Hedging, Corresp. and Broker, Servicing, Quality Management, Fraud Prevention Products
While rumors swirl that Jerome Powell is paying his own legal bills while dealing with the DOJ, and the Administration is ruminating on using 401(k) or 529 funds to buy a home, in the land of “concrete news” the office-to-apartment and condo conversion trend is accelerating, with the number of units repurposed from office buildings more than tripling since 2022 and the conversion pipeline expanding by 28 percent between 2024 and 2025. Do you have the loan products for them? The total pipeline has now reached 70,700 units, with major metros like New York (8,310 units), Washington, D.C. (6,533 units), and Los Angeles (4,388 units) leading the way. Notably, office-to-apartment projects account for large shares of projects in places like Omaha (85 percent), Dallas (79 percent), and Minneapolis (78 percent). There is a growing shift toward repurposing newer office spaces built between the 1990s and 2010s. Office conversions now make up 42 percent of all future adaptive reuse apartments, up from 38 percent in 2024, and nearly 15 percent of office buildings nationwide are deemed viable for transformation. (Today’s podcast can be found here and this week’s are sponsored by Figure. Take advantage of Figure’s technology and products like its fixed HELOC, DSCR loan, piggyback loan, and direct debt paydown, helping you serve more of your existing network and expand into new markets. Hear an interview with Worthy Performance Group’s Laura Lasher on why many lenders will fail to capitalize on a rate-driven rebound, what truly differentiates winning loan officers, how competitive dynamics have shifted toward larger institutions, which training investments genuinely improve performance, and the warning signs that signal an organization is unprepared for the next market cycle.)
Products, Services, and Software for Brokers and Lenders
“Assets Grow on Units. Not Spreadsheets. If you’re a subservicer, you already know the problem: growing units under management is hard, slow, and usually involves too many emails, too many files, and not enough certainty. Black Lake’s Servicing Conduit Technology fixes that with a platform that is built for subservicers, investors aggregating assets, and originators seeking liquidity, without chaos. Boards loans from any LOS, across any asset type, with no custom integrations or manual re-keying. Assets move from seller to servicing in hours, not weeks, while data and documents stay aligned from day one. A live, dynamic order book connects originators looking to move assets, investors looking to acquire, and servicers ready to absorb them, adjusting automatically as pricing, eligibility, and allocations change. No reboarding. No stalled transfers. No “who owns this file?” conversations. Less manual work. Fewer surprises. More assets under management. Contact: info@blacklakeinvestments.com or book a demo to learn more.”
FundingShield, the leader in wire & title fraud prevention, released its Q4-2025 report showing 46.05% of transactions across a $100.5+ billion portfolio were flagged for risk, marking an all-time high of 3.2 issues per loan. CPL discrepancies impacted 48.78% of transactions, wire instruction defects persisted in 8.91%, and licensing irregularities surged 58% quarter-over-quarter. “As regulatory pressure mounts and cyber threats escalate, lenders are turning to FundingShield for real-time source-level validation and remediation in closing agent vetting, title diligence, and wire fraud prevention,” said Ike Suri, CEO of FundingShield. “Our embedded solutions help institutions pass audits such as Fannie’s MORA, private credit investor reviews while also reducing fraud exposure, and maintaining transaction integrity without disrupting workflows. With new privacy regulations, increased fraud and refinancing activity expected to accelerate, proactive verification is no longer optional—it’s essential.” Contact Sales@fundingshield.com for demos or trials. Meet us at MISMO Winter Summit, MBA CREF San Diego, AAPL Vegas, NPLA Miami, Geraci Conference, ICE Experience 2026, SFIG Vegas.
As we head into 2026, many lenders are feeling the pressure. Legacy appraisal workflows, increasing data demands and heightened scrutiny are colliding at a time when speed and reliability matter more than ever. The shift to UAD 3.6 is a clear signal: static forms are out, and modern, data-driven processes are in. Find out what’s coming next for valuations and how to prepare. Class Valuation breaks down the trends shaping 2026 and the practical steps lenders can take now. From modern appraisal workflows to upstream quality control and AI-assisted insights, discover how to stay ahead and turn change into growth opportunities. With the new year underway, preparation for what’s next matters. Here's what lenders can expect in 2026.
ACES Quality Management Grows Audit Volume and Market Share, Advances AI Innovation, and Industry Leadership in 2025. ACES Quality Management® continued to support its customers through a challenging mortgage market in 2025 by sustaining audit scale, advancing AI-driven quality control innovation, and delivering trusted regulatory and defect trend insight. There are other notable achievements. ACES conducted more than 8.6 million quality focused audits. It grew client base by adding top 20 credit unions, Top 20 international banks, and leading service providers. ACES made nearly 21,000 changes to the ACES Managed Questionnaires. It launched ACES Intelligence™, the mortgage industry’s first AI-powered quality control engine, enabling natural-language loan selection, automated exception writing, executive audit summaries and real-time PII detection to significantly reduce manual review time. ACES launched the I Stand for Quality” movement, which promotes a shared commitment to elevating lending standards across the mortgage industry and earned 4 industry awards. Read the full press release.
