AI, CRM, Verification, DSCR, HELOC Products; Gov't Programs; Rates and Inflation, Borrower Psychology
The April FOMC Meeting concluded with the Fed leaving interest rates unchanged, and it was the last under Jerome Powell's chairmanship. Chair Powell is the first Fed Chairman to step down and remain on the Board since 1948 due to a) the Federal investigation regarding the cost of renovating the Fed's Headquarters, and b) he probably wants to have a voice in keeping the Fed independent from presidents. Kevin Warsh is slated to be the next Fed Chairman, taking the helm on May 15th, and at this point most expect no changes from Fed policy until 2027. (Today’s podcast can be found here and this week’s ‘casts are sponsored by nCino, and its Mortgage Suite that supports a modern homeownership journey. This week at nSight 2026, mortgage leaders will explore how AI, intelligent automation, and connected experiences are reshaping lending operations and borrower engagement. Hear an interview with nCino’s Chris Gufford on how AI is moving beyond hype to deliver measurable gains in mortgage operations, borrower experience, and loan officer productivity, while reshaping how forward-looking lenders reengineer their processes for the next phase of industry transformation.)
Lender and Broker Products, Software, and Services
A tailored suit fits because it was designed for you, not handed to you off the rack. Floify takes the same approach to the mortgage POS: configurable to how you actually lend, so LOs do more with less because the intelligence is already inside. Your loan types? Configured without code, no dev queue, no vendor delay. Built in. Your borrower data? Extracted, validated and pre-filled before an LO ever touches the file. Built in. Your workflows? Moving loans forward automatically, no manual nudges required. Built in. The result is an 84 percent increase in efficiency and loans reach clear-to-close 7.5 days faster across any loan type your team can dream up. Is your POS tailored for you, or are you the one making alterations to fit it? See it live. Your way. Built in. Ready when you are.
Flagstar Bank: Investment-grade strength and specialized solutions! Flagstar’s market position is stronger than ever. Recently, both Fitch and Moody’s upgraded Flagstar to investment-grade status, reflecting the bank’s strengthened operating performance and financial stability. Flagstar is committed to helping lenders and borrowers succeed. Their experienced Specialized Mortgage Banking Solutions team delivers tailored treasury management, competitive deposit pricing, and reliable guidance to a range of clients, including mortgage originators, servicers, private equity firms, and hedge funds. Additionally, Flagstar Corporate Connect online platform offers 24/7 access to remote deposits, sweep accounts, controlled disbursements, and information reporting to safeguard funds and enhance efficiency. The SMBS team welcomes the opportunity to connect. Team members will be onsite for the CREFC Annual Conference in New York June 8–10. Schedule a meeting to explore ways to enhance the borrower experience, improve cash flow visibility, and support business growth. Flagstar is ready to move your business forward. Contact: Hermine Chorekchyan or Andrew Konopka.
“DCSRs: Do you really need one? At Symmetry, we get regular calls for DSCR inquiries hoping to qualify borrowers based on the income of their properties. Curiosity got the better of us. We began asking more questions and found that certain borrowers have the assets to qualify for Symmetry HELOCs! Symmetry has two main options to help borrowers qualify. Using Asset Depletion, we take 90 percent of the net IRA or 401K value and divide by 360. For borrowers 59½ and older, we use 100 percent of the net value. Certain FNMA Selling Guide limitations do not apply, and you can add back stocks and bonds that are not in qualified plans. This can make a huge difference if people are close to qualifying and have a sufficient sized 401k or IRA. With Asset Distribution, we don't need to see distribution payments hit their bank statement. We just need the Distribution Letter and proof of 3 years continuance. Call your Area Manager today with questions or scenarios! Symmetry Lending.”
Less back-and-forth. More first-time-right verifications. Truework replaces manual verification waterfalls with a single automated platform, so underwriters, LOs, and ops can cut down the document chasing, conflicting numbers, and last-minute corrections. Lenders see up to 50 percent cost savings on verifications, with faster turn times, higher accuracy, and stronger R&W relief. Trusted by top lenders in the U.S., Truework gives your team verification results they can rely on. Learn more.
“Headed to MBA’s Secondary & Capital Markets Conference? So are we, and we’re bringing more than business cards. Arrive Home and Mountain West Financial are helping lenders unlock more approvals, more options, and more momentum. Whether it’s down payment assistance or fresh paths to homeownership, our programs are built to help you say “yes” a little more often. Grab time with Matt Pettit and Shawn King while you’re there… We promise a conversation worth having (and maybe your next best product idea).”
