2.20.25 Inflation Finger Pointing; nCino's Sean Desmond on Origination Efficiencies; Treasury Bevy

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 look at who is responsible for inflation. Plus, Robbie sits down with nCino's Sean Desmond to talk about his promotion to President and CEO. Tune in for a thought-provoking conversation on innovation, leadership, and the future of mortgage and capital markets.

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. See how nCino can support a homeownership journey that your borrowers and your team will love at nCino.com.

Transcript

“Inflation is really getting out of hand... But that's just my 5 cents.” Inflation impacts the prices of fixed-income securities, like the kind backed by mortgages. Inflation takes a while to move, but this week President Donald Trump this week admitted that prices are rising but insisted that it’s not his fault despite repeatedly claiming he would bring prices down on his first day in office. “Inflation is back,” he told Fox News host Sean Hannity in an interview. “I’m only here for two and a half weeks ... I had nothing to do with it.” Regardless of promises, no one can control a drought in the Ivory Coast impacting cacao prices. Or flooding in Kentucky possibly impacting soybean or tobacco prices. Yes, U.S. inflation expectations have increased, with the two-year breakeven rate surpassing 3 percent for the first time in two years, driven by a rise in energy and core goods prices. The consumer price index for January showed headline inflation at 3 percent and core inflation at 3.3 percent, causing significant shifts in bond markets, although US equities remained relatively stable. (Today’s podcast can be found here and this week’s is sponsored by nCino. 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. Today’s has an interview with nCino’s Sean Desmond on how lenders can utilize data and technology to drive efficiencies in the origination process.)

Employment & transitions

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“Top loan officers are making the move to Canopy Mortgage… Not because of a flashy signing bonus that locks them in, but because they see the long-term financial freedom that comes with real transparency. Our P&L model gives you full control over your earnings, with lower corporate margins and proprietary LOS technology designed to help you close more loans, faster. Don’t trade your future for a short-term payout. If you’re ready to build lasting success on your terms, let’s talk. Call us at 385-273-0404 or Email Us for a confidential P&L review today. Canopy Mortgage – Lower Rates. Better Tech. Real People.”

Today you are invited to learn how Fairway Independent Mortgage is supporting loan officers and branch managers to succeed in their mortgage journey. This Thursday at 3 pm there will be an anonymous virtual meeting that will bring you behind the curtain with the executive team and others for this successful independent mortgage bank: Fairway's February Virtual Fairway Day.

Jim Finucane joins radius: The Right Team, The Right Time! “Making a career move isn’t just about the next job, it’s about the right fit. That’s why I joined radius. From day one, I saw a team that listens, moves with purpose, and knows how to win in any market. This isn’t just a company, it’s a culture of getting it done by finding ways to say YES, the right way. I’ve worked with some great teams, but from day one, radius felt different. The leadership, the culture, the drive, this is a place where people come first, execution is sharp, and success is built the right way. In a market like this, you need a team and sales-oriented culture that truly understands how to navigate what’s next. That’s what we’re doing here. Let’s connect and talk about why now is the right time to be at radius. Send me a confidential note: Jim Finucane, SVP of Sales, radius financial group inc.”

On the flip side of hiring, FHA layoffs? Not so fast, says HUD.

(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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“As a warehouse lender, are you equipped to meet the technology and efficiency demands of today's IMB? In an industry where efficiency, speed, and automation are no longer optional, staying ahead means evolving with the needs of mortgage originators. OptiFunder processed nearly $150 billion worth of transactions between originators and warehouse lenders last year, a testament to the trust originators place in technology that enhances operations. We have talked to countless originators to understand their pain points and expectations from warehouse lenders, and one thing is clear: they want more from their warehouse lender’s technology. That’s why we built Greyhound WMS for warehouse lenders, delivering real-time automation, fast Fed Refs, powerful reporting, easy on-boarding, and seamless integration with originators and other stakeholders. If your warehouse lending system doesn’t meet today’s demands, it’s time for a change. Meet with the OptiFunder team at these upcoming events, or schedule a Greyhound Demo to see what the buzz is all about. Visit our website to learn more about OptiFunder and our mission to drive seamless funding.”

