5.7.26 Earnings and Volumes; FirstClose's Dan Kellett on Seamless Experience; Powell Respective

In today’s episode, we look at the latest earnings calls and quarterly results from across the mortgage industry. Plus, Robbie sits down with FirstClose’s Dan Kellett for a discussion on how forward-thinking lenders are using automation, faster cycle times, and digital transparency to improve borrower experience, accelerate closings, and drive profitable growth in home equity lending. And we close by examining Federal Reserve Chairman Jerome Powell's tenure as it winds to a close.

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.

Thank you to FirstClose, which provides fintech solutions to HELOC and mortgage lenders nationwide. Their home equity lending platform accelerates the home equity lending process, reducing application to closing times from 45 days to less than ten. 

Transcript

My cat Myrtle never made it to the Great River or Mortgage Innovator’s mortgage conferences, but plenty of people did. Between these May events, the TMBA Annual, the Gathering, Sagent Ignite, and the National Secondary coming up, there’s a lot of meetin’, talkin’, and educatin’. Talk in the halls, somewhat somber but hopeful, revolves around AI, Figure challenging Freddie and Fannie in the first-lien mortgage market by using its blockchain platform, UWM and TWO press releases going back and forth complete with accusations and changing bids (all making for great LinkedIn fodder), a plethora of new tech tools, and volume. According to Curinos proprietary application index, April 2026 funded mortgage volume increased 17 percent YoY and increased 1 percent MoM. In the Retail channel, funded volume increased 25 percent YoY and decreased 3 percent MoM. Rates were slightly higher than in March but about .5 percent lower than a year ago. (Curinos sources a statistically significant data set directly from lenders to produce these benchmark figures, drilling into this data further here.) (Today’s podcast can be found here and this week’s ‘casts are sponsored by FirstClose, which provides fintech solutions to HELOC and mortgage lenders nationwide. Their home equity lending platform accelerates the home equity lending process, reducing application to closing times from 45 days to less than ten. Today we have an interview with FirstClose’s Dan Kellett on how forward-thinking lenders are using automation, faster cycle times, and digital transparency to improve borrower experience, accelerate closings, and drive profitable growth in home equity lending.)

Employment, a slew of moves, and a rebranding

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“You’re invited to learn how Fairway Home Mortgage supports loan officers and branch managers in building successful, sustainable mortgage careers. Tuesday May 12th at 12est/11cst, join us for an anonymous virtual meeting that takes you behind the curtain with Fairway’s executive team and other leaders. You’ll get an inside look at what makes Fairway a thriving independent mortgage bank, and how its support, real independence, top-of-the-line technology, and game-changing culture are designed to help professionals succeed on their mortgage journey. This is a unique opportunity to listen, learn, and ask questions in a confidential setting. We hope you’ll join us: Fairway Virtual Fairway Day for May.”

Click n' Close has tapped 20-year mortgage banking veteran Amy Azorandia, CMB, as its new chief compliance officer to lead compliance strategy, governance and risk management across its wholesale, correspondent, and retail channels. Amy will be responsible for strengthening Click n' Close's enterprise-wide compliance infrastructure as the company scales its national lending platform.

LoanCare®, a leading national mortgage subservicer, announced that long-time servicing executive Ramie Word has joined the company as EVP of Client Relations where she will be responsible for all aspects of client relations, satisfaction, and long‑term partnership value. Word brings more than 25 years of servicing experience, and has been involved in client and government relations, customer experience, escrow, collections, loss mitigation, default, and REO.

Atlas Title welcomed Cheri Caudillo-Kluft as SVP of National Sales. “Cheri brings 30+ years of experience in title and settlement, with a career built on national account management and deep relationships across the mortgage industry. Her perspective has been shaped by decades of seeing what separates companies that talk about execution from those that live it.”

