Hedging, Accounting, Verification, Jumbo, Workflow Tools; In-Person Events
Thank you to the folks who wrote to me about their concerns with the Reno fire, knowing my ties there (my place is safe). On a broader scale, as of August 24, the United States has had nearly 51,000 wildfires, blazes that have burned over 7.8 million acres, a concern of everyone including lenders and servicers. It’s not your imagination that it’s a lot: Compared to the 10-year average, the number of fires is 129 percent of normal, and the acres burned is 168 percent of typical. Last year over the same period, there were just 45,331 fires and 4,065,073 acres burned. Water can equally be a concern: Some 129 million people (nearly 40 percent of the U.S. population) live in coastal counties. Recent research shows that a rise in sea level driven by humans has increased the frequency of extreme coastal flooding around the world, also a concern to lenders and servicers. Here’s what’s Florida is doing. Florida’s traditional appeal as a retirement destination is being eroded by rapidly rising housing costs and inflation (South Florida’s CPI has climbed 36 percent since 2019), while homeowners insurance premiums remain more than twice the national average, making the state increasingly expensive for retirees. (Today’s podcast can be found here. This week’s ‘casts are sponsored by Experian. From lenders and landlords to employers and consumers, Experian helps connect the housing ecosystem with the data and insights needed to make faster, confident decisions. Lead a smarter housing journey with Experian. Today’s has an interview with MIAC’s Dan Libby on the long-term drivers of MSR value, portfolio construction, and hedging effectiveness.)
Broker and Lender Products, Software, and Services
What if every capital markets decision carried seamlessly from pricing to execution? Lenders face constant pressure to protect margins, improve efficiency, and react quickly to changing market conditions, but disconnected systems can create costly gaps. Optimal Blue brings together its industry-leading PPE and CompassEdge platform in a connected workflow that helps align pricing, hedging, trading, and loan sale execution. Powered by real-time data, automation, AI, and decades of market expertise, the Optimal Blue® PPE helps lenders improve pricing accuracy, gain deeper visibility into performance, and make more confident decisions across the loan life cycle. An independent MarketWise Advisors study found lenders achieved more than $1,000 in efficiency gains per loan. With CompassEdge, teams can turn insight into action with greater consistency and control. Explore what measurable impact looks like and learn how a connected capital markets ecosystem can help your team optimize every opportunity.
Following regulatory guidelines is one of the most complex parts of servicing loans and the process becomes even more challenging when changes occur. To meet these evolving requirements and avoid potentially severe negative consequences, servicers need technology that keeps compliance at the forefront. ICE proactively develops and deploys enhancements to the MSP® servicing system so clients have time to implement, test and prepare ahead of deadlines. Click here to learn how ICE helps servicers manage their regulatory obligations with confidence.
“Citi Correspondent Lending remains committed to fostering opportunities that empower our sellers to grow their business and expand our collective market reach. We're excited to share additional enhancements designed to support your success! Building on the Non-Agency Jumbo increased loan amounts and expanded cash-out limits for refinances introduced in January, we are pleased to announce the rollout of new Interest Only product options within this program. These updates provide even greater flexibility and choice for your borrowers. We encourage you to connect with your Account Executive to explore how these latest updates, alongside Citi’s comprehensive suite of lending solutions, can benefit both you and your borrowers. New clients are always welcome to complete our questionnaire to get started. We are also eagerly anticipating the Annual MBA conference in October and look forward to connecting with you there!”
“Elevate your accounting function today! As an independent mortgage bank or broker, your focus should be on growth, not accounting headaches. Whether you have no accounting expertise in-house or you have a new team with no mortgage experience, you can lean on the Richey May team for the support you need. This team is stacked with mortgage industry experts who can tailor your solution to meet your most pressing needs with no training needed. Need help transitioning to loan-level accounting? Need a fully outsourced function? You got it! Need industry training for your controller? We can do that. Contact Richey May today to get started on the solution that fits your business.”
