6.27.25 Buy Now Pay Later; Covius' Pete Pannes on Title; Fed Dependence Dollar Decline

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 go through FICO's announcement that buy now pay later purchases will be included in borrower's scoring. Plus, Robbie sits down with Covius' Pete Pannes to discuss the company's recent acquisition of Title 365. And we close with a look at why President Trump saying he will replace Fed Chair Powell is weakening the U.S. dollar.

Thank you to Optimal Blue. Optimal Blue bridges the primary and secondary mortgage markets to deliver the industry’s only end-to-end capital markets platform, helping lenders maximize profitability and operate efficiently so they can help American borrowers achieve the dream of homeownership. 

Transcript

Does anyone pay with cash anymore, or actually have the money in their bank account? Credit card debt is now $1.1 trillion. There is even a credit card just for automotive repairs! With those “Buy Now Pay Later” arrangements being added to the FICO reports, MLOs are asking, “What are delinquencies like? Will these add to, or subtract from, my pool of eligible borrowers? To the surprise of no veteran LO, it turns out that nearly half have experienced payment problems. Want to do a client with a high credit card balance (and paying 28 percent on it) a favor? Of course you want to put them into a cash out refi, but if that doesn’t work, for $1 have them join American Consumer Council which gives them access to membership in normally off-limit credit unions. Some, like UFCU in Austin, will accept transferred balances into an account where the rate can be only 9.9 percent. Hmmm… 9.9 versus 28. (Questions can be directed to UFCU’s Michael Jones.) (Today’s podcast can be found here and this week is sponsored by Optimal Blue. OB bridges the primary and secondary mortgage markets to deliver the industry’s only end-to-end capital markets platform, helping lenders maximize profitability and operate efficiently so they can help American borrowers achieve the dream of homeownership. Today’s has an interview with Covius’ Pete Pannes on how M&A is shaping the title industry across firsts, seconds, and defaults.)

Employment; TPO team wanted

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“Seeking TPO Team: Join our federal bank! We're a national TPO leader with 20 years of experience and all necessary agency approvals. We're actively looking to acquire a TPO unit/team dedicated to supporting and servicing mortgage brokers and non-delegated correspondents. Your clients will benefit from consistent, competitive pricing on agency products, a competitive jumbo and bridge loan product, and the ability to provide warehouse lines. We offer a competitive compensation and benefits package. Let's connect and grow together! Please reply confidently to Anjelica Nixt.”

“Evergreen Home Loans™, a FNMA, Freddie Mac, and GNMA Seller/Servicer with over $10 billion in servicing, is actively seeking a proven leader to help drive expansion in the Washington state market. We’re looking for someone with a strong pedigree and an established following of loan officers and branches who’s ready to lead with purpose and deliver results. Headquartered in the Pacific Northwest and backed by more than 38 years of success, Evergreen is executing a strategic national growth plan rooted in trust, integrity, and performance. Leaders will benefit from a full suite of innovative loan products, strong operations, marketing support, and a people-first culture that prioritizes the success of their teams. There is also the possibility of taking over existing branches, offering a seamless transition for the right candidate. If you're a high-caliber leader ready to take your career to the next level, contact Todd Miles.”

The Chrisman Job Board is live, the go-to platform for employment opportunities across the mortgage industry. For employers, adding a job listing is easy. Simply create an account and drop in your existing application link, or forward the details to our team and we’ll take care of it for you. For job seekers, joining our Talent Community is completely free. Upload your resume to be visible to hiring companies across the industry and stay connected to new opportunities as they go live.

Products, software, & services for brokers and lenders

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Miss those big million-dollar refis? Yeah, that market’s gone… for now. But your commissions don’t have to be. Think HELOCs aren’t worth your time? Think again. With NFTYDoor, digital HELOCs take about a minute to complete, and you can earn thousands in commissions. Even better? You get a dedicated help desk for both you and your borrower. We handle all document preparation & collection, any signature follow-ups, and even late-night and weekend questions. NFTYDoor = the best digital HELOC in the game, paired with Ritz-Carlton-level support to help you scale your business while we do the heavy lifting. Fast. Simple. Profitable. Connect with your Homebridge Wholesale or REMN AE, or email seth@nftydoor.com to get started.

