5.28.25 Fannie and Freddie Chatter; HomeLight's Nick Friedman on Creative Programs; MBS Supply and Demand

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 review the latest chatter emanating from Fannie and Freddie. Plus, Robbie sits down with HomeLight’s Nick Friedman to discuss how lenders are navigating a challenging market shaped by recession fears, rising tariffs, buyer hesitation, and the resurgence of creative tools like buydowns and seller concessions to keep deals moving. And the episode closes with a look at May issuance of MBS and it's impact on mortgage rates.

Want to remove home sale contingencies in 48 hours or less? It’s easy with Calque’s newest ‘buy before you sell’ product – the Contingency Buster. The Contingency Buster is your fastest and most affordable path to non-contingent financing. Calque provides a binding backup offer on your borrower’s departing residence to clear the existing mortgage balance and closing costs in 48 business hours or less. You become a loan hero that saves deals and helps clients win bidding wars. Best yet? It costs less than other ‘buy before you sell’ solutions. Visit www.calqueinc.com to learn more.

Transcript

Overheard in the hallways at last week’s MBA conference: “At my age, instead of a condom I carry a moist towelette in my wallet. At my age, I run into buffalo wings far more often than sex.” There is always news in our biz (like rumors of Guild and Bayview, layoffs at nCino), but the industry, age jokes aside, continues to talk about the topics that were discussed last week. A fair amount of talk suggests that Freddie and Fannie’s influence and market share is waning and moving to non-QM investors with their “can do” attitudes, although both F&F are still relevant. Fannie Mae, for example, will announce a new initiative to combat mortgage fraud in the U.S. housing market this morning. Freddie Mac recently reported that repurchases are steady. It is generally agreed that market conditions are tough, although when surveyed, 18 public builder CEOs maintain an optimistic long-term outlook for the new-home market despite a slower-than-typical spring selling season and muted traffic in the first quarter. (Today’s podcast can be found here and this week’s is sponsored by Calque. Calque provides a binding backup offer on your borrower’s departing residence to clear the existing mortgage balance and closing costs in 48 business hours or less. And it costs less than other buy before you sell solutions. Hear an interview with HomeLight’s Nick Friedman on how lenders are navigating a challenging market shaped by recession fears, rising tariffs, buyer hesitation, and the resurgence of creative tools like buydowns and seller concessions to keep deals moving.)

Employment

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“Logan Finance is expanding, and we’re looking for driven sales professionals ready to grow their careers with a company built on stability and strength. Logan offers the security of a well-capitalized business paired with strong pricing and a robust non-QM product suite that supports your growth, no matter the market environment. Join a team where your success is backed by real resources, experienced leadership, and high-potential territories ready for development. We’re investing heavily in market intelligence, providing motivated salespeople with an incredible opportunity to build lasting relationships and a sustainable book of business. If you’re ready to align with a company that values performance, supports your ambition, and delivers the tools you need to win, Logan is your next step. Explore your future with Logan Finance today. Contact us to learn more.”

Successful Merger Between HMA Mortgage and Greentree Mortgage Expands Capabilities and Delivers Outstanding Results! HMA Mortgage and Greentree Mortgage have successfully completed a landmark merger, solidifying their position as a leading force in the mortgage industry. This merger has grown HMA Mortgage with over 100 mortgage professionals, including 45 loan officers, creating a powerhouse team dedicated to innovative solutions and exceptional customer care across an expanded service area. Integrating HMA Mortgage’s trusted 20-year legacy and Greentree Mortgage's 30+ years of expertise enabled the combined organization to enhance its technological capabilities, operational excellence, and customer reach. Unified under shared values of professional excellence and personalized service, the partnership now spans 30 states, setting a new standard in the industry. “This merger created something truly greater than the sum of its parts,” said David Holland, President of HMA Mortgage. “By joining forces, we’ve strengthened our ability to serve customers with cutting-edge technology, streamlined operations, and a customer-first approach that is second to none.”

The merger united strengths for better experiences. There is an expanded footprint, serving clients across 30 states with personalized mortgage solutions, enhanced technology with streamlined pre-approvals and automated underwriting for a faster, easier experience, and innovative Products with signature offerings like the HMA Edge Cash Buyer Program and Renovation Makeover Suite are available to more buyers and partners. “Our shared leadership values have created a strong foundation for the future of lending,” added John Mirenda, President of Greentree Mortgage. Managing Partners, Tom Mills and Robert Fillyaw emphasized the merger’s success saying, “With our combined resources, we can better tailor solutions and make the mortgage process even smoother. This means empowering clients and forging lasting partnerships.” Interested in joining this new chapter at HMA Mortgage? Contact Managing Partner Tom Mills at 443-309-9346. For more details on services or partnership opportunities, visit www.HMAmortgage.com or www.HMAcareers.com.

(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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Modern lending starts with automation, and most lenders aren’t there yet. Join US Mortgage Corporation and LenderLogix for a live webinar on June 5th, 2025, at 1PM EST to see how automation-first thinking can transform your mortgage process. Learn how US Mortgage is cutting the clicks, reducing manual work, and building a more efficient tech stack with Encompass® workflow automation and LiteSpeed. From reducing tech sprawl to eliminating repetitive tasks, this session will break down the tools and strategies that keep their team focused on closing loans. Save your seat here.

