4.3.25 Recapture Strategies; Scottie Campbell and Jim Black on Product Evolution; Liberation Day Reaction

Welcome to The Chrisman Commentary, your go-to daily mortgage news podcast, where industry insights meet expert analysis. Hosted by Robbie Chrisman, this podcast delivers the latest updates on mortgage rates, capital markets, and the forces shaping the housing finance landscape. Whether you're a seasoned professional or just looking to stay informed, you'll get clear, concise breakdowns of market trends and economic shifts that impact the mortgage world.

In today’s episode, we discuss how large lenders are planning to recapture borrowers. Plus, Robbie sits down with Scottie Campbell and Jim Black to discuss buy before you sell solutions. And we look at market fallout from liberation day.

Want to remove home sale contingencies in 48 hours or less? It’s easy with Calque’s newest ‘buy before you sell’ product – the Contingency Buster. The Contingency Buster is your fastest and most affordable path to non-contingent financing. Calque provides a binding backup offer on your borrower’s departing residence to clear the existing mortgage balance and closing costs in 48 business hours or less. You become a loan hero that saves deals and helps clients win bidding wars. Best yet? It costs less than other ‘buy before you sell’ solutions. Visit www.calqueinc.com to learn more.

Transcript

The Chinese curse, “May you live in interesting times” can easily be applied to the residential mortgage business in the last month or so. This week and yesterday was no exception, with some brokers benefitting from both Trump’s tariffs (fully expected to slow the economy, driving rates lower) and United Wholesale trying to keep its market share while Rocket Companies is spending about $11 billion to cement its place in real estate transactions and be in touch with a potential borrower from shopping for a home all the way to servicing it. (More below.) Meanwhile, just in time for the MBA’s Advocacy event next week in Washington, DC, House Republicans, led by Rep. French Hill, R-Ark., have sent letters to top US financial regulators urging them to reverse several Biden-era banking rules. Their priorities include rescinding the revamped Community Reinvestment Act (CRA), rolling back CFPB rules on overdraft fees and medical debt, and pausing Basel III reforms. The lawmakers said recent regulations have hurt innovation and access to financial services, especially for families and small businesses. (Today’s podcast can be found here and this week’s is sponsored by Calque. Calque provides a binding backup offer on your borrower’s departing residence to clear the existing mortgage balance and closing costs in 48 business hours or less. Today’s features an interview with Waymaker Mortgage’s Scottie Campbell and Revest Loans’ Jim Black on how buy-before-you-sell loan products are helping drive up origination volumes.)

Employment and transitions

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Primis Mortgage continues building a powerhouse team with Jackie Wampler. Primis Mortgage's roster of top-tier talent just got even stronger. Jackie Wampler, the #1 ranked female veteran loan officer in the U.S. (Scotsman Guide), has joined the team, bringing unmatched expertise and a relentless drive to serve homebuyers across the Carolinas and beyond. Bringing in 15+ years of excellence and a top 4 ranking among North Carolina loan officers (MMI), Wampler’s reputation speaks for itself. With a shared vision of innovation and customer-first service, Wampler and Primis Mortgage are ready to make an even bigger impact. If you’re a mortgage pro looking to take your career to the next level, there’s no better place to be. Reach out to Chris Blevins, national sales director, to learn more.

(As a reminder, anyone searching for employment can post their resume at no charge at www.lendernews.com, and potential employers can view all resumes for several months for only $75.)

Products, software, and services for lenders

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No one in the mortgage industry has a crystal ball. But the ICE Customer Service solution can help servicers predict why their customers are calling before they even speak a word. With advanced call prediction models, support agents are presented the three likeliest reasons a customer may be reaching out, helping them personalize each conversation and resolve more calls faster. And these models are built to meet the highest standards of privacy and transparency. ICE safeguards proprietary data by using models that are accurate, private, and explainable. Plus, constant feedback loops help increase the models’ accuracy over time and adapt to your unique business needs. Read ICE’s blog to learn how this technology can help agents have more meaningful conversations that lead to positive outcomes for customers.

