9.22.25 CFPB and Rates; Ardley's Nathan Den Herder on Recapture; Week Ahead

The Chrisman Commentary Daily Mortgage News Podcast delivers timely insights for mortgage lenders, loan officers, capital markets professionals, and anyone curious about the mortgage and housing industry. Hosted by industry expert Robbie Chrisman, each weekday episode breaks down mortgage rates, lending news, housing market trends, capital markets activity, and regulatory updates with insightful analysis, expert perspectives, and conversations with top professionals from across the mortgage industry. Stay informed, gain actionable insights, and keep up with developments in mortgage banking and housing finance. Learn more at www.chrismancommentary.com.

In today’s episode, we go through the latest from the CFPB. Plus, Robbie sits down with Ardley’s Nathan Den Herder for a discussion on issues impacting servicers, avoiding frustrated borrowers, and proper recapture strategies in the modern age. And we close by looking at what to expect now that the Fed has begun loosening monetary policy.

This week’s podcasts are sponsored by BeSmartee, the most innovative mortgage technology platform for banks, credit unions, and non-bank mortgage lenders. 

Transcript

“My Colorblind friend just moved to Denver. He says it’s the capital of Ado.” Here in Denver at the ACUMA Conference, with roughly 650 registrants, a big topic is the regulatory landscape. (Speaking of events, we’re about a month away from the MBA’s Annual Conference, this year in Las Vegas, and those attending, setting up meeting spaces, or planning meals out have been confronted with portions of The Strip being closed due to an F1 race in November.) I recently received this note from the head of production of a mid-sized IMB on the East Coast. “Rob, has the CFPB gone away entirely? I am hearing rumors of point banks coming back for LOs; are you hearing anything?” First off, I have not heard of any legal changes being made to LO compensation structures. All the rules are still in place… It’s a matter of who is going to pursue infractions. No, the CFPB has not gone away, although at the end of September 1,500 or so furloughed employees may be fully “RIFFed.” In fact, a few weeks ago the CFPB issued its ambitious regulatory agenda (don’t let the “spring” in the title fool you, it goes from June through May of 2026) and it will give you an idea about its goals. Do we need a CFPB? Yes. Do we need one like we’ve had during certain administrations? No. (Today's podcast can be found here and this week’s podcasts are sponsored by BeSmartee, the most innovative mortgage technology platform for banks, credit unions, and non-bank mortgage lenders. Hear an interview with Ardley’s Nathan Den Herder on issues impacting servicers, avoiding frustrated borrowers, and proper recapture strategies in the modern age.)

Employment

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loanDepot Accelerates Growth in the Tri-State Area with Industry Icon Michael Borodinsky! loanDepot continues to build momentum with the strategic addition of Michael Borodinsky as Branch Manager, expanding its footprint across the Tri-State region of New Jersey, New York, and Connecticut. With more than 40 years of mortgage lending experience, over $5 billion funded, and 15,000+ homeowners served, Michael is a nationally recognized top 1 percent originator and a trusted leader in new home and condo financing. His deep expertise in the builder space and long-standing industry relationships will be instrumental in driving regional growth. Borodinsky’s consistent top-tier production and passion for community impact make him another standout addition to loanDepot’s leadership team. As the company continues to scale, it remains focused on recruiting top talent and forming strategic partnerships. Sales leaders interested in exploring opportunities are encouraged to contact Shane Stanton.

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.

Services, products, software, and tools for lenders and brokers

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Lenders who joined the recent webinar with ICE Mortgage Technology and LenderLogix came away with a new perspective on what Encompass® automation can do. The session highlighted how Encompass® workflows extend into the POS to automate fee collection, verifications, and credit ordering, creating consistency for borrowers while tightening operational control for lenders. For those who couldn’t attend live, the full 30-minute discussion is available on demand. Watch the full recording here.

Physicist Gunther Kletetschka recently proposed a radical idea: time has three dimensions and space may just be a byproduct. This testable theory could reshape our understanding of reality, quantum physics, and gravity. (Wow!) While the framework of the universe is up for debate, it reminds us that knowledge is never static. Perspectives evolve, and so must we. Dark Matter Technologies’ “The Spotlight” podcast is your telescope into the mortgage industry’s shifting universe. Hosted by industry insider Wes Horbatuck, The Spotlight features in-depth conversations with today’s most influential voices, from technology innovators to compliance leaders, illuminating the forces shaping lending’s future. The Spotlight isn’t surface-level chatter; it connects the dots between policy, technology, and market realities, helping mortgage professionals see beyond the horizon. Reality may be changing faster than we thought: Make sure you’re keeping pace. Tune into The Spotlight. 

