Non-QM Execution, Real Estate Agent Service, UAD 3.6, Jumbo Products; Freddie Earnings
Artificial intelligence continues to capture the imagination of a wide range of companies, including lenders. “Why Underwriting Is the Right Problem for AI to Solve First,” is a topic on a recent Thought Leadership piece. It will be a topic on today’s The Big Picture with James Sais, the head of mortgage lending at Fifth Third Bank. You may be thinking about rolling AI out, but who’s in charge, you or it? In its IPO filing Monday, Anthropic (ANT) warned prospective investors that artificial intelligence systems could pose catastrophic risks as they operate with greater autonomy. "Concerns have been raised both within our organization and by other researchers, regulators, policymakers, and industry participants that sufficiently advanced AI systems could, if not developed, deployed, and operated with appropriate safeguards, oversight, and security measures, pose catastrophic or existential risks to humanity, particularly if such systems were misused, replicated, weaponized, or allowed to operate with a high degree of autonomy," it said. And you want this to run your company, or manage your money? (Today’s podcast can be found here. This week’s ‘casts are presented by FICO. As the industry's most predictive credit score, FICO Score 10T combines proven performance with deeper insight into borrower behavior to help support a stronger and more resilient housing finance system. Today’s has an interview with Sela’s Nate Becker on mortgage voice agents, their performance, adoption, and the future role of loan officers.)
Lender and Brokers Products, Services, and Software
Is DTI taking a bite out of your pipeline? Reverse mortgage eligibility requirements are designed around the financial realities of retirement rather than employment income and traditional DTI models. That could give you more ways to solve borrower’s needs that HELOCs, home equity loans, or cash-out refinancing may not. Finance of America partnered on a white paper that explores how broadening your product strategy could help keep business from walking away. Download it now. Finance of America | NMLS 2285.
What do weather forecasters, economists, and mortgage lenders have in common? They all know the value of seeing what’s coming next. While most of us are busy checking whether we need an umbrella, lenders are watching for market shifts that can impact pricing, profitability, and borrower demand. That’s where Optimal Blue’s Virtual Economist and industry-leading PPE come in. Virtual Economist turns complex market data into clear, actionable insight, helping you spot trends before they become headlines. Pair that intelligence with real-time pricing and execution capabilities through the Optimal Blue PPE, and you have a powerful combination for making smarter, faster decisions. Whether you’re navigating rate volatility, evaluating product opportunities, or looking for an edge in a competitive market, these tools help take the guesswork out of what’s next. Get the insights. Sharpen your strategy. See what’s on the horizon with Optimal Blue today.
“Already thinking about 2027? So are we. While everyone is getting caught up from the MBA Annual Convention, many lenders have turned their focus to next year's production goals, investor relationships, and budget planning. If expanding your Jumbo strategy is part of that conversation, take a look at Merchants Bank. Its consistent and Top-of-stack Jumbo pricing, fast turn-times, and product expansion into Jumbo ARMs, coming soon, should have them on your radar. Merchants Bank is a $21 billion financial institution with a dedicated focus on Correspondent Lending & Warehouse Financing. Contact Rob Wilson, SVP Correspondent Lending, or Matt O’Rourke, SVP Warehouse Lending and learn how Merchants can support your 2027 growth strategy.”
You didn't start a brokerage to take orders from your lender. Yet somewhere along the way, a lot of independent brokers signed something that made them a little less independent. An exclusivity agreement. An ultimatum dressed up as a partnership. And the deals you can't compete on now? That's the price of the contract. Real partners don't demand loyalty. They earn it, one loan at a time. Rocket Pro has no exclusivity and no lock-in. And leaving is easier than they want you to believe. Your Moving Squad, a dedicated AE, Director of Growth, Crew Director and Trainer, is with you from the first conversation through your first submitted loan. Same faces the whole way. No handoffs, no disruption to your pipeline, and 10 days from approval to submitting. Your business deserves a better home. It's time to move. See how the Squad works.
“Heading to IMN’s MSR Fall Forum? Meet Stellar Innovations November 2–3, 2026, at the New York Hilton Midtown. With bulk MSR trading accelerating and hold-vs.-sell decisions under pressure, fast, accurate due diligence matters more than ever. That’s where Stellar stands apart: we pair deep servicing expertise with CLARAA, our AI-powered platform that reviews loan files, flags exceptions, and surfaces risk in a fraction of the time manual review takes. Instead of relying on limited sampling and manual review, buyers and sellers can gain broader portfolio visibility, evaluate risk faster, and move with greater confidence. CLARAA delivers consistent findings and audit-ready documentation to help teams price portfolios with confidence and close sooner. See CLARAA in action. Contact Steven Greenfield, CMB®, SVP of Mortgage Solutions, at steven.greenfield@stellaripl.com to schedule time at IMN.”
