9.19.25 Boomlet or Bust; Gateless' Mike Brown on Underwriting Tech; 10-Year Demand

The Chrisman Commentary Daily Mortgage News Podcast delivers timely insights for mortgage lenders, loan officers, capital markets professionals, and anyone curious about the mortgage and housing industry. Hosted by industry expert Robbie Chrisman, each weekday episode breaks down mortgage rates, lending news, housing market trends, capital markets activity, and regulatory updates with insightful analysis, expert perspectives, and conversations with top professionals from across the mortgage industry. Stay informed, gain actionable insights, and keep up with developments in mortgage banking and housing finance. Learn more at www.chrismancommentary.com.

In today’s episode, we go through where mortgage rates could go from here (hint: up or down). Plus, Robbie sits down with Gateless’ Mike Brown for a discussion on how lenders can overcome application surges by automating key underwriting tasks in real time, reducing costs, accelerating approvals, and enabling scalable growth without added headcount. And we close by looking at what to expect now that the Fed has begun loosening monetary policy.

CreditXpert is the all-new credit optimization platform that helps you close more loans. CreditXpert is committed to making homeownership more accessible and
affordable for ALL.

Transcript

In China, red symbolizes prosperity, protection, and welcoming energy, and so is a popular front door color for occupants, especially when facing south. Here in the United States (we’re still united, right?) it doesn’t take long before “occupancy fraud” is on everyone’s lips in residential lending. Occupancy is not a partisan issue, right? And prosecuting it should not be either. Whether it is the Fed’s Lisa Cook, Bill Pulte’s father, three members of the Trump cabinet, suddenly applications on multiple homes are showing discrepancies. (Yes, according to a Bloomberg report citing Treasury Secretary Bessent’s mortgage applications with Bank of America, the Treasury Secretary agreed to occupy two different homes as his “primary residence” simultaneously, a pledge similar to one made by Cook.) Let the authorities take a look. Fed independence is also a hot topic, so it is no coincidence that on today’s The Last Word (10AM PT / 1PM ET), Brian Vieaux, Kevin Peranio, and Courtney Thompson tackle the political and legal drama surrounding the Fed’s independence, political interference, the heightened tension it creates, and how markets are bracing for volatility tied to policy signals and credibility. (Today's podcast can be found here and this week’s are sponsored by CreditXpert. The all-new credit optimization platform that helps you close more loans. CreditXpert is committed to making homeownership more accessible and affordable for ALL. Today’s features an interview with Gateless’ Mike Brown on how lenders can overcome application surges by automating key underwriting tasks in real time, reducing costs, accelerating approvals, and enabling scalable growth without added headcount.)

Employment & transitions

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“Premier Mortgage Resources has transformed the homebuying experience with its innovative Xcelerate Program, giving buyers speed, certainty, and confidence. Through this streamlined loan process and approval system, buyers can receive true underwriting pre-approvals by REAL underwriters within 48 hours. Unlike standard pre-qualifications, these approvals are fully underwritten, giving sellers the assurance that an offer backed by PMR is strong and reliable. Buyers also gain clarity on their exact purchasing power upfront from monthly payments to maximum purchase price, so they can shop with confidence and make competitive offers. For real estate professionals, the program provides a powerful advantage. Clients pre-approved through Xcelerate stand out in multiple-offer situations, reducing delays and increasing the likelihood of accepted offers. Buyers have less stress, fewer unknowns, and a faster path to homeownership. By combining speed, transparency, and certainty, PMR’s Xcelerate Program positions buyers as serious contenders in the market and helping them secure not just a loan, but a future. Want to join PMR? Email us.”

“Build Wealth, Not Just Income, The Movement Way. At Movement, we’re redefining what it means to earn. It’s not just about a high paycheck. It’s about creating lasting financial independence. Our platform equips loan officers with powerful wealth-building tools designed to turn today’s income into tomorrow’s freedom. Through innovative programs like Deferred Compensation, the Win Together Fund, and Income for Life, Movement empowers LOs to generate residual income and grow invested capital. This isn’t a transactional model. It’s a strategic path to long-term financial success. With performance dashboards and client retention insights, loan officers gain the clarity and control needed to shape their financial future. Movement is more than a company: It’s a partner in your journey toward true wealth. Ready to invest in your future? Learn how Movement’s financial empowerment model can help you unlock freedom through smart income strategies. Click here for more information.

