6.12.25 Trade-Related Uncertainty; Jeremy Potter and Brian Levy on the GSEs; PPI Follows CPI

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 go through how trade uncertainty is impacting the U.S. economy. Plus, Robbie sits down with Jeremy Potter and Brian Levy for a discussion on how the conforming credit box that once offered liquidity to the mortgage market is now fading into obsolescence with the rise of products like non-QM and other creative lending solutions. And we close with a look at what the latest producer price index report says about inflation in America after yesterday's CPI report brought a benign reading.

Today’s podcast is presented by Flyhomes, the leading wholesale lender for Buy Before You Sell solutions. Whether your borrowers run into DTI issues, need to unlock home equity for down payment, make a stronger, cash-like offer, or even move potentially with no cash out of pocket, Flyhomes provides a full suite of financial products to help them move forward, before selling their current home.

Transcript

“I was always a home builder, but lately I’ve developed an apartment complex.” Here in Florida, so many structures are made of stucco because stucco is fairly inexpensive, creates a great finished look, and is easy to apply to homes constructed with concrete blocks. But it can be damaged as a house shifts and settles over time. Companies like Icon, or COBOD International, are making news with their 3-D printed homes (and communities) that build houses layer by layer with cement-based material. But they have generated more headlines than buildings: “Building houses that work twice as good in half the time at the half the price” is a noble goal. The method is largely used to construct walls while conventional methods are used for foundations, floors, roofs, and finishes. Builders have created innovation arms… Lennar, for example, has LenX). Speaking of which, MBA Chairperson Laura Escobar echoed what every MLO in Florida, and most around the nation, know: make homeowner’s insurance and HOA fees part of the pre-qual discussion. (After 6:30AM PT today’s podcast can be found here and this week’s are presented by Flyhomes, the leading wholesale lender for Buy Before You Sell solutions. Whether your borrowers run into DTI issues, need to unlock home equity for down payment, make a stronger, cash-like offer, or even move potentially with no cash out of pocket, Flyhomes provides a full suite of financial products to help them move forward, before selling their current home. Hear an interview with Jeremy Potter and Brian Levy on how the conforming credit box that once offered liquidity to the mortgage market is now fading into obsolescence with the rise of products like non-QM and other creative lending solutions.)
Employment & transitions_________________________________________________
AmeriHome Mortgage remains a pillar of reliability in this volatile market, once again rated the 2nd Largest Correspondent Investor and Largest Bank Owned for Q1 by Inside Mortgage Finance and for all of 2024 by Scotsman Guide! With consistent reliability comes growth, and AmeriHome would like to welcome Molly Delaney and Missy Lawson to the AmeriHome Team! Molly joins them as a VP, Non-Agency Business Development Representative and Missy joins as the newest Non-Delegated Account Executive, representing the Northwest! They have already proven to be an enormous value add to the AmeriHome team and, with AmeriHome’s new releases such as the new Non-Agency suite, eNote purchase platform, and Builder Forward program, there’s no better time than now to schedule a meeting and see how AmeriHome can help your business! Check here for a detailed breakdown of where AmeriHome will be throughout 2025 and follow AmeriHome Correspondent on LinkedIn to in the loop!
The Chrisman Job Board is live, the go-to platform for employment opportunities across the mortgage industry. For employers, adding a job listing is easy. Simply create an account and drop in your existing application link, or forward the details to our team and we’ll take care of it for you. For job seekers, joining our Talent Community is completely free. Upload your resume to be visible to hiring companies across the industry and stay connected to new opportunities as they go live.
Products, software, & services for brokers and lenders_________________________________________________
In today’s highly competitive mortgage lending environment, attracting and retaining business while controlling loan origination costs is a constant challenge for lenders. ICE Mortgage Technology leaders recently sat down on the FinTech Hunting podcast to discuss the impact fragmented tech stacks can have on your team's ability to drive borrower engagement and unlock scalable growth. Packed with actionable strategies, this episode offers the tools you need to thrive in today’s fast-changing market. Click here to watch the episode now. Build a Stronger Pipeline with Planet’s Buy Now Sell Later Program. Attract motivated buyers and win more contracts with Planet proprietary Home Lending’s Buy Now Sell Later program. This standout solution helps your clients purchase their next home before selling, giving you a competitive edge in today’s market. As a Planet MLO, you’ll gain access to exclusive programs, marketing support that drives results, and technology that simplifies the process so you can focus on what matters: growing your business. Close faster. Stand out. Succeed with Planet by bringing Buy Now, Sell Later to your borrowers. Contact Candice McNaught, SVP Business Development and Strategic Initiatives, at 214-558-2675 to start the conversation.