Is manual reporting holding your data back? Spreadsheets and one-off reports can lead to inconsistent data, bottlenecks, and delayed loan decisions. ICE Business Intelligence (BI) is built for the mortgage industry to deliver preconfigured analytics, intuitive dashboards, and automated workflows. Don’t settle for more reports. Discover how ICE BI helps lenders and servicers turn data into a strategic advantage.
Home equity demand is surging, and the lenders who verify fastest are the ones winning that volume. Truework, a Checkr company, automates income, employment, and asset verification across every source in one platform, so you can verify 97 percent of U.S. workers faster and more accurately, at up to 50 percent lower cost. Don’t let manual verification processes cost your borrowers while they wait. Learn more.
“Partner with Pennymac & access a 15-bps credit on your first non-QM loan. Don’t let non-traditional income hold back your production. As a Pennymac partner, you have access to our full non-QM suite (Bank Statements, 1099, WVOE, Asset Based, and DSCR) built to convert complex scenarios into closed loans. Plus, receive a 15-bps pricing credit on your first locked non-QM loan with Pennymac TPO through December 31st*. Ready to expand your reach? Sign up to become a partner or contact your dedicated AE today. *Exclusions apply. Must be an approved TPO partner at lock. Cannot be combined with other offers. On consumer loans, 15 bps credit must be applied as a direct lender credit toward borrower closing costs or rate reduction. DSCR/business-purpose loans exempt. Equal Housing Lender. NMLS #35953.”
When the clock struck midnight on January 1, 2000, airplanes stayed in the sky, ATMs kept dispensing cash, and the lights stayed on. After years of preparation and an estimated 300–600 billion in worldwide Y2K remediation, the biggest news was what didn't happen. Friday Harbor is helping lenders make the November 2 UAD 3.6 deadline similarly uneventful. The AI pre-underwriting platform reviews appraisals against the redesigned format, running more than 350 automated checks and delivering a concise summary of validated information and issues requiring attention. Y2K took armies of programmers to avert disaster. Fortunately, lenders have Friday Harbor to do the heavy lifting. Request a demo.
True Story: Across the street, a home is on the market, and the agent is hosting an open house every day, 2 to 6 p.m., rain or shine. Seven days a week. That agent isn't alone. Inventory is up 4.6 percent from a year ago, sales are running below a 4 million annual pace, and every listing is competing for a smaller pool of buyers. Agents are no longer waiting for traffic. They're manufacturing it. Here's the lesson for lenders: agents spend on average 80–100 hours per buyer, and they remember who made their day easier. Bring them buyers. Simplify their follow-up. Show up consistently. At Inside Real Estate, 400,000+ agents run their business on our technology. We know what they need from a lender. See how to be the lender agents want in their corner.
The next Chrisman Demo Day is November 19 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 Chloe Murray 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.
Conventional Conforming News
Yes, non-Agency volume has eaten into the market share of Freddie and Fannie (the “Agencies”), but what they do, and the changes that investors enact due to them, matter throughout the industry. Both Agencies have had layoffs, and a percentage of current employees are wondering about the future of their jobs; both are making billions; both have interesting pilot programs. What are F&F up to?
This morning Freddie Mac reported its Third Quarter 2026 financial results and filed its Quarterly Report on Form 10-Q with the U.S. Securities and Exchange Commission. The company’s Form 10-Q and earnings press release, along with the Third Quarter 2026 financial supplement and earnings presentation, are available now on the Investor Relations page of the company’s website. (“Net income was $3.2 billion, up 17 percent from 3Q 2025, primarily driven by higher net revenues and lower non-interest expense, partially offset by an increase in the provision for credit losses. Net revenues were $6.8 billion, an increase of 19 percent year-over-year, primarily driven by higher net interest income and higher non-interest income. Net worth was $81.0 billion as of September 30, 2026.)
Spend less time calculating income with Fannie Mae’s Income Calculator, now supporting 85 percent of borrowers evaluated through Desktop Underwriter®. With the updated web interface, you can calculate wage-earner income, including paystub/W-2 and variable earnings.
To eliminate the potential for inconsistency and complexity created by working with multiple property data report formats, Freddie Mac and Fannie Mae (the GSEs) now require property data collection vendors to use the Uniform Property Data Report (UPDR) for property data collection.
Read Freddie Mac’s latest article, “From Disclosure to Decision: Streamlining Seller-Appraiser Communication,” to learn strategies for maintaining appraisal standards, supporting appraisers, and keeping transactions moving seamlessly.
Simplify processes and expand flexibility with Fannie Mae’s October Selling Guide updates. Increase operational flexibility and reduce manual processes. Learn how October updates clarify guidance, refine income policies, and more.
Gain more flexibility managing legal expenses with increased allowable foreclosure and bankruptcy attorney fees exhibits. The Fannie Mae October servicing guide update also clarifies access to the Do Not Send 1099-C list, helping you stay prepared for year-end reporting.
