Pricing Products; Non-Agency Changes; NAMB Interview on the Broker Biz; Happy New Year

Lender and Broker Services, Products, and Software

“At Optimal Blue, we’d like to take a moment to say THANK YOU to the incredible clients and partners who made this year unforgettable. Your trust and collaboration fuel our mission to deliver solutions that tackle the real-world challenges mortgage lenders face every day. As we look ahead, we’re excited to keep innovating and driving success together. And speaking of what’s next, don’t miss Optimal Blue Summit 2026 this February in Scottsdale! It’s your chance to connect, learn, and preview a slate of new innovations from Optimal Blue that will help you dominate the year ahead. Secure your discounted ticket now with code CHRISMAN at Summit.OptimalBlue.com. From all of us at Optimal Blue, we wish you a joyful holiday season and a prosperous new year. Here’s to making 2026 your best year yet: see you at the Summit!”

In an open letter reflecting on a landmark 2025, Polly Founder and CEO Adam Carmel shares a powerful message of gratitude and strategic evolution. The company has spent the past year leading the market in enterprise innovation and Generative AI, continuing to demonstrate that the era of stagnant, legacy tech is over. This is more than a milestone report; it's a call to action for an industry at a crossroads. Carmel reflects on the profound impact and shared success achieved alongside Polly's customer partners and looks ahead to a 2026 centered on intentional innovation and new product frontiers. Whether you're a long-time partner or industry observer, this letter offers a transparent look at the future of capital markets technology. Read the full open letter to explore Polly's 2025 milestones and their bold vision for the year ahead.

A November webinar featuring Telhio Credit Union Loan Officer Allie Hager and Realtor Kelly Hamilton of Realty Forward is still getting attention from credit unions focused on strengthening realtor relationships. Moderated by LenderLogix CEO Patrick O’Brien, the discussion explored how accessibility, communication, and modern technology are helping credit unions compete more effectively in today’s purchase-driven market. The full replay is available on demand and remains a worthwhile watch for teams planning their 2026 strategy. Watch the replay here.

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.

Non-Agency, DSCR, Jumbo, HELOC News

Hey, without onerous Agency gfees, arguably faster and easier processing, and a plethora of investors, there is little reason for originators and lenders to stay away from non-Agency loans. Heck, even Paris Hilton and her husband have a jumbo loan with JPMorgan Chase for $40-odd million. Who’s doing what out there? In no particular order…

Pennymac updated its guidance and has clarified existing guidance for its non-QM program.

These updates and clarifications apply to all non-QM products. Details available in Pennymac Announcement 25-124.

Pennymac Announcement 25-125 describe its update to Jumbo LLPAs effective for all Best-Efforts Commitments taken on or after Tuesday, December 2, 2025.

PHH Mortgage has made clarifications to the FlexIQ Full/Alt Doc, DSCR, and UW Standards. View the PHH company library to view the announcement content.

Pennymac will update Jumbo LLPAs and non-QM LLPAs effective for all Best-Efforts Commitments taken on or after Wednesday, December 10, 2025. View Pennymac Announcement 2025-27 for details.

New from JMAC, MyNonQM is a powerful AUS technology solution designed to give your pipeline an advantage with a simple, automated decision system for Non-QM products. MyNonQM helps you learn non-QM lending, fit loans to guidelines, price loans, determine product eligibility with instant Approve Eligible, automate non-agency underwriting, including condition generation, and intuitive, easy-to-use interface.

PHH Mortgage announced enhancements to TPO Connect related to the condition submission process and single loan file package upload functionality for all Delegated and Non-Delegated loans, effective December 15, 2025.

Pennymac has updated non-QM LLPAs effective for all Best-Efforts Commitments taken on or after Wednesday December 17, 2025. View Announcement 25-131 for more information.

This month, LoanStream Mortgage is delivering serious cheer to your bottom line with massive pricing improvements across our Non-QM and FHA Streamline/VA IRRRL products. It’s time to power through December and set yourself up for a strong finish to 2025.

At Champions Funding, Non-QM solutions are designed to unlock equity, not hold your borrowers back. Champion’s expanded cash-out allowances help you close deals other lenders can’t.

Logan Finance introduced DirectPath Processing, a service designed to streamline your entire commercial loan workflow from setup to closing, supported by the experienced Logan Finance team you know and trust. From choosing your preferred portal to end-to-end vendor coordination, DirectPath puts your deals on the most efficient path possible.