Hot off the press: Richey May’s free HMDA Dashboard is updated with 2024 data! This powerful tool transforms raw HMDA data into actionable insights, enabling mortgage lenders to easily explore market share trends, analyze performance, and identify strategic opportunities in a dynamic dashboard. Drill down on specific markets and compare your loan characteristics to your peers’ so you can see where you stand. Whether you’re identifying new markets for expansion, refining your competitive strategy, seeking out M&A opportunities, or measuring the success of sales efforts, our dashboard is designed to help you make data-driven decisions. Access the dashboard today and start exploring! Contact info@richeymay.com with any questions.

In today’s lending environment, many lenders are asking: How can we reduce costs and increase speed – without sacrificing accuracy or compliance? It’s a question Xactus hears often, and one that led to the development of Intelligent Verification. In its latest white paper, Xactus explores how lenders are rethinking traditional verification methods by leveraging real-time data and automation to reduce data waste, streamline processes, and make faster, more informed decisions. One example of this evolution is The Work Number Report Indicator from Equifax - now available exclusively through Xactus360, the industry’s first Intelligent Verification Platform℠ (IVP). This new feature gives lenders a quick view into whether a consumer’s employment data is available on The Work Number when a credit report is pulled. As Xactus continues to partner with lenders, it is seeing how tools like IVP can support more scalable, cost-effective lending strategies. Explore what Intelligent Verification could mean for your tech stack, and your bottom line. Email sales@xactus.com!

Market conditions demand a fresh look at advanced hedging techniques. MCT's comprehensive whitepaper, Mortgage Pipeline Hedging 201, offers the tactical advantage lenders need to navigate the shifting environment. This resource, written by Cody Echols, Sr. Capital Markets Technology Advisor at MCT, builds upon fundamental concepts from the first piece in the series, Mortgage Pipeline Hedging 101, to explore profit-enhancing strategies specifically designed for today's market realities. As margins remain compressed and interest rates remain elevated, revisiting these advanced hedging techniques can provide immediate operational benefits. Whether you're looking to refine your current hedging approach or validate your team's methodologies against industry best practices, Mortgage Pipeline Hedging 201 delivers actionable insights that directly impact your bottom line.

Correspondent & Wholesaler product news from around our biz

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Most big banks don’t offer non-QM financing, giving you, the Loan Officer, a major opportunity to stand out and serve clients others can’t. Many realtors and borrowers don’t realize that when traditional financing doesn’t work, non-QM is often the answer, especially for investors and the self-employed. With The Loan Store’s DSCR Done Right program, you gain a competitive edge: Dual Compensation (Lender + Borrower Paid), No Loan Estimate – use a Fee Worksheet, No Closing Disclosure – HUD works just fine, No TRID Waiting Periods – close fast, No ATR Requirements – qualify based on rental income, Become the go-to expert your referral partners trust. Offer what big banks won’t. Become a Partner or connect with your Sr. Account Executive today.

“Luxury Mortgage Corp. is expanding its Bank Statement loan offerings for self-employed borrowers and investors. We deliver flexible, high-LTV solutions for self-employed borrowers and investors. Our 24-month Bank Statement Program now offers 85% LTV up to $2.5M, while NOO properties qualify for up to 80% LTV with strong pricing and broad guidelines. Help your clients maximize qualification with the ability to combine the following to self-employed income: salaried co-applicant income, second job income, passive asset utilization, and rental income (75% of rents less PITIA). Borrowers can vest in LLCs across all doc types and occupancies. Lender credits allowed up to 1.75% on Borrower-Paid Owner-Occupied and Second Home transactions. Give your borrowers the options they need. Contact us today to learn more!”

