Loan Delivery, Borrower Search Products; AI and Lending; MAA Action Week; Bank and CU M&A Heating Up
“I hate it when I see an old person and then realize we went to high school together.” Nothing lasts forever, not top lenders or even computer companies. We may reach the point where only old people remember Tandem Computers, Commodore Business Machines, or Fairchild Semiconductor, all thought to be invincible in their time. Is Intel a measure of our economic health? Intel is laying off 21,000 employees. Now, all the talk is AI (see Thought Piece below). AI, of course, does not create new knowledge. Here’s a study showing that AI search engines invent sources and lie for ~60% of queries. Interestingly, OpenAI and Google are asking the government to let them train AI on content they don’t own. Google is shipping the latest “experimental” features of its Gemini 2.0 Flash AI model to more developers across all regions, and people are finding some concerning abilities that include editing out watermarks from photos. The company’s lightweight localized on-device AI model is now equipped with native image generation that can not only produce pictures from a text prompt but also let you conversationally edit images. Users found that it can also remove watermarks with precision, TechCrunch reports. Is that the right thing to do? (Today’s podcast can be found here and this week is sponsored by nCino, makers of the nCino Mortgage Suite for the modern mortgage lender. nCino Mortgage Suite’s core products unite the people, systems, and stages of the mortgage process. Hear an interview of nCino’s Casey Williams on some of the biggest opportunities lenders have to speed things up during the origination process, and technology’s role in that transformation.)
Software, Products, and Services for Lenders and Brokers
Servicers are all too familiar with the time-crunch that comes with consumer credit disputes. With only a limited 30-day window to investigate disputes, there’s no time for overly manual workflows that slow down the resolution process and put servicers at risk of missing their reporting obligations. With automated, integrated technology, servicers can streamline investigations, manage back-office dispute pipelines, and more easily preserve an audit trail to help eliminate “re-investigating” past disputes. Read the blog to see how ICE is helping servicers work more efficiently and save time when time matters most.
“Looking for a non-QM lender that actually gets it? At The Loan Store, our Flex NQM product suite is built with your clients in mind. Whether it’s DSCR Done Right, Flex Income, or Flex AUS Inv+, each program offers the flexibility that our partners love, with room for smart exceptions. We’re talking FICOs just shy of the mark, LTVs that are close, even recent listings or a few NSFs. If the loan makes sense, we’ll find a way to make it work. Sound like a lender you want in your corner? Let’s chat. Connect with your dedicated TLS Sr. Account Executive or shoot us an email at sales@theloanstore.com to get approved today!”
“Birds of a Feather (Are Flocking Outside)! Spring is in the air! In 2017, a Dutch birder set a world record by spotting 7,020 bird species in a single year, thanks to a smarter, more comprehensive guide. His success shows what’s possible with the right tools and strategy. At MMI, we believe the same applies to mortgage professionals. That’s why we bundled MMI, MonitorBase, and Bonzo into one mortgage growth solution, designed to help you move faster, smarter, and more efficiently. With our integrated platforms, you can identify the right partners and borrowers with real-time insights, anticipate client needs with predictive borrower alerts, and engage automatically through a CRM built for SMS, email, and voice communication. No more inefficiencies, siloed systems, or missed opportunities. Instead, you get a comprehensive, intuitive platform that keeps you ahead of the competition. One bundle. One price. One smart move. Learn how our “birds of a feather” can help you soar.
Exceptional Sub-Servicing Exists at PLANET! If you’ve accepted “good enough” from your sub-servicer, it’s time to raise the bar. Planet delivers high-touch, personalized service for clients and borrowers, backed by advanced technology, cost-efficient processes, and uncompromising compliance. Put Planet’s expertise to work for you and experience the difference a high-performing sub-servicing partner can make. Reach out to us at 214-983-2288 or subservicing@planethomelending.com to connect at IMN’s MSR Conference in Dallas, May 1-2!
“With homeowners sitting on roughly $11.2 trillion in tappable equity and first mortgage interest rates holding steady in the high 6-7% range, home equity is hot. Are you ready to capitalize on this market and help your borrowers leverage their equity? Join FirstClose at next month’s MeridianLink LIVE to see first-hand how our cutting-edge technology can give you the competitive edge you need. Schedule a meeting with FirstClose or swing by the booth to discover how our integration with MeridianLink can help you unlock efficiency and growth in your lending solutions.”
Mergers and Acquisitions
Out of Washington and California comes news that Columbia Banking System, Inc., the parent company of Umpqua Bank, and Pacific Premier Bancorp, Inc., the parent company of Pacific Premier Bank, National Association, have entered into a definitive merger agreement, pursuant to which Columbia will acquire Pacific Premier in an all-stock transaction but with no premium for existing stockholders. The combined company will have approximately $70 billion in assets.
