10.13.25 Travel Logistics; Covered Insurance's Jerry Halbrook on Embedding; Eternal Data Void

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 preview some travel tips for MBA Annual in Las Vegas. Plus, Robbie sits down with Covered Insurance’s Jerry Halbrook for a discussion on how insurance is rapidly becoming central to the borrower experience, and the mortgage industry's shift toward embedded insurance. And we close by examining what data points are being released during the government shutdown.

Today’s podcast is brought to you by Floify, an industry-leading point of sale platform. With Floify’s new Dynamic AI feature, lenders can modify applications with no coding required and rely on AI to autofill key application fields, allowing borrowers to fill out only a few fields relevant to their needs. The result? Faster completions, fewer drop-offs and smoother approvals. Discover smarter lending at www.floify.com or visit Floify in person at MBA Annual.

Transcript

“Rob, do you think that people spend more time at conferences talking about what they do rather than actually doing it at work?” Perhaps. It's hard for me to answer a question from someone who really doesn't care about the answer, and besides, for many people going to many conferences is part of their job, right? There are a handful of important events to attend every year, and several state and local events that have merit. Roughly 3,000 are bound for Las Vegas this weekend to attend the MBA’s Annual Convention. (Most will be traveling through airports with… carpet. Some don’t like carpet in the terminal, but there’s a reason it’s there.) A portion of the discussion will be about Federal Reserve independence and rates in general. New York Fed President John Williams and San Francisco's Mary Daly have signaled support for more rate cuts to cushion a weakening labor market, saying inflation pressures from tariffs remain limited. Fed Governor Michael Barr, however, urged caution, citing persistent inflation risks and uncertainty amid a government data blackout. The divide sets up a contentious debate ahead of the Fed's Oct. 28-29 policy meeting. (Today’s podcast can be found here and this week’s are sponsored by Floify, an industry-leading point of sale platform. With Floify’s new Dynamic AI feature, lenders can modify applications with no coding required and rely on AI to autofill key application fields, allowing borrowers to fill out only a few fields relevant to their needs. Hear an interview with Covered Insurance’s Jerry Halbrook on how insurance is rapidly becoming central to the borrower experience, and the mortgage industry's shift toward embedded insurance.)

Employment and transitions

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loanDepot’s national momentum gains strength with the addition of Luke Welling as Branch Manager in the greater Puget Sound region. A top-producing originator with 20 years of experience and a relationship-first mindset, Welling has helped thousands of families achieve homeownership and built a strong network of real estate partners. Welling cited his excitement around loanDepot’s forward-thinking platform and technology designed for the next wave of mortgage lending, as well as the opportunity to work alongside a team he genuinely trusts and respects. With leaders like Welling, Justin Andrews, Miki Wikel, and Michael Colagrossi driving local market success, loanDepot has dramatically increased its presence in Washington state with 11 new branches and more than 45 new producers in just the last year. loanDepot is actively recruiting through individual hires, acquisitions of high-performance teams, and strategic partnerships with independent companies to build on its momentum. 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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“Approve loans faster, with confidence: Gateless Smart Underwrite®. Built for modern lending, our AI-driven platform transforms the underwriting process by reading and understanding borrower documents, verifying credit & assets against trusted sources, calculating income, and clearing conditions automatically. No more bottlenecks. No more stare and compare. No rekeying of data. Smart Underwrite helps deliver accurate, consistent decisions in hours, not weeks, so lenders can approve more loans, reduce risk, and give borrowers a smoother, faster path to “yes.” Scale your operation BEFORE you need to and future proof your business! This is underwriting without the wait. See it in action: Book your demo today.”

As the playoff race heats up, baseball reminds us that one small mistake can change everything. A bobbled grounder can flip a series; a missed overlay can derail a loan. Friday Harbor’s AI Originator Assistant applies lender and investor overlays right at the point of origination, so every file reflects credit policies and salability standards before it ever reaches underwriting. Configurations can be used to tighten policies or widen credit boxes (for example, by lowering minimum credit scores relative to GSE thresholds), and they’re all handled without asking lenders to code a thing. That’s postseason-level precision: underwriting-ready files, sharper credit control, and stronger secondary market execution. See it in action at MBA Annual in Vegas, booth #103, or visit fridayharbor.ai to learn more.