“Does Your Tech Partner Pick Up the Phone? Automation is reshaping lending, but live human support remains a true differentiator. Originators know the frustration of delayed tickets, generic responses, or help desks unfamiliar with mortgage workflows. One thing that sets Usherpa apart from other CRMs, and something we consistently cited by clients, is responsive support from people who understand mortgage. Fast support still matters. Usherpa gives loan officers access to live help by phone or email, with most tickets resolved in under an hour every day. Technology should accelerate relationships, not create distance between lenders and borrowers. In a market where responsiveness matters, having a partner who answers the phone still counts. As lenders reassess technology partners, service models deserve a closer look. See how Usherpa combines automation with real support and experience the difference.”
GO Mortgage today announced the launch of its Third-Party Origination (TPO) channel, introducing a wholesale platform “designed to directly challenge the legacy systems and operating models that have long defined the broker channel.” Rob Saunders has been named Executive Vice President of TPO Production. Congratulations!
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.
AI Products are Changing Procedures
AI is no longer a pilot project - it’s a leadership decision. Mortgage lenders are facing rising costs, declining productivity, and increasing operational complexity, yet most organizations are still stuck experimenting with fragmented AI tools. Join JazzX AI CEO Siddhartha Agarwal and Pulte President & CEO Eric Hart for a live conversation on Thursday, May 21st at 2PM ET/11AM PT covering what it actually takes to move from AI pilots to enterprise-scale impact, without replacing your core systems. Save your spot today.
“MortgageFlex: AI Innovation with Workflow Guardrails! The mortgage industry is rapidly embracing agentic AI, but execution without control introduces material risk. At MortgageFlex, our strategy is simple: AI thinks, workflows decide, and the LOS executes. At MortgageFlex, we’re actively building agentic AI, autonomous agents that can reason and recommend actions. But just because an AI agent can act doesn’t mean it should act unsupervised. Every recommendation flows through guardrails of workflows and explicit approvals, so no AI operates unchecked. We always know exactly what each agent is doing, and nothing happens without oversight and sign-off. In a regulated mortgage environment, that kind of controlled autonomy lets us embrace innovation without inviting risk. The future of AI in lending won’t be defined by who automates the fastest, but by who embeds accountability and auditable governance into every AI-driven decision. Contact John McCrea, CRO to learn more.”
AI-driven fraud is growing at 32 percent annually, and the documents arriving in your pipeline aren't looking suspicious anymore… they're looking flawless. For credit unions, the stakes are personal. These aren't just applicants; they're members. If your worried about AI risk to your loans, it is time to fight fire with fire. Excel spreadsheets and manual reviews weren't built for this fight. AuditGenius from Indecomm brings AI-powered intelligence to the QC process, surfacing anomalies, documenting findings, and giving credit union mortgage teams the defensible, auditable oversight regulators now require. It's the difference between a QC program that looks thorough and one that actually is. Your members trust you with their financial lives. Your governance board needs to know that trust is protected. See what AuditGenius can do for your credit union: indecomm.net.
Kristin A. Bickenbach on Rethinking Assumptions
As the mortgage industry slowly shifts from “waiting for rates to fall” to figuring out how to operate in the market that actually exists, New American Funding's Kristin Ankeny Bickenbach argues a deeper recalibration is underway. She explores why volatility, non-QM expansion, execution discipline, and rising operational costs are forcing lenders to rethink assumptions that once defined the business, and why the firms adapting fastest may emerge strongest from this cycle. Worth the full read.
Government Product Lending News
Whether they are 10 or 20 or 30 percent of applications, what happens with government programs matters. Who’s doing what?
Did you know that the VA has a construction loan program? Of course you did.
VA: VA Home Loan: The Right Way to Get Started | IRRRL | VA Loan vs Conventional vs FHA | theSITREP
FHA issued a lender reminder of its requirements regarding initial occupancy verification and borrower contact methods for mortgages in default. Mortgagees are encouraged to review Sections III.A.2.g.ix.(B); III.A.2.r.iii(B); IV.A.2.a.ii(D)(2); IV.A.2.b.i(B)(1); IV.A.2.b.ii(B)(1); IIV.A.2.d.ii(B); and IV.A.2.e.ii(A)(2) of Handbook 4000.1 for the full policy.
Ginnie Mae’s mortgage-backed securities (MBS) portfolio outstanding grew to $2.91 trillion as of March 2026. In addition, Ginnie Mae issued $46.1 billion in total MBS, resulting in net portfolio growth of $4.16 billion. Ginnie Mae facilitated the pooling and securitization of more than 150,000 loans for first-time homebuyers’ year to date. View the full press release for details.
On March 31, 2026, USDA published a proposed rule in the Federal Register to amend the Single-Family Housing Guaranteed Loan Program (SFHGLP) regulation to permit the financing of a single-family home with income producing Accessory Dwelling Units. Subsequently, the rule proposes to clarify that borrowers may finance properties with features designed to accommodate home-based operations with non-commercial real estate features. Public comments on the proposed rule must be submitted on or before June 1, 2026 via the Federal eRulemaking Portal located at www.regulations.gov.
