10.17.25 CFPB and FEMA; Finance of America's Adam Potafiy on Reverse Mortgages; Brian Levy on RESPA

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 take a look at the latest news emanating from Washington DC as it pertains to the CFPB and FEMA federal agencies. Plus, Robbie sits down with Finance of America’s Adam Potafiy for a discussion about his session tomorrow at NAMB National with his colleagues Jonathan and Jessica about reverse mortgages and how they’re being reengineered for the next generation of clients. And there is also a bonus interview with attorney Brian Levy about RESPA

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

Under the category of careers that are, or will be, impacted, by artificial intelligence, attorneys are inevitably on it. Here’s a tale of a lawyer caught using AI while explaining to the Court why he used AI. In other legal mortgage news, California mandated forbearances for mortgage borrowers affected by wildfires. Meanwhile, is disaster assistance based on politics? Apparently California is not receiving any disaster assistance from the federal government from the fires nine months ago, and the city of Los Angeles joined a coalition of cities, counties, and local agencies in a lawsuit against the federal government over FEMA funding. Certainly the shutdown, recently begun, is impacting lenders, and in today’s Last Word at 1PM ET, Brian Vieaux, Courtney Thompson, and Christy Soukhamneut discuss how the government shutdown is impacting lenders and the broader housing market, rates hitting new year lows, and Chair Powell’s recent comments signaling a shift toward concerns over labor market weakness. (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 Finance of America’s Adam Potafiy on his session tomorrow at NAMB National with his colleagues Jonathan and Jessica about reverse mortgages and how they’re being reengineered for the next generation of clients.)

Employment & transitions

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Primis Mortgage continues to expand its top-tier talent with the addition of Ashleigh Fletcher, a seasoned Senior Loan Officer in the Austin, Texas market. With over 20 years of mortgage experience, Ashleigh has built a reputation for delivering expert guidance, exceptional client service, and tailored solutions for every homebuyer. Ashleigh has consistently ranked among the top originators in her market. Recognized by National Mortgage Professional Magazine as one of the best military lenders and originators, a multi-year Five Star Award winner for outstanding client service, and ranked in the top 1% of mortgage originators nationwide by Mortgage Executive Magazine, Ashleigh combines industry expertise with a client-focused approach. Boasting a near-perfect Google review rating, she is praised for her knowledge, professionalism, and efficiency. For top producers looking to take their careers to the next level, visit primismortgage.com/careers to learn more.

“We’re a nationally recognized, fast-growing mortgage lender built on integrity, teamwork, and unstoppable growth. As we expand our retail footprint, we’re looking for a dynamic, driven Recruiter to help us bring top-performing Loan Officers and Branch Managers on board. If you have a strong industry network, a proven track record, and a passion for connecting talent with opportunity, this is your moment. You’ll play a key role in shaping the future of our national growth. Join a winning team where your impact is big, and your career potential is even bigger. Please send resumes or notes of interest to Chrisman LLC’s Anjelica Nixt.”

“At Evergreen Home Loans™, culture isn’t something we say, it’s something we live. Associates don’t just work here, they belong here. We’re a family that celebrates wins together, provides support during challenges, and values people for who they are, not just the numbers they produce. Through the Evergreen Cares Foundation, our teams volunteer, fundraise, and give back to local communities in meaningful ways. Inside the company, we invest in personal growth, encourage innovation, and empower associates to pursue big ideas. Loan officers and branch managers find Evergreen to be a place where they can thrive both personally and professionally, surrounded by colleagues who truly care about their success. If you’re looking for a company where collaboration, support, and care are at the center of every day, you’ll feel right at home here. Let’s talk about your future at Evergreen. Visit discoverehl.com. Contact: Todd Miles, EVP of Production Growth.”

Revolution Mortgage has appointed 35-year vet Michele Jaconelli as Chief Operating Officer. Michele brings “extensive expertise in operations leadership, risk management, underwriting, compliance, sales collaboration, servicing, and secondary marketing, and is known for her ability to streamline processes and build scalable, compliant structures. Jaconelli will oversee daily operations across multiple departments, managing a team of more than 150 employees and driving initiatives that enhance efficiency, compliance, and the overall borrower experience.

Firstline Compliance has appointed Kelcey Davidson, CMCP, as the firm’s new Chief Compliance Officer. Congratulations! “Kelcey brings extensive experience leading compliance programs across multiple channels of the mortgage industry, including Retail, TPO/Wholesale, Broker, and Servicing. “Firstline has set the bar for excellence in mortgage compliance consulting, and I’m excited to join such a talented, values-driven team. Together, we’ll continue helping lenders navigate complex regulations with clarity and confidence.”