Will the housing market turn around in 2026, or does it hold the same concerns from the past few years? While no one has a crystal ball, it’s clear that servicers will face persistent challenges, including mounting pressures to retain borrowers in an increasingly crowded market. To succeed this year, servicers need an advanced technology platform that unlocks the power of data-driven decision-making. ICE’s best-in-class MSP loan servicing system can help servicers drive efficiency, enhance engagement, and meet evolving demands. Dana Federspiel, senior director of product strategy at ICE Mortgage Technology, penned an article for the Chrisman Commentary on the challenges servicers can expect to face and how organizations can set themselves up for success. Read the article now to learn more.
On today’s The Big Picture at 3PM ET, Rich and I sit down with Ron Leonhardt for a wide-ranging conversation on CrossCountry Mortgage’s growth, the strategic choices behind its scale, and how leadership is thinking about competition in today’s consolidated purchase market. They also dig into servicing strategy, the evolving credit scoring landscape, the future of the GSEs, and what lenders should be prioritizing now to position for the next phase of the cycle.
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.
Correspondent and Wholesale Product News
Renovation lending is one of the biggest untapped opportunities in today’s mortgage market, and brokers who know how to use it are closing deals others can’t. TPO Go is hosting a live renovation lending webinar designed to show originators how to confidently structure and close FHA 203(k), HomeStyle, Choice Reno, VA, and USDA renovation loans without the usual headaches. Learn how to turn fixer-uppers into closed loans, overcome common renovation obstacles, and position yourself as the go-to resource for buyers and referral partners. This training also highlights how in-house disbursements and dedicated renovation support can streamline the process and protect your pipeline. If you’re looking to win more business and expand your offerings in 2026, this is a session you won’t want to miss. Join TPO Go January 22, at 2PM EST.
Affordability remains the dominant constraint in today’s purchase market, particularly for payment-sensitive buyers navigating elevated rates and cash-to-close hurdles. Lenders that can offer flexible, builder-aligned solutions are gaining ground. Click n’ Close’s SmartBuy FHA 5/1 ARM with Down Payment Assistance is built for this environment. The program pairs a competitive introductory FHA 5/1 ARM with a repayable DPA second that can be used toward down payment, closing costs, prepaids, or a rate buydown. The result is lower upfront friction and more approachable initial payments, without added operational complexity. First-lien ARM rates start in the 4’s, with final pricing scenario-specific and subject to change based on credit, program parameters, and market conditions. Designed to support lenders, builders, and production teams alike, SmartBuy helps convert hesitation into action and keep purchase pipelines moving. To learn more, connect with your Click n’ Close Correspondent Account Executive.
“A new year brings a renewed focus and exciting enhancements at Newrez Correspondent. In addition to adding Texas Section 50(a)(6) loans to our Smart Series program and improving our Smart Series Bank Statement review process (log on to view our tutorial or contact your RSM), we’re continuing to invest in enhancements that expand flexibility within our Non-QM Smart Series portfolio. Soon, we’ll recognize certain crypto assets for asset verification and income estimation, without requiring liquidation, giving borrowers more options and partners a competitive edge. To learn more and discuss ways to strengthen your partnership with your trusted advisor, Newrez Correspondent, please meet us at one of the upcoming conferences: MBA® Independent Mortgage Bankers Conference – Feb 2-4 at The Ritz Carlton Amelia Island, FL (Scott Smedley, Kyle Lybrand, Tom Van Auken), and Tri State Mortgage Conference – Feb 5–6 at The Venue at Portwalk Place, Portsmouth, NH (Amanda Johnson, Chris Nobile). Thank you for your continued support… We look forward to your partnership in 2026!”
Introducing APB Wholesale’s One-Time Close Construction Loans, including a DSCR option! Our One-Time Close programs offer both full-doc and alt-doc solutions for aspiring homeowners and investors. Borrowers can finance construction and permanent financing in a single closing, eliminating the need for multiple loans, excess paperwork, and traditional income documentation. Loan amounts are available up to $2MM for DSCR and $3.5MM for full-doc and alt-doc. Programs can be applied to either new construction or major rehab of an existing building, and they cover a wide range of property types, including multi-unit! Supported by APB Wholesale’s dedicated construction loan department, this program helps your borrowers move from foundation to finish with confidence, closing once and building smarter. Become an Approved Broker to Get Started. Visit apbwholesale.com. APB Wholesale is the wholesale arm of American Pride Bank’s mortgage division. Equal Housing Lender. For industry professionals only. Not intended or directed at consumers. NMLS #402598
AmeriHome isn’t wasting any time and is full speed ahead into 2026. Don’t miss AmeriHome’s first quarterly webinar of 2026 with Freddie Mac on Wednesday, 1/21 at 10am PST! Join AmeriHome’s Managing Director & Chief Production Officer Steve Kolker as he moderates a discussion with Freddie Mac Deputy Chief Economist, Leonard Kiefer. They will explore Freddie Mac’s economic forecast and share insights on industry trends, affordability, and much more. Come ready with questions for the live Q&A session: secure your spot by registering here! They recently enhanced their Non-QM Guidelines so connect with your sales rep to hear about the updates. With growth expected in all product lines in 2026, they continue to look for senior underwriting leadership: click here for details. Don’t miss them in February at the IMB Conference, MCT Exchange, and TMBA Southern Secondary! Check here to see where they’ll be throughout 2026, find your sales rep here, and follow AmeriHome Correspondent on LinkedIn to stay in the loop!
