DPA, HELOC, Document, Non-QM, Pooling Products; Conf. Conventional Changes

As the MMLA event wrapped up in Michigan, a large number of people around the nation (and some from here) are gearing up to travel to (or within) California to attend the California MBA’s Western Secondary and then FAMP’s annual convention in Orlando. The number of conferences is skyrocketing. Numbers are a big part of our industry, and this morning’s MBA application data reflected what I am hearing from MLOs around the nation. (Today’s L1 2PM ET interview features veteran broker Brian Benjamin discussing what he’s seeing.) Joel Kan writes, “The refinance share of mortgage activity increased to 41.5 percent of total applications from 40.7 percent the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 8.5 percent of total applications.” Huh? Refis approaching 50 percent, and ARMs approaching 10 percent? Lenders are certainly focusing on helping clients with refinancing out of high interest rate credit card debt, and with the yield curve heading toward a more normal shape, 5-1 and 7-1 adjustable rate products are seeing renewed interest. (Today’s podcast can be found here and Sponsored by Total Expert, the purpose-built customer engagement platform trusted by hundreds of modern financial institutions. Total Expert turns customer data into actionable insights that help lenders engage and guide consumers through complex financial decisions. Hear an interview with borrower Riley Howard on his strategy for choosing a lender.)

Products, Services, and Software for Lenders and Brokers

Still manually pooling loans with spreadsheets and best guesses? Experience unmatched accuracy with algorithm-based pooling built into CompassEdge, Optimal Blue’s hedging & loan trading platform. It applies investor-specific rules and constraints like high balance limits and de minimis thresholds to form investor-eligible pools with up to 99.99 percent accuracy. That means fewer errors, faster turnarounds, and hours saved weekly. It ensures compliance with delivery requirements while maximizing execution efficiency, even if that means taking a loan out of its top-priced execution to meet broader pool objectives. Whether you’re managing cash or bulk executions, Pool Solver adapts to your strategy and scales with your business without custom configuration or added staffing. It’s the engine that powers your profitability, helping streamline operations and boost efficiency. Proven performance. Unrivaled accuracy. Results you can measure. Ready to eliminate manual pooling and achieve smarter execution? Explore Pool Solver within the CompassEdge platform today.

“PlainsCapital Bank National Warehouse Lending, a subsidiary of Hilltop Holdings (NYSE: HTH), is committed to providing mortgage lenders with a sustainable funding source in an uncertain market. With over 30 years’ experience and a well-capitalized, diversified financial holding company. PlainsCapital Bank National Warehouse Lending provides confidence to meet our mortgage lending partners’ funding needs. With exceptional operational performance, and a focus on relationship-driven business geared towards long-term success, we do not dwell on unnecessary fees. With PlainsCapital Bank National Warehouse Lending there are NO non-usage fees, NO application or renewal fees, NO third party due diligence fees or Third Party Doc Custodians and NO interest charged on the day of loan settlement. If you are attending the Western Secondary Conference in Palos Verdes, CA and interested in learning more about PlainsCapital Bank National Warehouse Lending please contact Deric Barnett or John Weerts.”

It’s all Non-Stop Non-QM over at Carrington Mortgage Services! First, its dramatic pricing improvements are continuing this month, so price out a deal today! In addition, the team will be on the road at the California Mortgage Expo in San Diego, the Western Secondary, FAMP’s Annual Convention, and The Non-QM Summit at OriginatorConnect during the next few weeks. Contact Carrington to learn more about the benefits of giving Carrington the first look for non-QM, or schedule time at one of these events today!

Docutech is your source for comprehensive, compliant, digital-first document technology. Now, there’s even more to discover. As a leader in origination document generation and eClose solutions, Docutech has augmented its offerings to include document solutions for lien release, servicing, and loan modification. Learn more about how Docutech is supporting clients at every stage of the mortgage life cycle on the new Docutech.com. The revamped site makes it faster and easier to find what matters: compliance updates, product information, and personalized demos. Explore how Docutech’s solutions can help move your business forward: Learn more.

“In July, Homebridge, powered by NFTYDoor funded $200 million in HELOCs across our wholesale and correspondent channels. Our platform is fast, simple, and fully digital, with closings in as little as ZERO days. Help your clients consolidate high-interest debt and earn great commissions by offering the most modern HELOC on the market. Ready to get started? Contact Matt, Carl, or Seth today.”

“Everyone has VIP clients who are top shelf’ and treated with extra care. Here at Symmetry, we want to show you that we give every customer white glove treatment. Each loan is handled like family. We have first-class exceptional service. We have no prepayment penalty and No EPO to you. What are you waiting for? Symmetry Lending.”

“As the National Association of Minority Mortgage Bankers of America (NAMMBA) Connect ‘25 (Aug. 20-22) approaches, we’re reminded of MLK’s vision of real, lasting access to equal housing. Lenders continue to honor his legacy by making homeownership affordable for buyers with tools like down payment assistance (DPA). DPA offers an average benefit of $18,000, bridging financial gaps and expanding mortgage access, so more LMI and minority buyers can start building generational wealth. Angel Romero, HFA Relationship Manager of Down Payment Resource, the OG of DPA, will present “Empowering Inclusive Homeownership with Down Payment Assistance,” August 21, Pine Level 1, starting at 3 pm. You can also book now with VP Brad Cardwell to see firsthand how DPA lowers an applicant’s LTV by an average 6% and help make this dream come alive.”

