10.22.25 MBA Annual Wrap; Bradley's Jonathan Kolodziej on Regulation; Applications Decrease

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 put a wrap on MBA Annual 2025. Plus, Robbie sits down with Bradley's Jonathan Kolodziej for a discussion on the evolving enforcement of federal and state consumer financial laws and some lender best practices for adapting to changes in the regulatory environment. And we close by examining the recent decrease in mortgage applications.

Today's podcast is brought to you by nCino, makers of the nCino Mortgage Suite for the modern mortgage lender. nCino Mortgage Suite's three core products -- nCino Mortgage, nCino Incentive Compensation, and nCino Mortgage Analytics -- unite the people, systems, and stages of the mortgage process into a seamless end-to-end solution embedded with data-driven insights and intelligent automation. See how nCino can support a homeownership journey that your borrowers and your team will love at nCino.com.

Transcript

“Why did the Tibetan Monks go to Las Vegas? They are very good at games of chants.” One topic among hallway chats with lenders here at the MBA Annual is keeping costs down. After all, everyone is selling, or putting their loans into portfolios, at roughly the same price, so whether a lender is doing $10 million a month or $1 billion a month, cost and efficiency are paramount. The current STRATMOR write up is titled, “Rates Drop, Pipelines Pop: Don’t Let Fulfillment Flop.” One of the simplest (I didn’t say easiest) ways to improve the cost per loan is ask your staff, “What are you trying to do to improve your pull through?” After all, higher pull through automatically lowers your cost per funded loan. And while IMB numbers are dropping, those remaining are carefully eyeing ARM, home equity, and non-Agency programs. (Today’s podcast can be found here and this week’s are sponsored by nCino, makers of the nCino Mortgage Suite for the modern mortgage lender. nCino Mortgage Suite's three core products nCino Mortgage, nCino Incentive Compensation, and nCino Mortgage Analytics, unite the people, systems, and stages of the mortgage process into a seamless end-to-end solution embedded with data-driven insights and intelligent automation. Hear an Interview with Bradley's Jonathan Kolodziej on the evolving enforcement of federal and state consumer financial laws and some lender best practices for adapting to changes in the regulatory environment.)

Employment; exec available; personnel moves

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As the seasons change, maybe it’s time your career did too. If you’re a loan originator looking for your next move, look no further than Motto® Mortgage! Joining Motto means so much more than being a part of a nationally recognized brand. You will immediately be connected to a network that empowers you with the resources needed to grow. From day one, you’ll have access to comprehensive compliance support, ongoing educational opportunities, and marketing materials as you join a tight-knit community. Get ready to start 2026 strong: Motto Mortgage brokerages are hiring loan originators across the country. Learn more here.

Last night I spent some time with Jason Stenger who is joining Rate and will oversee its retail platform, including new tech enhancements. Nexa Lending is adding Tammy Richards to its executive team. Congratulations! Unfortunately, the opposite is happening elsewhere to some extent. For example, Rocket’s layoffs related to the Mr. Cooper deal are underway, although the reduction in force affects under 1 percent of Rocket's team with the decision to streamline operations made following identifying overlapping roles post-merger.

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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You know what sneaks up faster than the automatic renewal on a streaming service? A surprise vendor price hike. You think everything’s fine (rates are holding, pipelines look okay) and then bam, your vendor quietly “adjusts” pricing. No warning, just a little extra line item that appears like a raccoon at the trash can. FirstClose, though, seems allergic to surprises. It’s pricing? Predictable. It’s reports? Exactly what regulators expect. No unnecessary add-ons that could open you up to fines or compliance headaches. Just the correct information, right where it belongs. One credit union said it switched because it was tired of “learning curves that never flattened.” Now, it has stable pricing, seamless API connections, and reps who answer calls. In a world full of surprise fees and mystery charges, consistency might be the most exciting thing around.

Lenders are already seeing the impact of LiteSpeed’s (powered by LenderLogix) new AI Sidekick. It reviews files, flags red flags, recommends missing documents, and adds to needs lists instantly with a single click. Designed to support loan officers rather than replace them, the AI Sidekick helps teams work faster and stay focused on borrowers. See how lenders are using LiteSpeed’s AI Sidekick to stay ahead of the curve!

“Built for Compliance. Designed for Business Impact. For decades, Asurity has helped lenders move faster with confidence, pairing deep regulatory expertise with agile, intuitive technology. Our market-tested platforms, Propel™ and RegCheck®, simplify the complex: from lightning-fast TRID compliance reviews to automated, accurate document generation across every loan type. What sets us apart? Compliance isn’t an afterthought. It’s the core of everything we build, proven in production and trusted by teams that can’t afford to second-guess. Learn more at asurity.com.”

“What’s the real impact of smarter tech in capital markets? At Optimal Blue, it goes beyond the features… We develop solutions to help lenders, brokers, and trading teams work with more speed, clarity, and control. Our latest innovations are designed to reduce friction, automate routine tasks, and support better decisions across the entire lending life cycle. Whether it’s improving pipeline visibility, enabling flexible access to tools, simplifying integrations, or surfacing early market signals, each innovation is built to fit into your existing workflow and deliver measurable value. With a modern, cloud-native platform and proven expertise, Optimal Blue helps you stay ahead of change and focus on what matters most: performance, transparency, and efficiency. If you’re looking for practical solutions that elevate how your team works without adding complexity, we’ve got you covered. Learn more about the innovations we just announced ahead of the MBA Annual.”