Why should mid-size lenders foot the “big-box bill”? Too many vendors trap lenders with long contracts and big upfront checks before proving their worth. That’s why Usherpa stands out. Usherpa doesn’t lock clients into multi-year commitments or require large payments up front. It earns business through performance, month after month. Mid-size lenders and credit unions don’t have the budget for big-box CRMs with steep fees and rigid contracts. Usherpa changes that. Built by mortgage pros with over 20 years in the industry, Usherpa’s platform is more powerful and more affordable, delivering enterprise-level tools without the enterprise price tag. In a market crowded with inflexible agreements and escalating costs, their flexible model is a breath of fresh air. Trust should be earned through results, not buried in fine print. Schedule a demo and see why lenders are choosing flexibility over fees.

“Have you seen MSP® lately? Discover how ICE Mortgage Technology continues to transform servicing operations with the latest advancements in MSP. Join us at the MBA Annual Convention & Expo in Las Vegas, Oct. 20–21, at the KYU restaurant inside the Fontainebleau Hotel and Resort. Explore how MSP puts intuitive navigation, intelligent automation, and real-time decisioning tools front and center with smarter workflows and a new sleek interface. Not attending MBA Annual? Schedule a demo today to see the next-level servicing power of MSP.”

High stakes demand higher standards As one of the industry’s leading subservicers, LoanCare® combines decades of experience with portfolio analytics that give clients a level of support that is raising standards across the industry. LoanCare doesn’t just give you more data, it equips you with intelligence and actionable insights you need to see risk before it materializes and opportunities before they are lost. Whether you’re a lender, bank, credit union, or investor, LoanCare acts as an extension of your team, delivering a servicing experience that feels like your own. Set up a meeting at this year’s MBA Annual to discover how LoanCare can strengthen your servicing operation as a nimble, reliable and fully committed partner.

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.

Interviews about fraud and credit trends

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Today at 10AM PT, Sasha and Jeremy Potter will be interviewing Ike Suri from FundingShield. Mortgage fraud is everywhere, and may be at an all-the-time, so the duo is going to talk to an expert to find out if that’s true. And what lenders should know about actual risks to closing and loan delivery: for a show focused on technology and innovation register here: Now Next Later Mondays at 1PM ET.

Tomorrow, Tuesday the 14th, MortgagePros411 at 2PM ET, Audrey and Kevin focus on originator’s topics, interviewing Partner’s Credit’s COO Tracey King regarding current developments in credit reporting, changes in pricing, and strategic moves by companies like Montana’s Fair Isaac.

Investor and lender changes never stop

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Pennymac 25-89 announced the launch of Pennymac’s highly anticipated non-QM program. This new suite of products is designed to empower correspondents to serve a broader range of creditworthy borrowers who may not meet the criteria of traditional agency guidelines.

Pennymac updated Jumbo ARMs Max Price effective for all Best-Efforts Commitments taken on or after Tuesday, September 23, 2025. View Pennymac Announcement 25-96.

Effective for all Best-Efforts Commitments taken on or after Monday, September 29, 2025, Pennymac will update non-QM LLPAs. View Pennymac Announcement 25-97 for additional information.

Fannie Mae’s October Selling Guide announcement provides improved consistency and expanded options. Key updates include allowing use of rental income from accessory dwelling units, standardizing documentation requirements for rental income reported from a business, and increasing the maximum cash back allowed for limited cash-out refinance transactions.

Pennymac Announcement 25-104 reminded clients that per Ginnie Mae requirements, eMortgage eligibility for government loans is limited to fixed-rate mortgages only. View the announcement for details.

In Pennymac Announcement 25-105, guidance for its Non-QM program is clarified, effective with new locks on and after October 10, 2025.

