Non-QM Underwriting, Settlement, QC, AI Processing Tools; Equity Products; Investor Updates
“My wife says I only have 2 faults. I don't listen, and something else…” Communication matters. How many LOs wear a pin out in public that says, “Business is great!” so strangers will ask them what business they’re in? Probably not many, but maybe it is worth a try to start a conversation? (On today’s The Big Picture, Chris Whalen will be having a conversation about the current market.) Speaking of “getting the word out,” with business having slowed somewhat many companies ae looking at their technology, and Chrisman Demo Day is today at 1PM ET. It is a fine, cost-effective way (free) for lenders to see and hear the latest from eight companies focused on verification, POS, LOS, U/W & decisioning, secondary marketing, customer experience, and recapture (servicing)… the journey of the borrower. It features 10-minute demos from Truework, MortgageFlex, nCino, Gateless, Agile Trading Technologies, TrustEngine, FirstClose, and Milo. Register here to watch. (To be featured in a future Demo Day contact Chrisman LLC COO Jake Perkins; there is no charge for Marketplace members.) (Today’s podcast can be found here. This week’s ‘casts are sponsored by FirstClose, which provides fintech solutions to HELOC and mortgage lenders nationwide. Their home equity lending platform accelerates the home equity lending process, reducing application-to-closing times from 45 days to less than ten. Today’s has an interview with Mortgage Nerd Group’s Denise Donoghue on how top brokers are leveraging technology and deciding where to broker loans.)
Broker and Lender Products, Software, and Services
Want to know what's driving mortgage capital markets? Last week's Optimal Insights Forum in Nashville delivered what industry leaders need now: market intelligence, candid peer discussions, and actionable strategies for navigating a rapidly evolving landscape. From economic outlooks and MSR trends to hedging optimization, AI, automation, and execution strategy, attendees gained firsthand insight into what's driving performance across the industry. Just as valuable were the conversations between peers facing the same challenges and opportunities in today's market. Events like Optimal Insights Forum are one of the many ways Optimal Blue helps clients stay ahead, connect with experts, and gain practical takeaways they can put into action immediately. If you weren't able to attend, there's still an opportunity to be part of the next big industry conversation. Early-bird pricing is now available for Optimal Blue Summit, where even more leaders, innovators, and decision-makers come together to shape what's next. Register today.
If you’re at Digital Mortgage in Las Vegas, join JazzXAI and Jay Promisco, CEO of Go Mortgage, for an onstage case study on Wednesday, September 16, at 1:25 p.m. The conversation will explore why successful AI adoption is ultimately a leadership challenge, and how forward-thinking lenders are building trust, preparing their teams, and creating cultures where people and AI work together to drive stronger business outcomes. Can’t make the session? Book a demo to see how JazzX helps lenders put AI into action.
ICE is already changing the way the mortgage industry runs with ICE Aurora, an enterprise AI solution designed to help lenders, servicers and real estate professionals move from manual, fragmented workflows to intelligent, connected processes. ICE Aurora brings AI-assisted capabilities across the loan lifecycle, from compliance and investor guideline lookups to document classification, loan data validation and AI voice and chat agents for borrowers. In alignment with its commitment to compliance management, ICE embeds governance, auditability and human oversight into AI-supported workflows to help support regulated business requirements and identify exceptions and inconsistencies that warrant human review. Click here to learn more about how ICE Aurora is helping transform mortgage workflows through responsible, transparent AI.
ACES Experts to Share Insights on AI, Quality, and Compliance. ACES Quality Management subject matter experts will take the stage at both the MBA Compliance & Risk Management Conference, Sept. 27–29 in Washington, D.C., and the America’s Credit Unions Lending Council Conference, Nov. 3–6 in Las Vegas, sharing insights on AI, mortgage quality, compliance, and the evolving QC landscape. From auditing AI vendors and navigating AI’s role in fraud and risk, to managing quality across the entire loan lifecycle, Team ACES will provide actionable strategies organizations can leverage as the industry continues to evolve. ACES will also serve as the Platinum Sponsor of MBA’s Opening General Session, which will feature CEO Trevor Gauthier alongside renowned fraud prevention expert Frank Abagnale. Learn more about our featured speakers, session topics, and schedule time to meet with team ACES.
