1.21.25 Trump Administration; EquityProtect's Jon Dovidio on Title Fraud; Short Economic Calendar

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Please don’t touch my pizza! In a decision that has left countless fans disappointed,, including many in the mortgage ranks, Costco has decided to remove the $1.25 fries option from the food court menu entirely. The decision comes at a time when the retailer identified certain items as being “loss leaders,” which include the $5 rotisserie chicken, the $1.50 hot dog and soda combo (which we hope never goes anywhere) and now, the fries. On top of that, Costco workers have voted to strike, and they’re serious. At the other end of the economic spectrum, the Trumps have launched their own cryptocurrencies… I’ve lost track of the billions added to their net worth. (Freddie and Fannie accept virtual currencies under certain circumstances.) On the regulatory front, attorney Brian Levy seems to have rethought his criticism of DOGE’s lack of seriousness. After a barrage of CFPB action in the presumed final days of Rohit Chopra’s tenure, Levy muses on the prospects for reform under new CFPB leadership in his latest Mortgage Musings. (Sign up here for a free subscription.) (Today’s podcast can be found here and this week’s is sponsored by Lender Toolkit's new Prism. Experience a quantum leap in accuracy and efficiency as you streamline workflows, reduce errors, and close loans faster. Prism's advanced OCR boasts 99 percent accuracy across 1,450+ document types. Effortlessly index, analyze, and underwrite crucial data with their intelligent system. Today’s has an interview with EquityProtect’s Jon Dovidio on industry solutions to deed theft and title fraud.)

Employment & promotions

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Foundation Mortgage, a leading National NonQM Lender, is looking to immediately bring on board a Marketing Manager with mortgage industry experience, preferably in the NonQM space. Responsibilities include coordinating and producing all materials representing the business. Responsible for supporting the company's marketing department by developing, coordinating, and executing marketing campaigns across various channels, including social media, email, and content creation while analyzing market trends & tracking campaign performance. Ability to manage project details to achieve marketing goals. Please send your resume here.

Out of Cleveland comes news that Mortgage Information Services, Inc. (MIS), a national provider of title insurance and settlement services, has named 25-year vet David Stroop as the company’s first Chief Marketing Officer. Over the past decade he has “worked to bring in new business, cultivate existing accounts, and manage client relations and expectations” and will continue to work with the Executive Team and Operations leadership to position MIS to capture new opportunities in the title and technology space and will be actively growing the MIS Sales Team to help meet those goals. In addition, Charlotte, NC’s Renee Sorrells has joined MIS as a Sales Account Executive. Congratulations!

(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.)

Lender and broker services, software, and products

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One of the most notable challenges for lenders is fee cures: costs paid for by the lender for any errors or inaccuracies made in the Closing Disclosure. But the actual impact that this preventable expense has on a lender’s bottom line has long been unclear due to a dearth of published data on fee cure frequency, common causes and costs. To shed light on the issue, ICE conducted an analysis on nearly 90,000 loans from eight lenders over a six-month period to find out how often fee cures happen and to quantify their expense to lenders. The study found that fee cures contribute considerably to the cost of loan production: an average of $1,225 per loan. By mitigating fee cures, lenders in the study could recover more than $1.2 million for every 1,000 loans produced. To learn more about this largely untapped opportunity to improve lender profitability by reducing the expenses associated with fee cures, check out ICE’s recent blog post and whitepaper.

"Borrower Seeks LTR with IMB" I'm tired of transactional flings! ISO a lender who won’t ghost me after closing! Must haves: 1) to see you when I pay my mortgage. 2) to enjoy biweekly options. 3) to split payments into increments. No more post-close left swipes. I’m ready to commit. How about coffee at IMB? p.s. LOLA from EarnUp offers that, and more!

New Rules, New Strategy: How to Drive Mortgage Leads in the Aftermath of NAR & FCC Rule Changes. The way home buyers interact with lending and real estate professionals is changing. NAR practice changes have been in effect since August, and the new FCC rule will become effective 1/27/25, shifting the way lenders can purchase and pursue mortgage leads. Now is the time to get ahead of rule changes with a well-crafted lead generation strategy. Download Maxwell’s eBook to learn how NAR and FCC rule changes will impact lenders, new challenges and opportunities lenders can expect, and 3 tips for building a strong mortgage lead funnel in today's market. Click here to get your copy of New Rules, New Strategy: How to Drive Mortgage Leads in the Aftermath of NAR & FCC Rule Changes.

