11.11.25 50-Year Mortgage; Optimal Blue's Vimi Vasudeva on Recapture; Veterans Day

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 the pros and cons of the 50-year mortgage. Plus, Robbie sits down with Optimal Blue’s Vimi Vasudeva for a discussion on recapture strategy, why borrower retention is more critical than ever, and how lenders can model and price for recapture success. And we close by looking at what the prepayment report says about borrower incentive to refinance.

This week's podcasts are sponsored by TransUnion. Mortgage lenders choose TransUnion for their identity-focused, data-driven mortgage insights and solutions, enabling them to achieve more desirable lending outcomes in a volatile housing market.

Transcript

As the central states brace for a cold snap, I received a note from a mortgage broker in Florida. “Rob, don’t politicians understand that housing ‘affordability’ problems aren’t only the result of rates and prices that are set by the markets? Owners are hit by taxes and insurance increases. What about condo fees and special assessments? What about city and county fees? Loan level price adjustments are determined by historical performance. Extending the maturity of a mortgage isn’t going to help someone who can’t find insurance for their home or just received a $40,000 assessment for replacing rebar.” I don’t know if the politicians understand that or not. But it will certainly be a discussion today at 3PM ET, 8AM HT, on Capital Markets Wrap presented by Polly. (Today’s podcast can be found here and this week’s are sponsored by TransUnion. Mortgage lenders choose TransUnion for their identity-focused, data-driven mortgage insights and solutions, enabling them to achieve more desirable lending outcomes in a volatile housing market. Hear an interview with Optimal Blue’s Vimi Vasudeva on recapture strategy, why borrower retention is more critical than ever, and how lenders can model and price for recapture success.)

LO & branch managers wanted

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“Culture you can count on this year and the next 60! Mergers and rebrands can erase the support you were promised. Delmar Mortgage has stayed independent for six decades, with no buyouts and no surprise acquisitions. Your operations, leadership access, and marketing support aren’t going anywhere, they exist to support you. We’ve been proving it for 60 years. Let us prove it to you today.”

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

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Why wait until delinquency happens when you can get ahead of it? Clarifire’s latest blog, “Early Delinquency Automation with CLARIFIRE®,” explores how servicers are leveraging intelligent automation to identify and resolve delinquency risk before it escalates. Discover how CLARIFIRE® combines dynamic borrower surveys, real-time solicitations, and self-service engagement to identify risk early, automate outreach, and accelerate resolution. Servicers are replacing manual processes with proactive, data-driven workflows that reduce costs while strengthening borrower communication and risk oversight. This isn’t just automation. It’s the smarter, faster, and more consistent way to manage early delinquency. Don’t wait for missed payments. See how proactive automation is redefining what “early intervention” truly means.

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Credit unions looking to strengthen realtor relationships and compete more effectively in today’s purchase market will want to catch this upcoming webinar, “Why Realtors Win with Credit Union Loan Officers.” Telhio Credit Union Loan Officer Allie Hager and Realtor Kelly Hamilton of Realty Forward will join LenderLogix CEO Patrick O’Brien to share how credit unions are out-competing other lenders through better technology, collaboration, and after-hours accessibility. The live session takes place Tuesday, November 18 at 1 PM ET - Register here!

Big ideas are brewing in the Big Apple. LoanCare® is in New York City for the IMN MSR Forum, where industry leaders are shaping the future of mortgage servicing. With decades of experience and a commitment to innovation, LoanCare delivers portfolio analytics and actionable insights that help clients anticipate risk and seize opportunity. They don’t just manage data, they transform it into intelligence that empowers lenders, banks, credit unions, and investors to operate with confidence. LoanCare’s Chief Revenue Officer, David Vida, joins the conversation as a featured panelist, sharing perspectives that drive smarter servicing strategies. LoanCare acts as an extension of your team, delivering a servicing experience that feels like your own. Connect with the team at IMN and discover what partnership looks like when reliability meets results.

In honor of Veterans Day and Military Family Appreciation Month, lenders have an opportunity to give back by helping more service members achieve homeownership. VA loans already offer powerful benefits (no down payment required, no private mortgage insurance and flexible credit standards) but many veterans still face upfront costs that keep them from qualifying. That’s where down payment assistance (DPA) comes in. According to Down Payment Resource’s Q3 2025 Homeownership Program Index, there are 2,624 assistance programs nationwide, including 49 specifically for military veterans, a 9 percent increase from last quarter. With an average benefit of $18,000, DPA can lower a borrower’s LTV by about 6 percent. These programs can help with closing costs, rate buydowns or provide reserves for new homeowners. By understanding and offering DPA alongside VA loans, lenders can qualify more active-duty military and veterans while strengthening their communities. Read the DPR blog for more.