Summer Looks Smarter for Your Tech Stack. If your CRM is outdated, or so large you’re just another ticket in the queue, you’re not getting the service your team deserves. That’s why more lenders are switching to Usherpa, a mortgage-specific CRM built to help you work smarter, not harder. With powerful Done-For-You Marketing, Pipeline Technology, and open integrations, Usherpa streamlines workflows and boosts productivity. Implementation is quick and easy, so you start seeing value fast. Best of all, it’s backed by a responsive team that treats you like a partner, not a number. Curious about the philosophy behind Usherpa’s innovation? Read Authentic Intelligence, the new book by Usherpa’s founder. It’s a fresh take on using tech to support, not replace, the human side of relationship-building. This summer don’t just clean up… level up! See what a real CRM partner looks like.

Product news for 2nds, HELOCs, jumbos, and brokered products

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Tick, tick, tick… big bills, tight budgets, and no time to waste. Half of adults 50+ who borrowed for medical expenses in 2024 took out $3,000 or more. With inflation hurting budgets, HomeSafe Second helps homeowners access equity in a lump sum, without adding new monthly mortgage payments. No HELOC headaches: just a way to ease financial pressure. Finance of America has helped partners identify 1 million eligible HomeSafe Second borrowers, representing $10 billion in potential reverse mortgage loans. Fill out this form to get started. The borrower must meet all loan obligations, including meeting all loan obligations under the first lien mortgage, living in the property as the principal residence and paying property charges, including property taxes, fees, hazard insurance. The borrower must maintain the home. If the homeowner does not meet these loan obligations, then the loan will need to be repaid. Finance of America | NMLS #2285

“Spring EQ is proud to be a home equity partner who’s dedicated to delivering more flexibility, more products, and more support. That’s why we make it easy for partners to grow their business and their earnings (compensation up to $20,000)! Here’s what else sets Spring EQ apart: Adjustable and fixed-rate HELOCs, plus fixed-rate HELOANs, CLTVs up to 90% and DTIs up to 50 percent, Instant AVM findings at registration, 80 percent CLTV on investment properties, and loan amounts up to $500,000. Other solutions also include piggyback purchases and refinances, standalone seconds, and 1st lien HELOCs. And with our loan interface, EMMA, pricing and registering loans is easy. We even take it a step further by offering valuable tools and resources, like our comprehensive Home Equity Marketing Kit. Let’s work together to help more borrowers tap into their equity. Wholesale Partnership or Correspondent Relationship.”

Quontic Wholesale Unveils ITIN Lite Doc Program + Correspondent Launch. Quontic Wholesale continues to push boundaries with the launch of our ITIN Lite Doc program, tailored for underserved borrowers. This product accepts P&L statements and a 5-question VOE, making income verification faster and more flexible. Designed for speed, simplicity, and expanded access, it’s ideal for self-employed ITIN borrowers who don’t fit into the agency box. In other exciting news, Quontic has officially launched its Correspondent Lending Channel, opening new opportunities for approved sellers across the country. For program details, rate sheets, and approvals, contact James Hooper, SVP of Production.

Effective with AmeriHome Mortgage 20250508-CL Product Announcement, mortgage loans secured by properties in the state of Georgia, Kentucky, and Maryland are now eligible for purchase with AmeriHome’s Non-QM Expanded Program.

Freedom Mortgage Wholesale Division is thrilled to offer the new Advanced Second program, designed to help homeowners access the equity in their homes without compromising their low interest rates on existing first mortgages owned by Freddie Mac. Some key features include Loan Amount up to $78,277, Eligible for 1–4-unit single-family residences, PUDs, warrantable condos, and double-wide manufactured homes, primary residences only, and 20-year fixed-rate mortgage only. The first mortgage must be owned by Freddie Mac. Confirm on this website.

United Wholesale Mortgage (UWM) launched the LE Optimizer (LEO), an innovative tool that provides a detailed analysis of competitors' Loan Estimates (LE), identifying gaps and opportunities for a better deal for the borrower. This enables independent mortgage brokers to put forth a better LE and win more loans. LEO allows brokers to simply drag and drop a competitor’s loan estimate into the company’s AI-powered ChatUWM platform, quickly analyzes the estimate line-by-line, presenting a summary of opportunities to beat the competitor's offer and providing an outline of talking points to help brokers initiate a conversation with the borrower. LEO also provides brokers with opportunities to utilize UWM’s suite of tools to enhance their offers. Additionally, UWM launched a powerful new suite of AI-powered tools built specifically for independent mortgage brokers, designed to simplify their workflow, supercharge their client relationships, and empower them to scale faster and smarter. View UWM site for a full list of the new tools and enhancements.

PHH Mortgage announced updates and clarifications to its Non-Agency Gold product offerings. Go to the PHH company library to view the Non-Agency Gold Products Update announcement. Also, Effective Monday, May 19th, PHH Mortgage is updating its Suspense Fee Policy.