In 2012, Zappos employee Steven Weinstein spent nearly 11 hours (a record!) on a single customer call that started with a question about Ugg boots and evolved into a wide-ranging discussion about life in Las Vegas, movies, and favorite foods. In our industry, that level of support is rivaled by Floify, a company with a highly configurable point of sale (POS) platform and a passionate customer service team that actually answers the phone. One fan is Carlsbad, CA-based Bryce Schetselaar, a former loan originator who founded MortgageOne with the goal of making the borrower experience less painful. Floify makes it easy for MortgageOne borrowers to upload documents and communicate with the mortgage team at every step in the process. Should the MortgageOne team have a technical (non-shoe) question, a Floify expert is just a phone call away. Read the full case study for more.
“Newrez Correspondent extends its sincere appreciation to all of our valued customers who joined us in New York City this past May. Your insightful conversations and feedback have been instrumental as we continue to strengthen our partnerships and enhance our offerings. As promised, Newrez has officially launched our AUS Jumbo program, along with key improvements to both our Closed-End Seconds and Non-Agency Smart Series products. Looking ahead, if you plan to attend the Western Secondary Conference, we invite you to meet with Rebecca Sommer, David Pistone, Baird Marble, and Brent Nichols on August 11th & 12th at Terranea Resort in Rancho Palos Verdes. Click here for a meeting. When it comes to subservicing, look no further: Newrez is here. As your Trusted Advisor, we have expanded our subservicing portfolio and platform, ensuring an exceptional experience for our lenders. Click to reach your Regional Sales Manager to discuss a subservicing opportunity.” Mortgage lenders looking for signs of stability just got welcome relief amid rate uncertainty. MCT’s latest Lock Volume Indices report shows purchase lock volume held nearly flat in June, down just -0.74% from May. That’s a positive signal for lenders, even as overall lock volume fell -5.10%, driven by a sharp -44.76% drop in rate/term refinances. “I view the consistency in purchase activity as a good thing,” said Andrew Rhodes, Senior Director and Head of Trading at MCT. “Rates are still elevated, affordability remains a challenge, and yet we’re seeing steady demand. That tells me there’s still momentum in the market, even if it’s cautious.” With borrower sensitivity to rates and policy shifts keeping the market on edge, understanding where demand is holding firm can give lenders a competitive edge. Read the full report or subscribe to MCT’s newsletter for expert guidance and data-driven insights to help you stay ahead in today’s evolving mortgage market.
“Click n’ Close believes homeownership should be within reach for every hardworking American. That’s why Click n’ Close’s innovative SmartBuy™ Down Payment Assistance (DPA) program is designed to help borrowers overcome the biggest hurdle to buying a home: the down payment. SmartBuy™ offers eligible borrowers up to 5% assistance that can be paired with our cutting-edge Shared Appreciation Mortgage (SAM). This powerful combination means lower monthly payments and a smarter path to sustainable homeownership, especially, but not exclusively, for first-time buyers. With below-market rates and flexible terms, SmartBuy™ helps make the dream of homeownership a reality for more families today and for generations to come. This Homeownership Month, be the lender with the keys to smarter closings. Contact Click n’ Close’s Wholesale or Correspondent divisions to discover how SmartBuy™ can help your borrowers succeed.”
The Chrisman Marketplace, a centralized hub for vendors and service providers across the mortgage industry, is up and going. The site features third-party providers offering powerful partnerships and solutions driving innovation in the space. We’ll be adding new vendors daily, so check back often to see what’s new. To reserve your place or learn more, contact us at info@chrismancommentary.com.