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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Artificial Intelligence has reshaped mortgage servicing with the power to predict borrower behavior, flag risks, and personalize engagement. But here’s the truth: AI alone can’t deliver outcomes. The insights produced often stall without a way to operationalize them. That’s where workflow comes in. In the blog, “AI + Workflow: The Formula for Results,” Clarifire explains how intelligent workflow turns AI insights into action. By embedding AI intelligence into automated processes, workflow delivers consistency, speed, and accuracy, which moves servicers from insights to results. Learn how combining AI’s intelligence with smart workflow execution creates a powerful framework for real results. The future isn’t just smarter - it’s faster, more efficient, and more profitable.

Alchemist Solutions, a leader in intelligent automation for mortgage lending, announced its integration with MortgageFlex LOS, LoanQuest, to streamline mortgage lending efficiency. AI-powered automation enhances speed, accuracy, and quality across the mortgage lifecycle. The integration with MortgageFlex’s (LOS) LoanQuest secure APIs to enable seamless data and document access between systems, driving faster, more accurate loan processing. “Integrating with MortgageFlex continues our mission to optimize the lending process through intelligent automation,” said Alok Datta, Founder and CEO of Alchemist Solutions. “By partnering with innovative LOS providers like MortgageFlex, we’re helping lenders move faster, reduce manual errors, and improve overall loan quality.” “This integration represents a meaningful step toward empowering our lenders with advanced automation and AI-driven insights,” said John McCrea, SVP MortgageFlex, “Together, MortgageFlex and Alchemist are helping financial institutions modernize their lending operations with our new cloud native LOS, LoanQuest. For more, visit MortgageFlex.

“Arc Home at NAMB and MBA Annual in Las Vegas! We are bringing something different to NAMB National on October 18-19 at Caesars Palace. Stop by our A’rc’ade for a full retro arcade experience and meet with our team of non-QM pros to talk scenarios, pricing, and the programs that help brokers win more business. Then, we shift over to the Fontainebleau for the MBA Annual, October 20-21, where Arc Home will host correspondent partners in our private suite. This is your opportunity to connect with us directly and explore how our Non-QM and Non-Agency programs can help you grow. Whether you focus on wholesale or correspondent, Arc Home will be on site in Las Vegas to meet you where you do business. For MBA meeting details, contact Elliott Grumer to schedule a time.”

SPOILER ALERT: Reverse mortgages aren't as scary as you've heard. At the end of the day, they're just home equity loans. Join Finance of America on October 29 for Real Talk: Reverse Mortgages Are the Future, a free live webinar where industry experts will clear up misconceptions and show you how these loans have become a viable option for today’s homeowners. With $13.95 trillion in senior home equity waiting to be tapped, other brokers are already making this part of their business… why not you? Register here to save your spot. For business and professional use only. Not for consumer distribution. Finance of America | NMLS #2285

Loan Officers: Your insights matter! The Today in Mortgages podcast is conducting a confidential industry survey to help you understand how your company compares to others in the mortgage space. When you participate, you’ll receive a free personalized report showing how you rank in compensation, support, technology, products, and culture. This survey is designed to help you see what’s working, and what’s not, so you can make more informed decisions about your career and future. Open to licensed U.S. Loan Officers. Survey closes November 15. Visit here to secure your free report!

Reggora officially launches its 24-hour appraisal solution, Streamlined Appraisal. A Streamlined Appraisal is a refined hybrid workflow built specifically to deliver high-quality appraisal reports in just 24 hours for the majority of conventional transactions, at NO EXTRA COST. Reggora's approach tackles the issue head-on by proactively decoupling the property inspection from the Intent to Proceed (ITP) stage. By collecting property data early, they ensure the appraiser has the necessary information the instant the appraisal is ordered. This process not only dramatically slashes turnaround times but also comes with a crucial financial advantage: there is no charge for the property data collection if the loan does not proceed to ITP, effectively offering lenders a low-risk mechanism to inject speed into their pipeline. For any lender looking to make the appraisal a genuine competitive advantage instead of a liability, the details are a must-read. Get the full details here.

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.

STRATMOR on AI and competition

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Independent mortgage bankers are facing a pivotal moment. In the lead article of STRATMOR’s latest Insights Report, “Raising the Stakes: Competing with Giants in the Age of AI and Consolidation,” Garth Graham and David Hrobon explore how technology and market consolidation are reshaping competition, and what IMBs can do to win. Should you stay independent, partner strategically, or consider M&A? The article breaks down the tradeoffs, opportunities, and leadership strategies needed to thrive in today’s high-stakes market. (And if you’re headed to MBA Annual next week, be sure to connect with Garth or David to continue the conversation. They’ll be on site talking strategy, AI, and how lenders can position themselves for strength.)