AmeriHome Mortgage announced that Mortgage Loans originated with eNotes are now eligible for purchase. See Announcement 20250504-CL for details.

Pennymac Announcement 25-57: Requirements for Correspondent’s Financial Statement and Officer’s Certification.

AmeriHome Mortgage excitedly announced the launch of its new AUS Jumbo Express Program, providing expanded options for non-Agency loans by leveraging Fannie Mae’s Desktop Underwriter® (DU®) to support the underwriting process. See Product Announcement

20250506-CL.

Pennymac Announcement 25-52: Adjustable-Rate Mortgages are now eligible for the AUS Jumbo Program.

Citi Correspondent Lending Bulletin 2025-05 content includes credit policy updates on HomeRun Deed Restrictions, Agency & Non-Agency Non-Subject HELOC Qualifying Payment Clarification. Monthly list updates on depreciating markets. Condo/Co-Op Project Insurance Guidelines - Inflation Guard. Clarifications regarding HomeRun borrower minimum contribution, Borrower explanation - Non-Agency, and Property Address Requirements – Condo/Co-Op Master.

Jet Mortgage launched into May with some spicy broker incentives on its 2nd Lien Program, now is the time to cash in. Loans must be Submitted, Initially Approved, and Locked by May 16th. Loans must be Funded by the End of May. This special is only available on Jet SECONDS programs, and for a limited time.

The title of the Value Acceptance + Property Data Vendor List has been changed to Property Data Collection: Fulfillment Providers to clarify the scope of the vendors on this list. The URL has changed – be sure to update your bookmark.

Citi Correspondent Lending is reducing a portion of Best Efforts Non-Agency CRA premiums (applies to Non-Agency Jumbo and HomeRun), effective with locks completed on/after Thursday, May 1, 2025. View complete announcement which provides details regarding impacted counties/MSAs in the non-Agency CRA premium grid. The 5/1/25 rate sheet will reflect these changes. Updated CRA Schedules (CL244 and CL244NP) will also be posted on the Portal's Resources / Correspondent Resources / Training tab.

PHH Mortgage announced updates to Maximum Loan Amounts for Delegated and Non-delegated non-agency products. Go to the company library to view the PHH announcement.

Capital markets: Supply & demand and geopolitics drive rates

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Are you still running a complicated spreadsheet for your MBS pool bids? Join Agile on June 12th at 11AM PT for its latest webinar, Outsmart the Chaos: How Top Firms Are Fixing MBS Pooling. In this webinar, Agile’s Greg Vacura, Tawab Abawi, and Sam Farmer will walk through real-world scenarios, from managing dealer bids to simplifying swap allocations, and show how lenders can achieve operational efficiency through intelligent automation. Designed for mortgage capital markets professionals, this session will highlight the challenges lenders face today when managing MBS pool bidding. They will also demonstrate how a centralized, automated, and more intelligent solution can improve efficiency and execution. Register for the webinar or contact Agile to learn more.

Turning to rates, the bond market rallied yesterday as investors responded to a combination of geopolitical and economic developments that eased some near-term concerns. A key driver was news that Japan may scale back its issuance of long-dated government bonds, potentially reducing global supply and bolstering demand for U.S. Treasuries. Adding to the positive sentiment, President Trump announced a delay in the proposed 50 percent tariff on European Union goods until July 9, following a productive conversation with European Commission President Ursula von der Leyen, who appears eager to expedite trade negotiations. Long-duration bonds led the rally, benefiting from the shift in risk sentiment. The market's gains were further supported by a solid $69 billion auction of 2-year notes, a stronger-than-expected Consumer Confidence Index for May, and a slight decline in 12-month inflation expectations.

Supply and demand directly correlate to mortgage prices, and May is shaping up to be a notably strong month for the mortgage-backed securities market. Gross issuance is expected to surpass $103 billion, the highest since last November, driven by seasonal factors and rebounding activity. GNMA leads the share of issuance at 45 percent, while Freddie Mac and Fannie Mae account for roughly 28 percent and 27 percent, respectively. Net issuance is projected to turn positive, around $10 billion, following two months of negative figures as estimated paydowns total about $92.5 billion. Prepayment speeds are anticipated to remain steady or slightly increase, particularly among lower coupon securities due to higher turnover, while higher coupons are expected to slow as rising interest rates dampen refinancing activity.

Today’s economic calendar kicked off with mortgage applications decreasing 1.2 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey. Later today brings Richmond Fed manufacturing and services, revenues for May, Dallas Fed Texas services for May, Treasury auctions of $28 billion reopened 2-year FRNs and $70 billion 5-year notes, remarks from Minneapolis Fed President Kashkari, the release of the minutes from the May 6-7 FOMC meeting, and on Wall Street, tech stalwart Nvidia will release earnings. We begin the day with Agency MBS prices are nearly unchanged from Tuesday’s close, the 2-year yielding 3.96, and the 10-year yielding 4.46 after closing yesterday at 4.43 percent.

When I was young, I was poor

And after many years of honest, hard work…

I'm not young anymore.

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, “Compensation is Still Lender’s Largest Expense.” The Commentary’s podcast is live and at any place you obtain your podcasts (like Apple or Spotify).

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