MortgageFlex, one of the industry’s original mortgage technology developers and creator of the first unified cloud-native loan origination and servicing platform, sent its team to the MBA Servicing Conference in Dallas with the release of new Servicing Oversight Solutions and Default Solutions and performed dozens of demos during the conference. Many servicers were looking for new, modern, open, workflow and API-enabled offerings. Servicing Oversight is strongly needed by the originators that subservice, subservicers themselves, and Portfolio Managers needing access to loan-level events. The workflow-driven Default System allows the servicer to change and administer Workflow Queues, easily modify the included default workflow templates for all 50 states and allow full attorney access. MortgageFlex was one of the few vendors at the conference showing actual released products in their booth, as most of the competition did not. For the full press release click here. To schedule a meeting with the MortgageFlex team, book a meeting.

“Exceptional Sub-Servicing exists at PLANET HOME LENDING! We provide stability in changing markets, cost-efficient pricing, dedicated point of contact, tailored reporting, and high-touch service. Planet offers expertise and efficiency in both agency and non-agency portfolios. As one client put it: “I only have one thing to say: The Planet team is amazing to work with.” Interested to know how Planet’s SUB-SERVICING will elevate your portfolio performance? Connect with Caitlin Moynihan to learn more: 631-820-3855 or BusinessDevelopment@planethomelending.com.”

Moving new loans from origination into servicing continues to be one of the mortgage industry’s most time-consuming processes. The root of the problem has been moving data and documents between two separate systems with no standardization between them… until now. Dana Federspiel, ICE’s SVP of Servicing Technologies & Product Innovation, sat down with Michael Hammond, president of Next-Level Advisors, during MBA’s Servicing Solutions Conference & Expo to discuss how ICE is solving one of the industry’s longest-standing pain points by unifying the process of boarding newly originated loans into servicing. Watch the interview to learn how ICE’s automated solutions are bridging the gap between origination and servicing with advanced data and document automation capabilities.

Correspondent & wholesale offerings

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In MCT’s new video, Justin Grant, Senior Director, Head of Investor Services, explains how lenders can efficiently establish a correspondent lending channel. Traditionally, entering the correspondent space required significant resources, including building a sales team, pricing models, and risk management frameworks. However, MCT Marketplace lowers these barriers by allowing investors to broadcast bid prices across the entire seller base, providing immediate visibility and access to over 300 active sellers daily. This streamlined approach enables lenders to operate with a smaller sales team while maintaining broad market coverage. The platform supports a range of purchasing strategies, from sourcing a handful of loans for spec pools to building a large servicing portfolio. To learn more about growing a servicing portfolio, managing runoff in different rate environments, and finding the right sellers for a correspondent channel, watch the full video. Sign up for MCT's newsletter to stay informed on industry trends and best practices.

Having trouble getting your borrowers into homes in the current market? Click n’ Close’s SmartBuy™ Shared Appreciation Mortgage (SAM) program lets you offer loans below-market interest rate in exchange for a portion of the home’s equity. With no restrictions on first-time purchases or income levels, SAM empowers home-ready borrowers to get into a house with competitive rates. In the long run, SAM benefits both you and your borrower. Not buying it? Just take a look at the numbers. Watch this short video for a closer look.

“Grow with us! While remaining dedicated to supporting diverse markets and responsible, sustainable growth, Citi Correspondent Lending continues the expansion of our approved lender base and Non-Delegated platform. Explore all of the options we offer to help your borrowers fulfill their homeownership dreams through our full product suite, including our Special Purpose Credit Program and the Citi HomeRun and Non-Agency Jumbo products. We continue to offer a robust set of Community Reinvestment Act (CRA) pricing incentives as well. Discover the opportunities our Non-Delegated platform offers and how they can benefit your business! Contact your Account Executive or complete and return our Prospective Client Questionnaire for more information.”

Events & training in the comfort of your living room

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What’s coming up today and within the next few days?

Today 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. Patrick O’Brien, the CEO of LenderLogix, will be the guest!

Freedom Mortgage CEO Stan Middleman has created quite the success story. Today, Thursday at 2PM ET, he's sitting down live to share his unfiltered vision for the future of mortgage lending. He's part of an unprecedented lineup of industry heavyweights coming to the MikedUpShow over the next 30 days, including Patty Arvielo (New American Funding), Owen Lee (Success Mortgage Partners), Steven Milner (American Financial), and David Lykken (Transformational Mortgage Solutions). Catch Stan's live interview this Thursday at 2PM Eastern or see the full guest schedule.

Mortgage borrowers and homeowners continue to face a challenging and complicated market, are you prepared for how they will react? Join RiskSpan’s modeling team on Tuesday, February 20th at 1 p.m. ET., for a monthly update on the key market factors driving borrower behavior and our latest observations on prepayment and credit model performance.

