5.12.25 Housing Regulations; Cotality's Selma Hepp on Spring Home Buying Season; Tariffs Versus Data

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 look at housing policies at the state and federal level. Plus, Robbie sits down with Cotality’s Selma Hepp for a discussion on the complex dynamics of the 2025 spring housing market, offering a nuanced view of the pressures and opportunities shaping today’s buyers, sellers, and lenders. And we weigh tariff news versus economic data in terms of what is moving markets.

Thanks to today's podcast sponsor, TRUE and its Mortgage Operations Service (MOS) AI background worker, which transforms borrower documents into instant, trustworthy data for real-time decisioning. TRUE helps lenders accelerate decisions, cut costs, and deliver a superior borrower experience, all without a $100M tech budget. 

Transcript

Nearly a thousand of us head to Manhattan in less than a week for the MBA’s Secondary Conference. In 2025 Q1, the median asking rent in New York City registered at $3,397, an increase of $179, or 5.6%, compared with a year ago. Sounds appropriate, given wage growth. In other rental news, the Missouri legislature passed a bill  allowing landlords to discriminate against low-income renters. The Missouri Senate gave final approval to House Bill 595 which would prevent cities from enacting certain renter protections. This Bill was prompted by local legislation in some communities, most notably Kansas City, which bans landlords from denying leases to renters on the grounds that they receive housing assistance. Bill 595 would prevent cities from banning that practice, sometimes called source-of-income discrimination. One of the most common types of housing assistance is federal Section 8 housing vouchers, which allow low-income renters to have a portion of their rent covered by the government. State and federal government policy will be one of the topics on today's episode of Now Next Later at 10AM PT. Sasha and Jeremy sit down with Taylor Stork, President of the Community Home Lenders of America, to reflect on CHLA’s recent Spring Fly-in in Washington, D.C., major policy discussions, key industry concerns, and how mortgage professionals can remain involved in shaping the future of lending. (Today’s podcast can be found here and Sponsored by TRUE and its Mortgage Operations Service (MOS) AI background worker, which transforms borrower documents into instant, trustworthy data for real-time decisioning. TRUE helps lenders accelerate decisions, cut costs, and deliver superior borrower experience, all without a $100M tech budget. Hear an interview with Cotality’s Selma Hepp on the complex dynamics of the 2025 spring housing market, offering a nuanced view of the pressures and opportunities shaping today’s buyers, sellers, and lenders.)

Employment & coaching

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​Mandi Feely-Swain, Senior Executive Vice President at Premier Mortgage Resources and leader of Idaho’s top-producing loan origination team, is propelling Origination Boost into its second year with remarkable momentum. This dynamic platform offers loan officers two monthly coaching calls, exclusive access to the exclusive Origination Boost app, and accountability partners. This comprehensive toolkit for success has seen hard-proven results with 65.4% of enrolled loan officers seeing an increase in their units and volume. Feely-Swain's commitment to mentorship and excellence in the industry is evident in Origination Boost's growing community. By integrating technology with personalized coaching, she is redefining success for professionals in the mortgage and real estate sectors. Learn more by emailing here.

“Deephaven Mortgage, a trailblazer in non-QM lending, is growing! We’re on the lookout for experienced wholesale account executives across the country to help fuel our expansion. At Deephaven, we offer a proprietary suite of non-QM products that includes investor products, a robust second lien offering for primary and investments, and access to ground-up construction/fix and flip/bridge loans through our sister company Anchor Loans. Competitive pricing, comprehensive webinar support, a best-in-class scenario desk, a fully integrated platform, and superior customer service all add to the success of our account executives. Great benefits and an unmatched company culture means you’re joining a winning team! If you have a proven track record in non-QM, an active book of business, and the ambition to thrive, we want to meet you. There are many unsaturated territories still available for you to build out. Take the leap and watch your career soar with Deephaven! Please contact Steve Lemon.”

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.