Pennymac announced enhancements and clarifications to their FHA Streamline Refinance product offering. The product profile has also been revised for improved client experience, which includes the reorganization and removal of selected sections and guidance. New policy updates are effective for loan applications dated on or after March 31, 2026. View Announcement 26-32 for more information.
Capital Markets
We are increasingly being forced to confront the possibility that post-pandemic inflation may prove far more durable than policymakers and investors previously anticipated. U.S. Treasury yields continued climbing yesterday, pushing the 30-year yield to its highest closing level in nearly a year, while shorter maturities also approached multi-month highs.
It was the usual, recent culprits converging: rising energy prices, persistent inflation pressures, and more supply than demand for Treasury issuance. April’s CPI report did little to alleviate inflation fears: headline inflation rose 0.6 percent month-over-month and accelerated to 3.8 percent year over year, while core CPI increased 0.4 percent month-over-month and 2.8 percent annually (the highest since 2023), both remaining well above the Federal Reserve’s 2 percent target.
Although some investors continue to view portions of the inflation data, particularly shelter costs, as distorted by technical measurement issues, markets are becoming increasingly skeptical that inflationary pressures remain merely “transitory” or attributable to isolated shocks. Rising oil prices, tariffs, supply disruptions, and resilient consumer demand are instead reinforcing the perception that inflation has become more structurally embedded within the economy.
Fixed income markets are also being forced to absorb a wave of government debt issuance at a time when investor conviction around monetary policy remains limited. Yesterday’s $42 billion 10-year Treasury auction produced softer-than-expected demand and required Treasury to offer a yield noticeably above recent auction averages to attract buyers. While institutional and foreign participation remained reasonably solid, overall bidding was less aggressive. Put another way, there’s a lot of caution toward duration exposure amid persistent inflation uncertainty and rising fiscal supply.
We’re seeing similar pressures emerge globally: U.K. gilt yields have climbed to levels not seen since 2008 as markets price in expectations for looser fiscal policy, while Japanese government bond yields have also moved higher as energy-related supply disruptions complicate the Bank of Japan’s policy outlook. The synchronized rise in global sovereign yields is part of a broader repricing underway across fixed income markets, driven by growing doubts about how quickly central banks will be able to normalize policy. Investors currently see little likelihood of Federal Reserve rate cuts through at least mid-2027, and some market participants are beginning to acknowledge the possibility that future rate hikes cannot be entirely ruled out if inflation remains elevated and labor markets continue showing resilience.
Real wages after adjusting for inflation have declined for the first time in three years, a sign that higher prices are beginning to erode household purchasing power despite continued labor market strength. Small business optimism is low, with the NFIB index largely unchanged near historically soft levels, reflecting uncertainty surrounding costs, demand, and financing conditions. Fortunately, fiscal “dynamics” have shown modest improvement, as strong April tax receipts helped produce a sizable monthly Treasury surplus and narrow the year-to-date federal deficit relative to the prior year.
Fed Chair Powell’s repeated characterization of inflation as the result of successive “one-off” events has begun facing greater scrutiny as markets question whether repeated external shocks are becoming a defining structural feature of the modern economy rather than temporary anomalies. It’s a complicated path forward for monetary policy: Higher energy and food prices may eventually weaken discretionary spending and consumer confidence, but as long as employment conditions remain stable and inflation remains elevated, policymakers may have little flexibility to provide meaningful monetary relief.
Today’s economic calendar kicked off with mortgage applications from MBA, which rose 1.7 percent last week as purchase activity strengthened; the purchase index climbed 4 percent month-over-month from the prior week and ran 7 percent above year-ago levels, showing continued resilience in demand despite elevated borrowing costs (the average 30-year fixed mortgage rate increased to 6.46 percent, its highest level in five weeks). Refinancing activity slipped 1 percent week-over-week but remains 28 percent higher than a year ago.
After consumer prices yesterday printed above expectations, today we’ve received PPI (+1.4 percent, 3x expectations; +6 percent Y-o-Y) and core PPI (+5.2 percent Y-o-Y). Later today brings the (now-notable) weekly EIA petroleum status report, speeches from Minneapolis Fed President Kashkari, and Boston Fed President Collins, and the conclusion of Treasury’s quarterly refunding with a $25 billion 30-year bond auction. Post-PPI, we begin the day with Agency MBS prices are worse from Tuesday’s close by .125-.250, the 2-year yielding 4.00, and the 10-year yielding 4.49 after closing yesterday at 4.46 percent.