2.25.25 Builder Sentiment; Sagent's Omer Farooque and Perry Hilzendeger on Servicing; Economic Worry

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 just what is going on with home builders Plus, Robbie sits down with Sagent’s Omer Farooque and Perry Hilzendeger to talk about key milestones one year after the launch of Dara, AI-driven innovations, real-time data solutions, and how their cutting-edge servicing technology is reshaping the mortgage industry. And he closes by discussing how economic worry is actually lowering rates.

Sagent powers banks and lenders to make loans and homeownership simpler and safer for millions of consumers. We bring the modern experience customers now expect from loan originations to loan servicing, where lifetime customer relationships are managed and grown. Sagent platforms let consumers manage their home-owning lives from anywhere while giving servicers lower costs, scale compliance, and higher servicing values through full market cycles.

Transcript

In Connecticut, a portion of the formal and informal talk here is about how builder news touches on lenders. (As an aside, Home Depot’s earnings, reported this morning, are solid.) Plenty of building materials come from Canada and Mexico, and the letter from the National Association of Homebuilders (NAHB) to President Trump asking for tariff exemptions on building materials caught people’s attention. But overall, builders seem to be doing just fine… Why should builders be in a rush to build more homes? Bill Pulte, part of the builder family, has been nominated to run the FHFA, conservator for Freddie & Fannie. PulteGroup grew closings by 9% and home sales revenue by 11% during a record-setting fiscal 2024. For the full year, the home builder generated home sales revenue of $17.3 billion, home closings of 31,219, and profit of $3.1 billion, or $14.69 per share. Drees Homes, the No. 41 company on the 2024 Builder 100 list, is acquiring the assets of San Antonio-based Monticello Homes. The acquisition grows Drees’ portfolio to 11 metropolitan areas nationwide, including the four major Texas markets. Empire Communities, the No. 56 company on the 2024 Builder 100 list, has expanded its presence in the Carolinas through the acquisition of Charlotte-based SouthCraft Home Builders. (Today’s podcast can be found here and this week’s is sponsored by Sagent. Sagent brings the modern experience customers now expect from loan originations to loan servicing, where lifetime customer relationships are managed and grown. Hear an interview with Sagent’s Omer Farooque and Perry Hilzendeger on key milestones one year after the launch of Dara, AI-driven innovations, real-time data solutions, and how their cutting-edge servicing technology is reshaping the mortgage industry.)

Employment

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“Highlands Residential Mortgage has been named the #1 Best Mortgage Company to Work For by National Mortgage News for 2025! This is our second time earning the top spot and our eighth consecutive year making the list. This achievement reflects the incredible culture we've built together and the dedication of our team. We’re proud to be a place where employees feel valued and supported. Combining this recognition with the company also ranking #1 in the country by Experience.com in overall customer satisfaction says it all. We are winning with great people and providing world-class customer experience to all who trust us with their financing needs. Led by long time veterans and former top producing originators, the Highlands team is positioned to continue to excel on the national stage.  We invite anyone interested in a truly “Higher Standard of Lending” to inquire about joining our winning team. Contact Corey Caster.”

Champions Funding unleashed a game-changing guideline overhaul with expanded opportunity and two powerful new products: Super Jumbo and Foreign National Full/Alt-Doc. Brokers and LOs are empowered to win every deal and serve more borrowers. After achieving over 200% intra-year growth in 2024 and beating all previous company records in January, Champions Funding is building momentum and growing its team. Experienced Non-QM AEs looking to maximize their pipeline should connect with Angela Castillo, SVP Talent Acquisition for a confidential conversation about joining the team.

Movement Mortgage Releases 2024 Impact Report: A Year of Purpose, Growth & Giving Back! Movement is proud to share its 2024 Impact Report, showcasing a year of milestones and purpose-driven work. Among the highlights, the nation’s #5 retail lender helped more than 63,000 families achieve homeownership last year. Movement’s vertical financing program surged 76%, empowering builders to tackle the housing shortage. The company also launched its first VA and Impact Summits, equipping loan officers with ways to better serve veterans, helping nearly 7,000 military families achieve homeownership, and providing unique personal and professional growth opportunities, respectively. Beyond lending, Movement expanded access to education by opening its first Movement School in South Carolina. Loan officers and operations teammates delivered supplies after Hurricane Helene, and more than $1.5 million was reinvested into communities through the lender’s GraceWorks program.