Software, products, and services for lenders & brokers

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BOK Financial is excited to announce the launch of its Mortgage Finance line of business. For more than 20 years, BOKF, NA has supported independent mortgage bankers as a top 10 dealer of mortgage-backed securities, offering trading liquidity, comprehensive treasury management platforms, structured product solutions, a deep organizational understanding and long-standing involvement in the mortgage banking space. The new vertical is dedicated to meeting the credit needs of non-bank mortgage originators across the country and will initially offer warehouse credit facilities with additional products to follow. Under the leadership of Donnie Martin, the Mortgage Finance group will create a full-service ecosystem tailored to the unique needs of these clients. Reach out to Donnie, Becky Lottridge, or Chris Thurber to schedule a meeting at the upcoming MBA National Secondary Conference in New York.

Now Available! Ncontracts 2025 Third-Party Risk Management Survey. Financial institutions are facing growing vendor risk challenges, from managing hundreds of third parties with lean teams to keeping up with evolving cybersecurity and AI risks. Those are just a few of the findings of The Ncontracts 2025 Third-Party Risk Management Survey, which breaks down the biggest trends, risks, and strategies shaping third-party risk management (TPRM) at financial institutions today. Packed with real-world insights, it’s your go-to resource for understanding where banks, credit unions, and mortgage companies stand, and how your institution compares. Here's a quick look: 73% of institutions have two or fewer full-time employees managing vendor risk, even though more than half oversee 300+ vendors. Nearly half of institutions experienced a third-party cyber event last year, and AI ranks as the second-biggest TPRM risk heading into 2025. Plus, 85% of financial institutions see moderate to high value from their TPRM programs. Download the full report here.

For secondary market investors, confidence in the integrity and transferability of eNotes is essential, but not always guaranteed. DocMagic® solves this with purpose-built tools to store, manage, and securely transfer electronic mortgage records. SmartSAFE® eVault technology empowers customers to take advantage of automated eNote eCertification processes and validation of SMARTDoc® format and data. Additionally, SmartREGISTRY™ enables compliant servicing, transfer, and delivery operations between eRegistry participants, ensuring trust in every transaction. Together, these tools allow secondary market participants to reduce risk, uphold data quality, and maintain long-term compliance throughout the digital mortgage lifecycle. Visit DocMagic or contact Leah Sommerville, Director of Sales, to get started. 

According to the LenderLogix Q1 2025 Homebuyer Intelligence Report, pre-approval activity surged nearly 38% to start the year, with more buyers moving from pre-approval to application faster than ever. In fact, the average time between pre-approval and application dropped by nearly two weeks compared to Q4 2024, signaling growing borrower confidence and a competitive purchase environment. Read the full report.

FREE EBOOK: Helping Borrowers Navigate Loan Products & Pricing: A Loan Officer’s Guide to Winning Trust and Closing More Loans. Today’s borrowers are overwhelmed with fluctuating rates, rising home prices, and a maze of loan options. A loan officer’s ability to simplify the process and offer clear, fast solutions is the ultimate advantage. In Maxwell’s eBook, LOs will learn how to quickly deliver personalized, easy-to-understand loan comparisons that build borrower confidence and set you apart from the competition. Discover time-saving strategies, tech tips, and proven methods to create a seamless borrower experience, and close more deals. Click here to download “Helping Borrowers Navigate Loan Products & Pricing: A Loan Officer’s Guide to Winning Trust and Closing More Loans.”

Docutech is your source for comprehensive, compliant, digital-first document technology. Now, there’s even more to discover from Docutech. As a leader in origination document generation and eClose solutions, and a First American brand, Docutech is expanding its offerings to include document solutions for lien release, servicing, and loan modification. Find out how Docutech is supporting clients at every stage of the mortgage life cycle.

The mortgage industry has been stuck in a time warp: endless document chaos, manual sorting, and data extraction that feel like digging for treasure with a spoon. Enter IDXGenius | AI Indecomm: the game-changer that turns your document headaches into streamlined, automated, AI-powered brilliance. No more drowning in document madness or missing critical documents and data, just smart indexing and versioning, and accurate document-to-data extraction that keeps your team moving forward. With 1,200+ documents pre-mapped, IDXGenius | AI offers 100% accuracy in document classification and 98-100% accuracy in extracted data. While others are still stuck in the past, your mortgage operations just got a modern upgrade. Lenders: leave behind outdated methods and embrace document processing efficiency that doesn’t break the bank. Discover more at idxgenius.ai or request to watch the demo on-demand.