Wholesale lender Brokers First Funding (BFF) announced the launch of an evolved brand identity designed to reflect the company’s continued growth and long-term vision. “The rebrand represents an evolution as Brokers First Funding continues to mature as an organization. While the visual identity has been elevated with a more polished and confident presence, the company remains the same approachable, dependable partner brokers know and trust.” Shabi Asghar, President of Brokers First Funding, noted, “We’ve grown significantly, and it was important that our brand evolved with us. Our focus on integrity, relationships, and putting brokers first hasn’t changed. What’s changed is how clearly and confidently we visually represent the standards we hold ourselves to.” (BFF is celebrating with a pricing special, 25 bps off all non-QM purchase loans from today until May 15th. This special is only applicable for LTVs ≤85 percent and DSCR loans with a DSCR ≥1.00.)

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.

Lender and broker products, software, & services

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Spring homebuying season is in full swing, and for many lenders, that also means a surge in home equity demand as borrowers tap rising property values. But growth can expose cracks. Every handoff, re-entry, and system switch adds time and increases the risk of human error. FirstClose is working to change that with its upcoming integration with MeridianLink Mortgage. By bringing purpose-built order management directly into the LOS, lenders can streamline valuations, settlement, and vendor coordination without leaving their existing workflow. The result is better visibility, faster turn times, and less manual effort. If you are a MeridianLink Mortgage user looking to simplify operations and scale home equity lending more efficiently, this is worth a closer look. Click here to read more.

Heading to MBA Secondary & Capital Markets in New York? Connect with Planet’s Correspondent team to explore how expanding into non-agency, business purpose, and expanded credit can drive volume and margin alongside your agency production. Planet makes that expansion easier by delivering the same liquidity and pricing you rely on across Fannie Mae, Freddie Mac, FHA, VA, and USDA, and niche products like renovation, manufactured housing, and USDA. With full co-issue backed by consistent MSR pricing and fast funding, plus deep capital markets expertise and predictable execution from lock to funding, Planet helps you grow confidently while protecting profitability. Connect with SVP Correspondent Sales Jason Mac Gloan (843-625-6869) or visit here to schedule your meeting with Planet.

“The property valuation industry has long experienced difficulties in establishing consistent and transparent metrics to compare automated valuation model (AVM) reliability across service providers. This has created challenges around increased collateral risk and inefficient valuation workflows. To help address this gap, MISMO recently introduced the AVM Common Confidence Score Standard and Guidance to deliver a uniform and actionable metric for the industry that helps mitigate valuation inconsistencies and supports compliance with updated federal quality control regulations for AVMs. ICE is systematically rolling out this new metric across its valuation offerings to align with evolving industry standards and regulatory requirements. To learn more about MISMO’s AVM Common Confidence Score and how ICE is implementing the new metric, check out our recent blog.”

Have you ever stood in line for 20 minutes at a trendy café for that viral caramel cookie latte while everyone around you is ordering the exact same thing? That’s today’s mortgage market, with originators competing for the same limited pool of loans while volume stays constrained. But right next door, there’s another coffee shop serving the same menu without the wait. With $14.5 trillion in senior home equity, reverse mortgages represent a comparable opportunity that often goes overlooked. Finance of America provides the governance, compliance framework, and education-first approach to help you step into this space confidently and responsibly. Connect with a Finance of America Account Executive to start capturing opportunity that may already be right in front of you. Finance of America | NMLS #2285

Miss the recent webinar on AI in mortgage? JazzX AI had a candid conversation with lenders from PRMI and Revolution Mortgage on what it really takes to move from pilot to production. Hosted and moderated by JazzX AI, the discussion highlights how lenders are moving beyond point solutions to drive real results across the loan lifecycle. Think real talk on ROI, cost per loan, and what’s actually working versus hype. If AI is on your roadmap, this one’s worth a watch. See it now.  

