Today I head to Connecticut for a visit with First World Mortgage and the Northeast Mortgage Summit. Today happens to be rocker George Thorogood’s 75th birthday, and mortgage bankers know that he re-did Amos Milburn’s 1953 classic tale of rent collection, land ladies, and payment avoidance. On a more serious note, I’ve been fortunate to spend some informal time recently with some fine mortgage minds discussing topics like the brutal administrative costs of bond programs, and perhaps a future allowing LOs to make price concessions to be competitive instead of the lender. The path forward for Freddie and Fannie, and the cost to consumers of that path, is a concern, but so is Agency innovation, building their executive ranks, keeping the “playing field” level regarding, for example, gfees. Competing against one another in a healthy way is a good thing, but some of the smarter minds believe that there will be a 75-100 basis point increase in rate when it eventually happens. Meanwhile, lenders continue to improve their product and technology, and in today’s episode of Now Next Later, Jeremy and Sasha talk with Melissa Langdale, Founder and CEO of Praxis Lending Solutions, about her expertise in the mortgage industry, the importance of collaboration, scalable solutions, and effective risk management for long-term success in the ever-changing market. (Today’s podcast can be found here and this week’s is sponsored by Sagent. Sagent brings the modern experience customers now expect from loan originations to loan servicing, where lifetime customer relationships are managed and grown. Hear an interview with Figure’s Michael Tannenbaum on capital infusions that will allow for growth in the home equity lending space.)

Lender and Broker Services, Products, and Software

The AllRegs® platform by ICE Mortgage Technology® just got smarter. Introducing Ask Regi, the AI-powered tool that delivers summarized search results to help find answers to your regulatory questions in seconds. Ask Regi scans nearly one million pages of compliance and investor content and presents narrative or bulleted search result summaries so you can quickly find the information you need. Click here to learn more about Ask Regi and how it can help you boost productivity and scale your operations.

Ready for spring homebuying season? CoreLogic's Marketing Solutions deliver deep insights into top real estate agents and helps predict home shopper intentions among your clients! Check out how you can tap into our ARAYA platform to grow your business and outshine the competition. Schedule your demo today!

In today’s competitive mortgage marketplace, customizing workflows and borrower experience is crucial to differentiation. With the industry-first configurability of Maxwell Point of Sale, lenders can define workflows for any mortgage product, while configuring triggers and business rules to align the borrower experience to operational processes. Maxwell Point of Sale also features more than 60 third-party integrations, allowing lending teams to seamlessly connect with other vital pieces of their workflow, from credit and verifications to pricing and disclosures. Maxwell Point of Sale also sees a 60% increase in pull-through from Rate Lock to Close on vs top competitors. Want to learn more? Let us know and we’ll show you what Maxwell can do for you and your borrowers.

MonitorBase Joins MMI and Bonzo: Shaping the Future of Mortgage Intelligence! MonitorBase has officially joined MMI and Bonzo, creating a powerful, seamless, end-to-end solution for mortgage professionals. With market intelligence, borrower monitoring & predictive analytics, and automated engagement now united, lenders can work smarter to close more deals. Market & Competitive Insights: MMI provides powerful data to identify high-value lending opportunities. Real-Time Borrower Alerts: MonitorBase tracks credit activity and notifies you when past clients are mortgage-ready. Automated Lead Nurturing: Bonzo’s AI-driven outreach keeps you engaged with clients at the right moment. This comprehensive technology suite ensures you connect with the right agents and borrowers at the right time with the right message, before the competition beats you to the punch. Discover how MMI, Bonzo, and MonitorBase can transform your approach to mortgage lending here.