Have you heard about the new Encompass® LO mobile app, part of ICE Customer Acquisition? Integrated with Encompass, it’s designed to give loan officers the tools they need to keep their pipelines moving with a single-pane, mobile-first experience. With this app, your team can stay connected to borrowers, manage pipelines efficiently and make informed decisions no matter where they are. Wondering how this tool can help your team respond faster, work smarter and close more business? Nick Belenky, Managing Director of Solution Sales at ICE Mortgage Technology, dives into the details in his latest blog. Read the blog here to learn more.

“AFR Tech Update: Enhancements to Drive Efficiency! AFR is excited to announce

several powerful new features to streamline workflow and enhance the experience. ICD Enhancements: New required fields (real estate agent info for purchases, MERS MIN for Correspondent Non-Del) to boost accuracy and compliance. Disclosure package: Invites with messaging based on loan registration status. Smarter Pricing Search: Select “Not Specified” as the underwriting type to view FNMA and FHLMC pricing in one search. AUS Transparency: Full DU or LPA error messages now display when AUS issues occur. From automation improvements to simplified borrower engagement and smarter processes, these updates are built to save you time and keep your loans moving. Already a partner? >>Check out these details now. Not yet a partner? Partner with AFR today. We’re continuing to invest in the tools and pricing that help you succeed. Learn more: sales@afrwholesale.com, 1-800-375-6071, or www.afrwholesale.com. (NMLS 2826) Let’s grow together!”

Webcasts, podcasts, and events this week

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Every conference has an LTV ratio: the percent of “Lenders to Vendors.” Cutting edge mortgage stats aside, a good place for longer term conference planning is to start is here for in-person events in the future; and organizers can post their event!

There’s a smarter way to tap into the $32 trillion in U.S. home equity, and it doesn’t involve refinancing a low-rate first mortgage. On Wednesday, May 14 at 1 PM ET / 10 AM PT, NMP Webinar presents DealDesk: Focus on Brokers Advantage Mortgage’s Non-QM Closed End Second, an interactive session designed for originators ready to close loans right now! Join industry veterans Bill Ashmore and Pete Lunetto as they break down Brokers Advantage Mortgage’s CES DSCR program built specifically for today’s market: up to $750K loan amounts, CLTVs to 90%, and Full Doc, 1099 and P&L income options. Whether you’re working with self-employed borrowers or navigating complex credit scenarios, this DealDesk delivers practical guidance and answers in real time to help you close more loans. Secure your spot and bring your toughest scenarios here.

Technology and innovation in residential lending are the focus of Now Next Later today at 1pm ET.

The NALHFA Annual Conference is coming to Minneapolis, May 12-14. From forward-thinking development to a thriving arts and dining scene, Minneapolis offers the perfect backdrop for meaningful discussions. Engage in expert-led sessions on policy, single-family and multifamily housing, and financing strategies, plus keynotes on the future of housing and homelessness solutions. Gain actionable insights, build valuable connections, and be part of the conversations shaping the industry.

In tomorrow’s episode of MortgagePros411, at 2PM ET, Audrey and Kevin speak originator’s language.

Looking for more in-depth commentary on weekly mortgage news? Register here for Wednesday the 14th at 11AM PT "Mortgage Matters: The Weekly Roundup” presented by Lenders One. This week we have Paul Viguerie, CMB, with Altisource.

Thursday will be another episode of The Big Picture at 3PM ET. Rich Swerbinsky hosts a variety of guests. You can click here to register for Thursday’s 3 PM ET show.

Technology is transforming every single industry including residential lending. Don’t fall behind on the latest trends and lose out on business. Register for American Mortgage Conference, May 13-14, in Charleston, SC, focusing on the newest technologies you can use to maximize profitability and streamline operations.

Join Pennymac for a joint webinar with Freddie Mac on calculating variable income, Thursday, May 15, 11 AM PT / 2 PM ET. Gain key takeaways about Fundamentals and best practices for assessing fluctuating income. Effective documentation and calculation techniques for variable income. Identifying when additional income validation is required.

