8.12.25 Caring for Borrowers; ICE's Matt Dowd on Borrower Decisions; Tame CPI Hallelujah

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 potential Fannie and Freddie future paths. Plus, Robbie sits down with ICE’s Matt Dowd to discuss the borrower decision-making process and strategies for guiding them from lead generation to closing, including how balancing automation with human touchpoints creates a seamless, trust-building experience. And we close by going through the latest CPI figures.

ICE has and continues to transform the housing finance and homeownership experience. By seamlessly integrating best-in-class solutions, ICE optimizes every stage of the loan life cycle. As the standard for innovation, artificial intelligence, efficiency and scalability, ICE is the technology of choice for the majority of industry participants, defining the future of homeownership.

Transcript

“Nothing refreshes my memory about what I need at the grocery store like coming home from the grocery store.” Remember adjustable-rate mortgages? Here at the California MBA’s Western Secondary, talk in the hallways is about memories of how, in the past, just because the Fed changes short-term rates doesn’t mean long-term rates move. Put another way, short-term rates impacting adjustable-rate mortgages may improve while 30-year mortgage rates barely budge. It will be one of the topics in today’s episode of Capital Markets Wrap at 3PM ET. The panel delves into the increase in ARM volume, anticipated IPOs of Fannie Mae and Freddie Mac, and discusses how upcoming changes at the Federal Reserve could shape future policy. They'll also highlight the significance of the September Fed meeting and share takeaways from the Western Secondary conference. Yes, Bill Ackman, who controls a large block of Freddie & Fannie stock and who has the President’s ear, not only wants another issuance of stock but also to merge F&F. Will borrowers really be helped? Our business continues to watch what could be the likely resolution that will mark the final and most lucrative chapter of the 2008 financial crisis: a successful recapitalization and return to private ownership of Fannie Mae, to the hoped-for benefit of taxpayers, homeowners, and shareholders alike. (Today’s podcast can be found here and this week’s is sponsored by ICE. By seamlessly integrating best-in-class solutions, ICE optimizes every stage of the loan life cycle, setting the standard for innovation, artificial intelligence, efficiency, and scalability, and defining the future of homeownership. Today’s has interview with ICE’s Matt Dowd on the borrower decision-making process and strategies for guiding them from lead generation to closing, including how balancing automation with human touchpoints creates a seamless, trust-building experience.)

Jobs & transitions, exec available

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Nations Direct Mortgage Welcomes Two Key Additions to Its Leadership and Sales Teams! Nations Direct Mortgage, LLC is pleased to announce the addition of two seasoned professionals to its team: Justin Simpers, who joins as an Account Executive, and John Brumund, who joins as Chief Strategy Officer. Justin Simpers brings extensive experience in mortgage lending and a strong history of helping broker and seller partners grow their production. “Excited to welcome Justin to our Sales Team!” said Jack O’Brien, Chief Production Officer. “With his wealth of experience and proven track record, we’re confident he’ll play a key role in driving our continued growth and success.” John Brumund steps into the role of Chief Strategy Officer, where he will guide the company’s strategic initiatives and long-term planning. Brumund brings decades of executive leadership and deep industry insight to Nations Direct. “I’m pleased to welcome John Brumund as our new Chief Strategy Officer,” said O’Brien. “His industry expertise, visionary mindset, and strategic leadership will be key drivers in our next phase of growth.”

These new additions reflect Nations Direct’s continued commitment to expanding its market share and delivering unmatched value and service to its broker and seller partners nationwide. If you’re an ambitious and strong producing Account Executive looking to take things to the next level with a company dedicated to high levels of service and a generous compensation plan, please contact Jack O’Brien.

With over 20 years in executive mortgage leadership, a C-Suite Executive is seeking a role driving modern market strategy. Expertise in FinTech/AI, and disciplined in maintaining P&L, UX/CX, and company culture transformation. As CEO, President, COO, and Consultant, achievements include capital raises, strategic pivots, market expansions, product launches, operational turnarounds, and innovation programs, consistently delivering revenue growth, EBIDTA gains, expanded channels, streamlined operations, and high-performing sales, marketing, and ops teams. Combining data-driven decision-making, strong communication, with a deep commitment to people, culture, and clear vision execution, this leader ensures results are both scalable and sustainable. Experience spans multiple ownership roles with successful exits, top-tier sales performance, construction ADV, capital markets (Series 63 & 69), compliance, M&A, DevOps, insurance, and commercial real estate. For organizations seeking a dynamic, galvanizing, results-driven C-Suite executive, not a manager or VP, contact Anjelica Nixt to connect with a proven, peak-performing leader ready to deliver transformative impact.