Correspondent & wholesale products

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“Momentum is building at Rhyze Residential! The spring launch is on schedule, with significant growth plans soon thereafter, delivering Delegated Correspondent HELOC solutions for mortgage bankers’ piggyback and stand-alone needs. Mortgage Bankers interested in being included in this win-win-win HELOC program, please contact us via online inquiry, email us, and bookmark our new Rhyze Residential Website. Don’t miss out on delivering these new solutions to your clients in 2025!”

Crack the Code to DPA Success! Join the Essex Mortgage Correspondent team on January 28th at 10:00 AM PST for an exclusive webinar: "Essex Mortgage National DPA Program: A Webinar for Mortgage Professionals" This must-attend session will provide a comprehensive overview of our nationwide Down Payment Assistance solutions. Discover how these programs can empower your borrowers to achieve their dream of homeownership while learning what sets our offerings apart in today’s competitive market. Whether you're looking to better support your clients’ needs or expand your market in 2025, this webinar will provide the tools and insights to help you succeed as a mortgage professional. Don’t miss this opportunity to strengthen your knowledge and help more clients achieve their financial goals! Click here to register! Secure your spot today and take the first step toward taking your business to new heights!

“Spring EQ TPO closed out 2024 with back-to-back record-breaking months and we’re not slowing down! Home equity products are hot in today’s equity-rich market, and more borrowers are turning to their homes to access the cash they need. Register and join us for our next webinar, scheduled for Tuesday, January 28, 2025 at 1:00 p.m. ET, where we’ll discuss the massive opportunity in home equity lending. Interested in a wholesale partnership? Click here. Or if you’re looking for a correspondent (Non-Del and Delegated) partnership, click here.”

Freddie and Fannie… changes are always afoot

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MBA President and CEO Bob Broeksmit released a video on MBA’s support for the eventual release of the GSEs from conservatorship and why it must include an explicit federal backstop of the GSEs’ mortgage-backed securities to ensure a release does not harm consumers and our housing finance system.

FHFA and the government-sponsored enterprises (GSEs) have updated the Enterprise Credit Score Models and Reports Initiative to revise the implementation date from 4Q 2025 to a to-be-determined date for incorporating the new credit score model requirements into mortgage processes and implementing optional “bi-merge” credit reports. This update is being made in response to industry feedback and to better support market participants with this transition. Freddie Mac and Fannie Mae remain committed to working closely with all industry stakeholders to ensure the market has time to plan for and understand the transition. Additional implementation and timing details will be provided as soon as they are available.

The Federal Housing Finance Agency (FHFA) published final rule expanding access to liquidity for the Federal Home Loan Bank System designed to improve access to liquidity for the Federal Home Loan Bank (FHLBank) System by adjusting the treatment of certain short-term transactions. The Agency is modifying the treatment of certain types of unsecured credit to better enable the FHLBanks to respond to their members’ liquidity needs. The rule modifies FHLBank limits on the extension of certain forms of unsecured credit.

Freddie Mac and Intercontinental Exchange, Inc., a leading global provider of technology and data, announced enhancements that leverage both companies’ automation technologies to enable lenders to more quickly and efficiently underwrite mortgage loans starting at the point of sale. New enhancements give lenders heightened integrated access to the latest offerings in Loan Product Advisor® (LPA®) from within Encompass®, ICE’s widely used digital mortgage lending platform. The Encompass Underwriting Center’s dual AUS feature provides access to Freddie Mac’s LPA ChoiceSM feedback messages, which offer actionable responses to help lenders make faster, informed decisions and turn more Cautions messages to Accepts. Feedback messages include information about debt-to-income ratios, loan-to-value ratios, and reserves. Feedback on whether a given loan is eligible for employment representation and warranty relief. Access to critical LPA messages highlighting Freddie Mac’s automated collateral evaluation (ACE) and ACE+ PDR appraisal alternatives.

Fannie Mae has updated the Income Calculator web interface to enable evaluation of federal income tax return data for tax year 2024. Customers accessing Income Calculator through its integrated technology service providers should confirm availability with their provider. Read the release notes for details.

Freddie Mac issued a reminder to homeowners and mortgage servicers of its immediate relief options for those affected by the tragic wildfires in California. Freddie Mac’s forbearance program provides homeowners mortgage relief for up to 12 months without incurring late fees or penalties. More information is available on My Home by Freddie Mac where owners can read about the steps they can take to help recover from a natural disaster, including frequently asked questions related to disaster and mortgage relief. Freddie Mac also provides dedicated resources to renters in apartment buildings, to help them plan and prepare for natural disasters, as well as respond and recover after they strike.