OriginatorTech Deep Dive: Income Chaos Killing Your Closings? Meet AngelAi’s 5-Minute Fix! The side hustle economy isn’t a trend, it’s the new borrower reality, and it’s breaking outdated underwriting workflows. With 57 percent of Gen Z workers holding at least one side hustle and 78 percent of Millennials earning from gig platforms, income has become more complex, variable, and time-intensive to verify. On Tuesday, May 12, at 1PM ET / 10AM PT, the NMP Webinar OriginatorTech Deep Dive: Income Chaos Killing Your Closings? Meet AngelAi’s 5-Minute Fix shows how originators can adapt to this fundamental shift. You’ll see why traditional income calculations create bottlenecks, how AngelAi delivers fully automated income analysis in under five minutes (even for K-1s, layered returns, and multi-stream borrowers) and how top lenders are using this to eliminate delays, improve consistency, and close more loans faster. If your pipeline is feeling the strain of modern income complexity, this is the playbook to fix it. Register 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.

Earnings tell the tale: someone’s making some coin

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Freddie and Fannie aren’t the only ones making bucks out there. The tailwinds we had at the end of 2025 paid off for many.

UWM/UWMC, released its earnings here. If you want a great dividend, the stock is paying 11.7 percent but didn’t move much yesterday. Mat Ishbia noted, ““Q1 was an exceptional quarter for UWM and our second‑best first quarter of all time. The last time we delivered results of this magnitude, interest rates were nearly 50 percent lower, which underscores the strength, scale, and resilience of our business. Our team and broker partners executed at the highest level, using UWM’s proprietary technology and AI‑powered tools like Mia to win more loans, more efficiently, every day…” The company closed $44.9 billion ($26.3 refi, $18.7 purchase), up 39 percent YoY… Total revenue of $901.4 million, up 47 percent YoY, gain on sale margin was 123-basis points, up 31 percent YoY, and net income of $170.4 million. “UWM continues to roll out Built‑In Rewards, giving broker partners a powerful new way to differentiate themselves. With UWM now servicing all loans in-house, borrowers can earn rewards automatically on every on‑time digital mortgage payment, redeemable for dining, grocery and pharmacy purchases, travel, or future principal‑only mortgage payments.”

Rithm Capital announced its Q1 2026 earnings results. Rithm, with its collection of companies, reported Q1 2026 revenue of $1.38 billion, alongside GAAP net income of $67.8 million. Newrez delivered a 19 percent annualized operating ROE on $5.7 billion of segment equity, generating $273.7 million of pre-tax operating income (excluding MSR mark-to-market) and ending the quarter with $850 billion in total servicing UPB and $15.5 billion in origination volume, up 31 percent YoY.

Finance of America, one of the largest reverse mortgage lenders in the U.S., reported “very strong” earnings results for the first quarter 2026. Graham Fleming, CEO, commented, “The first quarter of 2026 was an outstanding quarter, with operational momentum in originations driving an acceleration in volumes and steady improvement in our financial results, liquidity, and capital position. Our focus is on translating that momentum into consistent, repeatable growth through the rest of 2026 and in the years ahead.” FOA saw funded volume of $596 million for the quarter, representing a 6 percent increase YoY. $1.93 in basic earnings per share or $35 million of net income for the quarter, and completed the repurchase of Blackstone’s equity interest in Finance of America as of February 2026.

Capital markets: the Fed is cautious with good reason

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“What does better execution actually look like in today’s market? That’s the conversation the Optimal Blue team will be having at MBA Secondary this month, where we’re setting meetings to talk through pricing accuracy, margin management, and execution with lenders. At the core, the Optimal Blue platform, built on modern technology and proven expertise, supports decisions across the primary and secondary markets with consistency and scale. And the results are measurable. An independent study conducted by MarketWise Advisors found that lenders using Optimal Blue reported an average net benefit of $1,006 per closed loan. We’ll walk through how those findings were measured and where they tend to show up in everyday workflows. You can also spend time learning more about Virtual Economist and other AI‑driven capabilities already in market. Contact your rep to reserve a meeting and join us for Happy Hour Monday, May 18. RSVP today.”