The Chrisman Job Board is 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, services, and software for lenders and brokers

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Ready to more easily recapture your customers? ICE has further integrated its origination and servicing solutions to make it simpler for homeowners to explore, apply and close on home equity and refinance loans directly from the ICE Servicing Digital solution. “Supporting a modern, customer-friendly experience that promotes lifelong borrower retention on the front end and operational efficiency on the back end is key to lender performance,” said Tim Bowler, President of ICE Mortgage Technology. This enhanced integration delivers powerful, native recapture functionality at a time when mortgage businesses are increasingly focused on customer retention strategies. Read the press release to learn how ICE is helping lenders recapture more business, deepen customer relationships, and reduce operational complexity. 

OptiFunder, the leader in automating warehouse processes for IMBs, has earned a spot on the Inc. 5000 list for the third consecutive year, a testament to its ability to bridge the gap between originators, warehouse lenders, and all stakeholders in the funding lifecycle. As the industry shifts toward leaner teams, increased demand for efficiency, and a sharper focus on cost reduction, OptiFunder’s platform automates over 250,000 monthly touchpoints for IMBs, delivering intelligent, end-to-end workflow automation from funding through payoff to optimize every step of the warehouse process. Purchase Advice automation has become a standout solution, helping originators reduce manual tasks, alleviate post-closing bottlenecks, and combat workforce burnout while streamlining reconciliation and paydown tasks. With the addition of Greyhound, OptiFunder now also supports warehouse lenders directly, establishing the first truly automated and connected ecosystem in warehouse lending. Ready to eliminate inefficiencies and modernize your warehouse strategy? Let’s talk.

Are the costs of your tech stack getting out of hand? The process of managing multiple tools to manage your business is not only financially expensive, but it can also cost you time and productivity. That’s why Cotality developed Araya, your single source for Intelligent Marketing Solutions. With our easy-to-use, intuitive platform, you get four powerful solutions in one place. Easily keep in touch with past customers with personalized, automated messaging and understand when they are in market for a new home or other lending product. Plus, you can get the insights you need to uncover new areas of opportunity and identify potential networking partners. All backed by Cotality’s gold standard property data and insights, covering over 99.9% of U.S. properties. To see more about how we’re helping originators succeed in any market, check out our comprehensive suite of solutions and schedule a demo with us today!

Protect Home Equity Lending with Confidence. FraudGuard Home Equity from First American Data & Analytics is designed to help lenders detect and prevent fraud in home equity transactions, before it becomes a costly problem. With advanced data intelligence and real-time alerts, FraudGuard empowers your team to make faster, smarter decisions while reducing risk exposure. Whether you're dealing with HELOCs or second mortgages, FraudGuard delivers actionable insights across borrower identity, property valuation, lien and occupancy status, and more. It’s a powerful layer of protection that integrates seamlessly into your workflow, helping you stay compliant and competitive in today’s lending environment.

Trying to sell a fixed-rate second in a volatile market is like riding a bull in a rodeo: wild, unpredictable, and almost guaranteed to throw you off. That’s your borrower on the line. Why lock them into a high fixed rate when Prime is likely headed down? NFTYDoor’s variable-rate HELOC rides with the market. As Prime drops, so does their rate… automatically. 1-minute app. Close in as little as ZERO days. Wholesale, correspondent, and other options. MLOs: Stop getting bucked by bad products. Give your borrowers something they will love. Contact Matt, Carl, or Seth today.

The Chrisman Marketplace is 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.

LOs should educate their clients

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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, suggesting that LOs educating their clients will drive sustainable growth for loan officers.

Brian writes, “In today’s market, the best clients aren’t just the ones who close, they’re the ones who refer. And the key to earning those referrals starts with a shift in mindset: from transaction manager to financial fitness coach. Instead of focusing on who’s ready to buy today, the Financial Fitness Flywheel approach builds long-term momentum: Financial education leads to client empowerment which leads to stronger trust which leads to more referrals which leads to more educated clients.

“Most buyers don’t need another rate quote. They need clarity on where they stand financially, what’s holding them back, and how to move forward. When a loan officer helps a prospect improve their credit, build savings, and create a realistic budget, they’re not just preparing them for a mortgage, they’re changing their life trajectory. That creates loyalty no competitor can touch.