Join MCT’s Phil Rasori, Andrew Rhodes, and Paul Yarbrough, February 20, at 11am PT., for an MCT Industry Webinar on as they discuss MCT’s Generative AI journey over the last 12 months, the pros and cons of LLMs, the gold standard of data security within AI, and how the industry’s leader in mortgage capital markets technology will responsibly introduce this technology across its software platforms.

Tomorrow, Friday the 21st, listen in to opinions (Last Word Fridays at 1pm ET) from Kevin Peranio, Christy Soukhamneut, Courtney Thompson, and Brian Vieaux! Register here. On this Friday’s The Last Word, KP, Brian, Christy, and Courtney 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.

Technology and innovation in residential lending are the focus of Now Next Later this Monday at 1pm ET.

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

In fact, the Chrisman Commentary is pleased to bring you a variety of video shows hosted on Zoom throughout the week. Take your pick: We have a show focused on technology and innovation (Now Next Later Mondays at 1pm ET), origination (Mortgage Pros Tuesdays at 2pm ET), big-name interviews (Mortgage Matters Wednesdays at 2pm ET, presented by Lenders One), headline news (The Big Picture Thursday’s at 3pm ET), opinion (Last Word Fridays at 1pm ET), advisory services (Advisory Angle first Tuesday of the month at 2pm ET, presented by STRATMOR Group), capital markets (Capital Markets Wrap second Tuesday of the month at 3pm ET, presented by Polly), regulation and compliance (Regulation Central third Tuesday of the month at 3pm ET), and reaching the next generation of homeowners (Mortgages with Millennials last Tuesday of the month at 1pm ET, presented by The Mortgage Collaborative). (If you don’t see a presenting sponsor, please reach out to Chrisman LLC’s Anjelica Nixt to inquire about opportunities.)

Capital markets: steady as she goes

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The release of the January Federal Open Market Committee minutes reaffirmed the Federal Reserve’s cautious stance, emphasizing the need for further progress on inflation before considering another rate cut, as policymakers believe the strong economy can endure restrictive policy for longer. The question is now how long the Fed intends to hold rates steady, especially after Chair Powell reiterated in both the January press conference and recent congressional testimony that there is "no hurry" to cut rates.

Meanwhile, economic data suggests that homebuilding likely slowed in January due to adverse weather, though permit issuance may have been less affected. Total housing starts declined sharply in January (-9.8 percent month-over-month to a seasonally adjusted annual rate of 1.366 million), with single-family and multifamily starts both falling markedly during the month. Although apartment and condo construction may have found a floor, a broad-based pullback in home builder confidence in February is a reminder of the challenging road ahead for residential construction.

Yesterday's $16 billion auction of 20-year Treasury bonds failed to generate strong demand, continuing the recent trend of underwhelming Treasury sales after last week’s weak 10- and 30-year auctions. While historical patterns suggested a chance for a "stop-through," especially since 20-year bonds tend to perform better when the preceding auctions tail, investors remain cautious. Despite higher yields making these bonds more attractive, they were still priced on the expensive side relative to their year-to-date range. Additionally, February has historically been a weak month for 20-year bond auctions, with every one since their 2020 reintroduction ending in a tail.

Today’s economic calendar kicked off with jobless claims (219k, about as expected) and Philadelphia Fed manufacturing for February. Later today brings leading indicators for January, Treasury announcing next week’s month-end supply consisting of 2-, 5- and 7-year notes and reopened 2-year FRNs before auctioning $9 billion 30-year TIPS, Freddie Mac’s Primary Mortgage Market Survey, and remarks from several Fed speakers. We begin the day with Agency MBS prices a few 32nds (ticks) better than Wednesday’s close, the 2-year yielding 4.25, and the 10-year yielding 4.50 after closing yesterday at 4.54 percent.

I was driving recently in Chicago when I saw the flash of a traffic camera. I figured that my picture had been taken for exceeding the limit even though I knew that I was not speeding.

Just to be sure, I went around the block and passed the same spot, driving even more slowly, but again the camera flashed. Now I began to think that this was quite funny, so I drove even slower as I passed the area once more, but the traffic camera again flashed. 

I tried a fourth and fifth time with the same results and was now laughing as the camera flashed while I rolled past at a snail's pace.

Two weeks later, I got five tickets in the mail for driving without a seat belt.

You know, you just can't fix stupid!

(Thank you to Euie H. for this one.)

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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(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.)