Join TMBA on May 15, at 11:30am CDT, for an engaging discussion with the leadership of the Texas Mortgage Bankers Association (TMBA). This special session features Erin Dee, TMBA President, and Jodie Morgan-Cochran, immediate Past President, as they reflect on the past year's accomplishments, share insights on current industry trends, and outline the association's strategic direction for the year ahead.

On Thursday, May 15th, at 10:30 AM PST, Garris Horn LLP’s Senior Litigation Partner, James Brody, in collaboration with The Mortgage Collaborative (TMC) will present a webinar, titled: “Annual Regulatory Roundup: Invaluable Tips for Maintaining Compliance in 2025 & Beyond.” Click here to register; registration is free. In this co-sponsored Regulatory Roundup webinar, Mr. Brody will leverage his decades of experience as a financial services litigator and compliance attorney to ensure your organizations remain compliant during a time of upheaval all across the mortgage banking industry. Specifically, Mr. Brody will address compliance topics involving LO Comp, RESPA, Cyber, TILA, UDAP, M&A, MSAs, and more. For any registration related questions, please contact Mr. Brody (415-246-3995).

On May 16th at 12:00 pm, join NYMBA for "Affordable Fridays," a series of webinars and events designed to educate lenders on affordable housing programs and grants that aim to increase home ownership in New York.

Friday the 16th on Last Word, Brian Vieaux, Christy Soukhamneut, Kevin Peranio, and Courtney Thompson discuss the recent decision by the Federal Housing Finance Agency to end Fannie Mae and Freddie Mac's down payment and closing-cost assistance programs for first-time homebuyers. They'll explore the potential impact on affordability, the housing market, and the future of government-backed homeownership support.

Capital markets: China & U.S. pause Trump’s trade war

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Last week, market participants processed a modestly hawkish message from the Federal Reserve alongside a surprising dose of optimism on the trade front. As widely expected, the Federal Open Market Committee (FOMC) held the federal funds rate steady, but the tone of the statement (and Fed Chair Jerome Powell's remarks during his press conference) signaled increased concern over potential stagflation. Powell emphasized that the policy rate was "in a good place" for now but flagged growing risks to both inflation and employment, largely hinging on how tariffs evolve.

Speaking of tariffs, President Trump announced a "breakthrough" trade agreement with the United Kingdom, aimed at boosting U.S. export access across key sectors. He also suggested that China might be warming to a deal. Still, there's a lot of uncertainty out there. April’s ISM Services Survey revealed that 17 of 18 industries faced rising input costs, and trade-reliant sectors like agriculture and construction showed signs of contraction. In contrast, sectors less exposed to trade continued to expand. While tariffs have not yet caused significant disruptions in hard data, ongoing uncertainty could dampen consumer spending, hiring, and business investment, reinforcing the Fed’s cautious and data-dependent stance in the months ahead.

This week gets off to a quiet start, barring news headlines, with today’s calendar consisting of just Fed Governor Kugler speaking, some short duration Treasury auctions, and the Treasury statement for April. Over the remainder of the week, we receive CPI and PPI (for April), New York and Philly Fed manufacturing indexes (May), retail sales (April), industrial production/capacity utilization (April), business inventories (March), homebuilder sentiment (May), import prices (April), housing starts/permits (April), and preliminary May consumer sentiment. After the news that China and the United States have paused the trade war begun by Donald Trump, we begin the week with Agency MBS prices worse about .250 than Friday’s close, the 2-year yielding 3.99, and the 10-year yielding 4.45 after closing last week at 4.38 percent.

A film crew was on a location deep in the Arizona desert. One day an old Native American went up to the director and said, "Tomorrow rain".

The next day it rained. A week later, he went up to the director and said, "Tomorrow storm".

The next day there was a hailstorm.

"This Indian is incredible", said the director. He told his secretary to hire the Native American to predict the weather.

However, after several successful predictions, the old Native American didn't show up for two weeks.

Finally, the director sent for him. "I have to shoot a big scene tomorrow" said the director, "and I am depending on you. What will the weather be like?"

He shrugged his shoulders. "Don't know," he said. "Radio is broken."

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, “Love Them or Leave Them? The Ongoing Saga of Fannie and Freddie.” 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.ChrismanCommentary.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.)