“There are three ways to put the flywheel in motion. Start with education, not an ask. Host readiness workshops, send financial tips, and focus on guidance instead of immediate applications. Celebrate small wins. Recognize every credit score jump, debt payoff, and savings milestone, these moments make clients feel seen and turn their journey into social proof. Stay connected post-close. Offer ongoing mortgage check-ins, property tax guidance, and financial tips long after the loan funds.

“The payoff? Financially educated clients are more likely to close, far more likely to refer, and those referrals convert at a higher rate. When you give first, support consistently, and measure success beyond closings, you build a business that thrives in any market. Read the full article here.” Thank you, Brian! #VieauxPoint”

Capital markets: investors like mortgage-backed securities

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President Trump's nominee to replace departed Fed governor Kugler is Stephen Miran, described by the Wall Street Journal as "someone whose abiding policy conviction is to weaken the U.S. dollar." And turning the monetary spigot back on is certainly a fine way to do so.

Meanwhile, securities backed by Agency mortgages are doing well, pricewise. And why not? At this time there is little or no credit risk, prepayment speeds are steady (read: refinances), supply is low and steady, and mark-to-market valuations compared to Treasuries and IG corporates are good. And if the demand is there, the prices are helped, and mortgage rates are lower.

In terms of economic news, throughout the summer, investors have focused on concerns about government debt supply and the inflationary impact of new tariffs. However, weaker employment data has removed some of the calm and sparked a recent shift in economic sentiment. In fact, the most significant factor influencing the market's direction is the deteriorating labor market. Recent employment reports and revisions have shown a clear weakening trend, which has given the Federal Reserve more flexibility to prioritize its employment mandate. 10-year yields haven't broken through key resistance levels, and their continued elevated position suggests that these supply and inflation concerns have prevented a deeper rally. With today’s critical inflation report, the market is asking the question of whether upcoming data will reinforce the case for a cooling economy or reignite fears of stubborn inflation.

Solid productivity growth has also helped to offset some of the inflationary pressure from tariffs, as businesses can absorb higher costs without raising prices or wages. The latest consensus among investors on tariffs is that they are expected to cause some inflation, but this impact is unlikely to be as severe as many initially feared. The market seems to be in a "sell the rumor, buy the fact" phase, having already priced in much of the negative news. While evidence of price increases due to tariffs will likely emerge in the next inflation report, the core-PCE is not expected to return to its previous peaks. This is because firms are absorbing some of the costs, and consumers may push back on price hikes, potentially dampening demand.

Meanwhile, the Treasury market has comfortably absorbed new supply, and investor concerns about a lack of demand for U.S. debt have subsided, allowing the market to focus on more fundamental economic indicators. All of this points to a Fed that is likely to be more open to a rate cut, a prospect reinforced by political developments and a growing skepticism about the accuracy of official economic data.

The bond market has been in a holding pattern, waiting for today’s Consumer Price Index inflation report to provide clarity on whether the recent economic softness is enough to justify a more dovish policy stance. And we have received those figures: Headline July CPI (+.2 percent, as expected) and +2.7 percent year-over-year. (June’s report showed increases of 0.3 percent month-over-month and 2.7 percent previously.) Core CPI, ex-food and energy was +.3 percent as expected.

We’ve also received the NFIB small business optimism (in July U.S. small-business sentiment rose though owners were becoming increasingly uncertain about the economic outlook and many worried about the quality of labor available). Later today brings Redbook same store sales, the July budget deficit, some short duration Treasury auctions, and remarks from Richmond Fed President Barkin and Kansas City Fed President Schmid. Overnight the Royal Bank of Australia was out with its latest decision, where it cut rates by 25-basis points to 3.60 percent. After the latest inflation data Agency MBS prices are little changed from Monday’s close, the 2-year is yielding 3.73, and the 10-year is yielding 4.26 after closing yesterday at 4.27 percent.

A toddler was giving her daddy a tea party. She brought him a little cup of "tea" which was just water, of course.

After several cups of tea, her mom came home. Dad made her wait in the living room to watch his little Princess bring him a cup of tea, because it was, "Just the cutest thing!"

Mom waited, and sure enough, here she comes down the hall with a cup of tea for Daddy. She watches him drink it up and then says, "You know the only place she can reach water is the toilet!”

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, “The Tax and Spending Bill: The Impact on Borrowers.” The Commentary’s podcast is available on all major platforms, including Apple and Spotify.