Fannie Mae issued a statement to homeowners and renters impacted by natural disasters, including those affected by the ongoing wildfires in Southern California, of available mortgage assistance and disaster relief options. Mortgage servicers also are reminded of options to assist homeowners under Fannie Mae’s guidelines during these circumstances. Homeowners and renters should call 855-HERE2HELP (855-437-3243) to access Fannie Mae’s disaster recovery counseling* or visit the Fannie Mae website for more information.

In 2024, Fannie Mae continued to evolve its policies to promote safe and responsible lending, furthering commitment to serve renters and homeowners in a fair and equitable way. Check out the final In Case You Missed It 2024 to see the year in review, including Selling Guide updates, Servicing Guide updates, Lender Letters, and Desktop Underwriter© (DU©) release notes from last year.

Fannie Mae What provides property and flood insurance training modules to help ensure that lenders and servicers are well-versed in insurance coverage requirements for one- to four-unit properties and project developments (PUDs, condominiums, and co-ops). Topics define requirements for each property type, from delving into what is necessary to perform a comprehensive review to confirm required coverages are in place to understanding the difference between replacement cost value, replacement cost coverage, and actual cash value. Visit the Learning Center Insurance page for more information.

Capital markets: the start of Trump II & lack of tariffs

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Now that the new presidential administration has taken office in Washington D.C., markets are closely watching how the Federal Reserve will respond to President Trump's policies. December's inflation data showed some progress toward the Fed's 2 percent target, but consensus is that it's not enough to prompt rate cuts. The Fed is expected to hold rates steady at its meeting this week, and markets are now pricing in a slim chance of a cut in March.

The central bank's cautious stance reflects the economy's resilience and ongoing inflationary pressures. Although rate cuts may be more likely in the second half of 2025, the Treasury market remains relatively stable despite investor uncertainty as they await more clarity on Trump’s policy shifts, which could trigger market volatility. Bonds rebounded last week, with the 10-year yield down about 15-basis points over the past five trading days.

For all of us who pay attention to housing data, December saw a 15.8 percent month-over-month increase in housing starts. Before you get too excited, this figure is still 4.3 percent below the previous year. The figure exceeded expectations, driven largely by a 61.5 percent surge in multifamily construction, though this category is highly volatile. Building permits declined slightly by 0.7 percent, with single-family permits rising, primarily due to recovery efforts in the South following hurricane damage.

Despite strong demand, homebuilders are facing challenges from high costs in loans, materials, labor, and land. Meanwhile, industrial production rose 0.9 percent, mainly due to a rebound in aircraft manufacturing, but overall, manufacturing activity in 2024 remained sluggish due to high rates and economic uncertainty. There's cautious optimism for 2025.

The economic calendar is very light in this holiday-shortened week. Highlights include the flash estimate of S&P Global’s Manufacturing PMI, which is likely to show the manufacturing sector contracted at a slower pace in January than December, while the Services PMI will probably reveal continued expansion of service providers. The final release of the University of Michigan Survey of Consumers for January is anticipated to show inflation expectations rose slightly less in the month than reported in the preliminary release. Existing home sales are expected to be flat in December after a big increase in November, as high mortgage rates weighed on affordability. We begin the trading week, after Trump did not put Chinese tariffs in place, with Agency MBS prices better than Friday by .125-.250, the 2-year yielding 4.26, and the 10-year yielding 4.57 after closing last week at 4.61 percent.

Thank you to Stephen S. for these “Ad terms”… pass along to your marketing group!

NEW - Different color from previous design.

ALL NEW - Parts are not interchangeable with previous design.

EXCLUSIVE - Imported product.

UNMATCHED - Almost as good as the competition.

FOOLPROOF OPERATION - No provision for adjustments.

ADVANCED DESIGN - The advertising agency doesn't understand it.

IT'S HERE AT LAST - Rush job. Nobody knew it was coming.

FIELD TESTED - Manufacturer lacks test equipment.

HIGH ACCURACY - Unit on which all parts fit.

FUTURISTIC - No other reason why it looks the way it does.

REDESIGNED - Previous flaws fixed. We hope.

DIRECT SALES ONLY - Factory had a big argument with distributor.

YEARS OF DEVELOPMENT - We finally got one to work.

BREAKTHROUGH - We finally figured out a use for it.

MAINTENANCE FREE - Impossible to fix.

MEETS ALL STANDARDS - Ours, not yours.

SOLID-STATE - Heavy as anything!

HIGH RELIABILITY - We made it work long enough to ship it.

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. STRATMOR’s current blog is “Leaders Don’t Wait for Markets”. 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.robchrisman.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.)