QC doesn’t have to feel like a never-ending game of whack-a-mole, with errors popping up faster than your team can smack them down, spreadsheets multiplying, and deadlines slipping further away. AuditGenius by Indecomm changes the game with a smarter, sharper approach to quality control. With pre-fund automation, intuitive workflows, customizable reporting, and interactive dashboards, AuditGenius gives you the visibility and control you have been missing. Instead of reacting to problems, your team can focus on preventing them and turn QC into a driver of improvement rather than a drain on resources. Smarter feedback loops, cleaner data, and deeper loan insights mean fewer surprises, stronger compliance, and a team that stays ahead of the curve. Learn how Indecomm’s modern AuditGenius dashboards are changing the game for QC teams! Register to attend the November 5th webinar, “Dismantling the Risk Delta: Turning QC Dashboards into Operational Clarity and Control."

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.

Industry chatter from the hallways: AI

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As mentioned in this Commentary earlier this week, the credit situation is a “hot mess.” VantageScore isn’t “live” in the sense that they haven’t figured out all the integrations. Saying it is one thing, implementing it all is another. Regulators are nearing a key step in overhauling credit scoring as the MBA touts its influence on GSE policy and close alignment with Washington leaders.

Meanwhile, cost and accuracy are always important, and mortgage companies see a lending future backed by artificial intelligence. But there may be as many questions as answers to what the path might look like. For example, what tasks or functions does the IT department implement first?

Senior management is probably looking at operations functions such as opening and ordering services, disclosures, product questions & eligibility, processing, underwriting, quality control (pre and post-closing), reviewing appraisals, investor delivery and purchase, or compliance and QC. Capital markets teams look at price and delivery assistance that AI might provide.

Over in the sales and marketing divisions, how might AI help the consumer-facing “chat box?” Cold calling and dialing out functions might benefit, or taking applications, data mining for refi candidates and opportunities, or in applying the Customer Relationship Management (CRM) software to borrowers.

Certainly, AI prices have been dropping, and what a company would have spent $10,000 on a year ago can be had for less than $1,000 now. It is very important that lenders choose wisely in determining which vendor to work with: does your counterparty have a strategic plan? Is it well capitalized and by whom? Your data can’t be fragmented, and it is important to have it in an orderly fashion… data sets must be in order. Garbage in, garbage out.

Compliance teams are also watching regulatory moves at the state (not so much federal) level. Some states have voted in laws pertaining to AI, and it appears that a “regulatory wave” is mounting at the state level. Keeping track of them all is a full-time job. Lenders are faced with LOs wanting to use AI for their personal business; this can be a real problem for compliance departments. Every lender should have an AI policy. Consumers should be able to opt out of communicating with a computer… should your LOA (loan officer assistant) be licensed?

Capital markets: rates, but apps too, continue their creep lower

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A slowing economy means lower rates. And a government shutdown (now the second longest in history) slows the economy. Unfortunately, a slowing economy with labor problems also means gradually fewer qualified applicants. A furloughed government employee isn’t buying a home.

Turning to rates, there isn’t much to report out there, with no noteworthy domestic or international data to influence sentiment yesterday. Bond yields were pressured lower again, pushing the 10-year yield past its low from last week to a level not seen since early April. The Secured Overnight Financing Rate dipped again, a welcome sight. The first look at October prepayments, which will be released on Thursday, November 6, estimated FN30 speeds jumping 14 percent on average largely due to increased refinancings in higher coupons, with 5 percent through 7 percent projected to surge 14 percent to 37 percent month-over-month. FN15s are seen increasing 7 percent on average, again led by higher coupons, with GNIIs only 3 percent higher. Gross issuance is on pace to exceed September’s $105.3 billion.

Today’s economic calendar kicked off with mortgage applications decreasing 0.3 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey. Later today brings some Treasury activity in the form of an auction of $13 billion reopened 20-year bonds and a buyback in 2- to 3-year coupons for up to $4 billion, and despite the Fed blackout period, Fed Governor Barr will deliver pre-recorded remarks at a conference hosted by the St. Louis Fed. Earnings also continue on Wall Street. We begin the day with Agency MBS prices a touch better than Tuesday’s close, the 2-year yielding 3.45, and the 10-year yielding 3.95 after closing yesterday at 3.96 percent.

A man is panhandling outside a casino here in Las Vegas. He approaches a well-dressed couple, thinking they have some cash, and asks, "Please, could you spare ten dollars? You see, my wife is sick and needs an operation. My insurance won't cover it all, and I need to come up with $25,000 to pay the hospital before they'll even consider scheduling her surgery."

The well-dressed man looked at the panhandler and scowled. "Bah! If I give you ten dollars, you'll just put it into a slot machine!"

The panhandler said, "No, I already have gambling money."

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, “Rates Drop, Pipelines Pop: Don’t Let Fulfillment Flop.” 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.)