There’s fast, and then there’s 15-days-to-fund fast. Everwise Credit Union recently cut its home equity turnaround time from 40–45 days to just 15 after expanding its use of the FirstClose platform. For borrowers, that’s the difference between “maybe next month” and “funded before Thanksgiving.” And speaking of fast, “The Fast and the Furious” turns 24 this fall, with one last installment rumored to be in production. Like that crew that keeps finding new gears, Everwise proved that with the right partner and the right tech, you can always shave a few more seconds off the clock. Because in lending, as Dom Toretto might say, it’s not about living life a quarter mile at a time but rather closing loans before the turkey’s carved. Read the full story and see how FirstClose helped Everwise accelerate its home equity business.

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.

Wholesale and correspondent loan products

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Want to help your borrowers save 50 percent on bridge loan origination fees? Now through Dec. 31, leading wholesale lender Flyhomes is offering a 1 percent origination fee (down from 2 percent) on Buy Before You Sell with Instant Equity 1st lien loans. Whether your borrowers want to unlock home equity early or eliminate monthly payments on their departing home, Instant Equity can help them move into their next home before selling the old one. And because the fees are based on the loan amount, not the home value, borrowers can save up to 80 percent compared to other options. Over the past 10 years, Flyhomes has helped 5,000+ buyers move into their next home. On average, LOs close 1.2 more loans per month with Buy Before You Sell, now available nationwide. Book a call today to learn more or sign up for the weekly open house for a live walkthrough and Q&A.

“We are eLEND: Same team, stronger focus! Since our rebrand from AFR to eLEND, we’ve been focused on one thing: delivering more consistent, competitive, and innovative solutions for our third party originators. While our brand name has changed, the team you trust remains the same. Committed to supporting your business and helping your borrowers succeed. eLEND is built to serve the sweet spots that matter most to you. From Conventional, FHA, VA, and USDA programs to our expertise in Manufactured Housing, we provide simple, straightforward solutions that help more borrowers qualify. Our pricing, especially on Conventional loans up to $350K, non-owner occupied and second home properties, is designed to strengthen your business with consistency you can count on. With improved technology, expanded programs, and the same service-first approach, eLEND is ready to help you close more loans, faster, and smarter. Visit elendtpo.com, call 1-800-375-6071, or email sales@elend.com (NMLS 2826)”

As the nation honors its Veterans, a new initiative aims to help Veteran and active-duty home buyers overcome what is often their biggest barrier to ownership: closing costs. NewDay USA announced it is addressing the cost-to-close challenge with the first of its kind NewDay Advantage personal loan. The product launch is part of the NewDay Home initiative, which reportedly connects VA-experienced real estate agents with VA home shoppers.

50- or 100- year mortgages: much ado about nothing

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But yet the Trump Administration is working on a 50 year mortgage in an attempt to boost affordability. FHFA Chairman Bill Pulte confirmed the news on X: “Thanks to President Trump, we are indeed working on the 50-year Mortgage, a complete game changer.” Trump, however, in an interview said that it isn’t that big of a deal.

Hyperbole aside, everyone in residential lending knows that extending the amortization will help with affordability but when you defer amortization owners won’t grow wealth (save) as fast. To be blunt, some point out that the borrower will never own the home.

Even if the interest rate were the same, which it won’t be (more below), the payment at current rates is roughly about $300 per month less, call it 10 percent. But most 30-year mortgages never last 30 years; statistics and MBS traders use a typical life of 7-10 years, and a 50-year amortization isn’t going to change borrowers moving, paying it off early, or refinancing to pay off other debt.

As industry vet Brent Nyitray points out, “Borrowers are exchanging lower monthly payments for lower equity when they sell the property. In a market with decent home price appreciation, this isn't an issue. In a market with flat housing prices, borrowers will have to hope for enough home price appreciation to cover closing costs if they have to move. FWIW, this was the case in the early 80s, when mortgage rates were in the teens. The first few years of the mortgage went almost entirely to interest.”