Mergers and acquisitions continue, and will continue_________________________________________________
There is no reason to think that mergers and acquisitions will stop for lenders or vendors. Another day, and another M&A deal that we have heard about. Fairway Independent announced that it has purchased the mortgage branches of Hallmark, an Indiana based retail lender that did $600M in production last year. “Hallmark Home Mortgage, Powered by Fairway,” will be a new division of Fairway, and will add to Fairway’s $23B in retail volume.
Fairway CEO and Founder Steve Jacobson will remain in that role, and Hallmark CEO and Founder Deborah Sturges will join Fairway with the title of President, Hallmark Home Mortgage. Jacobson called the purchase of Hallmark a win for both companies: "Deborah and I worked together at Waterfield decades ago and have remained industry acquaintances ever since," said Jacobson. "Our shared values, and our trust in each other make this partnership a natural fit. Our shared vision will make us even stronger together."
According to STRATMOR Group’s Garth Graham, this is the 13th announced deal in 2025 for the mortgage industry, which puts M&A firmly ahead of last year’s pace of 25 deals. Garth commented that he expects more deals in the second half of the year as the industry continues its consolidation.
HELOCs, 2nds, and non-Agency product news is endless_________________________________________________
“Do you have Realtors that have listings with assumable low rate first mortgages? Symmetry can help fill the gap between an Assumable First and Sales Price! We can allow up to 89.99% CLTV for a primary residence up to 500K HELOC loan amount with our Interest Only HELOC* for qualified borrowers! Help unlock New Possibilities with Assumption Loans for your pre-approved database. Increase Buying Power with lower rate assumable first mortgage & our Interest Only HELOC*. Free up cash to improve property by using our HELOC to help make up the difference. Provide strategic solutions to both your clients and realtor partners. We will treat 2nd as a piggyback purchase† and can close fast once we have your full package with assumption paperwork. Reach out for more details or questions. *Interest only payments during draw period (plus annual fee). † HELOC not closed concurrently with assumable 1st will be treated as a standalone. Have a great day! Symmetry Lending.”
Foundation Mortgage Corp. has launched a proprietary Bank Statement Calculator to simplify income analysis for non-QM loans. Now accessible through the Foundation Broker Portal, the tool allows brokers to upload 12 or 24 months of personal or business bank statements and receive instant income calculations tailored to Foundation’s common-sense lending guidelines. Brokers can track progress in real time, view what’s missing, and see a detailed breakdown of income, deposits, and exclusions. Once a loan number is assigned, the calculator and supporting bank statements automatically link to the loan file, eliminating the need for reuploads. To try it out or schedule a walkthrough, brokers can log in to the portal or contact their Account Executive.
Pennymac Announcement 25-60 provides notice that, effective July 1, 2025 (the “Effective Date”), Pennymac Corp is unconditionally assigning all rights, duties, indemnities, and obligations under the eNote Control Agreement to PennyMac Loan Services, LLC. On and after the Effective Date the term “Pennymac” in the eNote Control Agreement shall mean PennyMac Loan Services, LLC.
Unlock exclusive ITIN Mortgage Solutions for your clients with Non-QM mortgage solutions for a truly modern approach to lending, Loanhouse TPO’s flexible underwriting adapts to the unique needs of today's dynamic real estate market, empowering you to help more clients achieve their homeownership or investment goals. With a fast and seamless application process, Loanhouse makes it easier than ever to close deals efficiently and grow your business.
Help borrowers access equity without refinancing, Freedom Mortgage Wholesale offers a powerful refinancing alternative, Advanced Second program. Available for borrowers with first mortgages owned by Freddie Mac, This financing solution allows homeowners to tap into their equity without disrupting their low first mortgage interest rate.
Training and webinars to end the week_________________________________________________
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!
BRODY | GAPP LLP’s inaugural webinar with The Mortgage Collaborative, titled “2025 Regulatory Roundup: Trends, Challenges & Actions,” is today at 10:00 AM PT / 1:00 PM ET. Registration is open by clicking here.
Register for USDA’s free, live, virtual training, "Boost Loan Accuracy and Speed", Thursday, June 12, 2:00 p.m. - 3:00 p.m. ET
Join Agile today at 11AM PT for its latest webinar, Outsmart the Chaos: How Top Firms Are Fixing MBS Pooling. In this webinar, Agile’s Greg Vacura, Tawab Abawi, and Sam Farmer will walk through real-world scenarios, from managing dealer bids to simplifying swap allocations, and show how lenders can achieve operational efficiency through intelligent automation. This session will highlight the challenges lenders face today when managing MBS pool bidding and demonstrate how a centralized, automated, and more intelligent solution can improve efficiency and execution. Register for the webinar or contact Agile to learn more.
