7.1.25 Budget Deficits; Bank United's Chris Huang on Bank Partnerships; Pressure The Fed

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 why markets remain cautious due to the looming prospect of increased U.S. debt issuance tied to growing budget deficits. Plus, Robbie sits down with Bank United’s Chris Huang to discuss trends that capital providers are seeing in mortgage originators and what to look for in bank partners or warehouse line counterparties. And we look at the substantial pressure being heaped on Fed Chair Powell.

Thank you to Figure. Figure is shaking up the lending world with their five-day HELOC, offering borrower approvals in as little as five minutes and funding in five days. Figure has hundreds of partners in the Banking, Credit Union, Home Improvement, and of course, IMB space embedding their technology. Lenders, give your borrowers an experience they will rave about. Learn more at figure.com.

Transcript

“Life is like a roll of toilet paper: The closer you get to the end, the faster it goes.” Just like that, 2025 is half over. With it have come changes at the GSEs, government loan programs, and the compliance landscape. In his latest edition of Mortgage Musings, Attorney Brian Levy offers insights on the trigger lead bill(s) and the challenges faced by DC trade association lobbyists in the current environment. (Sign up here for a free subscription to Levy’s Mortgage Musings.) Certainly there have been changes in the servicing landscape, and STRATMOR’s Advisory Angle today at 11AM PT is, “The Strategic Power of Servicing: Turning Cost into Competitive Advantage” featuring Michael Grad, Mike Seminari, and Garth Graham. “Servicing has emerged as a strategic growth driver for mortgage lenders navigating a challenging 2025 market. From increasing regulatory scrutiny to rising borrower expectations and compressed margins, the conversation explores why servicing can no longer be treated as a cost center, and how the smartest lenders are using it to build loyalty, drive recapture, and create operational leverage.” (Today’s podcast can be found here and this week’s is sponsored by Figure, which is shaking up the lending world with their five-day HELOC, offering borrower approvals in as little as five minutes and funding in five days. Figure has hundreds of partners in the banking, CU, home improvement, and (of course) IMB space embedding their technology, giving borrowers an experience they will rave about. Today’s has an interview with Bank United’s Chris Huang on trends that capital providers are seeing in mortgage originators and what to look for in bank partners or warehouse line counterparties.)

Employment and transitions

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Earn 75 bps commission as a Non-QM Wholesale Account Executive with NewPoint Mortgage. No tiers. No territories. Work from home. We have the technology, programs, and culture to make you the go-to expert your referral partners want. With over 20 years in non-QM, our operations staff understands how to support you in closing your difficult deals. Please contact Mike Fernandez to take advantage of this opportunity.

Pennymac TPO is Hiring: SVP, TPO Market Strategy! Pennymac TPO, the third-largest wholesale lender in the country, is hiring a Senior Vice President of TPO Market Strategy to join its senior leadership team. Based in Pennymac’s Westlake Village, CA headquarters, this role will lead marketing strategies and drive client engagement to achieve our aggressive growth targets. The ideal candidate is a strategic thinker with a pulse on market dynamics and deep understanding of broker and loan officer insights and mindsets. This is a high-impact opportunity to drive TPO growth and help shape the future of a well-capitalized, highly respected industry leader. Lead market strategy including development of segmentation and positioning Collaborate across Sales and Marketing. Turn broker / partner insights into actionable strategies to drive growth. If you're ready for a strategic role with a trusted brand where your leadership can make a true impact on growth,  please submit your resume (confidentially) to Lisa Pick or apply online.

U.S. Bank has announced new leadership for its mortgage business, following the retirement of Tom Wind. Fred Bolstad has taken on the new role of Head of Mortgage for U.S. Bank, with John Hummel also recently named as the new Head of Retail Home Lending at U.S. Bank. Fred previously served as Head of Retail Home Lending and in his new, expanded role, he oversees nationwide lending of mortgage and home equity loans via retail, correspondent, and HFA originations channels. He also oversees Warehouse Lending, a business providing residential and commercial mortgage loan warehouse credit facilities, and related banking services, to independent mortgage banks nationwide. John previously served as Head of East Market for Retail Home Lending. In his expanded role, he will lead retail sales and operations while overseeing more than 1,200 mortgage loan officers.