Wholesale news and non-Agency offerings

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Given the announcement that Rocket Companies is buying Mr. Cooper, United Wholesale announced Refi Shield 100. Mat Ishbia and UWM are paying brokers 100 basis points to refi any loans serviced by Mr. Cooper, thought to be about 100,000 in number. Mat said, “We’re all about brokers and this is a way to help you grow your business. Any loan that we’ve ever done with Mr. Cooper and sold the servicing, the broker can refinance it and receive an extra 100 basis points through Refi Shield 100, separate from other deals (like “60 bps for 60 days” and other offers)… But the loans can be cash out, rate and term, “Keep My Loans.” UWM will be ending its subservicing relationship with Mr. Cooper and transitioning those loans away to be initially subserviced by Cenlar but probably, eventually, serviced by UWM itself.

Some large companies are not known for their non-QM offerings, but this segment of borrowers, many self-employed, is becoming harder and harder to ignore. One marketing piece I saw noted that, “About 10 percent of the U.S. workforce (16.2 million people) is self-employed, and 36 percent of the workforce (57 million people) works in the ‘gig’ economy. Self-employed people tend to be wealthier, with a median net worth of $380,000, four times that of traditionally employed families. For decades, the mortgage industry has been stuck in an outdated model, built for W-2 borrowers with predictable pay stubs, steady jobs, and the kind of financial stability that made sense in, say, the 1950s. Today’s workforce is different, and so are their financial profiles.”

Higher Loan amounts are available with LoanStream Mortgage Wholesales’ DPA Programs, MaxONE and MaxONE Plus and MaxONE Home Assist are 100% CLTV FHA DPA Purchase Programs that may help you qualify more borrowers and expand your market reach.

A&D Mortgage, LLC (“A&D Mortgage”), the #1 Non-QM lender and a trusted name in the mortgage industry for over 20 years, has announced significant enhancements to its Second Mortgage program with four significant improvements: Better Rates — Improved by 0.25%, New 20-Year Fixed Term — Available for both Alternative Documentation (Alt Doc) and Full Documentation (Full Doc) loans, Improved Pricing Credit — Full Doc loans now feature a 1.000 pricing credit, and Expanded CLTV — Full Doc loans now available up to 90% CLTV. These updates are designed to offer better terms, increased flexibility, and expanded access to home equity for borrowers—empowering brokers to grow their business.

Check out Jet Mortgage’s niche non-QM, DSCR Loans Down To a 0.00 Ratio.

Capital markets: tariffs drive Treasuries to 5-month lows

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The U.S. Constitution gives Congress the authority to impose tariffs in Article 1, Section 8, which states that "The Congress shall have Power To lay and collect Taxes, Duties…To regulate Commerce with foreign Nations." But Congress can also selectively delegate tariff-setting authority to the president, which it has done for decades. In his first term as president from 2017-2021, Trump freely exercised this presidential authority to increase tariffs: Total duties paid on U.S. imports doubled from roughly $37 billion in 2015 to $74 billion in 2020, according to the Congressional Research Service. 

Yesterday Trump said that he would impose a 10% baseline tariff on all imports to the United States and higher duties on dozens of the country's biggest trading partners, deepening a trade war that he kicked off on his return to the White House. The sweeping duties would erect new barriers around the world's largest consumer economy, reversing decades of trade liberalization that have shaped the global order.

His advisers say the tariffs will return strategically vital manufacturing capabilities to the United States. Outside economists have warned that tariffs could slow the global economy, raise the risk of recession, and increase living costs for the average U.S. family by thousands of dollars. Businesses have complained that Trump's barrage of threats has made it difficult to plan their operations. Trading partners are expected to respond with countermeasures of their own that could lead to dramatically higher prices for everything from bicycles to wine. U.S. stock futures sank following his announcement.

On the corporate side, companies have been planning to respond to the tariffs in five different ways, or a combination of the following approaches. 1) Reshoring or boosting U.S. production activity (Johnson & Johnson's recent $55B investment). 2) Pushing suppliers to reduce prices (Walmart with Chinese manufacturers). 3) Raising prices to preserve profit margins (Target's warning for shoppers). 4) Absorbing the tariffs with lower margins (Latest guidance from Nike and FedEx). 5) Lobbying for certain exemptions to limit their impact (Pursued by U.S. automakers). Goldman Sachs has revised its year-end forecasts for Treasury yields, citing a "more severe tariff baseline" as President Donald Trump prepares to announce his tariff policies. Goldman has cut its projection for the two-year Treasury yield to 2.7% from 3.1% and for the 10-year yield to 2.8% from 3%.

