward way to cut through the noise, you can download the guide here at no cost.
Newrez Wholesale made some recent enhancements to its Closed-End Second product to give its broker partners more ways to help borrowers tap home equity as an alternative to refinancing. Newrez now allows AVM (Automated Valuation Model) values up to $350,000 (increased from $250,000), making it easier for more borrowers to qualify without needing a full appraisal. Additionally, $500,000 is the new max loan amount, and investment properties are now eligible – in addition to primary and second homes. Want to hear why more loan originators are taking a closer look at Closed-End Seconds and hear ideas for staying connected to past clients? Sign up for Newrez’s webinar on Tuesday, Dec. 9, at 3PM ET.
“Servbank is proud to share that Fitch Ratings has upgraded our U.S. RMBS Primary, Specialty Servicer, and Subservicer rating to ‘RPS2-‘. This rating reflects the strength of our leadership, rigid compliance standards, and the scalability of our servicing technology. It further affirms Servbank’s reputation for providing the best-in-class servicing solutions, while setting the benchmark for industry-leading performance. At the foundation, Creating Excelling isn’t just a goal, it’s our standard. Click here to read the full announcement.”
Kind’s December Training Lineup Is Here! Ready to close out 2025 with momentum? Join our weekly training series and gain the competitive edge you need. Every Thursday at 11:30 AM PT. Dec 4th – Level Up Your Condo Game: Non-QM Moves That Win More Deals. Dec 11th – The Year-End Power Play: The Broker Strategy to Win Bigger in 2026. Dec 18th – From Pitch to Partnership: The Non-QM Conversation That Closes. Each session delivers battle-tested strategies you can apply immediately. Whether you're navigating tricky condo deals, planning for record-breaking growth, or refining your client conversations, these trainings give you the tools to win. Secure your spot and end the year stronger than you started. Register here!
Are you confident your systems would hold up against a real attack? For mortgage lenders, the growing sophistication of threat actors means one weak point can compromise borrower data, operations, and revenue. Too many lenders rely on annual scans or outdated testing methods and miss the vulnerabilities that matter most. Richey May’s recent blog lays out the core objectives every lender must meet to achieve truly effective security, from validating your controls against real-world tactics to identifying hidden weaknesses before attackers do. It’s a roadmap for what strong protection should look like, and a reminder that generic testing won’t get you there. Cyber threats aren’t slowing down. The question is whether your defenses are evolving fast enough. Read the full blog to benchmark your approach and contact Richey May’s cybersecurity team to ensure your environment is tested, fortified, and ready.
“AI cats, dogs, and loan officers? Not quite. After a recent AI mortgage conference, it’s clear there’s still a lot of hot air about artificial intelligence in the industry. Despite the top 10 IMBs spending zillions on getting AI ‘right,’ the results are… underwhelming. At Black Lake, we take a different approach: our team brings deep experience across capital markets, trading, engineering, data analysis, and, yes, AI. We believe AI only creates value when deployed responsibly and paired with real expertise. Don’t get lost in the hype (or end up spending lots). We deliver a SOC-controlled, 100 percent US-based platform for you to price, trade, and transfer mortgage assets, securely, efficiently, and with no data shipped overseas. Book a demo today to see how we can help you skip the gimmicks and achieve real results. Black Lake Investment Solutions: Empowering mortgage intelligence. Book a demo or contact info@blacklakeinvestments.com to learn more.”
PrimeLending, A PlainsCapital Company, and Blue Sage are celebrating six years of partnership and the results speak for themselves. Since going live on the Blue Sage Digital Lending Platform, PrimeLending has closed over 250,000 loans while achieving a 27 percent faster closing timeline and 58 percent faster submission-to-underwriting. Built for speed, scalability and configurability, Blue Sage’s cloud-based platform enables lenders to modernize operations, streamline workflows and deliver a borrower experience that’s simpler, smarter, and faster. See how PrimeLending is redefining what’s possible in mortgage lending… And how your organization can, too. Read more.
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.
Mergers, Acquisitions
“T-Mobile and Sprint have finally agreed to a massive merger deal. I tried to join the celebration, but there was no reception.”