With market trends changing, it’s time for brokers to reassess their product lineups. HomeEQ, Arc Home’s fully digital HELOC offering, meets the needs of both brokers and borrowers alike. With U.S. home equity reaching $33.8 trillion, clients are looking for smarter ways to access this value without refinancing their low mortgage rates. The newly released HomeEQ Broker Playbook is your guide to seamlessly integrating HELOCs into your product mix. This 30-day marketing resource takes all the guesswork out of building a campaign, providing customizable tools to help you connect with past borrowers and attract new clients. HomeEQ offers brokers a straightforward path to new revenue streams by meeting today’s equity-rich market demand with speed and simplicity. Download the playbook today and position HomeEQ as a cornerstone of your 2025 strategy. To learn more or to schedule a personalized training session on HomeEQ’s fast, easy, and convenient broker portal, reach out to John Gibson today.

REMN WHOLESALE is dedicated to giving mortgage brokers the tools they need to thrive every day. REMN’s Digital HELOC has just been enhanced with “FastPass HELOC” technology, positioning borrowers to close faster through a streamlined process for eligible deals. In addition to HELOCs, REMN offers a full range of products, including DSCR, ITIN, Bank Statement, Asset Qualifier, 1099 Only, Full Doc, P&L Statement Only, and Foreign National loans. Don’t miss REMN’s DSCR 1-point pricing special, extended through February 28, 2025. REMN is also offering a .75 adjustor for 720+ credit scores on 203b FHA loans (excluding K’s, Streamlines, and High Balance). With one of the most tenured and experienced teams in the industry, REMN WHOLESALE is your #1 trusted lending partner. Contact your AE today! REMN WHOLESALE is hiring Account Executives nationwide. Contact Carl Markman, SVP Director of National Sales.

STRATMOR Consumer Direct Workshop

STRAMOR Consumer Direct Workshop Coming to Chicago! STRATMOR Group is once again hosting its popular Consumer Direct Workshop in-person this May. Join peer lenders and STRATMOR experts Garth Graham, Brett McCracken, and Sue Woodard in Chicago, on May 21 and 22, 2025, to explore key strategies that will set you apart in a competitive market, from personalizing the customer experience to leveraging cutting-edge technology for increased efficiency. CD lenders that can differentiate themselves through superior service, innovative technology, and seamless digital experiences will be in a stronger position to survive and thrive. Don’t miss out on the opportunity to gain actionable insights that will help you succeed in the rapidly changing mortgage landscape. Space is limited! Learn more and reserve your seat today.

Non-Agency in the News

If the residential biz does about $2 trillion this year, and if some estimates are true, and 10-15 percent of that is non-QM or jumbo, that’s $200-$300 billion for the year, or about $20 billion a month. Someone’s gotta do it!

Jumbo mortgages have certainly attracted attention given the fires in Los Angeles. Bloomberg reports that more than 72% of mortgage debt fell into the category of nonconforming/jumbo loans in the parts of Los Angeles devastated by the fires. “That’s nearly five times the nationwide average, and almost triple California’s 26% rate, according to a Bloomberg News analysis of Consumer Financial Protection Bureau data. More than $11 billion of jumbo loans were issued in the affected areas and kept on bank books from 2018 through 2023. Banks with the most exposure include City National Bank, known as the “bank to the stars,” and First Republic Bank, a lender acquired by JPMorgan Chase & Co. after failing in 2023.”

Bank Statement or P&L loan? Logan Finance Wholesale has all the solutions, more options, and more solutions for your non-QM scenarios. Creating a new standard for non-QM, where their partners have the highest confidence in delivery and ability to help grow their client base. To be the best, Logan believes in partnering with the best, discover why brokers trust the Logan Experience.

Information on Pennymac updates to Jumbo LLPAs Pennymac Announcement 25-18.

 Find the easiest DSCR Program at Jet Mortgage. No Minimum DSCR needed on DSCR Loans, use any AMC, Min FICO Reduced to 640. Originate DSCR in 30+ states without being licensed; view Jet Mortgage’s List.

Citi Correspondent Lending Bulletin 2025-02 provides the following credit policy updates: Gift Funds from a Business Account, DU Appraisal Waiver, Properties Listed for Sale – Non-Agency, ARM Term Language, Leasehold Estates, Restricted Stock – LPA Agency & Community Lending and Government Overlays Removed.