Get clearer information to help you understand and act on Fannie Mae’s Desktop Underwriter® findings. November and December updates enhance occupancy risk and income messages, so you can determine your next steps with confidence.
Freddie Mac posted Guide Bulletin 2026-14. This bulletin includes updates to CHOICEReno eXPress® Mortgages, Texas Equity Section 50(a)(6) Mortgages, EDR default action code 35, and more.
Freddie Mac posted Guide Bulletin 2026-12. The bulletin includes updates related to automated income assessments using tax data, written verification of employment, Manufactured Homes moved from another site, and more.
Freddie Mac posted Guide Bulletin 2026-13. The bulletin includes updates related to GreenCHOICE Mortgages®, CHOICEReno eXPress® Mortgages, CHOICERenovation® Mortgages, and more.
Freddie Mac posted a new Industry Letter. This letter reminds Seller/Servicers they must always meet the minimum financial eligibility requirements in the Guide. No requirements have changed.
Freddie Mac and Fannie Mae (the GSEs) published updated Uniform Closing Dataset (UCD) v2.0 Specification (UCD v2.0) resources to help lenders and technology service providers prepare for adoption of UCD v2.0 and the transition of Phase 3B Postponed and Phase 4 edits.
Read the joint GSE announcement and review the updated technical resources on the UCD webpage.
Capital Markets
What does non-QM execution look like when investor discovery, pricing, and reporting sit in one workflow? Tuesday’s sell-side session answered that, and the recording and slides are now available. In Introducing Non-QM Production to MCT Marketplace, Justin Grant, Senior Director and Head of Investor Services, demonstrates standardized bid tapes and the new non-QM scenario pricer. He also covers mark-to-market reporting for floating loans. Best execution analysis compares flow best-efforts pricing, loan-level and pool-level bids, and carve-out opportunities on an all-in basis. Watch the sell-side recording and download the deck. In contrast, as non-QM production expands and competition heats up, investors need better ways to discover production and connect with new sellers. Today at 11am PT, Justin Grant and Jennifer Kennelly, CMB, AMP, Senior Director of Investor Services, show how shadow bidding and flow best-efforts pricing in MCT Marketplace expand exposure to non-QM originators. Register for the buy-side webinar to see how to pursue seller production that fits your credit guidelines and pricing strategy.
As expected, yesterday the Federal Open Market Committee voted 10-2 to hold its benchmark federal funds rate in a range of 3.75 percent to 4.00 percent, managing the pace of tightening while preserving flexibility. The Committee is navigating a delicate balance between restoring inflation to the Fed’s 2 percent “target” and avoiding unnecessary damage to resilient economic growth, AI-driven investment, and financial markets. The decision produced an uneven market reaction; U.S. Treasuries ended mixed due to oil-driven inflation concerns pushing yields higher, along with renewed Middle East conflict and expectations of a resilient labor market. The FOMC statement’s emphasis on resilient economic activity, robust capital investment, and persistently elevated inflation appears to strengthen expectations for a potential December rate increase. Although the Fed has offered no explicit commitment to further tightening, expectations for 25-basis point hikes in December and March suggest a gradual reversal of the 75-basis points of cuts implemented in 2025. However, higher rates may prove insufficient if energy-driven inflation persists or elevated equity valuations continue supporting demand, and Warsh’s rejection of conventional forward guidance has amplified market volatility.
The Fed's central challenge is maintaining inflation-fighting credibility without signaling a predetermined path that could unnecessarily destabilize financial conditions. Warsh’s longer-term legacy will depend less on his communications strategy than on whether he fundamentally changes the Fed’s balance-sheet and liquidity framework. His (five) task forces are laying the groundwork for reforms in communications, data, productivity, inflation, and balance-sheet management. Despite his preference for a smaller balance sheet, the Fed continues reinvesting principal repayments from its approximately $2 trillion Agency mortgage-backed securities portfolio into Treasury bills, preserving liquidity while gradually reducing its holdings. Allowing MBS to run off without reinvestment could withdraw a more direct source of support from mortgage markets and housing finance, while changes to reserve management could tighten liquidity beyond what policy-rate increases alone achieve. Keep in mind that rate hikes tighten the price of money, whereas balance-sheet reform can change its availability and distribution.
Today’s economic calendar is already underway with Advance Q3 GDP (+3.4 percent), September Personal Income (+.2 percent), Personal Spending (+.5 percent due to fuel), PCE Prices (+.5 percent. +3.6 percent Y-o-Y), Core PCE Prices (+.3 percent, +3.1 percent Y-o-Y), Weekly Initial Claims (194k), and Continuing Claims. Later today brings $44 billion 7-year Treasury note auction results. After this salvo of economic data that came in largely as expected, we find Agency MBS prices a few ticks (32nds) better than Wednesday’s close, the 2-year yielding 4.70, and the 10-year yielding 5.02 after closing yesterday at 5.05 percent.