There is no reason to think that mergers and acquisitions among companies involved in residential lending will stop in 2026. In fact, I was speaking to Garth Graham at STRATMOR (who has been involved in a number of deals this year) and he said that the full year 2025 M&A market will be more deals (over 40!) in 2025 vs the previous two years despite the market improving in the second half of 2025. This is not an M&A market of only weak companies selling and the best example of that is the Guild Bayview deal which closed Friday.
So, Guild completed its five-year-run as a public company with adjusted net income of $47 million in the third quarter, the second quarter in a row above $40M income, which demonstrates the strength and success of the company’s distributed Retail and retained servicing model. The recent performance included its best origination volumes since 2021 and a servicing book over $100 billion. A great example of two strong companies doing a deal.
Terry Schmidt, Guild’s CEO, wrote, “Joining Bayview’s platform strengthens Guild’s commitment to grow our national brand, and it creates one of the strongest and most compelling mortgage origination and servicing ecosystems in the nation. The Guild leadership team is excited to bring our expertise in distributed retail origination, retained servicing, and the customer-for-life business model to the MSR Fund. This relationship will further enhance our mission to deliver the promise of homeownership in communities across the country while fueling innovation and long-term growth.”
The company noted, “Joining Bayview, Guild will have access to new capital that is expected to accelerate its growth and investment in product innovation, competitive pricing, increased servicing retention (where Guild is already best-in-class), and technology enhancements for its origination platform. Guild will operate independently, with the existing management team remaining intact, but being aligned with Lakeview Loan Servicing in Bayview’s portfolio will create additional opportunities for growth as the two companies can now leverage each other’s strengths in distributed retail origination and loan servicing to create an even stronger customer-for-life flywheel that will be attractive to sales teams looking for long term growth and stability.”
Partnerships will continue as well, the latest example being Keller Williams Realty Atlanta Partners, the largest Real Estate franchise in the state of Georgia announcing an exclusive strategic partnership with Southeast Mortgage of Georgia, Inc. (Southeast Mortgage), the largest non-bank mortgage lender in the state. “Through this alliance, Keller Williams Realty Atlanta Partners and Southeast Mortgage will empower AI technology and class-leading service to consolidate the buyer and seller process into one seamless experience eliminating common pain points in the current buyer or seller journey to create a more connected real estate transaction.”
Capital Markets
New Year. New Buyer. New, exclusive access to insurance capital for jumbo liquidity. MAXEX is kicking off 2026 by welcoming a new buyer to the exchange, bringing significant competitive bids for jumbo loans, and further strengthening our industry-leading Jumbo AUS program. Don’t just compete in the spring buying season, win it with MAXEX. Learn more about how you can gain access.
MSRs are not just another line item. Mortgage Servicing Rights can shape your future success… But only if you know how to value them. Missed the live MSR 101: How to Value the MSR Asset webinar? Now’s your chance to catch the replay on demand. Optimal Blue’s MSR experts break down the essentials: the key assumptions behind MSR value, how different valuation methods stack up, and strategies to retain the most profitable loans and improve recapture. Whether you’re new to MSRs or refining your approach, this session provides actionable insights for navigating today’s evolving market. Move beyond uncertainty and learn proven methods to capture value and strengthen your servicing strategy. Hear directly from experts who guide lenders through MSR challenges every day. Watch the replay now and start making smarter decisions today.
Interest rate-wise, bond yields rose yesterday after a sharp sell-off in Japanese government bonds, triggered by the signal of a likely rate hike that pushed Japan’s two-year yield above 1 percent for the first time in 17 years. With money-market odds of a December Bank of Japan move jumping, global yields moved higher on worries that rising Japanese rates could pull capital away from Treasuries.
In the U.S., factory activity fell in November by the most in four months as orders weakened, indicating manufacturers are struggling to break out from an extended malaise. The Institute for Supply Management’s (ISM) manufacturing index eased further into contractionary territory; the measure has been below 50, which indicates contraction, for nine consecutive months.
Today’s economic calendar includes Redbook same store sales, some short-duration Treasury auctions, and (despite the Fed being in its blackout period ahead of next week’s FOMC meeting) Fed Vice Chair for Supervision Bowman will testify on "Oversight of Financial Regulators” before the House Financial Services Committee. We begin Tuesday with Agency MBS prices unchanged from Monday’s close but certainly worse than last week, the 2-year yielding 3.54, and the 10-year yielding 4.11 after closing yesterday +8-basis points at 4.10 percent.
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