REMN WHOLESALE is hiring Account Executives nationwide. Contact Carl Markman, SVP Director of National Sales. REMN WHOLESALE is dedicated to giving mortgage brokers the tools they need to thrive every day. REMN’s Digital HELOC has just been enhanced with “FastPass HELOC” technology, positioning borrowers to close faster through a streamlined process for eligible deals. In addition to HELOCs, REMN offers a full range of products, including DSCR, ITIN, Bank Statement, Asset Qualifier, 1099 Only, Full Doc, P&L Statement Only, and Foreign National loans.

(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.)

The Mortgage Calculator announced the launch of its newly updated Mortgage Loan Originator (MLO) plans. This initiative is designed to empower mortgage professionals with enhanced support, innovative technology, and industry-leading training. With a focus on fostering career growth and providing a competitive edge in today’s evolving mortgage market, the new MLO plans offer a comprehensive framework that blends competitive compensation with advanced digital tools and ongoing professional development. For more information, please visit: How to Join The Mortgage Calculator as Mortgage Loan Originator.

Training & webinars today and into next week

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“Master Non-QM Condo Financing & Close More Deals! Condo financing is often seen as complex and frustrating, but it doesn’t have to be. With the right knowledge, you can turn tricky financing scenario into big opportunities and stand out from the competition. Join Kind Lending’s Non-QM Condo Training and gain the confidence to structure non-QM condo deals, understand key eligibility factors, and help more buyers secure financing when traditional guidelines don’t fit. You’ll learn key eligibility factors & borrower benefits, how to structure non-QM condo deals for success, and strategies to expand your pipeline & boost your business. The training is on Thursday, February 27 from 11:30 am - 12:00 PM PST. Save your seat today! Register for our complimentary training session by clicking here. Kind Lending keeps brokers ahead of the curve with continuous training… because when you win, we win! Let’s grow your business in a one-of-a-KIND way! Not a partner with Kind? Learn more and get started by here!”

Are you ready for the new Uniform Appraisal Dataset (UAD)? The upcoming UAD changes from the GSEs will significantly impact you, your loan origination system, and your appraisal management software. Join Fannie Mae, Freddie Mac, Reggora and ICE Mortgage Technology on March 6, at 11:00 AM PST / 2:00 PM EST for a live webinar where we’ll break down these changes and help you prepare for a smooth transition. Register now.

Today, and 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 the show features Linda and Andrew Conner discussing education and NMLS.

Looking for more in-depth commentary on weekly mortgage news? Register here for Wednesday the 26th’s 11AM PT "Mortgage Matters: The Weekly Roundup” presented by Lenders One. This week is John Hardesty, Vice President, Mortgage Division, Argyle.

Join Freddie Mac and Fannie Mae (the GSEs) for one of four joint webinars to help lenders prepare for the UAD 3.6 and Forms Redesign. These sessions are intended for lenders preparing for the UAD 3.6 and Forms Redesign but are open to other impacted parties (Appraisal Software Vendors, UCDP Direct Integrators, Appraisal Management Companies, etc.). Webinar dates: Thursday, Feb. 27 – 1 p.m. ET, Tuesday, Mar. 4 – 2 p.m. ET, and Thursday, Mar. 13 – 3 p.m. ET. Registration is on a first come, first served basis. If a session is filled, a waitlist will be enabled and waitlisted registrants will be notified if a slot becomes available.

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 featuring industry icon Jim Parrott.

Friday the 28th, 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 next Monday at 1pm ET.

National MI’s upcoming March 2025 webinar sessions include Advanced Underwriting the Self-Employed Borrower - Marianne Collins, March 4th at 1 pm ET. Mortgage Mastery: Perfecting the Process for Referral Success, Rebecca Lorenz, March 6th at 1 pm ET. Mastering LinkedIn for Mortgage Professionals, Session 3 - Brynne Tillman, March 11th at 3 pm ET. Turn Your Pitch into a Success Story - Dr. Bruce Lund, March 13th at 1 pm ET. The 2025 NextGen Homebuyer Report: Key Insights for Winning More Business, Kristin Messerli, March 20th at 1 pm ET.