With margin compression a persistent reality for mortgage originators, the 10–50 basis point execution gap between best efforts and mandatory loan sale delivery is money left on the table every funding cycle. In MCT's blog post, Introduction to Mandatory Loan Sale Delivery, Senior Trader Ron Happell walks through the mechanics of making the switch: how TBA hedging protects the inherent spread, why pull-through accuracy is the linchpin of a successful mandatory program, and how leakage from renegotiations and inconsistent pull-through can quietly erode the pickup. Happell also outlines the operational changes required across the lock desk, underwriting, and accounting, and makes the case for investor set optimization as an additional lever, with clients averaging an extra 10–12 bps through broader investor competition and price discovery tools like MCT Marketplace. For lenders ready to move beyond best efforts, the post offers a clear framework for capturing the mandatory pickup while managing the risk. Join MCT's newsletter to stay informed with the latest market commentary and mortgage capital markets education.

Average reported mortgage interest rates are a bit like retail pricing: by the time they reach the market, they reflect more than the starting point. Vice Capital Markets’ new Par Note Rate is designed to show that starting point. This daily benchmark, built from agency MBS pricing, shows lenders the underlying market level before points, credits, LLPAs, borrower characteristics, or lender margin are factored in. Existing rate metrics reflect the borrower-facing reality, and that’s valuable. The Par Note Rate is the backdrop. Together, they tell a more complete story of where the market actually is. To learn more, read the full press release, or if you’ll be at MBA Secondary in New York, May 17–20, reach out to Troy Baars to chat in person. Do you want to receive the Par Note Rate in your inbox each week? Subscribe here.

We had another rally in the bond markets yesterday despite unresolved tensions in the Persian Gulf. Yesterday’s focus was on April’s ADP employment report, which showed a rebound in hiring and reinforced labor market stability, and the Quarterly Refunding where Treasury repeated that it intends to keep its monthly auction sizes steady for the next few quarters, which should give the market a sense of stability about supply in the near term. Even as sentiment tilts toward de-escalation, oil prices remain elevated and markets remain caught between resilient domestic fundamentals and ongoing geopolitical risk. Only a durable peace agreement and full reopening of the Strait of Hormuz would meaningfully ease energy-driven inflation pressures that continue to anchor Treasury market direction. 

As Jerome Powell approaches the end of his tenure, the Fed finds itself confronting the same challenge that may ultimately define his legacy: persistent inflation. Powell’s aggressive embrace of quantitative easing amplified the strongest sustained price pressures seen under any recent Fed chair, overshadowing an otherwise relatively steady stewardship through periods of economic and political turmoil.

That inflation concern is becoming increasingly urgent, and, combined with incoming data continuing to portray a resilient economy with stable employment and expanding services activity, the Fed has good reason for its cautious stance. While policymakers signal that rate cuts remain likely over time, the combination of sticky inflation, rising input costs, and growing Treasury supply expectations suggests policymakers may keep rates restrictive longer than markets once anticipated.

Today’s economic calendar kicked off with Challenger Job Cuts for April (rising to 83.4k versus 60.0k previously) Preliminary Q1 Productivity (0.8 percent MoM) and preliminary Q1 Unit Labor Costs (2.3 percent MoM, half of the previous reading). We’ve also received weekly Initial Claims (200k, still low), and Continuing Claims (1.766 million). Later today brings February Construction Spending and March Construction Spending, March Consumer Credit, and remarks from New York Fed President Williams and Cleveland Fed President Hammack. We begin Thursday with Agency MBS prices slightly better than Wednesday’s close, the 2-year yielding 3.84, and the 10-year yielding 4.33 after closing yesterday at 4.36 percent.

To be sure of hitting the target, shoot first, and call whatever you hit the target. (Sounds like earnings results.)

qoɹ & ǝᴉqqoɹ

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, “Mortgage Rates Are Not Random.”  The Commentary’s podcast is available on all major platforms, including Apple and Spotify.

(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 2026 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.)