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.

Know Your Attorney

In Why Vetting Attorneys is Critical for Mortgage Industry Risk Management, Andrew Liput explores how attorney oversight can directly impact the safety and efficiency of mortgage transactions. He examines the often-overlooked risks tied to inadequate due diligence, from mishandled funds to title issues and compliance failures. By shifting the focus toward proactive attorney evaluation, Liput makes the case for stronger safeguards within the lending process. Check out the full article to see how thoughtful vetting can help strengthen your risk management approach.

FHFA, Conventional Conforming News

Yesterday our biz received some news from the FHFA (gradually being renamed U.S. Federal Housing) on affordable housing supply in rural and underserved communities. “U.S. Federal Housing is expanding America’s affordable housing supply by doubling the amount that Fannie Mae and Freddie Mac can invest in safe and sound Low Income Housing Tax Credit properties from $1 billion to $2 billion each, a total of $4 billion per year.”

MBA’s President and CEO Bob Broeksmit, CMB, noted, “The LIHTC program is the federal government’s most successful tool to support the construction and rehabilitation of housing for low- and moderate-income households. FHFA’s doubling of the GSEs’ cap on LIHTC investment to $2 billion comes on the heels of program improvements included in H.R. 1 (now Public Law 119-21), both of which will help to increase rental housing supply.”

Recall that Freddie Mac and Fannie Mae recently announced the publication of the Uniform Property Data Report. This dynamic, standardized report template is designed to bring greater efficiency and consistency to the underwriting and review processes. This dynamic, standardized report template is designed to bring greater efficiency and consistency to the underwriting and review processes, Freddie Mac/Fannie Mae announced in its Single-Family Update report. The GSEs developed the UPDR in direct response to industry feedback regarding the challenges of working with different property data output formats, which can create unnecessary complexity and delays.

“The new UPDR’s standardized format addresses those challenges to help streamline review processes, simplify training across the industry and enable automated data validation. Until June 30 (2026) use of the UPDR is voluntary, but lenders are encouraged to engage their vendors to begin implementing the UPDR to take advantage of the operational benefits it offers; use of the UPDR will be mandatory for mortgages with application received dates on or after June 30, 2026.”

On July 2, in Bulletin 2025-09, Freddie Mac announced temporary subsidy buydown eligibility for loans secured by a manufactured home. Pennymac is not aligning with this change per Pennymac Announcement 25-74.

Pennymac will update Conventional LLPAs effective for all Best Efforts Commitments taken on or after Thursday, July 24, 2025 as described in Pennymac Announcement 25-73.

Pennymac Announcement 25-72 addresses updates to project eligibility for terminating or insolvent condominium projects in response to Fannie Mae SEL 2025-05 & Freddie Mac Bulletin 2025-9.

To enhance the protection of Confidential Information and support compliance with industry regulations and best practices, Fannie Mae has introduced new and updated cybersecurity requirements in the Fannie Mae Information Security and Business Resiliency Supplement (the “Supplement”). As a reminder, seller and servicers must fully implement the requirements no later than the effective date of August 12, 2025.

Mortgage Loans secured by standard GSE eligible manufactured homes, including Fannie Mae MH Advantage™ and Freddie Mac CHOICEHome® are now eligible for Non-Delegated Underwriting. See AmeriHome Mortgage Product Announcement 20250710-CL for details.

Capital Markets

Not much news to report. Markets are increasingly focused on whether the Fed will prioritize employment over short-term tariff-induced inflation as the FOMC weighs a cut this fall. Jobless claims numbers remain relatively low, but a consistent slowdown in job creation has raised concerns about the true restrictiveness of current monetary policy. As a result, a September rate cut is becoming more likely, unless inflation data surprises meaningfully to the upside in the coming weeks.

For those wondering how many actual loans are being produced, BOK’s Chris Maloney reports that loan production increased by 3.3 percent annualized in July, but by just 1.2 percent compared to 2023’s production. “In other words, the sector has experienced little growth over the past few years. What has occurred, though, is a rotation away from conventional loans, mostly on the Fannie Mae side of things, as they have declined by 12.2 percent compared to last July and -9.1 percent compared to July 2023. In contrast, Ginnie Mae loan production last month is 17.8 percent and 17.1 percent higher compared to last July and July 2023, respectively. So both in terms of dollars and in terms of loan production, the sector continues to rotate to the lower credit quality borrower. On marches non-QM, often at better pricing, less or no pricing adjustments, and “hassle-free” underwriting, as one LO told me.

Today’s economic calendar kicked off with mortgage applications increasing 3.1 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending August 1, 2025. Later today, the Treasury will conduct the second leg of the quarterly refunding, (consisting of $42 billion 10-year notes), preceded by remarks from Fed Governor Cook and Boston President Collins. The agencies will release July prepayment data beginning after the close and on through the evening. We begin Wednesday with Agency MBS prices roughly unchanged from Tuesday’s close, the 2-year yielding 3.73, and the 10-year yielding 4.22 percent after closing yesterday at 4.20 percent.