Non-Agency Execution, Processing, UAD 3.6, Servicing, VA Loss Mit Products; Credit Pilot Webinar
“My friend is an EMT, and she's amazing on trivia night. She's usually the first responder.” The United States is full of trivia. Did you know that part of Florida is in the Central Time Zone? (Fourteen states are in more than one time zone!) Do you know what Brad Pitt, Tom Cruise, Kenau Reeves, and Michelle Pfeiffer have in common? They all can qualify for a HECM (aka, reverse mortgage)! Last time I checked, about 10k people a day turn 62; if you don’t have a HECM division, or a HECM product, your company should consider one. What isn’t so trivial are volumes in our biz, both in dollars and in units. KBW’s Bose George expects mortgage origination volume in 3Q to be down around 10 percent Q/Q. (Currently, the MBA is forecasting 3Q down 8 percent, Fannie Mae is forecasting -7 percent, and agency securitization volume was down 9.3 percent.) “We expect gain-on-sale margins to be flat to down modestly. However, sharp increases in rates can make pipeline hedging more challenging as fallout can come in lower than expected. We are reducing our estimates for the mortgage originators to incorporate these trends, and our forward estimates are also declining to reflect industry volume estimates for 2027.” Buckle up! (Today’s podcast can be found here. This week’s ‘casts are presented by Floify, the mortgage industry’s leading point-of-sale platform. Dynamic Apps, which can be seen at booth 600 during MBA Annual next week, lets lenders create fully customizable loan applications for any loan type, including HELOCs, construction, agricultural lending, non-QM and more, without custom development. Today’s has an interview with Gather Markets’ Wayne Brown on recurring challenges for banks and originators in finding, matching, and efficiently processing CRA-eligible loans, leading to Gather’s focus on using data, technology, and compliance infrastructure to connect the right loans with the right bank buyers.)
Lender and Broker Products, Services, and Software
Anyone who’s strolled through Magic Kingdom in Florida has, technically, been on the second floor. Florida’s water table sat too high for a basement, so Disney built utility tunnels at ground level and set the park on top of them ahead of its 1971 opening, allowing shops to get restocked quickly and cast members to freely move throughout the park unseen. For the 54 FirstClose client lenders that MarketWise Advisors surveyed, the advantage also sat one floor down, in operations. The firm modeled the value of levers such as closing ratios and error rates, and participating lenders reported an average return of 7.99x. On Thursday, Oct. 22, at 1 p.m. CT, MarketWise Advisors CEO Jordan Brown and FirstClose Vice President of Customer Success Andria Lightfoot will explain what separates lenders earning above-average returns from their peers and what the first 90 days look like. Register here.
PlainsCapital Bank National Warehouse Lending, a subsidiary of Hilltop Holdings (NYSE: HTH), is committed to providing mortgage lenders with a sustainable funding source in an uncertain market. With over 30 years’ experience, a well-capitalized, diversified financial holding company, PlainsCapital Bank National Warehouse Lending provides confidence to meet our mortgage lending partners funding needs. With exceptional operational performance, and a focus on relationship-driven business geared towards long-term success, we do not dwell on unnecessary fees. With PlainsCapital Bank National Warehouse Lending there are NO non-usage fees, NO application or renewal fees, NO third-party due diligence fees or Third-Party Doc Custodians and NO interest charged on the day your loan funds. If you are attending the MBA Annual Conference in Chicago, IL and interested in learning more about PlainsCapital Bank National Warehouse Lending please contact Deric Barnett, (469)955-6786.
Loan Originator Networks (LON) and Lender Price have launched their joint end-to-end TPO pricing integration, bringing real-time pricing natively into LON’s portal. LOs can price, qualify, and submit loans through one workflow. Eligibility and pricing flow directly into MeridianLink Mortgage LOS, keeping scenarios, applications, and pipelines synchronized. This integration further removes a long-standing friction point for lenders in TPO: toggling between a pricing engine and the portal, then hoping nothing is lost before the file reaches the LOS. Originators receive executable results at the point of sale. Operations receive structured data already mapped into the system of record. Capital markets and lock-desk teams work from one pricing source from first quote through lock. LON provides the TPO experience, including intake, Reg Z–aware compensation, and LOS sync, while Lender Price provides real-time pricing across agency, non-agency, non-QM, and specialty programs.
The mortgage industry's next efficiency gain won't come from processing more loans. It will come from making better decisions. Every loan transaction generates hundreds of decisions: eligibility, pricing, exceptions, conditions, commitments, settlement approvals, and investor responses. For years, the industry has focused on automating workflows. The next wave of innovation will focus on improving the quality and speed of the decisions within those workflows. That's where AI has the greatest potential. AI is not simply about generating answers faster. It's about giving mortgage professionals immediate access to the information they need to make smarter decisions across loan acquisition, due diligence, trading, settlement, and post-purchase operations. The firms that successfully combine AI with structured data and connected processes will gain a meaningful competitive advantage. The firms that don't may find themselves making tomorrow's decisions with yesterday's tools. AI in lending is one of the topics LauraMac is looking forward to discussing at MBA Annual next week. If you'll be attending, let's connect and talk about where AI, automation, and the secondary mortgage market are headed next. Email Renee Magee to connect. See you in Chicago!