Affordability pressure doesn't disappear when the loan closes. It comes back later as repurchase risk. Your borrowers are stretched, leaving less room for errors in the file. Truework, a Checkr company, verifies income, employment, and assets before you close, replacing error-prone processes with fast, automated reports pulled directly from sources. Lenders see up to 50 percent cost savings on verifications, with faster turn times and higher accuracy. Learn more.
Chrisman Demo Day is a free perk for all Chrisman Marketplace members. If you're a technology or service provider and haven't joined the Marketplace yet, reach out to Jake Perkins at info@chrismancommentary.com to learn more.
The Chrisman Marketplace is a centralized hub for vendors and service providers across the 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.
Webcasts Coming Up
All from the comfort of your living room’s La-Z-Boy or office!
The Big Picture is today at noon, PT. Mitch Kider and Rob Chrisman are joined by John Dingeman, Chief Appraiser at Class Valuation, for a conversation on the evolving appraisal landscape. The discussion explores valuation modernization, emerging technologies, regulatory developments, and the trends shaping how lenders assess collateral risk and improve efficiency across the mortgage process.
Last Word is tomorrow at 10AM PT. Brian Vieaux (coming off the big MISMO event), Kevin Peranio, Christy Soukhamneut, and Coby Hakalir break down the week's biggest market signals, agency developments, and industry storylines. The discussion focuses on what the industry got right, what it missed, and what lenders should be watching next.
Planning Your Mortgage Travel for 2026 and Into 2027
A good place for longer-term conference planning and for organizers to post their events is to start is here for in-person events in the future. Book those flights in advance… they’re not cheap and have been going up given the war in the Middle East. Lenders and vendors are casting a critical eye on ROI (return on investment) given how much it costs to send an individual thousands of miles away, week after week.
In September we have, in Hood River, Oregon, the PNMLC yearly conference from 9/13-9/15.
In Dallas from 9/15-16, is the LoanVision Innovation conference with LoanVision recently rolling out its new AI tool.
Join mortgage industry professionals from across the Washington DC region on Thursday, September 17th at 9:00 AM – 4:30 PM EDT for a full day of timely insights, practical strategies, and valuable connections. The 2026 MBAMW Annual Conference will explore the economic outlook, client engagement, modern marketing, AI, and the importance of human connection in today’s evolving mortgage marketplace.
September 20 is the start of the yearly ACUMA conference, attracting credit unions and third-party providers from across the nation to Las Vegas.
From 9/21-9/23 the NY MBA conference is at the Rivers Casino & Resort in Schenectady NY, close to the Albany International Airport.
Compliance and Risk! From September 27-29 the MBA is hosting its annual conference.
10/4-10/6 in Ypslanti, near Detroit, the Michigan Mortgage Lenders Association is having its annual fete.
10/11-10/14 is the MBA “Annual”, this year in Chicago.
If technology is part of your world, MBA's Tech Exchange should be on your radar. AI. Innovation. Cybersecurity. The future of mortgage tech… The folks at MBA told me they are planning to pack it all into one high-energy day on October 14 in Chicago, right after the Annual Convention. They’re kicking things off with Zack Kass, former Head of Go-To-Market at OpenAI, and the day will be filled with practical, interactive sessions.
On 11/18, in St. Louis, we have the Mortgage Bankers Association of St. Louis annual luncheon, along with other events throughout the year, and on 11/19, in Kansas City, is the annual MBAKC luncheon. (Watch for details.)
The MBA offers up Accounting and Financial Management!
The MBA has announced the 2027 IMB Conference, set for January 25-27, once again in Florida, this time in Tampa.
Then there’s 2/1-2/3 Optimal Blue’s Summit in Scottsdale, 3/7-3/10, in Frisco, TX, L1’s Summit, 3/15-3/17 in Las Vegas, NV, ICE, 4/19-4/21 Great River, 5/16-5/19 in Chicago the MBA’s National Secondary, and MBAH in Honolulu June 15-17.