Today 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. Today’s features Dustin Owen, marketing wiz.
On tomorrow's episode of Last Word at 10am PT, hosts Brian Vieaux, Christy Soukhamneut, Courtney Thompson, and Kevin Peranio explore recent shifts in the mortgage market, focusing on the PCE report's implications for inflation and rising mortgage rates.
Capital markets: Powell to Trump: “Leave the Fed alone!”?_________________________________________________
This month’s STRATMOR piece is titled, “Beyond the Primary Market: How MBS and ABS Impact Lending Strategy” for anyone wondering what the difference is between the two.
Inflation data for May that was released yesterday came in softer than expected, providing a degree of relief to markets and increasing the likelihood of future interest rate cuts by the Federal Reserve. This prompted a positive reaction in the bond market, with short-term yields falling and investors turning their attention to next week’s Federal Open Market Committee meeting for further direction. However, while the current data appears benign, it may not fully capture the underlying risks tied to ongoing trade tensions, particularly as certain tariffs are set to resume when current 90-day pauses expire later this summer.
Trade-related uncertainty remains a major concern for investors. Although recent talks between the U.S. and China resulted in a tentative framework to resume a previous truce, markets reacted cautiously, seeing little tangible progress. The situation is further complicated by a federal court decision allowing President Trump’s tariffs to remain in place pending appeal, extending a period of policy limbo. Many expect the President to prolong the current pauses, which, while softening immediate inflation risks, prolong market uncertainty. The practical implications of tariffs on end-user prices, particularly in sectors like autos, remain a key area of focus for the coming months. As such, the full economic impact may not materialize until the second half of 2025 or later, raising questions about the sustainability of growth if trade policy continues to shift unpredictably.
At the same time, President Trump has intensified his call for a full-point Fed rate cut, arguing that lower rates would ease government borrowing costs amid mounting national debt. However, the Fed continues to prioritize inflation control and employment stability, resisting political pressure to act prematurely. With inflation modestly higher year-over-year and tariff-related costs still looming, economists remain split on whether current conditions justify easing. Some expect a September rate cut as inflation shows signs of cooling, while others warn that price pressures could re-emerge if tariffs escalate. In this uncertain environment, market participants are looking closely for more concrete policy decisions from both the Fed and the White House that could set the tone for economic momentum through the end of the year.
Today’s economic calendar holds the May Producer Price Index and weekly jobless claims. Expectations were for PPI to increase 0.2 percent month-over-month and 2.6 percent year-over-year versus -0.5 percent and 2.4 percent previously. Later today the Treasury will announce the auction sizes for next week’s reopened 20-year bonds and 5-year TIPS auctions before actually auctioning $22 billion reopened 30-year bonds. In the afternoon, the NY Fed will conduct a buyback (for liquidity support) in 2- and 3-year coupons for up to $4 billion. Between Treasury auctions, Freddie Mac will release the Primary Mortgage Market Survey for the week ending June 12, with the prior week’s 30- and 15-year mortgage rates both falling 4-basis points to 6.85 percent and 5.99 percent, respectively. Thursday looks like it could be another quiet day, rate-wise, with, in the early going, Agency MBS prices are about unchanged from Wednesday’s close, the 2-year yielding 3.93, and the 10-year yielding 4.39 after closing yesterday at 4.41 percent.

I’m still trying to get my head around the fact that "Take Out" can mean food, dating, or murder.

Visit www.ChrismanCommentary.com for more information on our industry partners, access archived commentaries, or subscribe to the Daily Mortgage News and Commentary. You can also explore the Chrisman Marketplace, a centralized hub connecting mortgage professionals with trusted vendors and solutions. If you’re interested, check out my periodic blog on the STRATMOR Group website. This month’s piece is titled, “Beyond the Primary Market: How MBS and ABS Impact Lending Strategy.” The Commentary’s podcast is available on all major platforms, including Apple and Spotify. qoɹ