HELOC, DPA, U/W Fees Waived Products; Delinquencies Edge Higher; Conv. Conforming Changes
As the legal and proxy battles are waged among Two Harbors, UWM, and CrossCountry, today I head to New York for the MBA's Secondary & Capital Markets Conference. John Wooden said, “Failing to prepare is preparing to fail” and across the land, over a thousand people are avoiding failure by preparing, lining up sessions, meetings, and hallway chats, along with social events. Participants had better prepare for sticker shock: $30 cocktails. Several topics are dealing with the regulatory environment, and I received this note. “Rob, whatever happened to the confusion and lawsuits about funding the CFPB? Is the organization alive?” Good questions. Yes, it is alive, and, in general, that’s a good thing. For example, if LO comp regulations are changed, who else is going to do it? Each state? On the funding question, there was some lawsuit news you should know about. Specifically, in a decision that delivered a direct rejection of the Trump Administration’s CFPB plans, a federal judge has ruled that the Bureau must continue to request funds from the Federal Reserve Board. (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 after 9AM ET with Click n' Close’s Delores Lopes on the role of a COO in this technological age, as well as women in leadership roles.)
Lender and Broker Products, Software, and Services
“Today’s lenders are under pressure to move faster while navigating growing regulatory scrutiny, staffing constraints, and vendor complexity. First American Mortgage Solutions helps simplify the process with comprehensive residential and commercial valuation services designed to support modern lending operations. From interior and exterior appraisals and desktop appraisals to commercial evaluations, portfolio solutions and property site inspections, lenders gain one trusted national partner for their valuation needs. Our teams deliver consistent compliance alignment, transparent pricing, and structured workflows that help improve turnaround times and reduce operational friction between appraisal desks and lending teams. First American provides the scalability, reliability, and nationwide resources lenders need to keep business moving efficiently and confidently in today’s competitive market. Backed by experienced valuation professionals, our solutions help lenders streamline oversight and strengthen consistency. Click here to read more about First American’s residential and commercial valuations solutions.”
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.
“Brokers are our universe, and on Customer Appreciation Day, we’re showing our gratitude in a big way! On Friday, May 15th, Orion Lending is WAIVING UNDERWRITING FEES on all loans uploaded through the STAR Portal! To every broker who’s trusted us over the last decade, thank you for being part of our journey. Not approved yet? Now’s the time: get access today! Check out our proprietary DPA program: Boost Down Payment Assistance™ with Forgivable Seconds, Repayable Seconds, 1/0 and 2/1 Buydowns, and High Balance Options, PLUS our Elevate FHA & Conventional DPA Grant with no second lien and no repayment required. Looking for more flexibility with loan amounts up to $3.5MIL? How about Titan Flex Non-QM with 5 alternative income doc types, and our COIN DSCR series, including aggressive pricing and a Foreign National option! And we don’t just offer a great selection of Loan Products. Our easy-to-use STAR Broker Portal, on-demand Marketing Studio, and seasoned Underwriting team make Orion the lender to trust. Come see for yourself what the buzz is all about!”
“Essex Mortgage is a pioneer and consistent leader in Down Payment Assistance, offering unsurpassed customer service and reliable pricing. We pride ourselves on being a dependable partner for your long-term success and confidence in the DPA space. Our diverse program includes: 600 FICO options, 2-1 buydowns and special Builder programs. We offer 100 percent delegation for quick closings and flexible financing, including amortized second mortgages or a 3-year forgivable loan at a 0 percent interest rate. At Essex Mortgage, we are the real deal. Many have tried to imitate us, but no one has been able to duplicate our commitment to excellence. Join us at the MBA in New York or contact us here to partner with us today and see how you can expand your purchasing opportunities!”
“Headed to NYC for MBA Secondary? Figure is arriving with some serious momentum, fresh off a massive Q1, Figure hit $2.9B in originations, a staggering 113 percent YoY growth. Our blockchain-native infrastructure is delivering the margins and scale that legacy systems simply can’t match. We welcomed 80 new partners last quarter alone, and we’re looking for more. If you want a partner that is actively driving growth rather than just weathering the storm, let’s connect. Join us in NYC! Monday night, we’re taking over the Nasdaq MarketSite. Talk shop in the world’s most iconic financial hub and tour the SquawkBox studio. Catch us at the conference to discuss how we can help you scale. Email partners@figure.com to request your invite to our Nasdaq event or schedule a 1:1.”
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.
Servicers, Be Aware
With all the machinations going on in the upper levels of the servicing world, it is important to remember that individuals and families are involved. Granted, servicing is a great asset, but management has to be aware of the speed bumps along the way. The Mortgage Bankers Association checked in
“The delinquency rate for mortgage loans on one-to-four-unit residential properties increased to a seasonally adjusted rate of 4.44 percent of all loans outstanding at the end of the first quarter of 2026, according to the Mortgage Bankers Association’s (MBA) National Delinquency Survey.
“The delinquency rate was up 18 basis points from the fourth quarter of 2025 and up 40 basis points from one year ago. The percentage of loans on which foreclosure actions were started in the first quarter rose by 4 basis points to 0.24 percent.
