2.11.25 TMBA Chatter; Logan Finance's Nick Pabarcus on Non-QM; Trump Tariffs

Client retention has always been an issue in our industry – less than 20% of all consumers use the same broker or loan officer on a second home purchase, HELOC or refinance. But CoreLogic is giving mortgage professionals the tools they need to establish long-term relationships with their clients, helping them keep future business in-house. That’s why users of their Marketing and Retention Solutions, delivered on the revolutionary Araya platform, say it’s transformed the way they do business. Check it out for yourself, visit corelogic.com/chrisman today to learn more or schedule a free demo.

Transcript

Hah! Just kidding… But did you think, “Oh no!” or “Yippee!” when you saw that subject line? The ups and downs of the Consumer Finance Protection Bureau, an agency that touches mortgage debt, credit cards, credit bureaus, and cash substitutes, is all the talk at the TMBA in Houston. One industry vet wrote me saying, “As much as we all complain about regulation through enforcement, at least there was an ‘adult in the room’ telling us to eat our vegetables. As a colleague of mine said, ‘I have seen this movie before, the popcorn is great but the ending sucks.’” Today at noon, PT, 3PM ET, Capital Markets Wrap, presented by Polly, will be covering the turmoil at the CFPB, the impact on TRID/ATR enforcement, tariffs and inflation, and the misconception that regulations will disappear without legislative change. Don’t forget that OMB Director Russell Vought was hit with two union lawsuits after he issued directives freezing much of the CFPB work and work tasks. Is reading attorney Brian Levy’s Mortgage Musings a work task? Folks at the CFPB have to figure that out, but others can decide for themselves whether to read Levy’s latest about the CFPB shutdown. (Click here to view prior editions and to subscribe for free.) But wait… there’s more! A U.S. judge on Monday ordered the Trump administration to fully comply with a previous order lifting its broad freeze on federal spending: another court order. (Today’s podcast can be found here and this week’s is sponsored by CoreLogic. Originators who leverage their Marketing Solutions as part of their customer retention practices have seen their pipelines increase by up to 4 times when compared to traditional lead generation methods. Hear an interview with Logan Finance’s Nick Pabarcus on the 2025 outlook for non-QM, how those loans are priced, how the anticipated rate environment will impact non-QM business, and the future of Non-QM products.)

Jobs, exec available, & transitions

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“Where’s your revenue going? Top Loan Officers are making the move to Canopy Mortgage to keep more of what they earn. With 34 percent lower costs to fund a loan & a lean, transparent P&L model, we eliminate corporate waste so you take home more comp. Our proprietary NANO LOS streamlines the loan process, giving you speed, efficiency, and full control, without the red tape. If you’re ready to maximize your earnings, let’s talk. Call 385-273-0404 or email us here for a confidential P&L review. Canopy Mortgage: Lower Rates. Better Tech. Real People.

A highly accomplished C-level executive in mortgage & adjacent industries, with a proven track record in leadership, turnarounds, growth, transitions, and successful exits, is seeking a new leadership role. Achievements include channel reboot 12x in 11 months. Intrapreneurial experience with rapidly growing companies and start-up/channel/pivot scenarios. Solutionist for “does it work” before MVP. Expert leadership and bridge for operations, sales, vendors, investors, capital markets, marketing, recruiting, and compliance. Background includes ownership, manager/ic-operator, sales, operations, product development, M&A, and P&L success. Exceptional agency relationships and knowledge. Experience with VC-backed firms, PTC’s, banks, PE’s, Insurance, Developer/Builder, IMB’s and brokers. Ideal position is President (line or business), COO/CSO/CBO or similar roles with a VC or FinTech/FinServ tech utilized platform or IMB/Bank/group looking to grow, pivot, or build for superior margins, exceptional scale, and top market share. Contact Anjelica Nixt to connect with this dynamic & driven, galvanizing, goal attaining peak performer.

Congratulations to 30-year vet Ann Griffith who is eResi’s new VP, Business Development in the Southeast Region. “Ann is a seasoned mortgage and business development professional with over 30 years of experience driving multimillion-dollar sales growth, leading high-performance teams, and fostering strategic B2B relationships. Specializing in Non-QM origination, underwriting, and B2B lending, Ann has successfully managed regional and branch operations, optimized production strategies and ensuring compliance.”

(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, products, and software

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In case you missed it, the First American Data & Analytics 2025 Housing Market Outlook webinar is now available to watch on demand. Hear directly from First American Deputy Chief Economist Odeta Kushi as she analyzes mortgage rates, supply and demand dynamics of the housing sector, affordability, house prices and what’s to come in the year ahead. Stay informed and plan ahead with expert insight into this year’s housing market and more. Download the webinar.