The Fed just delivered a quarter-point hike, pushing the federal funds rate to 4.00 percent, and secondary desks are already repricing locks and hedges around the move. In MCT's case study, How Pilgrim Mortgage Turns Better Data Into Better Execution, Nick Whitten, VP of Secondary Marketing at Pilgrim Mortgage, explains how a 13-year MCT partnership, spanning solutions like Lock Desk, MCTlive!, and MCT Marketplace, gives him a clearer read on what's happening in the secondary market beyond what his LOS shows. That visibility lets him find hidden margin, an edge that matters more when rates are moving fast. As he puts it: "You're going to see the holes you have quickly, and MCT is going to help you fix them immediately." Sign up for MCT's Market Commentary to understand how moves like this week's hike ripple through pricing, hedge costs, and execution on the secondary desk.
Meet Covius Settlement Services, a different kind of origination title partner. Covius Settlement Services combines digital speed with hands-on service to accelerate origination from application to funding. Because we identify issues early, most of our preliminary title commitments are delivered within two business days. Our title curative team, composed of industry veterans, provides lenders with a high level of clear-to-close efficiency, and through our FlexClose™ relationship, disbursements can be confirmed in less than an hour. Backed by a nationwide notary network and real-time tracking technology, Covius Settlement Services reduces manual follow-ups and keeps borrowers, lenders and notaries connected every step of the way, allowing for 24/7 mobile and remote closings and same-day closings. See how Covius Settlement Services can accelerate your origination pipeline.
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.
What if non-QM eligibility was determined before underwriting began? Prudent AI has launched Upfront Eligibility, enabling non-QM lenders to determine borrower eligibility at the point of submission using verified credit, income, asset, and property data. The opportunity is bigger than speed. Lenders often spend significant underwriting effort on loans that never reach the closing table. Upfront Eligibility evaluates files against lender-specific investor guidelines before they enter underwriting, helping lenders eliminate wasted effort, lower origination costs, and focus resources on loans most likely to fund. Angel Oak Mortgage Solutions has rolled out the solution as part of its drive to move certainty earlier in the non-QM process. As President Tom Hutchens notes, “The best thing we can do is provide a no quickly. We don’t want to spend our resources and neither do our broker partners on loans that aren’t going to make it to the closing table.” Learn more here.
Equity and Non-Agency Products
The right HELOC borrower doesn't always come with a W-2. Self-employed and asset-based income borrowers often require a different path to qualification. That's why Quorum offers Bank Statement and Asset Depletion income options on both First and Second Lien HELOCs. With financing up to $750K, a 10-year draw period, a 20-year repayment term, and AVMs up to $400K, these programs give mortgage brokers more ways to meet borrower needs and close more business. Visit Quorum's Partner Site for program details or connect with an Account Executive to discuss your next HELOC opportunity.
Conference season is one of the best times of the year: a chance to reconnect, meet new people, and have meaningful conversations that keep our industry advancing. If you're looking for a non-QM lending partner worth getting to know, spend a few minutes with the team at Verus Mortgage Capital. Verus has built a reputation for dependable execution, responsive service, and a genuine commitment to helping TPO clients succeed, not just at conferences, but every day. The best business relationships are built on trust, communication, and delivery when it matters most. And that's exactly what Verus brings to the table. If you'll be attending Fuse 2026, the Colorado Mortgage Summit or MBA, stop by, introduce yourself, and see how Verus can help build momentum for your business. To schedule a meeting during the show, contact Mark Boleky, Head of Wholesale Sales, or call (763) 260-7956 today.
Investor and Lender News
Most servicing, investor, and lender changes can be bucketed into conventional conforming, government, and so on. Other changes can’t be bucketed… who’s making some changes out there?
United Wholesale Mortgage (UWM) announced the extension of Bullseye 90, its 90 basis points (bps) pricing incentive, and the removal of certain high balance LLPAs through October 30, giving more pricing power to brokers. “Originally announced in August 2026, Bullseye 90 provides brokers with a 90-bps incentive on one eligible purchase or refinance loan. The incentive has been extended through October 30 and now includes eligible jumbo loans, offering more flexibility to compete on higher loan amounts. Additional details about Bullseye 90 can be found here and high balance LLPA removal details can be found here.
Pennymac announced the expansion of eMortgage eligibility to include government loans for manufactured homes. This change is effective immediately. See Announcement 26-88 for more information.
DocMagic’s new guide, The Lender’s Guide to Delivering Investor-Ready eNotes, outlines practical steps you can take to ensure your digital notes meet investor requirements and deliver real business value.