Citi Correspondent Lending is implementing a change to foreign income policy. Effective with new loan registrations on/after 10/6/2025, foreign income is no longer permitted to qualify a borrower for a mortgage transaction. This change applies to all Agency and Non-Agency transactions. Related updates to the Correspondent Manual will be included with its November bulletin’s publishing cycle. Note: Foreign income was already ineligible for the Citi Non-Agency Jumbo program. Citi will continue to evaluate this topic, and any changes will be communicated via the normal channels (announcement/bulletin).

PHH Mortgage has made several modifications to the Seller Guide to adhere to agency guidelines and incorporate advancements. If you have any questions, contact your Sales Executive/Correspondent Sales Representative or Correspondent Specialist.

PHH Mortgage is retiring the Non-Agency Gold, Silver and Bronze programs, effective Friday, October 17, 2025.

APB Wholesale Mortgage’s Fixed Second Alt-Doc Solutions offers flexible documentation options for your borrowers who want to tap into their home equity. Some program highlights include up to $750,000k loan amounts, up to 90% CLTV, down to 660 FICO, and allows Non-Warrantable Condos.

Capital markets: no U.S. bond market today to help set rates

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Why should anyone in residential lending care about “rare earths”? They aren’t actually rare. Many countries, including the US, have deposits. But China controls around 60 percent of rare earths mining, a process that comes with heavy environmental costs, and over 90 percent of processing, according to the International Energy Agency. So, play ball or else… lower your environmental standards.

It’s not just a problem for the US: Foreign companies that export products containing Chinese rare earths are caught in the crossfire. Germany said it’s working with the European Union to boost rare earths production in Europe.

Stocks sank on Friday, and sentiment (psychology) took a heavy beating after President Donald Trump accused China of "hostile" export controls on rare earths and said the U.S. would impose an additional 100% tariff on products from the Asian nation. Investors piled into safe haven assets like U.S. government bonds and gold, as well as shares of U.S.-based rare earths producers, sending their stocks surging… and so bond prices went up and yields down.

Amid a data void from the government shutdown, markets have turned their focus to Federal Reserve commentary and inflation expectations. Inflation concerns are growing as households anticipate rising prices not only from food and gas but also from tariffs, potentially keeping inflation above the Fed's 2 percent target.

Mortgage rates dipped for the first time in three weeks last week, though Treasury auctions showed weak demand, and Fed Minutes revealed a more hawkish outlook than expected during the September FOMC meeting. While consumer spending remains resilient, signs of strain are appearing through rising delinquencies and tighter lending, especially among lower-income households.

This week’s data calendar would be packed, were it not for the government shutdown, with updates on consumer prices, Fed surveys, producer prices, retail sales, business inventories, housing data, import prices and industrial production/capacity utilization. It was announced today that September CPI will be released but not until Friday, October 24. Treasury supply consists of just T-bills, but there is a heavy slate of Fed speakers, including Chair Powell speaking tomorrow. For MBS, Class B and C 48-hours are on Tuesday and Thursday, respectively, while bank earnings get underway on Tuesday, with Wells Fargo, Goldman Sachs, JP Morgan and Citigroup scheduled to report. Morgan Stanley and Bank of America are slated for Wednesday. Despite the bond market closure today, Philadelphia Fed President Paulson will deliver remarks.

Indeed, traders will be cautious after Wall Street experienced its worst selloff since the April tariff shock on Friday. Any further dialogue or back-and-forth between Trump and China will be closely watched, especially given there is no government economic news to be released. With the bond market closed, any lenders who are open will usually hedged today’s expected locks on Friday, or will price themselves out of the market today to suppress lock activity.

Columbus discovered the new world. Much like a meteorite discovered the dinosaurs.

How much oil did Christopher Columbus need to reach America? 3 Galleons.

How Do Native Americans celebrate Columbus Day? They walk into your house and say, "We live here now."

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, “No Lender Wants a Government Shutdown, but Just in Case…”. 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.)