QC Ally is enhancing its QC audit services with streamlined IRS Form 8821 fulfillment and review, offering lenders a faster, more efficient alternative to traditional 4506 processing. This new service improves accuracy, reduces costs, and accelerates access to tax data, all while lowering rejection rates compared to the 4506. By integrating this service into its audit process, QC Ally continues to provide smarter, more cost-effective quality control solutions that allow lenders to focus on what matters most. Learn more and see the comprehensive services sheet here.

Big wins. Bigger impact. Down Payment Resource isn’t just making headlines, it’s making homeownership more accessible. With a spot on HousingWire’s 2025 Tech100 and CEO Rob Chrane just named a RISMedia Newsmaker, Rob and team are bringing that momentum to Las Vegas for ICE Experience (Mar. 10-12, kiosk 15). There you can catch a demo of DPR’s Encompass® integration, which uses 1003 data to automatically match borrowers with down payment assistance and was a real crowd-pleaser at last year’s event where it debuted. Next, they’ll keep them doggies rolling to Dallas for TMC’s Live Large. Think Big (Mar. 16-18), where they’ll be showing the TMC fam how connecting homebuyers with 2,400+ down payment assistance programs boosts pull-through. Need more information? Grab a spot on the DPR calendar to start the conversation.

Total Expert and MAXA Designs have partnered to bring the convenience and usability of point-and-click design tools to regulated financial services organizations. Now, anyone can create compelling, compliant, branded marketing materials with a design suite that’s purpose-built for modern lenders. Unlike horizontal solutions that lack the ability to pull in dynamic, data-rich content, Total Expert and MAXA Designs give enterprise designers and administrators the ability to create and manage pre-built templates that sales and marketing teams can personalize to better engage with customers while ensuring brand and regulatory compliance. With the ability to upload InDesign files, lock down specific template elements, and quickly package files for print or direct mail campaigns, Total Expert and MAXA make it easy for distributed teams to create the collateral they need without worrying that they’re violating brand or regulatory compliance. Learn more here.

MBA Home Equity Study kicks off

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There is lots of discussion around home equity lending products these days. To that end, MBA's Home Equity Lending Study is kicking off this week and will collect benchmarking data, such as volume, utilization rates, operational metrics, production cost information and growth expectations, related to lending and servicing open-ended Home Equity Lines of Credit (HELOCs) and closed-end Home Equity Loans for full-year 2024. If you are a large bank, community bank, credit union, or independent mortgage bank that originates or services HELOCs or home equity loans, this study will provide you with an opportunity to benchmark your company’s business against peers. What’s more, there will be a study participant face-to-face meeting to review results and discuss trends. Sign up today by completing the registration form, which includes additional information on study elements, timeline, and program benefits, and emailing it to homeequity@mba.org. Questions? Contact Marina Walsh or Jon Penniman at the MBA.

In-person events and webinars just this week

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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!

Join the Mortgage Bankers Association of St. Louis as they discuss any trends for 2025 in the economy, February 11, 11:15 am - 1:30 pm at the St. Louis Federal Reserve. $35 - MBA St. Louis Members and $45 - Non-Member, cost includes a light lunch.

All Tuesdays at 11am PT, two veteran LOs discuss all things mortgage with Industry Leaders: Mortgage Pros 411 with Audrey Boissonou and Kevin Casey. Today features Steve Edrington.

The Virginia Mortgage Bankers Association is hosting the Loan Officer Summit on Feb 12th in Richmond, VA!

Looking for more in-depth commentary on weekly mortgage news? Register here for Wednesday’s 11AM PT "Mortgage Matters: The Weekly Roundup” presented by Lenders One and this week featuring Alvin Shah of First Option Mortgage.

Register for a collaborative event hosted by WCR, TPCAR, and PSMLA on Wednesday, February 12th, 10:00AM – 1:00PM at Anchor 2401 S Orchard St, Tacoma. Guest speaker, Matthew Gardner, will provide an insightful Economic Pulse discussion beginning at 11:30 am.

The new Trump administration has issued nearly 150 executive orders, including a number impacting consumer finance and digital assets. K&L Gates is receiving a tremendous number of client questions given this unprecedented level of regulatory change. To appropriately prepare their clients for the changing regulatory landscape, K&L Gates is providing a Public Policy webinar, focused on consumer financial services and cryptocurrencies/digital assets on

Wednesday, February 12, 12:00 PM - 1:00 PM ET. Login details to be distributed upon registration.

Ready to grow your volume without working more hours? Join industry leader Joe Soto, Branch Manager at Cross Country Mortgage and FirstHome IQ Ambassador, as he reveals his webinar strategy that's helped him connect with more qualified leads and ultimately help more buyers. Register here and mark your calendar for Feb 12 at 10am.