Barber Law continues raising the bar with the addition of 24-year mortgage vet Ashley Wenmohs as its new Director of Business Development. “Ashley is a seasoned leader and strategic thinker who embodies our core values at Barber Law, and she will leverage her industry knowledge and experience to grow the firm’s client base in Texas and beyond. Since founding the firm, Claire Barber has prioritized providing exceptional service and innovative solutions to mortgage companies, banks, and credit unions in the preparation and review of residential mortgage loan documents. “I’m beyond thrilled to welcome Ashley to the team. Her reputation in the industry speaks volumes and I’m confident in her ability to continue the firm’s projected growth. With this strategic hire, Barber Law takes another step towards our mission of raising the bar and providing outstanding service to current and future clients,” said Claire Barber, Managing Attorney.

United Wholesale Mortgage (UWM) announced the appointment of Allen Beydoun as its first-ever Chief Client Officer (CCO). An 18-year veteran of the company, Allen will be responsible for aligning strategic initiatives with client needs, ensuring that the voice of the client remains central to every decision the company makes while elevating the client experience from all aspects of the business. Congratulations!

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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Federal, state, and local fees are subject to change whenever new laws are passed, requiring lenders to be vigilant in keeping up with these changes. This may result in additional resources if the solutions in place can’t support the fee management processes needed. Furthermore, disclosing inaccurate fees to borrowers at the time of closing can cost lenders thousands of dollars in fee cures. ICE’s new whitepaper, How fee changes can directly impact lenders, breaks down four use case examples that demonstrate the potential consequences local and state fee changes can have on a lender’s operations. Learn how having the right fee management tools in place can help prevent fee cures and streamline the fee management process: How fee changes can directly impact lenders.

Laminr Technologies’ Automated Bank Statement Income Analysis Now Accepted by Onslow Bay! Laminr Technologies, the leading automated decisioning platform serving the non-QM market, is excited to announce that its fully automated bank statement income analysis is now accepted by Onslow Bay Financial LLC. This expands upon the existing acceptance by Long Run Partners. Both investors consider Laminr bank statement results valid and approved when specific guideline conditions are met. The workflow is simple: originators upload 12-24 months of bank statements, Laminr automatically analyzes income and generates a summary page to include in the credit package to Onlsow or Long Run. Users report over 50% gains in bank statement underwriting efficiency and improved secondary market execution. This milestone reinforces Laminr’s commitment to accelerating and simplifying non-QM underwriting, origination, and secondary marketing. For more information, and to request a demo, visit here.

“Ready to unlock the hidden potential in your past loans? With Fannie Mae's May forecast projecting mortgage rates could fall to 6.1% by year-end, now is the time to act. Capture for Originators, built into Optimal Blue® PPE, transforms how you identify and act on recapture opportunities. It automatically analyzes your closed loan portfolio, identifies refinance opportunities that factor in lender fees and real-time pricing, and delivers options in borrower-ready presentations with one click. No spreadsheets. No manual work. Just instant insights that drive action and help you build lasting borrower relationships. Join the Optimal Blue team on July 15 for our exclusive webinar, “Unlocking Refi Potential: How Capture for Originators Turns Past Loans into Future Opportunities.” You’ll see how this tool helps you act fast, deepen loyalty, and turn referrals into ready-to-quote leads, because we don’t just promise ROI. We power it. Secure your spot today.

“Lakeview Loan Servicing, LLC (Lakeview) is pleased to announce that we are joining forces with the Georgia Housing and Finance Authority (GHFA) on an exciting new program. Beginning with reservations on Tuesday, July 1, 2025, GHFA is introducing the Georgia Dream Peach Advantage loan program where low-to-moderate income Georgia borrowers can receive up to 5% assistance for down payment and closing costs. The 30-yr fixed rate conventional loan program (open to both first-time and repeat homebuyers) will have higher income limits than the Georgia Dream bond programs, with limits up to 150% AMI. If you are not an approved lender with Lakeview, please contact Lakeview for an application and lender agreement. If you have any questions, please contact your assigned Lakeview VP of Business Development or Jed Guenther, Head of Community Lending.”