“A mid-sized privately owned mortgage bank located on the West Coast is in search of a new Head of Underwriting. The current Head of Underwriting has decided to retire after several decades in the mortgage industry and over a decade with the company. With one of the lowest rates of repurchase in the nation and some of the shortest average days on the line, the foundation is already set. We’re looking for a dynamic Underwriting Executive who is proficient with Encompass, seasoned at responding to pre-and-post purchase file reviews, has prior management experience, and a deep understanding of Non-Agency, Non-QM, Agency, and Government guidelines. If you’re looking for a unique opportunity to finally have a seat at the table, flexibility to work remotely, and use your talents to shape the next chapter at a company please contact Anjelica Nixt to forward your note to set up a confidential conversation.”

Evergreen Home Loans™ is redefining the lending experience with programs designed to give buyers a competitive edge and loan officers the tools to succeed. From CashUp™ by Evergreen, which empowers buyers to make cash offers, to StepUp™, which lets families buy their next home before selling their current one, Evergreen consistently delivers solutions that meet today’s market challenges. The company also offers unique programs such as the Security Plus Seller Guarantee™ and flexible construction loans, giving associates a full suite of products to present to their clients. Loan officers benefit from not only these programs but also a supportive infrastructure that includes marketing, training, and operational excellence. As Evergreen expands nationwide, it is recruiting experienced loan officers and branch managers who want to leverage these innovative products to grow their business and help more families achieve homeownership. Explore opportunities here.

FirstClose™, a leading fintech provider of data and workflow solutions for mortgage and home equity lenders nationwide, announced the expansion of its sales organization with the addition of four accomplished industry sales professionals: Austin Wilcox as regional vice president, Darcy Hall as a business development manager focused on driving pipeline growth and lender outreach, Jon Del Pozo as a regional vice president, and Tracy Farber as vice president.

The Chrisman Job Board is 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.

Services, products, software, and tools for lenders and brokers

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Did you know there’s a retiree in Iowa running a rescue for special-needs corgis? It’s a reminder that when homeowners aren’t burdened by monthly expenses, they can focus on what matters most. By really listening and considering new solutions (like a reverse second mortgage from Finance of America), you can help clients find the best fit for their needs. Want to see how many of your past clients might be eligible? Fill out this form (no identifying info needed). The borrower must meet all loan obligations, including meeting all loan obligations under the first lien mortgage, living in the property as the principal residence, and paying property charges, including property taxes, fees, hazard insurance. The borrower must maintain the home. If the homeowner does not meet these loan obligations, then the loan will need to be repaid. Finance of America | NMLS #2285.

“30 percent of all mortgage applications are denied due to credit challenges. And many are just a few points shy of the 620-threshold. With the right follow-up, these borrowers could qualify in months, yet most lenders let them walk away, losing trust and business along the way. In our latest webinar, Building Your Future Pipeline, you’ll learn how a structured re-engagement strategy can turn today’s credit denials into tomorrow’s funded loans. Capturing just 10 percent of these applicants could mean $70–$100 million in additional volume for a $2B lender without chasing a single new lead. We’ll also show you how to turn Credit Improvement Alerts into a goldmine of revenue. With 7,000+ alerts a year representing $200 million in potential applications, the opportunity is enormous… if you know how to act. Watch now to learn how to build a smarter pipeline and maximize ROI.”

Reggora’s making waves with its 24-hour appraisal solution, set to launch October 15th, and it is no small feat. Backed by $18M in new funding from Centana Growth, the company’s gearing up for serious expansion. This isn’t just another tech tweak. It’s a bold move to reshape appraisals, slashing turnaround times without compromising quality. Industry players are already buzzing about how this could streamline operations and boost efficiency. Reggora’s leveraging its tech to tackle a pain point that’s plagued the mortgage world for years. Curious about the details? The full scoop’s in their latest press release, and it’s worth a read for anyone tracking innovation in housing. Check it out here.

The Chrisman Marketplace is a centralized hub for vendors and service providers across the mortgage 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 programs are always shifting

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Despite Freddie and Fannie’s loss in market share to non-Agency channels (non-QM, jumbo, bond programs, private money lending) it is still good to see what F&F and the aggregators are doing. Regarding an actual release from conservatorship, no one really seems to know much of anything, other than it is far more complicated than the wave of a wand or a tweet.

R.C. Whalen of Whalen Global Advisors LLC published a piece of his opinion on how the release of Fannie Mae and Freddie Mac from conservatorship could change mortgage costs.

