5.8.25 Mortgage Innovators Dispatch; Aidium's Spencer Dusebout on AI Agents; Prepayment Speeds

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 have a live dispatch from California MBA's Mortgage Innovators Conference in Huntington Beach. Plus, Robbie sits down with Aidium’s Spencer Dusebout for a discussion on how AI is transforming the mortgage industry, from redefining lead scoring and boosting CRM adoption to supporting, not replacing, loan officers, with a spotlight on the launch of innovative “Agents.” And we close with a look at April prepayment speeds and home refinance incentives.

Thank you to HomeEQ, the fully digital HELOC from Arc Home, which empowers brokers to quickly provide borrowers with easy access to their home equity. With fast, hassle-free funding in just days, HomeEQ offers a user-friendly platform that simplifies the entire process. Brokers can benefit from competitive compensation, along with comprehensive training and a complete marketing plan designed to help them re-engage former clients and grow their business. Discover how HomeEQ can enhance your offerings by visiting homeeq.archome.com/chrismanpod.

Transcript

“Why did the homeowner take so long in remodeling his home? He had trouble with da siding.” There are LOs, or correspondent investors, who have spent months or years building up their renovation referral book of business. I am sure that they saw this coming with the Trump tariff policies: A quarter of large renovation projects could be scrapped or considerably scaled back because tariffs make them cost-prohibitive, according to new research from Zonda. Meanwhile, Robbie Chrisman reports that Day #1 of the California MBA's Mortgage Innovators Conference in Huntington Beach delivered a deep dive into how private equity is shaping the future of the mortgage industry, with leaders from Redwood Trust, Andromeda, and FundingShield highlighting capital’s growing role in innovation, risk management, and consumer experience. The afternoon pivoted to the power and pitfalls of AI, as panels and tech demos explored cutting-edge tools transforming lending operations, from compliance automation to borrower engagement. Sessions emphasized the urgent need for strategic implementation, regulatory alignment, and customer-focused tech to stay competitive in a rapidly evolving market, setting the tone for a high-impact, tech-forward year ahead. (Today’s podcast can be found here and this week’s are sponsored by HomeEQ, the fully digital HELOC from Arc Home, which empowers brokers to quickly provide borrowers with easy access to their home equity. Brokers can benefit from competitive compensation, along with comprehensive training and a complete marketing plan designed to help them re-engage former clients and grow their business. Hear an interview with Aidium’s Spencer Dusebout on how AI is transforming the mortgage industry, from redefining lead scoring and boosting CRM adoption to supporting, not replacing, loan officers, with a spotlight on the launch of innovative “Agents” designed to streamline workflows and enhance borrower engagement.)

Employment

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“Q Consulting Group (QCG) is a premier financial consulting and capital advisory firm specializing in mortgage banking, real estate finance, and structured debt solutions. With deep expertise in mortgage lending, servicing, and capital markets, QCG assists mortgage lenders in securing warehouse lines, term debt, and liquidity facilities to drive growth and maximize profitability. Beyond mortgage banking, QCG provides strategic financial consulting, including treasury management, M&A advisory, and operational efficiency improvements. QCG leverages decades of experience in financial services to help businesses navigate complex financial challenges, optimize balance sheets, and secure tailored capital solutions. Whether you need assistance in structuring debt, managing financial risk, or enhancing profitability, QCG offers customized solutions to meet your goals. Visit www.qcgllc.net to learn more and schedule a call or in person meeting at the MBA Secondary with Majed to explore how QCG can provide strategic financial leadership tailored to your needs.

MISMO is currently recruiting for a President, Mortgage Industry Standards Maintenance Organization, MISMO. MISMO, an award-winning Standards Development Organization serving the U.S. mortgage industry and an independently managed subsidiary of Mortgage Bankers Association, seeks a dynamic and influential President to serve as its chief executive. This is an exceptional opportunity to architect the future of the mortgage ecosystem by championing the power of standards. As President, you will spearhead a $6 million operation, reporting directly to the Board of Directors. Your mission will be to ignite progress across the mortgage lifecycle by leading the development, promotion, and adoption of critical standards, tools, and other impactful resources. Are you a visionary leader passionate about driving transformative change? Do you thrive on shaping industries through innovation and collaboration? Apply today!

Firstline Compliance is excited to announce Ashley Bradford, a rising star in the mortgage industry, is its new Sales Manager! After a career pivot inspired by the MBA’s Mortgage Banking Bound program, Ashley discovered not just a new direction, but a thriving, ever-evolving industry where her curiosity and energy are a perfect match. Ashley brings fresh energy and a relationship-first mindset to every conversation. Firstline’s President, Josh Weinberg, said, “Her experience embodies Firstline’s core value of Always Learning, and being connected to her through MBA’s Mortgage Banking Bound program reflects our core values of Relationship and Excellence. As soon as we met, we knew she was the one for us! We’re thrilled to welcome her to the team, and we can’t wait for you to meet her, please reach out (469-717-4232).”