Leading Lenders: Risk, Reward, and Reinvention dives into how industry leaders are embracing change, overcoming challenges, and driving innovation in today's market. Produced by HousingWire in partnership with Polly, this exclusive docuseries showcases the people and platforms changing how pricing, automation, and strategy intersect. Each episode takes you inside a different lending organization to share their unique perspective on the industry and how they are raising the bar. Episode 4 features Daniel Watt of Mechanics Bank. With a hybrid lending model and a tech stack built for scale, Watt’s team is breaking records, even in a high-rate environment. From implementing best-in-class pricing tools to rethinking processes altogether, Daniel unpacks how Mechanics Bank built a modern platform without sacrificing human connection. Discover how leaning into high-touch, high-tech strategies keep Mechanics Bank competitive against the biggest players in the industry. View episode.

“Engineering the Future of Mortgage Operations Excellence! At Moder, mortgage operations are more than a back office. They’re the powerhouse behind every successful loan journey. From origination to servicing and loss mitigation, we bring structure, speed, and scale to some of the most complex processes in the industry. What drives us? Precision execution, deep domain know-how, and the smart use of automation. Our global teams across India, the Philippines, and the U.S. work as one anticipating challenges, eliminating friction, and delivering results that matter. We’re not just keeping up with the industry we’re shaping what’s next. With every file closed, every SLA exceeded, and every borrower touchpoint handled right, we’re building something bigger: a more efficient, responsive, and resilient mortgage ecosystem. At Moder, operational excellence isn’t just how we work… It’s how we lead the future of mortgage.”

STRATMOR on the role of mortgage servicing

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Mortgage servicing has long played second fiddle to origination… but not anymore. In the lead article in STRATMOR Group’s June Insights Report, Senior Partner Michael Grad makes the case that servicing is stepping into the spotlight as a strategic growth lever for lenders navigating today’s market pressures. “Checkmate or Checkpoint? Rethinking the Role of Mortgage Servicing” explores how rising borrower expectations, recapture challenges, and margin compression are prompting leading lenders to treat servicing not as a cost center, but as a competitive differentiator. From data-fueled retention strategies to operational efficiencies that impact the bottom line, this piece offers a sharp look at what lenders need to do now to unlock the full value of their servicing platforms.

How Marketing Can Tell the Story

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Sara Holtz, Optimal Blue's CMO, explores how mortgage marketing has evolved into a unified, data-informed function that must align with innovation, focus on authentic value, and use tools like AI to tell clear, human-centered stories that support lenders and reflect the mission of helping people achieve homeownership.

Freddie & Fannie (conventional conforming) news rarely stops

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On today’s episode of Last Word at 10am PT, Brian Vieaux, Christy Soukhamneut, Kevin Peranio, and Courtney Thompson discuss Bill Pulte’s recent comments on Bitcoin’s potential role in mortgage lending and explore the latest housing market trends. They'll also weigh in on efforts in Congress to rein in trigger leads and share what these developments could mean for the future of real estate and lending.

Are Fannie Mae, Freddie Mac, and Ginnie Mae truly meeting their mission to support first-time home buyers? In How Well Are Fannie, Freddie, and Ginnie Serving First-Time Home Buyers?, Robbie Chrisman digs into the data behind loan performance, credit scores, and delinquency rates to reveal a more complex picture than surface-level metrics suggest. With first-time buyers making up a growing share of mortgage activity, especially in Ginnie Mae’s space, understanding their financial behavior is critical for policymakers, lenders, and investors alike. Read on to explore why not all mortgage-backed securities carry the same risk and what it means for the future of homeownership.

Notice that Freddie Mac and Fannie Mae (the “Agencies”) have contracted with AI companies for fraud detection. Cynics would suggest that fraud cases will increase resulting in more buyback demands.

Yesterday news broke from “U.S. Federal Housing” that Fannie Mae and Freddie Mac jointly created U.S. Financial Technology, LLC to inventory and manage $6.5 trillion mortgage-backed securities (MBS) portfolio and to sell their technology to other institutions. I was asked by several in our biz, “Sell their technology to… who?” Besides Freddie Mac and Fannie Mae, maybe Ginnie Mae?