Capital Markets
When spec pay-ups shift, a lender has a window and a cost. Pass through too little and you price yourself out of the loan, pass through too much and margin is left on the table. And because a drop rarely announces itself, the loss often isn't seen until month-end. In MCT's new blog post, How Spec Pay-Up Changes Impact Front-End Pricing, Sarah Hellman, Director of Lender Analytics at MCT, breaks down the March 2026 spec pay-up drop-off as the ignition of the Iran War drove a broad risk-off shift and spec liquidity dried up first. With 53.72 percent of loan balance across MCT client pipelines falling into one or more spec stories, the post covers how pay-ups flow through to borrower pricing, where lenders get caught off guard, and how Lender Analytics Advanced surfaces spec trends, pipeline exposure, and peer pricing benchmarks to respond before the damage shows up on a P&L.
Meanwhile, investors are voicing concern over U.S. Treasury Secretary Scott Bessent's recent decision to increase long-term government debt purchases, fearing it could undermine the Federal Reserve's efforts to manage inflation. The move, aimed at lowering borrowing costs, has received criticism since it is price management rather than liquidity management. Bessent's expanded Treasury buyback plan is narrowing long-end swap spreads and boosting demand for bullish U.S. bond futures options as traders price in a policy backstop.
The move has eased yields and squeezed bearish positioning, though investors warn it does not address the deficits and debt supply driving structural pressure on long-term borrowing costs. Per Bessent, the U.S. Treasury will maintain its scheduled debt auctions despite doubling planned buybacks of longer-dated securities. Expanded repurchases of 10- to 30-year securities are intended to support market liquidity after yields approached two-decade highs. The first expanded buyback is scheduled for Sept. 10, while the Treasury has not disclosed how it will fund the purchases.
Dr. Elliot Eisenberg points out that, “There’s currently $31.5 trillion of U.S. Treasuries, of which $5.75 trillion have remaining maturity of 10+ years. The Fed already owns $1.6T, leaving $4.1T with a maturity of 10+ years that can be bought. In a market that big, buying only $2 billion more does not matter... In 2011 Bernanke did his own ‘Operation Twist’ which was initially worth $400 billion but wound up being $700B.”
“Caution” is a good word to describe what I’m currently seeing in the bond markets. Agency MBS and U.S. Treasuries gave back some of their recent gains yesterday as economic data showed a resilient economy without meaningful downside surprises. Persistent inflation remained a concern with headline PCE at 3.7 percent and core PCE at 3.3 percent year-over-year. Q2 GDP held at 1.5 percent, but upward revisions to consumer spending and core PCE, combined with stronger than expected durable goods orders, reinforced the view that economic momentum remains "firm." The selloff extended into the afternoon yesterday, as the $70 billion 5-year Treasury auction drew weaker demand than Tuesday’s 2-year sale, pushing 10-year and shorter-term yields to fresh highs.
Cautiously constructive also describes energy prices, which reflect optimism over Middle East diplomacy despite no definitive breakthrough. Markets are pricing in a more cautious (there's that motif again) Fed, pushing the 10-year Treasury yield back above 4.65 percent. Together with other signs of a July economic cooldown, recent data gives the Fed greater justification to remain on hold rather than raise rates, despite inflation remaining above target. Fed Chair Warsh heads to Jackson Hole with an opportunity to rebuild bond-market confidence by emphasizing the Fed’s commitment to restoring 2 percent inflation while avoiding explicit forward guidance.
Weekly Initial Claims (203k, about as expected), Continuing Claims (1.778 million), July advance International Trade Deficit ($1.118 billion), kicked off today’s economic calendar. Later today brings a Treasury auction of $44 billion 7-year notes, and the Fed’s economic symposium in Jackson Hole begins. After this volley of news, we find Agency MBS prices little changed from Wednesday’s close, the 2-year yielding 4.22, and the 10-year yielding 4.66, unchanged from yesterday’s close.