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!

In Michigan, there’s the MMLA Southeast Chapter Economic Update Luncheon at the Federal Reserve Bank - Detroit Branch on March 5, 11:00 - 1:30. This enlightening session with senior business economist Martin Lavelle, who will dive deep into the current economic landscape. Discover the key factors influencing our economy and their implications for the mortgage industry, along with a tour of the Federal Reserve Bank after the presentation. Reserve your spot now and empower yourself with the knowledge to navigate the future! NOTE: all registrations need to be made before February 26th for security purposes. 

Join Ron Vaimberg on March 6 at 1 PM EST for a free, 90-minute masterclass, Winning Great Agent Relationships with the Help of AI. Learn how to build stronger agent partnerships and use AI to get more done faster. Don’t miss this chance to gain actionable strategies that drive real results. Register now to secure your spot!

Friday the 7th, 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.

Join your peers at ICE Experience 2025, March 10–12 at Wynn Las Vegas. It’s your chance to dive into 50+ expert-led sessions, hear from inspiring keynote speakers, and network with the movers and shakers of the mortgage industry—all centered on helping more people realize their dream of homeownership.

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: worries about the economy are lowering rates

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Setting aside yesterday’s strong $69 billion 2-year Treasury note auction that (precedes today's $70 billion 5-year note offering and) kicked off the Quarterly Refunding, this week’s most important economic releases include the second estimate of Q4 GDP, personal income and outlays for January, the Fed’s preferred measure of inflation (PCE…markets anticipate a 2.5 percent annual increase in headline PCE and 2.6 percent in core), and consumer confidence for February. GDP growth is expected to be revised higher due to stronger residential and nonresidential investment, while January’s personal income and spending likely slowed following December’s gains. The trade deficit may have narrowed after a sharp December increase, but consumer confidence continues to decline amid tariff concerns and federal layoffs.

Before we completely look forward to this week and beyond, it’s important for us to review the ways that housing was in focus last week. New home construction declined to start the year as both starts and permits fell in January. While some of the pullback in starts may have been due to wintery weather throughout much of the country, the decline in permits does not bode well for the pace of construction going forward. Home builder confidence was at its lowest level in the last five months as uncertainty over tariff policy as well as a sharp drop in expectations for sales over the next six months weighed on builder sentiment. Existing home sales fell 4.9 percent to a seasonally adjusted annualized rate of 4.09 million units in January. Home affordability remains a challenge for many would-be buyers as interest rates, home prices, and insurance costs have significantly increased since the pandemic.

Philadelphia Fed non-manufacturing for February kicked off today’s data, and later today brings Redbook same store sales, December house prices from FHFA and Case-Shiller, consumer confidence for February, Richmond Fed manufacturing and services for February, Dallas Fed services for February, several Treasury auctions that will be headlined by $70 billion 5-year notes, and Fed remarks from Dallas’ Logan, Vice Chair for Supervision Barr, and Richmond’s Barkin. We begin the day with Agency MBS prices better by .250-.375 and the 10-year yielding 4.33 after closing yesterday at 4.39 percent due to worries about the U.S. economic outlook.

A rich, American man had bad luck with women and finally decided to find a mail order bride from Ukraine. She arrived a few weeks after his order was made, and they got married and lived happily in a rich Connecticut suburb.

Though the poor lady was not very proficient in English, she did manage to communicate with her husband with gestures mostly. The real problem arose whenever she had to go grocery shopping.

One day, she went to the butcher’s and wanted to buy chicken legs. She didn’t know how to put forward her request. So, in desperation, she clucked like a chicken and lifted up her skirt to show her thighs. The butcher got the message and gave her the chicken legs.

The next day, she needed to get chicken breasts. Again, she didn’t know how to tell the butcher. So, she clucked like a chicken and unbuttoned her blouse to hint at the butcher her breasts. The butcher understood again and gave her some chicken breasts.

On the third day, the poor lady needed to buy sausages. Unable to find a way to communicate this, she brought her husband to the store . . .

. . .

. . . now get your head out of the gutter. Her husband speaks English.

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.)