The Trump family has not hidden the fact that it is attempting to build a “crypto empire,” so it was no surprise that Bill Pulte, after saying earlier in the week that the FHFA would study the use of crypto in mortgages, the FHFA Director issued directive to Freddie Mac and Fannie Mae. His directive is for Fannie Mae and Freddie Mac to begin preparing their businesses for the use of crypto as an asset for single-family mortgages delivered to the government-sponsored enterprises (GSEs). The order directs Fannie and Freddie to “consider only cryptocurrency assets that can be evidenced and stored on a U.S.-regulated centralized exchange subject to all applicable laws.” Any cryptocurrencies under consideration by the GSEs would not need to be converted to U.S. dollars.

Pennymac will update LLPAs effective for all Best-Efforts Commitments taken on or after Wednesday, June 18, 2025. For details, view Pennymac Announcement 25-65.

Pennymac Announcement 25-63 addresses Freddie Mac updates to income and documentation requirements for base fluctuating and non-fluctuating hourly employment earnings, pension, child support and housing choice voucher income. These changes are effective immediately.

Pennymac updated Conventional LLPAs effective for all Best Efforts Commitments taken on or after Wednesday, June 11, 2025, view Pennymac Announcement 25-62.

With LL-2025-02, Advance Notice of Changes to Servicing Processes and Systems, Fannie Mae announced transformational changes to streamline servicing, enhance risk management, and improve efficiencies for our mortgage servicing partners. The implementation timeline for this multi-year initiative will be communicated in Q3 2025. View FAQs and data requirements for further details.

Monitor industry trends on defect categories and repurchases to help manage potential future risk. Fannie Mae’s repurchase trends report offers aggregated information and insights to help you evaluate your loan quality results. Strong quality control can help prevent defects, reduce repurchase requests, and support financial resiliency.

During the weekend of July 19, 2025, Fannie Mae will update Desktop Underwriter® (DU®) Version 12.0 and the AMI Lookup and HomeReady® Evaluation API with changes to the address standardization service used to determine the Area Median Income (AMI) limit for properties in Connecticut, to support the state’s adoption of planning regions for AMI determination. Additionally, copyright information will be updated in the DU Underwriting Findings report. Read the DU release notes, view the API notes, and/or see the DU integration impact memo.

Leverage industry defect trends to strengthen your quality control and help prevent defects and reduce repurchase requests. Read Fannie Mae Quality Insider to learn about evolving defect trends and gain insights to understand these issues, help manage risk and strengthen loan quality.

Fannie Mae June Servicing Guide SVC-2025-03 announcement includes updates to property preservation expense reimbursement limits and preservation guidance.

Locate Guide-related FAQs by moving them to Freddie Mac’s Guide website, part of Freddie Mac’s ongoing commitment to improving your experience. Check out the latest new and refactored FAQs.

The Uniform Appraisal Dataset (UAD) and Forms Redesign team has updated existing documentation to align documents, make minor changes, and provide further clarification. A detailed Revision History is provided in each document. Please check the Revision History in each document to determine whether these updates impact your implementation efforts. Read the Freddie Mac full announcement for a list of updated documents and visit its UAD web page for more information on this initiative.

Citi Correspondent Lending Bulletin 2025-06 Credit policy updates: Special Purpose Credit Program Expansion, Reverse Mortgages (Agency & Non-Agency), Condo Project Manager/DU Integration, Deferred Loans (Non-Agency and HomeRun), and Mixed-Use Properties. Additionally, clarification regarding Construction to Permanent Loans and Inflation Guard - Condo/Co-Op Project Insurance Guidelines.

AmeriHome Mortgage 20250604-CL Product Announcement provides details on recent Fannie Mae and Freddie Mac Selling Guide policy changes.

Capital markets: more inflation data… as expected

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Speculation about who President Trump may nominate to replace Fed Chair Powell has added fuel to the bond market’s recent rally. With the possibility of a more “dovish” successor being introduced well ahead of Powell’s term ending in May 2026, the market is interpreting this as a signal for earlier-than-expected rate cuts. This has driven a bid for Treasuries, especially at the front end of the yield curve, with the 2-year yield falling to below 3.75 percent. It has also helped the dollar to weaken to a three-year low amid expectations that a shift in Fed leadership could bring a faster return to neutral policy (currently priced at 3.0 percent by late 2026) well below the Fed's own projections. While Trump’s critiques of Powell appear more political than substantive, markets are reacting to the idea that monetary policy could soon become more accommodative.

