1.7.26 LO Mindset; Aliya's S.P Wijegoonaratna on Risk Structures; Government Malaise

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 at the total addressable market for originations. Plus, Robbie sits down with Aliya's S.P Wijegoonaratna for a discussion on properly structuring risk profiles of borrowers and the future of financial services embedded lending. And we close by reviewing why trust in government reports as tradable events has fallen recently.

Transcript

Here in Northern Nevada there are some clever people, and I heard, “The one secret habit of successful people is that they don’t waste time doing internet searches in blogs for secret habits of successful people.” What are the attributes of a successful loan officer? In my years of listening to LOs compare notes, many mention “mindset” since the job sometimes can be a grind. LOs fully explore possible niches, manage their database, strive toward leadership, and are willing to understand lending regulations and comply. Regarding that last one, tomorrow’s The Big Picture (January 8) at 3PM ET features MQMR’s Scott Weintraub to break down the regulatory outlook under a new administration, including potential CFPB changes, enforcement priorities, and areas of lingering uncertainty for lenders. They also discuss the growing role of state regulators, where enforcement risk may surface in 2026, and what lenders should be doing now around QC, compliance, and risk management. For example, anyone doing business out in California is watching AB 801 which sets up CRA requirements in that state. Really? (Today’s podcast can be found here. This week’s are sponsored by Polly. Polly operates the industry's only vertically integrated capital markets platform, purpose-built to maximize profitability through precision cost reduction, margin expansion, and real-time, loan-level attribution and profitability analysis. Today’s has an interview with Aliya's S.P Wijegoonaratna on properly structuring risk profiles of borrowers and the future of financial services embedded lending.)

Employment, promotions, and a semi-retirement

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Altisource is seeking a visionary leader to serve as Senior Vice President, Origination Segment, and President of Lenders One. This dual role sits at the center of strategy, growth, and operational excellence, energizing a Cooperative of lenders located nationwide. Managed by Altisource, Lenders One equips its members with solutions to help improve their competitiveness through credit, verifications, homeowners’ insurance, fulfillment, title, valuation, peer networking, and exclusive events. You’ll oversee and drive the growth of Altisource’s origination solutions including Lenders One, championing a modern, member‑first experience by accelerating innovation, strengthening relationships, and turning community insights into results that redefine mortgage origination. If you have a proven track record in originations, a history of growing businesses and thrive on mentorship and meaningful industry and community impact, this is your chance to lead and scale a business and member network that’s reshaping the industry. Bring your track record. Inspire our membership. Shape the future of lending. Interested or know someone who’s perfect? Contact Ed Moran.

“Are you an Account Executive navigating the challenges of mergers and acquisitions but seeking a stable and fulfilling career? FLCBank invites you to leverage your skills and client base in a supportive environment at our privately owned, nationwide boutique bank, where mortgage production is exclusively through mortgage brokers and non-delegated correspondents. We are looking to expand our experienced sales team, led by industry veterans Bob Eisendrath and Andrea Lefebvre, who have been with FLCBank for 16 to 18 years. Our offerings include agency and government loans, as well as specialized products such as bridge loans and competitive jumbo loans. Plus, you'll have the opportunity to sell our warehouse lines to non-delegated correspondents. If you're tired of being shuffled around and want to make a lasting impact, reach out to Bob Eisendrath, Strategic National Account Manager, at 414-350-3986. Join us at FLCBank and become part of our legacy. FLCBank is an Equal Opportunity/Affirmative Action Employer.”

Kind Lending announced a leadership transition that “honors one of the most influential figures in the company's history. After more than six years with Kind Lending, dating back to its founding, Yvonne Ketchum will transition from President into a part-time role as President Emeritus/Executive Advisor as she begins semi-retirement. Chief Operating Officer, Jenn Folk will guide the company forward as President, bringing steady leadership, operational clarity, and a people-first approach as Kind enters its next phase of growth. 

Gershman Mortgage, a leading independent mortgage lender, promoted four employees to officer roles in recognition of their leadership, performance and commitment to customer service: Ben Helmerich and Amber Moser have been named Vice Presidents, and Courtney Jett and Matt Ortinau have been promoted to Assistant Vice President roles. Congratulations to all!