Selene, a provider of industry leading loan servicing, diligence and title solutions, announced the appointments of Jocelyn Martin-Leano as President, Selene Finance and Doug Whittemore as Chief Strategy and Growth Officer for all Selene Holdings’ business lines, effective immediately. Martin-Leano will oversee all Selene Finance operations and Whittemore will focus on Selene’s product development and company growth, as well as client and industry relations. 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.

Software, products, and services for lenders & brokers

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“Meeting with Planet Home Lending’s Correspondent sales team at the MBA Secondary & Capital Markets Conference can be the catalyst for a year-round boost in your business. Join us at the InterContinental New York Times Square; secure your spot now before they're all booked! From niche products, like renovation, manufactured home lending, and USDA, to co-issue for consistent MSR pricing and fast funding, we offer full-service flexibility. Whether you need best effort, mandatory AOT, delegated, or non-delegated delivery, Planet has you covered. Plus, as a sub-servicer, Planet provides best-in-class solutions to meet the demands of your loan portfolio. To start your path to performance, reach out to your Planet Regional Sales Manager or SVP Correspondent Sales, Jason Mac Gloan (843-625-6869).”

“Serving Those Who Served: Your Guide to VA Home Loans. May is Military Appreciation Month. Let’s close VA loans together! Kind Lending proudly supports our veterans with VA loan solutions built for brokers who want to make a difference. From Conforming to High Balance, Fixed or Buydowns, VA IRRRLs (with soft pull option), Joint Loans, and even Manufactured Homes, we’ve got you covered. No max DTI with AUS, manual UW to 50%, and FICOs as low as 580 accepted. Want to sharpen your VA game? Join our exclusive VA Broker Training and learn how to maximize your VA pipeline with Kind’s flexible guidelines and fast turn times. Kind offers a live training session on 5/21 at 12:30AM PT. During this session, we’ll walk you through VA loan essentials, from eligibility to closing, giving you the confidence to guide your VA clients every step of the way. Support our heroes. Grow your business. Train and Close with Kind. Register Here. Not approved yet? Click here to get started and close more VA loans with Kind!”

Ready to move your mortgage business forward? Connect with Western Alliance Bank’s Specialized Mortgage Services Group and AmeriHome Mortgage, a wholly owned subsidiary of the bank, at the MBA Secondary & Capital Markets Conference, May 18-21 in New York. Western Alliance Bank, Member FDIC, and its Specialized Mortgage Services Group have a proven legacy of over 15 years of innovative solutions and white-glove service, customized to client needs. Tailored solutions include mortgage warehouse lending, MSR financing, note financing, customized cash management tools, corporate credit cards and a whole loan trading desk focused on purchasing scratch & dent loans (send bid requests to SnD@westernalliancebank.com), all designed to optimize your operations. The Western Alliance team is excited to discuss how they can make a difference for your mortgage business. Reach out to schedule a time to learn how their experienced bankers can enhance your business.

The real estate and mortgage market is in a constant state of flux, with even more change expected in 2025. Just recently, Freddie Mac announced it is discontinuing Home Value Explorer® (HVE®), for external use, effective July 31, 2025.* If your organization uses HVE today or another AVM, now is the time to ask: Are my current valuation tools meeting my needs? Is there room for improvement? Should I find a replacement solution? Whatever the answer may be, ICE is here to help. Check out ICE’s recent webinar, Industry changes require advanced property valuation tools, to learn about the potential impact of the Freddie Mac HVE announcement and how ICE’s reliable, objective and consistent valuation solutions can help drive your business forward in any market condition. *HVE will continue to play an integral role in Freddie Mac’s business, powering its risk assessments.

Need a better way to handle branch and remote office inspections? ActiveComply’s VirtualVerify is a customizable compliance inspection solution designed for mortgage lenders. With features like geolocation checks, workspace photo/video capture, and secure e-attestation collection, lenders can streamline the process of verifying compliance across both branch offices and home offices. No travel needed! VirtualVerify allows you to choose from built-in, pre-made surveys or design your own custom inspections to fit any remote or branch office scenario. See VirtualVerify in action: live demos are available at MBA’s Legal Issues & Regulatory Compliance Conference, May 14 - 17, 2025.

In today’s competitive financial landscape, member retention isn’t just important, it’s essential. On May 15, join Total Expert’s James White as he sits down with Joseph Watts, Mortgage Production Manager from Ent Credit Union, for an insightful conversation where they’ll explore how to unlock the power of the data you already have to retain and grow your member base. They’ll share proven strategies to identify at-risk members, personalize engagement across life stages, and use marketing automation to deliver the right message at the right time. This ACUMA Inside Track webinar, sponsored by Total Expert, will leave you with practical, actionable insights to help your credit union strengthen relationships, boost loyalty, and drive long-term growth. Register now.

“Is a standing call with your servicer enough for proper oversight? What does proper oversight entail? Ultimately, you are responsible for overseeing your subservicer, so you must understand what is expected of you and the key actions you need to take to maintain oversight and comply with regulations. Proper oversight includes an annual review and testing of the subservicer’s processes and procedures. Tune in to this video, where the experts at Richey May answer the most frequently asked questions about subservicer oversight requirements. Whether you need a review or assistance navigating the general complexities of oversight, Richey May’s mortgage compliance experts can help. To learn more about our review process, check our 2025 schedule, or to sign up, contact us today!”