To meet investor and regulatory requirements, beginning August 1, 2026, Newrez will require Newrez Correspondent clients to provide fraud prevention, detection and reporting policies and procedures as part of their annual recertification. Documentation should be uploaded via Comergence when prompted.
United Wholesale Mortgage (UWM) announced the most significant evolution of ChatUWM since its launch in 2024, transforming the AI-powered solution into a single intelligent hub where independent mortgage brokers can ask, discover and create, all within one conversation.
United Wholesale Mortgage announced the launch of the Mortgage Matchup plugin in ChatGPT, designed to connect borrowers with independent mortgage brokers across the country.
Plaza Home Mortgage® is one of the few investors in the industry offering dedicated document bundles built right into BREEZE, designed to streamline and simplify your closing process in ways most investors simply don't.
Newrez Correspondent reminds clients that their Tax Service Fee will be increasing from $80.00 to $85.00. This increase will be effective for all loans locked on or after September 1, 2026.
Capital Markets
The U.S. economy is driven by jobs and housing, so those stats are especially sought after by investors and economists. I mention this because the Mortgage Bankers Association (MBA) Builder Application Survey data for August 2026 shows mortgage applications for new home purchases decreased 5.5 percent from a year ago and decreased 6 percent from July. “Increasing mortgage rates continue to put pressure on new home sales activity. Applications to purchase newly constructed homes declined in August for the fifth straight month, with the level of applications down to its lowest in 2026,” said Joel Kan, CMB, MBA’s Vice President and Deputy Chief Economist.
The Federal Open Market Committee’s (FOMC) unanimous 25-basis point hike, resulting in a range of 3.75 percent to 4.00 percent, was anticipated. The more important takeaway is the Fed’s willingness to continue tightening: 16 of 18 policymakers now see at least one additional hike in 2026, with the median policy rate rising to 4.125 percent.
The post-meeting statement’s limited changes emphasized resilient domestic spending, strong productivity, and robust capital investment alongside inflation that remains elevated (and potentially more persistent). Upward revisions to 2026 GDP (2.3 percent), core PCE (3.4 percent), headline PCE (3.7 percent), and the long-run policy rate (3.25 percent, the highest since 2016), combined with the removal of language attributing inflation partly to supply shocks and energy, reinforce the higher-for-longer narrative, even as rates are projected to stabilize in 2027 and ease modestly in 2028. The big question mark remains: how much additional tightening is coming from the Fed? Following yesterday’s Fed hike, Agency MBS and Treasuries had a mixed session. Front-end securities such as ARM-related assets underperformed while the long end remained relatively resilient as markets focused on the prospect of further tightening. With Treasury yields already near local highs and much of the Fed’s hawkish path priced in, the immediate market reaction was muted. However, the combination of stronger-than-expected retail sales, upwardly revised 2026 GDP and inflation forecasts, and a 4.125 percent median year-end fed funds rate helped to set expectations for potentially one to two additional hikes. The October and December meetings, the distribution of Fed projections, and any indication of a higher neutral rate will be key for duration. Elevated mortgage rates continue to weigh on housing and could keep longer-term borrowing costs high even as the tightening cycle nears its end. August data pointed to a notably resilient U.S. consumer, with retail sales rising 1.2 percent month-over-month to a five-month high versus 0.9 percent expected. Sales excluding autos jumped 1.4 percent versus 0.5 percent expected, while core sales (excluding autos, gasoline, building materials, and food services) also increased 1.4 percent, showing continued strength in goods demand even after stripping out fuel.
At the same time, import prices accelerated 0.7 percent and export prices rose 0.6 percent, suggesting renewed price pressures in trade flows. The softer NAHB Housing Market Index at 32 signaled continued weakness in housing sentiment and the stronger-than-expected 0.8 percent rise in business inventories pointed to solid accumulation that could support near-term GDP but also potentially weigh on future production if demand moderates. Today’s economic calendar kicked off with August Housing Starts (1.275 million versus already subdued expectations of 1.32 million), Building Permits, weekly Initial Claims (196k), Continuing Claims (1.73 million), and the September Philadelphia Fed survey. Later today brings August Pending Home Sales. We begin Thursday with Agency MBS prices better than Wednesday’s close by .125-.250, the 2-year yielding 4.68, and the 10-year yielding 4.95 after closing yesterday at 5.01 percent.