Non-QM is complicated enough. Working with your lender shouldn’t be. That’s why Verus Mortgage Capital is focused on making the lending experience easier for its wholesale & correspondent partners, without losing the people and expertise behind it. Verus’ move to the Vesta platform is designed to create a more efficient, scalable experience, with better visibility and a smoother way to keep loans moving. But technology is only one part of the equation. When a deal gets complicated, you still need experienced non-QM professionals who understand the loan, pick up the phone, and find a path forward. That combination of smarter technology and real partnership is what Verus is building for what’s next for non-QM. Meet the team: Correspondent at MBA Annual (Oct. 11-14). Contact Joel Veenstra, Senior Vice President, Correspondent Sales. Wholesale at NAMB National (Oct. 16-19). Contact Mark Boleky, Senior Vice President, Wholesale Sales.
The VA is overhauling its loss mitigation requirements effective Nov. 28, 2026, by introducing a new waterfall evaluation framework, trial payment plan requirements, and an updated partial claim program. That means servicers don’t have a lot of time to update their current workflows to meet new reporting requirements. However, navigating regulatory changes like these can be a lot easier with a technology partner like ICE that stays ahead of them. That’s why ICE is delivering enhancements to its Loss Mitigation solution ahead of the deadline and allowing clients to test the enhancements prior to production and before the Nov. 28 compliance deadline. Read the blog to learn what the VA's new loss mitigation requirements mean for your servicing operations and how ICE is helping clients get ready.
“Drive Your Digital Evolution Forward with First American. Heading to MBA Annual in Chicago? Connect with First American and discover how our solutions, technology, and data can help transform the way you work. Explore comprehensive mortgage solutions from First American Mortgage Solutions, document technology from Docutech, warehouse funding from FirstFunding, and technology-driven subservicing from ServiceMac. Together, we’re helping mortgage businesses turn insight into action, simplify workflows, automate processes, and navigate what’s next with confidence. Connect with the First American team in Chicago and discover how we can help move your business forward.”
Win prizes! Enjoy mini apple pies! See the one platform powering the entire servicing lifecycle! This can all be found at Sagent’s booth (725) during the Mortgage Banker Association Annual Conference next week. Stop by to explore how Dara by Sagent is helping servicers modernize operations with a single platform that powers the entire servicing lifecycle. Whether you're navigating rising complexity, preparing for regulatory change, or exploring new ways to create better homeowner experiences, Sagent’s team will be on site to share insights and ideas. Along with meaningful conversations about the future of servicing, attendees can test their knowledge with booth trivia, win prizes, pick up some swag, and enjoy a mini apple pie. Make Sagent a must-visit destination at MBA Annual and discover what mortgage servicing looks like when everything finally comes together.
AI should work for you. Every lender has unique policies, workflows, risk appetite, and ways of serving borrowers. Your AI should reflect that. JazzX is an AI-native execution layer that orchestrates work across the mortgage lifecycle, reasoning, acting, learning, and adapting to your business while you stay in control. Jazz applies your policies across the loan lifecycle, carries context from one role to the next, and gives your team a clear record of how each decision was made. Want to see it in action? Meet JazzX next week at MBA Annual in Chicago at booth 410 or schedule a demo to see how AI works on your terms.
“The GSEs' new UAD 3.6 policy exception is not a deadline extension, and the distinction is catching lenders out. The November 2 mandate stands; sellers who cannot meet it must request an exception from each GSE they sell to, and be granted one, before they can keep submitting UAD 2.6. Reggora has published a plain-English breakdown of what was announced, who has to request it, how the process works, and why March 1, 2027, governs your economics rather than May 19, at www.reggora.com/uad-exception. Reggora already supports dual-format ordering and Reggora Forms is GSE-verified for UAD 3.6, so our lenders are not waiting on appraisal technology to file a credible implementation plan. If you want a second set of eyes on yours before you submit, email sales@reggora.com.”
“Keep your processor, lose the overhead. What if you could keep the processor your team already knows and trusts without carrying the payroll, benefits, equipment, and infrastructure? Xpert Mortgage Services LLC helps mortgage brokers, loan officers and correspondent lenders transition their existing processing teams to our W-2 third-party processing model. Your processors continue supporting the same loan officers and relationships, while we handle employment, payroll, benefits, technology, and processing infrastructure. The result? Your brokerage converts a fixed operating expense into a per-closed-loan processing model, with the borrower paying the eligible third-party processing fee. Xpert Mortgage Services provides third-party processing in 28 states and growing. Keep your processor. Maximize your margins. Call (877) 973-7868, text (248) 933-1717, or email Info@xmsprocessing.com. NMLS #2250365”
The next Chrisman Demo Day is October 15 and 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.
Pilot Program: What are the Results?