Pacific Premier does not have any notable residential lending, but Umpqua does. Pacific Premier stockholders will receive 0.9150 of a share of Columbia common stock for each Pacific Premier share they own. The merger is valued at approximately $2.0 billion, or $20.83 per Pacific Premier share, based on Columbia’s closing stock price of $22.77 on April 22, 2025. Following closing, Pacific Premier stockholders will own approximately 30% of Columbia’s outstanding shares of common stock.
“The acquisition enhances Columbia’s position as a leading regional bank throughout the West with over $57 billion in deposits, including nearly $21 billion in deposits in California, $17 billion in Oregon, and $16 billion in Washington… To ensure brand clarity as Umpqua Bank deepens its expansion throughout the West and to simplify the bank’s family of brands, Umpqua Bank plans to change its name to Columbia Bank later this year. The transaction is anticipated to close in the second half of 2025. Keefe, Bruyette & Woods, a Stifel Company, acted as financial advisor to Pacific Premier and Holland & Knight LLP acted as legal counsel.
Out of Minnesota and Colorado comes news that Ent Credit Union and Wings Credit Union have announced a “merger of equals.” We all know that credit unions have been gradually increasing their presence in residential lending. “Together, Ent and Wings Credit Union will now serve nearly one million members, predominately in Colorado and Minnesota… Members will not experience any immediate change, and the credit unions will continue to operate independently while the merger process goes through regulatory approval and a member vote.
“As we have continued to expand our footprint across Colorado, (and) are excited to offer members access to nearly 90 locations in Colorado, Florida, Georgia, Michigan, Minnesota, and Wisconsin. said Chad Graves, President and CEO of Ent.
The combined CU of Ent Credit Union ($9.9 billion, 560,000 members) and Wings Credit Union ($9.7 billion, 371,000 members) will be legally combined in 2026. Founded in 1957, Ent is Colorado’s largest credit union. With nearly $10 billion in assets, Ent serves more than 550,000 members at 59 convenient service centers across the Front Range. Wings CU is no slouch. It was founded in 1938 and is Minnesota’s largest credit union with $9.7 billion in assets and more than 371,000 members. “Wings members enjoy some of the area’s best savings and lending rates, convenient mobile and online access, over 80,000 surcharge-free ATMs and 27 branch locations throughout the state of Minnesota, plus offices in Florida, Georgia, Michigan and Wisconsin.”
Let’s not forget other bank and credit union deals in the last month or two: West Virginia’s Wesbanco Bank, Inc. and Ohio’s Premier Bank, Virginia’s Atlantic Union Bank and Maryland’s Sandy Spring Bank, Illinois’ Byline Bank and Illinois’ First Security Trust, California’s University Credit Union and Texas’ A C U Credit Union, and NY’s Hudson Valley Credit Union & NY’s Catskill Hudson Bank .
Time to Take Action!
MBA’s annual Mortgage Action Alliance (MAA) Action Week is coming up, May 12-16! Sign up today and promote the importance of advocacy within your company or state association. This industry-wide campaign allows ALL of us to take part and engage in the legislative and regulatory process on issues that directly impact real estate finance professionals. Membership in MAA can make a difference in how YOU and your company drive positive change by adding your voice to our collective efforts. Remember, you do not need to be an MBA member to be a part of MAA.
“During MAA Action Week, MBA provides you with all necessary resources to make your campaign a success, including a communications plan, sample emails, social posts, and graphics in advance, making it an easy ‘copy and paste’ exercise for you and your designated staff. MAA unites all of our industry by allowing those who join to play an active role in advocating for our preferred public policy outcomes, both legislative and regulatory. You are the experts. Your voice is needed to play a role conducting this vital work, especially with so many newly elected officials in the current Congress.
“Join MBA’s Legislative and Political Affairs team for our next MAA Quarterly Webinar: Beyond the First 100 Days on Thursday, May 1, from 3:00-4:00 PM ET. This free virtual event will provide a recap of MBA’s National Advocacy Conference, as well as an update on Congress and the administration, including key regulators – helping to define what it all means for our members. Learn how the MBA works with decision makers to support our public policy agenda. For more information, please contact Jamey Lynch, AMP at (202) 557-2818 or Margie Ehrhardt at (202) 557-2708.