Ever watch an orchestra warm up? It’s chaos… until the conductor lifts the baton. Then, harmony. Here’s what I mean. That’s what Tropos does for your loan operations. Siloed systems, disjointed workflows, and scattered borrower experiences all sync up when Tropos steps in. This newly launched lending portal gives lenders the conductor’s baton: a modular platform you can compose to your own tempo, with just the pieces you need, when you need them. Your borrowers get one cohesive experience for all your products, and you stay in control of the performance. Conduct your own demo.

Heading to MBA Secondary? The Clayton team will be there and ready to discuss how our 30+ years of experience can help smooth industry challenges and capitalize on the opportunities in today’s market. A recognized leader in due diligence, servicing oversight and compliance solutions, Clayton has the scale and expertise to manage any size residential or commercial engagement, ensuring assets and processes meet quality, compliance and reporting standards and comply with regulatory, rating agency and investor requirements. Schedule a meeting with either VP-Business Development Tom Coffey or VP-Business Development Pete Butler and learn more about how Clayton can help get your deal done and done right.

Capital markets: what are we going to talk about now?

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As brokers and originators look to scale, correspondent lending is widely regarded as a strategic next step, but understanding the model is key before making the move. In MCT’s latest blog post, Correspondent Lending 101, they unpack what correspondent lending is, how it works, and why it can be a game-changer for originators ready to gain more control, offer competitive products, and unlock new revenue streams. Learn how correspondent lenders earn fees from originating loans and sell them to investors or GSEs to gain a margin on the sale of the loan. Whether you're just starting to explore correspondent lending or looking to refine your approach, this blog post offers both foundational knowledge and strategies to scale. Want more resources to help you grow? Join MCT’s newsletter for secondary market strategies, market updates, and tools designed to help you thrive in the mortgage capital markets.

As expected, the Federal Reserve yesterday held interest rates steady, keeping the federal funds rate at 4.25 percent to 4.5 percent while signaling a continued “wait and see” approach amid economic uncertainty. Chair Powell emphasized the Fed's willingness to remain patient, especially given concerns that new tariffs could push inflation and unemployment higher. He noted the cost of waiting is low, and the current policy stance provides flexibility to respond to future shocks. Meanwhile, it seems American households are also holding off on major financial decisions, including home purchases and refinancing, though stable employment and moderating home prices offer hope that activity may pick up if mortgage rates fall.

Mortgage prices are a function of supply, and prepayment speeds on Fannie Mae 30-year mortgages rose 13 percent in April to 7.4 CPR, the fastest pace since November 2024, even as rates increased and refinance activity fell. The report highlights aggressive servicing despite muted seasonals. Higher coupon bonds (6.0 percent to 7.0 percent) led the surge, with speeds spiking 22 percent to 29 percent, while lower coupons saw modest gains, and every coupon outpaced its three- and six-month averages. Ginnie Mae II 30-year securities saw a speed boost of 18 percent to 11.2 CPR, again led by the higher coupons. Despite these gains, only 4.2 percent of homeowners have a meaningful refinance incentive, limiting the likelihood of a broad refi wave, though that’s an improvement from 0.8 percent a year ago. Looking ahead, May speeds are expected to rise another 10 percent as modest rate improvements and seasonal shifts gradually loosen the refinancing bottleneck.

Weekly jobless claims (228k, about as expected; 1.879 million continuing claims) and productivity/unit labor costs led off today’s domestic economic calendar. Later today brings wholesale inventories and sales for March, Treasury activity that will be headlined by $25 billion 30-year bonds, and Freddie Mac’s Primary Mortgage Market Survey. Before the open, markets received the latest monetary policy decisions from Sweden’s Riksbank (unchanged at 2.25 percent), Norges Bank (unchanged at 4.50 percent), and the Bank of England (25-basis points cut to 4.25 percent). In the U.S. we begin Thursday with Agency MBS prices mixed, the 2-year yielding 3.83, and the 10-year yielding 4.31 after closing last week at 4.28 percent.

Several years ago, Jeff was sentenced to prison. During his stay, he got along well with the guards and all his fellow inmates. The warden saw that deep down, Jeff was a good person and made arrangements for Jeff to learn a trade while doing his time.

After three years, Jeff was recognized as one of the best carpenters in the local area.

Often, he would be given a weekend pass to do odd jobs for the citizens of the community and he always reported back to prison before Sunday night was over.

The warden was thinking of remodeling his kitchen and in fact had done much of the work himself.

But he lacked the skills to build a set of kitchen cupboards and a large countertop, which he had promised his wife.

So, he called Jeff into his office and asked him to complete the job for him.

But, alas, Jeff refused.

He told the warden, "Dang, I'd really like to help you, but counter fitting is what got me into prison in the first place."

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, “Love Them or Leave Them? The Ongoing Saga of Fannie and Freddie.” The Commentary’s podcast is live and at any place you obtain your podcasts (like Apple or Spotify).

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