Introducing MyNonQM from JMAC, the Ultimate Loan Qualification Tool. A powerful AUS technology solution designed to give your pipeline an advantage with a simple, automated decision system for non-QM products. MyNonQM helps you learn non-QM lending, fit loans to guidelines, price loans, determine product eligibility with instant Approve Eligible, automate non-agency underwriting, including condition generation, intuitive, and easy-to-use interface.

Effective with new commitments for Delegated and new commitments or new submissions for non-delegated underwriting taken on or after December 9, 2025, AmeriHome’s Non-Agency suite of program guides has been updated. Details available in AmeriHome Mortgage 20251203-CL Product Announcement.

Learn about benefits of LPC on Non-QM loans. LoanStream Wholesale Lender Paid Compensation (LPC) is now available on its non-QM loan programs. This enhancement gives you more flexibility, better control over your pricing, and the opportunity to maximize your earnings, all while offering your clients competitive solutions that fall outside traditional guidelines.

Pennymac issued guidance for its non-QM program in Announcement 25-135, effective with new applications dated on or after December 22, 2025.

Pennymac has updated non-QM LLPAs effective for all Best-Efforts Commitments taken on or after Tuesday December 23, 2025. Details available in Pennymac Announcement 25-136.

To allow for greater flexibility within its non-QM program, Pennymac is updating guidance pertaining to Interested Party Contribution (IPC) limits. The update outlined in Pennymac Announcement 2025-138 is effective for new applications dated on or after December 24, 2025.

Effective with new commitments for Delegated and new commitments or new submissions for non-delegated underwriting, taken on or after December 29, 2025, AmeriHome Mortgage updated the AUS Jumbo Express program guide. See AmeriHome Mortgage Product Announcement 20251206-CL for details.

Capital Markets

Without much in the way of economic data and news developments, the bond market once again traded inside a narrow range yesterday; it should be the same story today and Friday barring any major news headlines. The FOMC released the Minutes from its December meeting, with most policymakers expecting to see more rate cuts if inflation continues decelerating, though some officials prefer the current level of rates remaining in place for some time. There was limited reaction to the Minutes, with odds for no change to the fed funds rate at the January 27-28 meeting holding around 85 percent. And speaking of the Federal Reserve, President Trump teased that he has a preferred candidate to be the next chair of the Fed (it's either Hasset or Warsh) but is in no hurry to make the announcement. He also mused he still might fire Fed Chair Powell, whose term as chair ends in May.

On the data front, we learned yesterday that U.S. house prices increased 0.4 percent in October, per FHFA, lifting the year-over-year gain to 1.7 percent, while September’s previously flat reading was revised to a 0.1 percent decline. Regional performance was mixed, with monthly prices falling as much as 0.4 percent in the East and rising up to 1.0 percent in the West, while annual changes ranged from a 0.7 percent decline in the Central to a 5.3 percent increase in the Middle Atlantic. Separately, the Chicago PMI hit 43.5 in December, beating 40.4 expectations (whatever that means), and up from 36.3 in November.

Since it’s a quiet week this week, let’s look ahead to Agency MBS supply in 2026. While it’s likely to look broadly similar to 2025 in aggregate, with gross issuance around $1.4 trillion, the composition could shift meaningfully toward adjustable-rate mortgages if the yield curve continues to steepen. Today’s ARMs, indexed to SOFR and repricing every six months, are no longer an affordability product but are instead targeted at higher-credit, higher-income borrowers who must qualify at the terminal rate, making them attractive to banks for relationship banking and cross-selling. Historically, ARMs accounted for about 11 percent of Agency issuance in the early 2000s but fell to less than 1 percent during the QE era as the curve flattened; that share has already risen to 1.7 percent this year as the curve steepened to its most pronounced level since early 2022. Looking ahead, further Fed cuts from rising unemployment, combined with persistent large federal deficits that pressure long-end Treasury yields, could drive additional curve steepening, reinforcing the case for higher ARM issuance in 2026 even if total Agency supply remains relatively unchanged.

Though 2025 draws to a close for traders with an early 2pm ET SIFMA recommended close later today, we do receive some data: initial jobless claims (199k, much less than expected) and continued jobless claims (1.866 million, also lower than expected) are already out; later today brings some short-duration Treasury auctions and Freddie Mac’s Primary Mortgage Market Survey. We begin the last day of 2025 with Agency MBS prices roughly unchanged from Tuesday’s close, the 2-year yielding 3.46, and the 10-year yielding 4.14 after closing Tuesday at 4.13 percent.