Pivot Financial LLC’s Jen McGuinness writes, “Fannie and Freddie ran a VantageScore pilot. Lenders are being asked to make real decisions around it. And almost nobody has seen the full results. Tomorrow (Friday), Rob Chrisman and I are going live to walk through what we actually know: how many loans went through it, which lenders participated, how those loans performed, and why the full dataset still hasn't been shared with the people being asked to act on it. This isn't about defending FICO or selling VantageScore. Lenders, investors, MIs, and servicers are making calls that hit pricing, credit risk, and borrower access. Those calls should be made on performance data, not headlines or predictions. Bring your questions. Drop the one number you most want to see in the comments, and we'll take as many as we can live.” Friday, October 9, 12 PM ET / 9 AM PT, live on LinkedIn. Register here: https://www.linkedin.com/events/pivotspecialeditionpodcast-thep7513580993887277058/theater/
There's been enough prophecy. Let's look at the data.
The expansion of VantageScore 4.0 across Fannie Mae and Freddie Mac marks a significant step in credit-score modernization, but it also raises concerns that greater flexibility could encourage “credit score shopping” and weaken underwriting discipline. So far, however, the data show a gradual (not dramatic) increase in lower-credit borrowers: sub-700 FICO loans represent 11.4 percent of 2026 UMBS 30-year issuance year-to-date, the highest share since 2023, while sub-620 loans remain only 1.2 percent of total volume. For investors, the key takeaway is that lower-FICO borrowers remain a relatively small segment and FICO pools are not expected to flood the market, but credit quality warrants close monitoring because lower scores are strongly associated with higher severe delinquency rates, meaning the rollout of alternative scoring models should expand access without becoming a backdoor mechanism for materially weaker underwriting.
Capital Markets
MCT, the de facto leader in innovative mortgage capital markets technology, today announced that MCT clients are now able to price and optimize non-QM and non-agency executions within MCT Marketplace, giving mortgage originators and investors a more connected way to transact in the growing non-agency market. Following initial transactions between participating sellers and buyers, MCT is expanding its technology to integrate non-QM production across the secondary market lifecycle. Originators can manage non-QM alongside agency production through best execution loan sales, mark-to-market reporting, investor discovery, and electronic marketplace execution. To introduce lenders to the new functionality, MCT will host “Introducing Non-QM Production to MCT Marketplace” on October 27th at 9am PT.
Despite politicians seeming to turn a blind eye to some of this, in the United States, fixed-income securities, which include most bonds, are being impacted by a "risk cocktail" that includes an unbalanced artificial intelligence boom, prolonged energy (oil) shocks, and record-high U.S. and global debt. Despite words to the contrary, Treasury Secretary Scott Bessent has faced mounting economic policy challenges since taking over as Treasury secretary in 2025, including persistent inflation, soaring government debt, and a turbulent bond market. His signature '3-3-3' policy goals (cutting the deficit to 3 percent of GDP, achieving 3 percent growth, and boosting oil production by three million barrels daily) have largely fallen short, with growth stagnating near 2 percent and the deficit surpassing 6 percent of GDP. Unfortunately, there appears to be little help on the way.
Yesterday was a rollercoaster day for rates. The 10-year Treasury briefly sold off to 5.36 percent before recovering to finish near 5.28 percent. A strong 10-year auction, which drew above-average foreign demand and stopped nearly 2-basis points through the when-issued yield despite offering the highest auction yield in almost 26 years, along with the Fed minutes provided little resistance and weaker oil and stocks helped ease pressure. The September FOMC minutes reinforced a hawkish, data-dependent stance: all 19 officials supported the September hike, most saw another increase as appropriate by year-end, and inflation risks remain tilted higher. However, the lack of urgency regarding October pushed implied hike odds down to 17 percent. With inflation and oil prices still elevated and the Fed likely to keep policy restrictive until it sees clearer progress toward 2 percent inflation, 30-year mortgage rates climbed to 7.49 percent, their highest since November 2023, adding further pressure to housing affordability. Persistent fiscal deficits, heavy issuance, elevated oil prices, and geopolitical risks are keeping pressure on longer-term rates, while the yield curve remains biased toward further steepening. The front end is relatively range-bound as the Fed shows little urgency to hike in October. MBS finished yesterday slightly weaker in the belly, with 4.0s–5.5s underperforming and trading volume reached roughly $140 billion. Strong demand at recent shorter- and intermediate-term auctions provided some reassurance. Looking ahead, today’s $22 billion 30-year reopening and next week’s CPI are key tests. Oil, European bond-market volatility, auction demand, and geopolitical developments represent the main risks, although strong money-market demand suggests Treasury supply has yet to create meaningful funding stress.
Today’s economic calendar is already underway with weekly initial jobless claims and continuing claims. Later today brings August Wholesale Inventories, remarks from Fed Governor Waller, and a Treasury auction of $22 billion 30-year bonds. We begin the day with Agency MBS prices worse than Wednesday’s close by .125-.250, the 2-year yielding 4.81, and the 10-year yielding 5.33 after closing yesterday at 5.28 percent.