Why does this matter? If a Fed “chair-in-waiting” is announced early and begins offering policy views during an extended transition, it could challenge the Fed’s perceived independence and influence expectations well in advance of official policy changes. Any deviation from Powell’s cautious approach, particularly if framed as a correction to a perceived policy misstep, would likely accelerate bond market rallies and increase downward pressure on short-term rates. However, such a move also increases uncertainty, both for the dollar and for Treasury markets already grappling with concerns over tariffs and fiscal sustainability. With Powell still expected to complete his term, investors are left to pick between the Fed’s current guidance and a possible future defined by dramatically different leadership.

Looking at the data, we learned yesterday that U.S. consumer spending grew at its weakest pace since the onset of the Covid-19 pandemic on a sharp deceleration in outlays for a variety of services and first-quarter GDP was revised downward to -0.5 percent, driven largely by a surprising slowdown in personal consumption (the weakest since mid-2020), raising concerns about consumer strength. Trade and inventory figures also point to downward pressure on economic momentum, with the goods trade deficit widening and wholesale inventories shrinking. Although durable goods orders spiked, the underlying strength in shipments offered only modest reassurance. Meanwhile, continuing jobless claims rose to their highest level since November 2021, suggesting more Americans are struggling to re-enter the workforce, even as initial claims dipped slightly. All of the above suggests a softening economy.

On the housing front, pending home sales posted a modest gain in May (+1.8 percent month-over-month and 1.1 percent year-over-year), with all regions seeing some improvement, particularly the West. Still, housing market strength remains highly sensitive to mortgage rate fluctuations, which continue to outweigh positive wage growth in shaping affordability. Regional dynamics remain: the Northeast is facing a supply crunch that’s driving prices higher, while the South, with more inventory and job creation, offers buyers more leverage. Separately, mortgage rates fell for the fourth straight week in Freddie Mac’s Primary Mortgage Market Survey. The 30- and 15-year rates declined 4-basis points and 7-basis points to 6.77 percent and 5.89 percent, which are 9-basis points and 27-basis points lower than a year ago, respectively.

May Personal Consumption Expenditure led off today’s economic calendar, with personal income and spending (-.4 percent & -.1 percent, respectively), as well as the Fed-favorite core PCE Price Index +.2 percent for May, May core +2.7 percent. Household incomes were expected to have risen solidly in May, with personal consumption expenditures pulling back. Total and core PCE inflation were expected to have edged up in May, leaving annual inflation little changed at a bit above the Fed’s target. Later today brings final June Michigan sentiment, and remarks from no fewer than three Fed speakers. After the PCE news Agency MBS prices are slightly worse than Thursday’s close, the 2-year yielding 3.74, and the 10-year yielding 4.26 after closing yesterday at 4.25 percent.

SUMMER CAMP FOR HUSBANDS.

Evening classes for men. Starting this month. Note: due to the complexity and level of difficulty of the content, each course will accept a maximum of eight participants each.

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Step by step with slide presentation.

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Pictures and explanatory graphics.

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Open forum.

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Graphics and audio tape.

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Real-life testimonials.

*Topic 6:* Is it genetically impossible to sit quietly while SHE drives?

Driving simulation.

*Topic 7:* Learning to live: basic differences between mother and wife.

*Topic 8:* How to be the ideal shopping companion.

Relaxation exercises, meditation, and breathing techniques.

*Topic 9:* How to fight cerebral atrophy: remembering birthdays, anniversaries, other important dates and informing when you’re going to be late.

Admissions are open.

Visit www.ChrismanCommentary.com for more information on our industry partners, access archived commentaries, or subscribe to the Daily Mortgage News and Commentary. You can also explore the Chrisman Marketplace, a centralized hub connecting mortgage professionals with trusted vendors and solutions. If you’re interested, check out my periodic blog on the STRATMOR Group website. This month’s piece is titled, “Beyond the Primary Market: How MBS and ABS Impact Lending Strategy.” The Commentary’s podcast is available on all major platforms, including Apple and Spotify.

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(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes, visit the Chrisman Job Board. This newsletter is intended for sophisticated mortgage professionals only. There are no paid endorsements by me. For the latest mortgage news, visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.ChrismanCommentary.com. Copyright 2025 Chrisman LLC. All rights reserved. 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.)