SettlementOne Introduces FICO® Score Mortgage Simulator. SettlementOne, a leader in credit reporting, data, and verification solutions for more than 25 years, has partnered with global analytics software leader FICO to launch the only authorized simulation tool that leverages the trusted FICO® Score algorithms. This tool enables lenders to show borrowers how specific financial decisions may affect their scores and mortgage options. Loan officers can demonstrate the impacts of paying down balances, resolving collections, and improving delinquent accounts, helping identify potential actions through simulation scenarios that drive impactful results and potentially save thousands in interest costs. This integration delivers what mortgage professionals need: specific information and transparency rather than general guidelines. The FICO® Score Mortgage Simulator seamlessly integrates with SettlementOne's platform, enhancing efficiency while maintaining compliance. Contact us to learn more.

On today’s episode of MortgagePros 411 at 11am PT, Audrey and Kevin will be joined by Julienne Y. Joseph, Founder and Principal of JYJ Consulting, LLC, for an insightful conversation on expanding homeownership and driving sustainable housing strategies. Drawing from her groundbreaking work at HUD and across sectors, Julienne will share expert perspectives on equitable mortgage access, impactful policy reform, and the real-world implications for lenders and communities alike.

The Chrisman Marketplace is now “up and going,” a centralized hub for vendors and service providers across the mortgage industry to be viewed by lenders in a very cost-effective manner. We’re adding new providers daily, so check back often to see what’s new. To reserve your place or learn more, contact us at info@chrismancommentary.com.

Brian Vieaux on What LOs Should be Doing Now

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Over the weekend I received an “MLO VieauxPoint” from Brian Vieaux, CMB, President & COO of FinLocker & Founding ‘Expert’ of MLO Live, about what smart LOs should really be doing now. “Rob, we’re nearing the traditional ‘dog days of summer,’ and you know what they say about July in this business: ‘It's hot outside, but the pipeline’s cooling off.’ Interest rates aren’t dropping enough to trigger a refi wave. And buyers? Many are on pause, either burned out from bidding wars or priced out by affordability. So, what now?

“After 35+ years in mortgage banking, I’ve seen this movie before. The LOs who waste the summer waiting for business to find them... usually end up scrambling by fall. But the ones who use this time to prepare, they set themselves up to thrive when others stall. If you’re not busy with apps, get busy with action.

“Here’s where to focus. First, build your fall pipeline now. That lead who told you they’re ‘12 months out’? They’ll either buy with someone else, or with you, depending on who shows up between now and October. Start educating. Start engaging. Start sending value, not rate sheets. This is where leveraging your tech stack and toolkit change the game. You don’t need to run credit or take an app to be helpful. You just need to start a relationship.

“Second, deepen referral relationships… beyond ‘the ask.’ Summer’s when real estate agents are buried, which means this is your chance to offer help, not hunt for handouts. Offer to teach a 15-minute credit prep session for their buyers. Share content they can co-brand. Be the one LO in their inbox who isn’t begging for leads. Because in this business relationships aren’t owned. They’re earned.

“Third, sharpen your brand while no one’s watching. Summer is quiet on social media, too, which means less noise... and more attention if you’re consistent. Post something helpful 3x a week. Talk about credit. Or saving. Or what a buyer can do 6 months before they’re ready. Be a resource, not a rate quote. This is how you go from being “a lender” to being their lender before they even apply.

“Finally, fourth, automate what you’ll need in Q4. Got 20 minutes between follow-ups? That is a good time to refresh your email nurture campaigns, record short videos for first-time buyers, or create a few scripts tied to credit improvement or budgeting. You’ll be glad you did when the winter lull hits.