Emergency Briefing Webinar: CFPB’s Shake-up & Its Impact on You is at 3PM, ET, on February 12, complimentary from October Research, LLC. “The status of the Consumer Financial Protection Bureau (CFPB) is changing practically every day. To help navigate this rapidly evolving landscape, we’re hosting an emergency webinar on Wednesday, Feb. 12, featuring former CFPB Senior Counsels David Friend and Richard Horn, who will break down what the changes mean for lenders, title professionals, and real estate industry stakeholders. To register for the complimentary webinar, click here.”

Kind Lending TPO Upcoming Training Session, February 13th Non-QM DSCR.

Join NYMBA on Feb 12th at 09:00 AM in Pacific Time for an Economic Outlook with Joel Kan. Don't miss commentary on Interest Rates, Home Sales and Home Building starts as we prepare for the Spring Purchase Market.

This Thursday 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. Rate's SVP, Enterprise Risk & Internal Audit Laura Schmidt will be on the show to help make us all make sense of the biz.

On Thursday, February 13th, 2:00 p.m. - 3:00 p.m. ET, learn how USDA's top loan products can help expand your loan portfolio and increase your footprint in rural America. During this live event, USDA will highlight programs beyond the purchase of existing housing.

On Thursday, February 13th, 10:00 AM - 11:00 AM PST., Dr. Bruce Lund’s Valentine's Day-themed workshop will explore how to implement "The 5 Love Languages of Business" in your client onboarding and overall customer experience strategy.

Friday the 14th, listen in to opinions (Last Word Fridays at 1pm ET) from Kevin Peranio, Christy Soukhamneut, and Brian Vieaux! Register here. On this Friday’s The Last Word, KP, Brian, and Christy will discuss President Trump's executive orders and their impact on housing and housing finance. The conversation will explore potential changes in mortgage lending, affordability, and government-backed housing programs.

Capital markets: tariff news nudge rates higher

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The Trump administration’s tariffs were back in focus to open the week, though the latest tariff announcement from the Trump Administration (25 percent levies on steel and aluminum imports, with an arbitrary February 1 implementation) was shrugged off by the end of the trading day yesterday. The timing of potential new tariffs ahead of the April 1st trade policy review adds to investor uncertainty, with expectations that energy imports may be exempt and that the tariffs could eventually be reduced once strategic concessions are secured. 

Despite these risks, Treasury markets have remained resilient, with 10-year yields stabilizing below 4.50 percent and the curve flattening as short-term rates stay anchored near the effective federal funds rate. While the market remains in wait-and-see mode regarding Trump’s trade policies, a shift toward bull steepening is expected in 2025 as the Fed resumes its path to a neutral stance. Outside of the tariff announcement, there wasn’t much on the docket yesterday, with a goose-egg on the economic calendar and no Federal Reserve speaking engagements scheduled. 

The upcoming week will be centered around Fed Chair Powell's semiannual testimony and the release of the Consumer Price Index (CPI). Powell is scheduled to testify before Congress today and tomorrow, while the CPI report will be released on Wednesday. His testimony is expected to address the potential economic impact of new tariffs, with both Democrats and Republicans likely to press him on Trump’s policies. Additionally, discussions may extend to the Consumer Financial Protection Bureau (CFPB), given its funding structure through Federal Reserve profits, an issue that has become more contentious as the Fed faces ongoing mark-to-market losses on its balance sheet.

Today’s highlight is the aforementioned Fed Chair testimony on the semiannual monetary policy report before the Senate Banking, Housing and Urban Affairs Committee. Today’s economic data is less of the market-moving variety and kicked off with NFIB small business optimism for January: NFIB Small Business Optimism Index declined to 102.8 in January, missing market expectations of 104.6 and falling from December’s reading of 105.1. Later today brings Redbook same store sales, Treasury auctions that will be headlined by $58 billion 3-year notes, and remarks from (new) Cleveland Fed President Hammack, Governor Bowman, and New York President Williams. We begin Tuesday with Agency MBS prices worse roughly .125, depending on coupon and maturity, and the 10-year yielding 4.54 after closing Monday at 4.49 percent.

With Valentine’s Day approaching, two brooms were hanging in the closet and after a while they got to know each other so well, they decided to get married.

One broom was, of course, the bride broom, the other the groom broom.

The bride broom looked very beautiful in her white dress. The groom broom was handsome and suave in his tuxedo. The wedding was lovely.

After the wedding, at the wedding dinner, the bride-broom leaned over and said to the groom-broom, "I think I am going to have a little whisk broom!"

"IMPOSSIBLE!" said the groom broom. "WE HAVEN'T EVEN SWEPT TOGETHER!"

(Sounds to me like she was sweeping around.)

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. This month’s piece is titled, “Natural Disasters and Economic Resilience.” The Commentary’s podcast is live and at any place you obtain your podcasts (like Apple or Spotify).

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