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.

Asurity Forum

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Registration is now open for The 2026 Forum by Asurity®, presented in collaboration with premier sponsor RiskExec®, and taking place April 20–22 at The Roosevelt New Orleans. The 2026 Forum brings together leaders in Fair and Responsible Banking, CRA, compliance, and financial crimes for two days of practical, real-world insight. Hosted at The Roosevelt New Orleans, a Waldorf Astoria Hotel, the conference features dynamic panels of regulators, legal experts, and practitioners, along with hands-on sessions covering CRA modernization, fair lending, AI governance, and emerging supervisory priorities. Attendees can earn CRCM and CERP continuing education credits, with CLE credit anticipated pending state approvals. Designed for banks, credit unions, mortgage lenders, and their advisors, the Forum emphasizes candid peer discussion, actionable problem-solving methods, and meaningful professional connections. Capacity is limited. Reserve your place 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.

Non-Agency, non-QM, HELOC investor updates

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The best loan officers understand that choosing the right home equity product could save borrowers thousands, which is critical to fully understand and explain key HELOC features. With Symmetry, principal payback is allowed within about 10 days of funding, potentially saving borrowers thousands in interest, whereas other HELOC providers restrict how soon principal can be repaid. This could result in months of interest charges. The draw period is a two-way feature that allows borrowers to access their equity while allowing aggressive paybacks, knowing they can re-draw funds if needed. Symmetry offers draw periods of five or ten years. Prepayment penalties are a major differentiator. Symmetry has none, while other HELOC providers may charge borrowers significant fees if they close or pay off their line early. Finally, Symmetry does not impose commission claw backs for early payoffs, allowing loan officers to keep their income. Contact Symmetry today to discuss scenarios!

“As the New Year begins, eRESI thanks our valued sellers, partners, and peers for their part in our growth. In 2025, we surpassed our prior-year purchase loan volume, expanded our non-QM seller network by 40 percent, and grew our team by 35 percent to better support our partners nationwide. And we’re hitting the ground running in 2026! Register today for our upcoming webinar, Credit Updates and Trends for 2026, on January 21st. We’ll cover key non-QM credit trends and considerations in the months to come, as well as recent eRESI product enhancements. We’re on the move! Catch Lisa Schreiber at IMN’s RTL & DSCR conference, January 15-16, on the Originator Discussion and Women’s Leadership Discussion panels. Want to grow with us in 2026? Click here to learn how eRESI’s EDGE can help grow your non-QM business.”

“Target a new market this year. More than 40 percent of homeowners own their homes outright, and many more are reluctant to refinance out of their low-rate first mortgage in the current rate environment. Enter the Figure First-Lien HELOC, a faster, lower-cost way for homeowners to access equity, without the friction of a traditional cash-out refinance. Designed for borrowers who own their homes free and clear or have small remaining balances, Figure’s First-Lien product delivers lower rates than junior-lien HELOCs for loans under $150K, with no appraisal or title fees and funding in as few as 5 days. For lenders, it unlocks a massive underserved market of homeowners who need modest loan amounts that are typically uneconomical to originate, while reducing origination costs by up to 95 percent through the same seamless, fully digital Figure experience. Better pricing for borrowers. Stronger economics for our partners. Connect with us today.”

2025 certainly showed lenders accepting non-QM, DSCR, and other non-Agency loans to a greater degree. RAMS Whole Loan Pricing Report showed non-QM benchmark yields gradually declining over 2025, indicating greater investor acceptance as they are looking for safe yield pick ups.

Originations of home equity loans continued to increase during the third quarter of 2025, pushing lending to near its post-financial crisis peak through the first nine months of last year, according to a new Inside Mortgage Finance ranking and analysis. “Some $209.3 billion in originations occurred for the sector through 9M25, approaching the recent high of $253.0 billion of HEL volume that was originated in 2022. About $76.80 billion of closed-end second liens and new commitments for home equity lines of credit were originated in the third quarter alone, up a modest 3.5% from the second quarter. Citizens Bank maintained its top HEL lender position with $3.10 billion of volume in the third quarter, down 0.9% from the previous three-month period. The Rhode Island-based bank’s entire home equity lending activity is focused on HELOCs.” Thank you, IMF.