Fannie Mae and Freddie Mac (the GSEs) recently introduced an overview for using the Uniform Appraisal Dataset (UAD) 3.6 and the Uniform Residential Appraisal Report (URAR) during a limited production period beginning September 8, 2025. Weiner Brodsky Kider PC report, “Lenders may elect to participate in the GSEs’ limited production period, which extends from September 8, 20205, through January 25, 2026, by completing a questionnaire and receiving GSE approval. Beginning January 26, 2026, through November 1, 2026, all GSE lenders can begin submitting UAD 3.6 appraisals without prior GSE approval. During this period, both UAD 2.6 and UAD 3.6 will be acceptable. Beginning November 2, 2026, UAD 3.6 becomes mandatory for all new appraisal submissions on GSE loans.”

Indeed, after over five years of preparation, the limited production of UAD 3.6 and Forms Redesign is finally here. This period innovates the appraisal space with improved data standardization, a simplified review process, and dynamic reporting. Freddie Mac and Fannie Mae (the GSEs) have completed their system and policy updates and are ready to work with lenders and appraisal software vendors to implement UAD 3.6.

Watch the Q3 Policy Highlights Video posted by Freddie Mac for a quick recap of the key changes to our Single-Family Seller/Servicer Guide (Guide) from Bulletins 2025-9, 2025-10 and 2025-12.

Freddie Mac’s Single-Family Seller/Servicer Guide Bulletin 2025-12 provides updates related to: Loan-to-value (LTV) ratios for certain mortgages secured by 2- to 4-unit properties, Reconsideration of Value (ROV), Third-Party Originator (TPO) oversight. Additional updates include MERS® revision, Cash-Released XChange® Document Custodians, and Guide refactoring.

Capital markets: mortgage rates have crept higher

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With yesterday’s economic calendar limited to jobless claims, and today completely void of data, we probably aren’t going to see any shift in investor sentiment in the near-term. And just where is investor sentiment? Well, just when markets thought the Fed had finally given up its recent hawkish ways for good, Fed Chair Powell’s post-meeting press conference tempered market optimism around imminent rate cuts, signaling a more cautious stance by emphasizing that inflation remains a persistent and unpredictable risk to the outlook.

The result: the bond market quickly reversed and began selling off, having previously priced in a dovish Fed into 2026. Tisk, tisk. It felt eerily similar to one year ago, when expectations for a 50-basis points cut never came to fruition and we were left with a mere refi “boomlet.” Fed funds futures projections are still for another 50-basis point reduction by the end of December, but January odds have slipped further below a 50 percent chance of a rate cut.

All that said, the employment data cast doubt on the outlook for further interest-rate reductions by the Fed this year. Initial applications for jobless benefits in the U.S. dropped by the most in nearly four years, reversing an unusually large jump in the prior week. Initial claims decreased by 33k to 231k for the week ended September 13, in line with levels seen throughout this year and not far off the pre-pandemic trend.

Yesterday’s $19 billion 10-year TIPS reopening was a test of investor demand for real yields amid a bullish backdrop, with 10-year TIPS up over 25-basis points since early August and the auction set to price at the lowest yield in a year. However, the auction was a dud, tailing over 4.5-basis points to well below average end user demand. Recent rate moves and limited tariff-driven inflation, mixed with concerns around monetary policy normalization and central bank independence were expected to keep demand for inflation protection strong, but predictions never mean much in the bond markets.

Mortgage rates hit new year-to-date lows versus the prior week and remain at the lowest levels since last October. In Freddie Mac’s Primary Mortgage Market Survey for the week ending September 18, the 30- and 15-year mortgage rates both fell 9-basis points to 6.26 percent and 5.41 percent, respectively. However, both rates remain higher by 17-basis points and 26-basis points from a year ago.

A speech from San Francisco Fed President Daly is the lone economic “event” of interest today, though the Bank of Japan was out with its latest monetary policy decision overnight, with no change in rates, as expected. Without any economic data on today’s schedule, we begin Friday with Agency MBS prices slightly worse than Thursday’s close, the 2-year yielding 3.58, and the 10-year yielding 4.13 after closing yesterday at 4.10 percent.

A pirate walks into a bar with a big ship’s wheel down his pants.

The bartender says, “Excuse me, sir, but do you know you have a ship’s wheel down the front of your pants?”

The pirate grumbles, “Aaargh, it’s driving me nuts!!”

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, “Servicing: What’s All the Fuss About?” The Commentary’s podcast is available on all major platforms, including Apple and Spotify.

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(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes, visit the Chrisman Job Board. This newsletter is intended for sophisticated mortgage professionals only. There are no paid endorsements by me. For the latest mortgage news, visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.ChrismanCommentary.com. Copyright 2025 Chrisman LLC. All rights reserved. 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.)