Imagine a proactive refi campaign that keeps borrowers engaged long before the boom hits. Loan Officer Autopilot delivers personalized, to-the-penny scenarios that say “not yet” with confidence, build trust as rates shift, and send a clear “now” the moment refinancing makes sense. Always consistent, always authentic, all at scale, with zero LO effort. Stay the borrower’s first and only choice when it’s time to refi. See it in action.

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.

Correspondent & broker products

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Figure made IPO headlines and proved what the market already knows: speed and simplicity win! Figure is the nation’s largest non-bank HELOC provider. With a network of over 170+ lending partners, and 75,000+ loan officers and brokers, Figure has unlocked over $17B in equity across 200,000+ households. Through our fully digital platform, partners can offer a white-labeled HELOC product that approves applicants in just 5 minutes and funds in as few as 5 days. The loan is 100 percent drawn at origination, eliminating capital drag. And Figure isn’t just a HELOC product solution. It’s a full-stack plug and play ecosystem. Figure’s platform was built to modernize and streamline lending from origination to securitization. Lenders can launch tech-forward products with minimal lift and gain automation, compliance, liquidity, and strong execution, all built in. Figure isn’t just a platform. It’s a growth strategy. To explore what Figure can do for you, please reach out to partners@figure.com.

OCMBC, Inc. today announced the launch of GIANT Lending, retiring its former DBA, Jet Advantage Mortgage. The new brand reflects OCMBC’s bold commitment to empowering mortgage brokers with the strength, resources, and support they need to succeed. “With GIANT Lending, we’re sending a clear message: we are here to stand tall with brokers,” said Michael Turturro, President and Founder of GIANT Lending. “Our name now matches the size of our commitment: to deliver the tools, products, and guidance brokers need to thrive in any market.” Rabi Aziz, CEO of OCMBC, Inc., added: “This launch represents a bold new chapter for our company. We’re investing in innovation, service, and long-term partnerships to give brokers a GIANT advantage in every market cycle. When brokers succeed, we all succeed.” With a proven track record of strong loan volume, diverse product offerings, and resilient service, GIANT Lending is built on a foundation brokers already trust, now elevated with expanded programs, faster service, and an even stronger commitment to partnership.

As your trusted Correspondent partner, AmeriHome makes your transition to Non-Agency lending easy. With enhanced and flexible guidelines for our AUS Express Jumbo, Expanded and DSCR products, AmeriHome continues to deliver products that you need. For some Agency value add content, register now for AmeriHome’s upcoming webinar with Freddie Mac - Discover the Freddie Mac Income Calculator! Join AmeriHome’s Chief Production Officer Steve Kolker as he hosts a conversation and demo with Freddie Mac Product Owners, Perry Gordon and Ethan Northey. There will be a live Q&A for your most pressing questions! If you’re looking to connect with AmeriHome in person, catch them in October for NAMB National and the MBA Annual Convention & Expo! Connect with an AmeriHome sales representative to schedule a meeting, check here for a more detailed breakdown of where AmeriHome will be throughout 2025, and follow AmeriHome Correspondent on LinkedIn to stay connected!

Looking for more non-QM options?! LoanStream (DBA of OCMBC, Inc.) offers a sweet Bank Statement 12 month and P&L program where you can utilize 100 percent of deposits on Personal Statements and use up to 85 percent of deposits on Business Statements. Up to 90 percent LTV on Purchase to $1.5 million, 85 percent LTV Rate/Term and up to 80 percent LTV on Cash Out with Min FICO of 600. Couple this with Asset Utilization for extra income. They even accept transfers from Business to Personal. Clients can qualify using a fixed expense factor, third party prepared P&L, and a third party prepared expense statement. Plus, loan amounts available up to $4 million! This is a great program to help you qualify more clients and grow your pipeline at the same time. Talk with your Account Executive for more details.

Rates help affordability? Not so fast… think about it.

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Yes, the Federal Open Market Committee cut its overnight fed funds rate last week, and banks reduced their prime rates. Refi applications, per the MBA, jumped 58 percent in one week to 2020 levels… remember those? But while lenders and vendors are cheering the new business coming in the door, don’t look for an improvement in affordability. Robbie and I remind audiences that if mortgage rates go to 1 percent, all that does is drive up starter home prices because borrowing is cheap.

Lenders know that U.S. mortgage rates have declined in recent months. Meanwhile, combined refinance and purchase demand is up to levels not seen since early 2022. U.S. mortgage rates recently posted their biggest weekly drop in 12 months, and plenty of rate sheets have 30-year rates in the low 6 percent area. Mortgage rates have come down enough to spur demand but not restore supply. Remember that many borrowers still have rates below 6 percent, although a good percentage have refinanced in order to pay down credit card debt. The effective interest rate on mortgages outstanding is still about 4 percent, which is great for them but not for those who want to buy those homes.