AI, Generative AI, and Residential Lending
In his insightful piece The Evolving Role of AI in the Mortgage Ecosystem, James Hedvall explores how artificial intelligence is reshaping the mortgage industry, not by replacing human expertise, but by enhancing it. From streamlining back-office tasks to empowering front-line agents with real-time insights, AI is already driving meaningful change. However, the road to fully autonomous systems remains long, with data readiness and process clarity standing as crucial next steps. Dive into the full article to discover how the industry can strike the right balance between innovation and human intuition.
Capital Markets
MCT will host its latest industry webinar, “Loan Delivery Methods & When to Employ Them,” today at 11am PT. This session will explore how lenders can optimize their loan delivery strategy in a volatile market. Join MCT’s Cody Echols and Andre Pollesel as they break down the “why” and “when” behind choosing the right loan delivery method, and how to use MCTlive!’s robust execution features to tailor strategies based on your unique investor set and program mix. Don’t miss this opportunity to sharpen your approach with insights from the industry’s most comprehensive mortgage capital markets platform. Register for today’s webinar, “Loan Delivery Methods & When to Employ Them.”
Not that volatility is surprising at this point, but it’s still a little jarring. It was certainly the name of the game yesterday as the flash S&P Global U.S. Manufacturing PMI for April reflected an accelerating expansion, flash S&P Global U.S. Services PMI decelerated, there was a morning report from Bloomberg that President Trump is thinking about lowering the tariff rate range on imports from China to 50-65 percent as a show of goodwill (though the White House later clarified that any tariff reduction would be a part of negotiations), while Treasury Secretary Bessent added that a final deal with China could take up to three years to complete. Back and forth we go. There was also a focus on corporate earnings from Wall Street. And that’s to say nothing of a major pivot from the Trump administration on Fed Chair Powell, with the latest being that President Trump has “no intention” of firing him.
Yes, Trump seems to have internalized a political truth that Bill Clinton learned the hard way in the 90s: financial markets, especially the bond market, have a louder voice in policymaking than most elected officials. Trump’s recent walk-back from his critique of Fed Chair Jerome Powell, including a public assurance that he has no plans to fire him, signals a softening stance aimed less at Powell than at Wall Street. The same goes for his comments on Chinese tariffs, hinting they’ll “come down substantially,” which reads as a subtle invitation for Beijing to re-engage. These gestures may seem conciliatory, but they likely reflect a deeper awareness that spooking markets comes with real costs. While Trump theoretically has the authority to remove Fed board members “for cause,” markets, not legal thresholds, might ultimately be his biggest constraint. Investors place faith in American leadership to safeguard economic growth, and any perceived threat to the Fed’s independence shakes that faith, as the market’s dip after Trump’s comments showed.
Still, these shifts shouldn’t be mistaken for a newfound embrace of predictability. Trump’s reactions continue to reflect a pattern of responding to market turbulence, what some are calling the “Trump put,” suggesting a sensitivity to equity performance as a proxy for political strength. The recent lull in tariff escalation may be temporary, but the damage has been done: what was once pitched as tactical recalibration now looks more like a drawn-out trade war embedded in the economic landscape. That persistent uncertainty, more than any specific policy, is the true disruptive force for markets. While it’s too early to quantify the exact impact of new tariffs on inflation and GDP, the trajectory is clear in higher prices, slower growth, and declining business confidence. With firms increasingly hesitant to invest or hire amid shifting rules, tariffs are now more than just headline risk, they’re a brake on expansion.
For some good news, the spring homebuying season has started stronger than expected, with new home sales rising 7.4 percent in March and inventory at an ample eight-month supply. This growth, aided by a brief dip in mortgage rates and builders focusing on smaller, more affordable homes, has boosted sales despite elevated borrowing costs. The median price of new homes is now $403,600, down from $435,000 three years ago. While homebuilders continue to see gains, existing home sales remain sluggish due to limited supply, which goes a long way in keeping prices from falling. Looking ahead, reduced policy certainty, rising rates, and a weakening economic outlook pose challenges, though more inventory and lower rates could eventually unlock movement among current homeowners.
Durable goods orders for March (+9.2 percent, ex-transportation unchanged), weekly jobless claims (222k, as expected; 1.841 million continuing), and the Chicago Fed National Activity Index for March kicked off today’s economic calendar. Later this morning brings existing home sales, KC Fed manufacturing for April, Treasury activity that will be headlined by an auction of $44 billion 7-year notes, Freddie Mac’s Primary Mortgage Market Survey, remarks from Minneapolis Fed President Kashkari, and more earnings from Wall Street. After the news Agency MBS prices are better than Wednesday evening by about .125, the 2-year is yielding 3.82, and the 10-year is at 4.34 after closing yesterday at 4.39 percent.