“Here’s the thing… If the dog days of summer are slow, that’s not a problem. It’s an opportunity to create content that compounds, to build trust before the transaction, to earn your seat at the table before the buyer is ready. Most LOs will coast this summer. Will you? What’s one area of your business you’re committed to building before August ends?” Thank you, Brian!

Capital markets: this bill is truly a spending bill

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Remember when the bond market sold off, and rates went higher due to tariff announcements? It turns out that we’ve seen little evidence, so far, that tariffs have added inflationary inertia to the mix since imports are a relatively small part of our economy and with all the flip flopping no one can remember who’s paying what. Maybe we’ve shifted from the Fed contemplating “higher-for-longer” to “higher-until-pressured,” as PrimeLending’s Capital Markets EVP Andrew Stringer suggested.

What was supposed to be a week focused on payroll data (I’m focused on hot dogs, fireworks, and celebrating this great country, but that’s besides the point) has been hijacked by speculation surrounding the eventual economic impact of President Trump’s signature economic legislation should it be signed into law after passing the Senate. Markets remain cautious due to the looming prospect of increased U.S. debt issuance tied to growing budget deficits. That would cause investors to demand higher yields, especially on long-dated Treasuries, something that would cause further underperformance in the 30-year bond market. However, Treasury yields dipped below their 200-day moving average to open the week, suggesting a potential shift to a lower trading range.

On the trade front, President Trump announced a signed agreement with China, including commitments on rare earth exports, and indicated further deals are "imminent" with other key trading partners. While this has boosted market sentiment and pressured bonds slightly, the lack of detailed commitments and lingering uncertainty around tariffs has certainly muddied the Fed’s policy path.

With reciprocal tariff pauses set to expire in around a week, investors and business leaders are wary of making long-term commitments. Bilateral deals may offer some clarity, but the broader risk of a return to trade tensions remains. Investors are also staying attuned to any rise in unemployment that could shift sentiment toward earlier Fed rate cuts, particularly as June payrolls are expected to show modest job growth and weakening labor market participation.

President Trump intensified his pressure on the Federal Reserve this week, publicly urging Chair Jerome Powell to slash interest rates to between 0.5 percent and 1.75 percent, arguing that the U.S. is losing “hundreds of billions” by maintaining a higher policy rate. In a handwritten note and on social media, Trump criticized Powell for being “too late” and failing in what he called “one of the easiest” jobs in America. While Trump cannot fire Powell, Treasury Secretary Scott Bessent hinted at a conventional succession plan, noting that a Fed board seat opens in January and suggesting a nominee might be positioned as Powell’s successor when his term ends in May. Meanwhile, the Fed has maintained a cautious stance, citing solid labor markets and inflation still above target as reasons to delay cuts, though internal voices like Governor Waller suggest easing could begin as early as July if disinflationary trends persist.

Maybe we can go one paragraph without mentioning President Trump...Today’s economic calendar is under way with Fed Chair Powell participating in a policy panel before the ECB Forum on Central Banking. Later today brings the final June S&P Global manufacturing PMI, the ISM equivalent, May construction spending, JOLTS job openings for May, Dallas Fed Texas services, and some short-duration Treasury auctions. We begin Tuesday with Agency MBS prices slightly better than Monday’s close, the 2-year yielding 3.70, and the 10-year yielding 4.21 after closing Monday at 4.23 percent.

So, it's the 4th of July night and all the dead presidents are gathered around a campfire having a party. They're drinking and eating and just generally having a grand ol' time when President Washington puts President Lincoln on the spot.

"Hey, heyyyy, Lincoln, do that thing you do!”
"What now? What thing?"
"Lincoln, do the thing! The speech! You know, the thing!!!!"
"Ohhh, yeah, the speech. Yeah, that thing. Nah, I can't. Can't remember the words."

"Whaddya mean you can't remember the words??? It's the speech; you've said it a million times!!! You've got that, like, burned in your brain, right?!!"
"Well, yeah, normally, sure, I've got it memorized, but that was four s'mores and seven beers ago!!!"

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.)