The “locked in” effect has been well publicized: borrowers can’t afford to move because of the sweet rates they have on their current homes. Without move up buyers, our system becomes shaky. New, builder-built homes are now selling for less than existing homes by about $33,000, and if your client currently owns a home with a 3 percent mortgage and wants to move to a new home, their rate will more than double. So, a record 1 out of 3 homes for sale is now a new home versus 1 out of 20 homes for sale were a new home after 2008. Just 4 years ago, only about 16 percent of homes for sale were new construction. For many buyers, new homes are their only option.

Rate cuts alone will not bring relief to the housing market. For home prices to come down, supply must rise. But builders have lagged demand for several years. Either significantly lower rates (4 percent perhaps?) or an external "shock" are needed. But no one wants an economy that pushes mortgage rates down to 4 percent. With inflation back on the rise, Fed rate cuts will probably be limited in scope. The result is moderately lower rates that will spur more demand but not more supply. This sets up even higher home prices ahead since sellers aren’t budging and builders aren’t building.

The owners who are in place have low LTVs and great credit, so any kind of external shock won’t include delinquencies or foreclosures. In fact, the delinquency rate on single-family homes is near record lows, 1/6 of what it was in 2008. Unless unemployment rises well above 6 percent, Americans are unlikely to foreclose on their homes. So, there we have it: high demand should continue, supply won’t increase dramatically, and many think even higher prices are ahead.

Capital markets: the focus is truly on slowing labor

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Security prices are a function of supply and demand. It turns out that the fears of other countries avoiding buying U.S. were overblown, which helps our rates. Foreign holdings of US Treasuries rose +$32 billion in July, to a record $9.16 trillion. Foreign demand for Treasuries remains robust aside from China. China’s holdings fell -$26 billion, to $731 billion, the lowest since December 2008. But Japan, the largest holder, added +$4 billion, lifting its total to $1.15 trillion, the highest since March 2024. The UK boosted its holdings by +$41 billion, to a record $899 billion, and the Euro Area purchased +$44 billion, bringing total holdings to $1.91 trillion, an all-time high.

In terms of the bond market, last week’s economic data continued to support the narrative of pockets of positive activity offsetting weakening sectors. Retail sales rose more than expected, partly due to tariff-driven price increases, but showed only modest growth after adjusting for inflation. Auto sales were strong, helping to support industrial production, and domestic auto manufacturing expanded for the ninth consecutive month. However overall manufacturing remained subdued due to high interest rates and elevated input costs. Similarly, single-family and multifamily housing starts fell 8.5 percent in August on weak demand and increasing competition from resale supply. Permits fell 3.7 percent in August, suggesting that construction is likely to remain low in the coming months.

All of this has put pressure on the labor market. While layoffs remain low, many businesses are not expanding payrolls. As a result, the Federal Open Market Committee moved to ease monetary policy last week in an effort to provide support to the labor market, despite inflation still above the preferred target. Should labor market conditions continue to weaken, the Fed is expected to continue easing monetary policy through the end of the year.

This week’s calendar includes month-end supply (consisting of $183 billion in 2-, 5-, and 7-year notes and $28 billion reopened 2-year FRNs to be auctioned over Tuesday to Thursday), Fed surveys, the current account deficit, housing data, and durable goods orders, before Friday’s PCE and Michigan sentiment. There is also a heavy calendar of Fed speakers, including Chair Powell. For MBS, Class D 48-hour notification is tomorrow. The Chicago Fed National Activity Index for August led off today’s calendar. There are no other data points on the calendar, but there are currently five Fed speakers scheduled to deliver remarks over the remainder of today. We begin the week with Agency MBS prices roughly unchanged from Friday’s close, the 2-year yielding 3.57, and the 10-year yielding 4.13 after closing Friday at 4.14 percent.

I talked to my schoolteacher friend the other day. She’s a schoolteacher in Los Angeles.

On the first day of school a few weeks ago, she asked all of her first graders how many of them were Los Angeles Chargers fans.

Of course, all of her kids raised their hands, except this one girl.

She looked at the girl curiously and asked, “Why aren’t you a Chargers fan?”

The little girl said that her dad is a Denver Broncos fan, and her mom is a Denver Broncos fan, so she just naturally became a Broncos fan.

So, my schoolteacher friend told the girl that she doesn’t have to follow in her parents’ footsteps. With that, she asked the girl, “If your dad was a drug dealer, and your mom was a bartender, what would that make you?”

The girl scratched her head and then came up with her answer: “A Las Vegas Raiders fan.”

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, “Servicing: What’s All the Fuss About?” 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.)