The CFPB: Normally, government departments just don’t go away

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Under the category of “The Minimalization of Congress,” White House budget director Russell Vought said that he wants to close the U.S. Consumer Financial Protection Bureau even though President Donald Trump's administration has argued in court that there is no such plan. This is despite the Trump administration's claims in court that the agency is just being downsized.

Meanwhile, WBK reports that the CFPB recently announced that it is restoring the confidentiality of supervisory designation proceedings by rescinding most of the April 2022, November 2022, and April 2024 amendments to its Procedures for Supervisory Designation Proceedings. The amendments being rescinded allowed, among other things, public release of the CFPB’s final determination on whether to designate an entity for supervision and had the CFPB’s Director make the determination on whether an entity should be designated without having a subordinate agency official first analyze the issue and make a recommendation.

Under the version of the rule which will be in effect going forward, information related to the proceedings will not be publicly disclosed and is considered confidential supervisory information. Lastly, Ballard Spahr reports that, “Saying that the federal government shutdown makes it impossible for them to work on the case, Justice Department attorneys are asking a federal appeals court to delay its response to a request for an en banc hearing in the lawsuit challenging mass firings at the CFPB.”

Capital markets: lack of economic news continues

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Tired of dealing with costly and frustrating TBA settlement issues? From mismatched trade amounts to incorrect coupons or settlement months, manual phone trading leaves too much room for error. Agile Trading Technologies solves these problems with its award-winning Electronic TBA Request for Quote (RFQ) Platform, purpose-built for lenders and their dealers. Agile automates the process to eliminate human error, reduce risk, and restore confidence in your TBA trading. “Since transitioning to Agile, we’ve improved trade accuracy and eliminated monthly and quarterly settlement errors,” said Luther Hubbard with Evergreen Home Loans. “The platform streamlines our TBA trading process, removing the inefficiencies and risks we used to face when trading over the phone.” Ready to end your settlement headaches? Schedule a meeting with Agile at the upcoming MBA Annual conference in Las Vegas to learn more.

Incenter Lender Services launched an exchange focused on loans eligible for credit under the Community Reinvestment Act. The firm said the platform will be a confidential and secure matchmaker for buyers and sellers. “The new national exchange, complimentary for banks, IMBs (independent mortgage banks) and credit unions to join, dramatically streamlines current trading and transfer processes and elevates the standard for best execution in CRA-qualified loan sales. Developed with e11tec and Watermark TPO, a division of Watermark Capital, Inc., the platform is the latest Incenter innovation to improve lenders’ and depositories’ financial performance by removing operational roadblocks and increasing revenue-generating opportunities.”

The longer the government shutdown lasts, the more impact it will likely have on overall economic output and GDP. When the government shutdown does end, there is only so much ground that can be made up, especially as many private sector businesses that rely on government spending begin to feel strain. Yesterday, the bond market finally showed a willingness to push below the 4.0 percent level on U.S. 10-year Treasuries, signaling the break of a key psychological support point and amplifying the risk-off sentiment among investors. Treasuries are also considered a safe haven when stocks begin to underperform, which could bring down rates. Meanwhile, banks are back in the spotlight, raising broader concerns about credit quality in the economy after notable charge-offs and stock drops tied to questionable lending.

Economic data yesterday revealed that the Philadelphia Fed survey fell to -12.8 in October from 23.2 in September, the NAHB Housing Market Index rose to 37 in October from 32 in September, the Treasury Budget for September showed a surplus of $198.0 billion compared to a surplus of $80.3 billion in the same period a year ago, and Freddie Mac reported mortgage rates on its Primary Mortgage Market Survey slipped for the second straight week, falling back toward YTD lows.

Today’s economic calendar should have consisted of import/export prices for September, housing starts/permits for September, and industrial production/capacity utilization for September; however, due to the government shutdown, none of these will be reported. Speaking of which, the bill to reopen the government failed for the tenth time in the Senate. Markets will also receive remarks from St. Louis Fed President Musalem, the last public remarks until after the FOMC’s monetary policy meeting over October 28-29. We begin Friday with Agency MBS prices unchanged from Thursday’s close, but gradually improving over the week, the 2-year yielding 3.43, and the 10-year yielding 3.98 after closing yesterday at 3.98 percent.

Halloween is approaching.

A girl ran up to me at the cemetery and said, "I need to pass through the cemetery but I'm scared to walk alone. Can you walk with me across?"

I replied, "Oh yeah of course. Don't worry, I used to be super scared of cemeteries when I was alive too."

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.)