Capital Markets
Join MCT for the first public edition of the MCTlive! Release Notes Webinar on January 29 at 10:00 a.m. PT. This live session will provide an inside look at the Q4 2025 MCTlive! technology releases, featuring new capabilities designed to improve efficiency, visibility, and automation across secondary marketing operations. Moderated by Steve Pawlowski, Managing Director and Head of Technology Solutions at MCT, the webinar will include live demonstrations and expert insights on how the latest enhancements improve mortgage pipeline management. Attendees will gain a clearer understanding of how MCTlive! continues to innovate to support more confident execution and smarter decision-making in today’s mortgage market. Register for the webinar to learn about using the new enhancements within the platform from industry experts.
Markets are dealing with a lot of uncertainty, including rising tensions in Iran that have pushed oil prices higher, and the unknown timing of a Supreme Court ruling on Trump’s tariff authority, both of which increase headline risk. Even if a SCOTUS court decision initially pushes bond yields higher by refocusing attention on deficits and Treasury supply, that move would likely fade without stronger support from economic data or a clearly more hawkish Fed. For now, yields are (still) stuck in a range, with investors showing little conviction in either direction and waiting for clearer evidence that the balance of risks has truly changed.
We learned yesterday that retail sales increased 0.6 percent month-over-month in November (higher than expected after a cool October), the delayed November PPI report came in as expected at 0.2 percent month-over-month while core PPI was unchanged (coming in below expectations). Coupled with December’s jobs report showing weak hiring but stronger wages and Core CPI coming in slightly cooler than expected with little impact on rates earlier this week, the policy outlook remains materially unchanged as the FOMC is still seen skipping a cut later this month and revisiting the prospects of a move in mid-March. The political pressure on Fed independence has certainly complicated the FOMC’s calculus, same for market participants attempting to interpret the Fed’s evolving reaction function to the realized data.
U.S. mortgage rates fell to one of their lowest levels in years last week, with the 30-year rate dropping to 6.18 percent, sparking a surge in both purchase and refinancing activity. The decline supports recent data showing improving new-home sales and offers modest relief to a housing market strained by affordability challenges. Accordingly, existing home sales rose 5.1 percent in December to a 4.35 million annual pace, as unseasonably strong listings brought buyers off of the sidelines. Single-family sales hit their highest level since 2023, but the pickup in activity reduced inventory, with single-family months’ supply falling to 3.3 months. Price growth remained muted at just 0.2 percent year-over year-masking regional differences. Sales should continue improving in the near term, but the overall pace of housing activity is likely to remain subdued.
Even with mortgage rates near current levels and the GSEs directed to purchase $200 billion in agency MBS, overall prepayment activity remains subdued relative to historical norms, with only 13 percent of the conventional 30-year universe showing meaningful rate incentive as of the end of 2025. An analysis of Fannie Mae 30-year and 15-year pools by coupon, servicer, and loan age shows wide dispersion in servicing behavior, with Rocket/Quicken consistently leading prepayment speeds across most coupons and early loan ages, followed by Freedom and Two Harbors, while Onslow Bay, CrossCountry, Lakeview, and Idaho HFA frequently ranking among the slowest. Faster speeds are most concentrated in mid-WALA buckets, particularly 18–30 months, where NewRez and Rate stand out, highlighting that even in a generally muted prepayment environment, servicer behavior and loan seasoning continue to meaningfully influence outcomes across the MBS universe.
There is a solid amount of Ginnie Mae II ARM activity in the market, with January issuance running slightly below October levels but still healthy, and desks seeing more borrower and issuer interest in pricing, pooling, and execution. Most of the volume comes from 5/1 ARMs, split between a higher-coupon refinance-heavy pool and a lower-coupon purchase-focused pool with strong builder involvement, and issuers continue to benefit from flexible pooling rules for VA cash-out ARMs. Overall, ARM demand is expected to stay strong as borrowers look for more affordable options, while broader MBS trading has been fairly calm, with limited rate movement, steady hedge activity, and little repricing as markets wait on upcoming economic data.
Today’s economic calendar kicked off with Empire and Philadelphia Fed manufacturing for January (12.6), previously delayed import/export prices for October and November, and weekly jobless claims (198k, less than expected; continuing claims 1.88 million). Later today brings Freddie Mac’s Primary Mortgage Market Survey, Treasury announcing the auction sizes for reopened 20-year bonds and new 10-year TIPS before conducting a buyback in 7-year to 10-year coupons for up to $4 billion, and remarks from four Fed speakers. Earnings also continue from Wall Street. We begin Thursday with Agency MBS prices slightly lower than Wednesday, the 2-year yielding 3.55, and the 10-year yielding 4.16 after closing yesterday at 4.14 percent.