“’Mortgage delinquencies increased on an annual basis, with conventional loan delinquencies relatively flat but with notable increases among FHA and VA loans,’ said Marina Walsh, CMB, MBA’s Vice President of Industry Analysis. ‘Last quarter, the delinquency rate for FHA loans was about 900 basis points higher than the conventional delinquency rate, and the VA delinquency rate was almost 225 basis points higher than the conventional delinquency rate. These are the widest spreads since 2021. We also saw movement of some delinquent FHA and VA loans into later stages of delinquency and into foreclosure. While the overall foreclosure rate remains well below historical averages, the first quarter’s foreclosure inventory rate for FHA loans reached its highest level since the fourth quarter of 2018, and the foreclosure rate for VA loans reached the highest level since the second quarter of 2017.’
“Walsh noted that results have been affected by the expiration of pandemic-era FHA relief options at the end of September 2025 and by the implementation of required trial payment plans, during which FHA loans are still considered delinquent for survey purposes until a permanent workout is in place. Meanwhile, the industry also awaits the final guidance and implementation of the VA partial claim program to help veterans avoid foreclosure by covering missed payments.”
Investors and Private MI Companies React to Agency Changes
Freddie and Fannie, with their lion’s share of applications, are still the “game to beat” volume-wise. So, when they say “jump” the industry replies, “How high?”. Who’s doing what out there as a result of Agency changes?
AmeriHome Mortgage announced that the requirement for self-employed borrower tax transcripts has been removed from its Fannie Mae, Freddie Mac, FHA, and VA program guides. In addition, they are expanding the eligible ARM margin ranges. See AmeriHome Product Announcement 20260408-CL for details.
Fannie Mae published LL-2026-03 and Freddie Mac published Bulletin 2026-C announcing Selling Guide policy changes addressing updates to project standards and property insurance requirements. AmeriHome Mortgage’s 20260410-CL Product Announcement describes these changes.
Newrez Correspondent announced that conventional product summaries have been updated to require a minimum credit score of 600 on loans where mortgage insurance (MI) is required. Effective immediately with all pipeline loans and new applications.
Pennymac is aligning with multiple GSE changes to condominium project standards as announced in Fannie Mae LL-2026-03 and Freddie Mac Bulletin 2026-C. These updates introduce targeted policy changes to provide greater flexibility and operational simplicity and are effective immediately. View Announcement 26-41 for more information.
Pennymac Announcement 26-36 describes its alignment with updates announced in Freddie Mac Bulletin 2026-3 that revises requirements for minimum indicator scores, income written analysis, and the treatment of employment offer contingencies. These updates are effective immediately and may be applied to loans in process.
Arch MI expanded its EZ DecisioningSM program to include certain single-wide manufactured homes and 2–4-unit manufactured homes that meet Fannie Mae MH Advantage® or Freddie Mac CHOICEHome® eligibility requirements.
National MI Announcement UW 2026-02 provides updates to the TrueGuide® including changes to Borrowers with Delinquency and/or Previously Paid Claims, Jumbo Loan NPRA Limit, Market Rental Rates, Property Flips plus language clarifications to specific sections that do not change requirements.
Capital Markets
Bond markets are becoming increasingly worried that inflation will stay elevated for longer, shifting expectations toward the Federal Reserve keeping interest rates higher for longer, or possibly even raising them again. The shift has pushed short-term Treasury yields above important psychological levels, such as 4 percent on the 2-year note. That shift is creating stress for mortgage-backed securities (MBS) because higher rate volatility makes mortgage cash flows harder to predict: when rates move sharply, homeowners refinance less, mortgage durations extend, and investors who hedge mortgage risk are forced to adjust positions in ways that can amplify market weakness. Investors are no longer willing to pay extra premiums (“payups”) for securities with favorable prepayment protection because the market increasingly believes rates will stay high enough that refinancing risk is already naturally suppressed.
Economic data released yesterday was largely in-line with expectations, as Retail Sales grew 0.5 percent in April, while Initial Claims rose back above the 200k mark. The focus now shifts to how the data evolves from here and whether these elevated levels have staying power.
Stephen I. Miran tendered his resignation Thursday as a member of the Federal Reserve Board, effective when or shortly before his successor on the Board is sworn in. He has been a member of the Board since September 16, 2025, when he took office to fill an unexpired term ending January 31, 2026. The move by Miran was expected, given his seat on the Fed’s Board of Governors will be taken by Warsh.
Servicing strategy, borrower mix, and loan seasoning are increasingly shaping cash-flow variability in MBS. April’s Ginnie Mae II 30-year prepayment report showed a broad moderation in mortgage speeds, with aggregate CPR falling 10 percent to 13.2 as refinancing activity cooled, particularly in higher coupons such as 5.0 percent and 5.5 percent, though lower-coupon loans like 1.5 percent still experienced modest acceleration. The data continues to highlight the structural divide between VA and FHA borrowers: VA loans prepaid materially faster (especially in higher coupons) because the VA streamline refinance program makes refinancing easier and more economical, whereas FHA borrowers remain comparatively stickier. Servicer behavior remains a major performance driver within the sector, with Rocket/Quicken consistently among the fastest-paying servicers across both VA and FHA pools, while institutions such as Guild, Idaho HFA, M&T Bank, and several regional or housing finance agency servicers tended to generate slower speeds,
Today’s economic calendar kicked off with the NY Empire State Manufacturing Index for May, which, compared to world oil prices, has virtually no impact on rates. Later today brings Industrial Production and Capacity Utilization for April. We begin the day with Agency MBS prices worse than Thursday’s close by .125-.250, the 2-year yielding 4.03, and the 10-year yielding 4.53 after closing yesterday at 4.46 percent.