Andrew Stringer with PrimeLending reminds us that, just like the difference between a 15-year and a 30-year mortgage rate, the difference between a 30-year and a 50-year will be noticeable. “Consider the rate difference between a 15-year and a 30-year mortgage (15-year pricing is better). Now, presume the difference between a 30-year and a 50-year. A 50-year mortgage would almost certainly carry a higher rate.

“This assumption rests on a few principles. First, the lower the term of a mortgage, the faster an investor can recoup capital, which is the big reason why 15-yr. mortgages are priced better than 30-yr. maturities: more appealing to investors. Second, the longer the mortgage, the higher the risk of delinquency and life event related factors. This would have to be priced in. A longer mortgage amortization has more time to be impacted by inflation: The time value of money goes down. Lastly, there is no secondary market for 50-yr. today and it would likely take a long time to create enough liquidity to make an efficient market.

“At first glance, longer terms seem attractive because payments are stretched. However, once you factor in the investor’s perspective, the rate would likely offset any borrower benefit.

LOs: Beating AI isn’t difficult

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Yesterday I received an “MLO VieauxPoint” from Ethan Vieaux, Vice President, Customer Success at FinLocker discussing how originators can move ahead of Zillow in the “Chat Era.”

“Zillow appearing inside ChatGPT changes where discovery begins. It does not mean agents and lenders should lean on Zillow. It means more buyers will describe what they want in a general assistant first, then see results that may flow through a portal. Your advantage comes from meeting consumers before that first portal touch and making your expertise the easiest next step.”

“LOs should know what shifts and what to do. Conversation is the new search box. Publish short, plain-English answers on your site and socials that match how people ask. Keep it specific and local. Clear content is easier for assistants to surface and paraphrase. Own the next step. If the first touch is in chat, the second should be your channel. Make one path obvious everywhere: book a call, message now, or get organized for pre-approval. Use short forms, instant scheduling, and fast replies.

“Make listings and pages assistant-friendly. Write remarks and key pages as if they will be summarized out loud. Use clean descriptions, verified features, brief neighborhood notes, and media that answer the top buyer questions. Add a concise line on schools, commute, and monthly cost where rules allow. Add one intake question. Ask, “Where did you start your search?” Tag “Assistant” in your CRM, then review the data in 30 days to tune spend and effort.

Win on local expertise. Assistants compress information. They cannot replace on-the-ground insight. Publish micro-guides only a local expert can write, such as utility norms, boundary quirks, or pocket parks.

“Keep financing talk compliant. Treat assistant conversations as discovery. Move rates and programs into your approved process. Keep explainers current and aligned with policy.

“Borrower readiness belongs to you. Give shoppers a simple next step that lives in your world. A borrower-readiness app lets them monitor credit, track savings, and see where they stand before they apply. If you already use one, make it the default action in follow-ups. (Examples if relevant: KeySteps for individual LOs, FinLocker in an enterprise setting.)” Read the full column here. #VieauxPoint

Capital markets: an end to the lack of government news approaches

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U.S. Treasuries began the week dropping in price (and rising in rate) amid optimism that the government shutdown will soon end with the Senate’s vote. The 30-year yield briefly retested last week’s highs before easing back to flat levels, supported by a solid $58 billion 3-year note auction. Yesterday’s $58 billion 3-year note auction launched the quarterly refunding with supportive valuations and a constructive macro backdrop, as yields sit near the upper end of their recent range and the Fed maintains a cautious easing bias.

With markets closed for Veterans Day, focus now shifts to midweek supply, including a $42 billion 10-year note sale on Wednesday and a $25 billion 30-year bond auction on Thursday. Despite all the talk of an imminent end to the government shutdown, the October Consumer Price Index (CPI) will not be published, a first in the price index’s history, according to a White House social media post. Other critical economic releases scheduled for this week, including the Producer Price Index and Retail Trade reports, also are unlikely to be published as most employees of the statistical agencies were furloughed in October.

The bond market is closed today due to the Veterans Day holiday, but the calendar is not totally empty as the NFIB released its small business optimism index for October (98.2, as expected) and Governor Barr will deliver remarks.

Okay… in honor of Veteran’s Day, those ad execs have really done it again with this short video.

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, “Rates Drop, Pipelines Pop: Don’t Let Fulfillment Flop.” 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.)