Logan Wholesale announced a rate improvement on all non-QM DSCR. This rate improvement is effective now.

A&D Mortgage, a leading provider of non-QM financing solutions, announced an expanded Loan-to-Value (LTV) ratios and enhanced loan options for Foreign National borrowers across both DSCR and Full Doc loan programs. These updates provide greater financing flexibility for international investors seeking to purchase or refinance U.S. Real Estate.

PHH Correspondent Lending has made updates to its Gold Product offerings and updated its Pre-Payment Penalty Guide.

2nd Lien DSCR, Statement 2nd to 90% CLTV. What is this program? The Jet Mortgage HELOAN - Not a HELOC. The term is a fully amortized 30-year fixed rate term.

Cardinal Financial Wholesale has launched a new non-QM product suite offering “a range of flexible lending options to help brokers meet the diverse needs of their clients, including those with non-traditional financial profiles.” The Non-QM product suite will include four flexible options: Non-QM Prime: Flexible documentation for creditworthy borrowers, Non-QM Prime Plus: Higher loan limits for borrowers with strong credit, Non-QM Foreign DSCR: Financing for international investors without U.S. credit history, and Non-QM Investor Solutions DSCR: Loans based on property cash flow for U.S.-based real estate investors.

Capital Markets

Homebuilder sentiment took a hit last week as the NAHB housing market index fell sharply, highlighting persistent affordability issues and supply constraints. The shortage of single-family homes remains a major issue, with new construction failing to meet demand even in a low-rate environment. While some regions (Florida and Texas, notably) have seen building outpace population growth, nationwide housing starts remain historically low. Rising costs are putting pressure on both builders and buyers, leading to smaller home designs and greater reliance on incentives. With supply still constrained, mortgage loan sizes are expected to keep climbing, making affordability an even greater concern.

Meanwhile, existing home sales fell 4.9 percent in January to an annualized pace of 4.08 million, though they remain up 2.0 percent from a year ago. Home prices continued their upward climb, with the median price reaching $396,900, a 4.8 percent increase from January 2024. That marked the 19th straight month of year-over-year gains. As you know, mortgage rates are hovering around 7 percent, and the latest Fed minutes reinforced expectations of a "higher for longer" rate environment. With inflation still a concern and policymakers in no rush to cut rates, the likelihood of relief for borrowers appears slim. Investors are bracing for potential economic strain, as higher borrowing costs could weigh on mortgage activity and consumer spending, particularly in sectors like auto lending, which may face additional pressure from rising car prices due to (the April 2 implementation of) tariffs.

Mortgage-backed securities (MBS) spreads tightened even more last week, reaching their lowest level in 20 weeks. Investors are keeping an eye on whether the Fed will stop reducing its bond holdings, which could encourage banks to buy more MBS. In collateralized mortgage obligations (CMOs), fewer deals are being made because there’s less available collateral and fewer derivatives. Right now, higher-cap floating-rate bonds (those that have a higher limit on how much their interest rate can increase, offering more potential return if rates rise but come with more risk) seem like the best bet, especially since most investors are leaning toward lower-cap floaters (more predictable but limiting potential returns). Right now, investors prefer lower-cap floaters because they offer more stability, but the higher-cap ones might be a better deal if rates move in the right direction.

This data-heavy week brings month-end on Friday, with Treasury auctioning month-end supply (consisting of $183 billion in 2-years, 5-years, and 7-years and $28 billion reopened 2-year FRNs today through Wednesday). Key data sets include Fed surveys, housing data, durable goods, and the second look at Q4 GDP, before January PCE on Friday. Today’s calendar kicked off with two Fed surveys, the Chicago Fed National Activity Index for January and Philadelphia Fed non-manufacturing surveys for February. Dallas Fed manufacturing for February will be released later this morning before several Treasury auctions that will be headlined by $69 billion 2-year notes. We begin the week with Agency MBS prices roughly unchanged from Friday, the 2-year yielding 4.22, and the 10-year yielding 4.44 after closing last week at 4.42 percent.