President Trump’s latest tariffs have rattled global markets, with U.S. futures tumbling on fears of a recession while the bond market rallies, suggesting investors are more focused on safety than inflation. Some volatility may stem from shifts in quantitative tightening, but fed funds futures still predict three rate cuts this year, with a growing chance of a fourth. Uncertainty over reciprocal tariffs and potential retaliation has left both investors and the Federal Reserve in wait-and-see mode. Futures suggest a pause in rate moves for March and May, with a 65 percent chance of a June cut. Meanwhile, markets are watching key economic data and Fed commentary, including live remarks from Fed Chair Powell tomorrow. If economic conditions worsen, Trump may pressure Powell to cut rates, though the Fed may move in that direction anyway to align with what it perceives to be the neutral rate (the rate at which monetary policy is neither stimulating nor restricting economic growth).

The March prepayment speed report, set for release tomorrow afternoon, will reflect an increase in the day count from 19 to 21, without any holidays disrupting the data, as has been the case for the past several months. This creates a dynamic push-and-pull between the overall out-of-the-money status of the market and the typically strong seasonal trends seen in March. As a result, aggregate speeds are expected to rise by approximately 15 percent, with most of the activity concentrated in higher coupons where borrowers have the strongest incentive, no surprise there. However, there are no signs of a major refinancing wave, which should continue to support higher coupon valuations. Contributing to the expected increase in speeds is a 10.5 percent rise in collection days, a 23 percent average uptick in the Refi Index, and improving turnover seasonals, driving speeds up by 23 percent to 24 percent on average, led by FN30s. Meanwhile, gross issuance in March saw a late-month surge, reaching $77.6 billion, an increase from February’s $75 billion, which had been the lowest since the prior year’s $67.1 billion.

This morning, we learned that U.S.-based employers announced 275,240 job cuts in March, a 60 percent increase from the 172,017 cuts announced one month prior. It is up 205% from the 90,309 cuts announced in the same month in 2024, which was the highest monthly total recorded last year, according to global outplacement and business and executive coaching firm Challenger, Gray & Christmas, Inc.

We’ve also received weekly jobless claims (219k, slightly lower than expected). Later today brings the final March S&P and ISM Global services PMIs, Treasury announcing details of the mini refunding consisting of $58 billion 3-years and reopened 10-years and 30-years, Freddie Mac’s Primary Mortgage Market Survey, and remarks from Fed Vice Chair Jefferson and Fed Governor Cook. As the stock and bond markets digest the tariff news, Agency MBS prices better by .250-.50, depending on coupon and maturity, the 2-year yielding 3.77, and the 10-year yielding 4.05 after closing yesterday at 4.20 percent, hitting 5-month lows.

When my friend lost the fingers on his right hand in a freak accident, he asked the doctor if he would still be able to write with it.

The doctor replied, "Probably, but I wouldn't count on it.

Visit www.robchrisman.com for more information on our industry partners, access archived commentaries, or to subscribe to the Daily Mortgage News and Commentary. If you’re interested, visit my periodic blog at the STRATMOR Group web site. This month’s piece is titled, “Mergers and Acquisitions Aren’t Going Away, and In Fact…” The Commentary’s podcast is live and at any place you obtain your podcasts (like Apple or Spotify).

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(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes visit LenderNews. This newsletter is for sophisticated mortgage professionals only. There are no paid endorsements by me. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.robchrisman.com. Copyright 2025 Chrisman LLC. All rights reserved. Occasional paid job & product listings do appear. This report or any portion hereof may not be reprinted, sold, or redistributed without the written consent of Rob Chrisman. The views and opinions in this newsletter are mine alone unless otherwise specifically stated herein.)