Citi Correspondent Lending Bulletin 2025-12 contents include notices regarding depreciating markets monthly list updates and 2026 Correspondent Lending holiday schedule. Clarifications on pricing and loan registration updates and disaster appraisal policy.

AmeriHome announced that loans secured by multiple (2-4) unit properties located in the state of New Jersey are now eligible with all product offerings. See AmeriHome Mortgage 20251204-CL Product Announcement for details.

Effective with new commitments for Delegated and new commitments or new submissions for non-delegated underwriting, taken on or after December 29, 2025, AmeriHome’s Non-QM program guide has been updated. See AmeriHome Mortgage Product Announcement 20251207-CL for details.

2026 is right around the corner. Are you positioned to make the most of it? Now’s the time to sharpen your strategy, uncover new opportunities, and decide how non-QM fits into your growth plans. Whether you have a roadmap in place or you’re starting from scratch, Newfi Wholesale’s 2026 Planning Guide is built to help you move into the new year with confidence.

LoanStream Wholesale MaxONE and MaxONE Plus and MaxONE Home Assist are 100 percent CLTV FHA DPA Purchase Programs that may help you qualify more borrowers and expand your market reach. See LoanStream program details.

RiskSpan reminded us that it developed Prepayment Model v3.11, a fully redeveloped framework for non-QM collateral, and has plans for a Non-QM Credit Model v7.1 with full delinquency transitions as well as a broader non-agency credit model later in 2026.

Homebuyer demographics explained

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For mortgage lenders, the gap between the total addressable market and realized volume highlights the importance of product design, borrower education, and channel strategy to overcome barriers such as down payment constraints, credit overlays, and limited housing supply, per Polygon Research. The 2026 first-time homebuyer opportunity includes an estimated 22 million renters who are in the labor force and earning between $50,000 and $150,000, but historical lending patterns suggest only a small portion of this group will ultimately convert, with roughly 2 million becoming first-time homeowners and about 1.4 to 1.6 million using a mortgage.

Millennials remain the largest segment of this opportunity at 47 percent, continuing to anchor first-time buyer demand, while Gen Z (now representing 24 percent or roughly 5.2 million potential buyers) emerges as the second-largest cohort, signaling a meaningful generational shift. Gen X accounts for 22 percent, reflecting delayed or second-chance buyers, and Baby Boomers make up a smaller 7 percent, often tied to later-life ownership transitions. 

Capital markets: low volatility is fine, right?

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It was a bit of an uneventful day yesterday in the bond markets, but that was to be expected as most economic events are packed into the latter half of the week. The final reading of the S&P Global U.S. Services PMI showed a deceleration from the flash reading and the final reading for November. I’ve made several comments recently about government readings soundly beating economists expectations, raising eyebrows. Even so, expectations are that trust in official data will gradually recover, though private labor indicators remain more tradable events in the near term. With CPI data still clouded by quality concerns, labor market trends are carrying outsized importance for shaping near-term Fed expectations.

Today’s calendar kicked off with mortgage applications from MBA, which decreased 9.7 percent from two weeks earlier. The results include an adjustment for the holidays. We’ve also received ADP employment for December: private jobs increased by 41k, slightly under expectations. Later today brings ISM services PMI and JOLTS job openings (both for December), the previously delayed factory orders for October, and remarks from Fed vice chair for supervision Bowman. We begin the day with Agency MBS prices slightly better than Tuesday’s close, the 2-year yielding 3.45, and the 10-year yielding 4.14 after closing yesterday at 4.18 percent.

(Thank you to Brian L.’s father for this classic.)

A cop pulls over a guy carrying a carload of penguins.

The cop asks the guy, “Where do you think you are you going with those penguins?! Take those penguins to the zoo!”

The next day cop pulls over the same guy with the carload of penguins, this time all wearing sunglasses.

The cop says, “Hey, I thought I told you yesterday to take those penguins to the zoo.”

The guy says, “I did. Today, I’m taking them to the beach.”