AI is definitely a discussion topic among lenders: what is it, will it help the borrower, will it help the lender… How would you like every hand motion you make monitored by your boss through AI? Well, welcome to the new world order. SIFMA has created this 10-step guide to help streamline “gen AI” implementation, without compromising safety or compliance. In other artificial intelligence news, thousands of artists are calling for an AI art auction to be cancelled, calling it “mass theft.” In a combination of technology and housing, we have “foldable and shippable” houses, Last fall, Boxabl co-founder Galiano Tiramani shared his frustration of regulations and code setbacks that kept its homes from reaching the masses. Kicking off 2025 at a different pace, this year has brought some good news to Boxabl as it have gained official approval of their flagship product, the Casita, under the residential building code in Nevada, where the company’s three factories operate. Hey, if the Agencies will lend on them, why not? (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 HomeLight’s Nick Friedman on findings from a survey of originators about borrower preferences and technology adoption.)
Lender and Broker Products and Services
Have you ever wanted to be in the room where servicing innovation comes to life? It’s all happening at ICE Experience 2025. Servicers joining ICE’s mortgage technology experts at the Wynn Las Vegas from March 10-12 will get a front-row seat as they explore how ICE is making servicing simple. ICE Experience includes demos of ICE’s latest, cutting-edge innovations and a variety of sessions where you’ll learn how ICE is creating efficiencies to support HELOCs, loan boarding, customer retention, loss mitigation and more. Review the ICE Experience agenda and make sure to add sessions to your calendar so you don’t miss out on one of the biggest mortgage industry conferences of the year.
“loanDepot continues to strengthen its prominence in VA lending. Under the leadership of National Director of Military Growth and Strategy Bryan Bergjans and VP of National VA Lending David Smith, we have an ambitious plan to grow our VA lending platform. A key to our success is our ability to connect, at scale, with members of both the real estate and active duty/Veteran communities. One example: a monthly opportunity to educate National Guard members, on post, as they return from active duty to help them better understand the benefits of the VA home loan. Our VA Council, comprised of VA lending specialists, is always on tap to share their expertise with any member of our team serving a VA customer. And our expansive VA product portfolio (which includes VA renovation loans and programs with a 520 minimum FICO) makes it easy to serve virtually any Veteran need. If you’re looking to serve more Veterans, partnering with loanDepot can help you do it. Contact Bryan Bergjans to learn more.”
A seamless mortgage process shouldn’t start with a clunky payment request. Fee Chaser automates upfront fee collection and integrates with your Encompass workflow so borrowers pay instantly and your team stays focused on closing loans. Book a 10-minute demo with the team to take a closer look.
The mortgage industry is primed for innovation, driven by advanced yet practical solutions that adapt to lenders’ evolving needs in a shifting market. Xactus is leading this charge by redefining verifications with a truly innovative solution that is built upon valuable insights derived from verification data. It is called Intelligent Verification. Xactus360, the company’s Intelligent Verification Platform™ (IVP), replaces rigid, costly processes with flexible, automated solutions. Xactus360 integrates seamlessly with existing POS and LOS systems, delivering the data lenders need, when they need it. With Xactus360, lenders can easily transform their workflows, eliminating inefficiencies and reducing data waste. The result? Faster decisions, smoother processes, and a smarter, more agile approach to lending. To learn more, schedule time to meet with Xactus at ICE Experience 2025.or email sales@xactus.com.
“Struggling to find the most competitive pricing scenarios for your borrowers? Are inconsistent rule applications affecting your efficiency and profitability? Join our webinar on March 25 at 1 p.m. CT to learn how the Optimal Blue PPE can transform your lending process and rules management. Optimal Blue experts, Kimberly Melton and John Dumonsau, will demonstrate how to enhance operational efficiency and leverage automation to maximize your profitability. In this session, you’ll learn about Originator Assistant in the Optimal Blue PPE, which uses generative AI to identify alternate loan scenarios, offering more competitive pricing and options for borrowers, saving loan officers time and enhancing strategic discussions. We’ll also share more about Rules Optimizer, which simplifies rule management by allowing lenders to create and apply rules across multiple products and investors, reducing repetitive work. Don't miss this opportunity to optimize your advantage in 2025. Register now to secure your spot.”
MCT today announced the release of Atlas, an AI advisor and high-quality educational resource for MCT’s mortgage lender clients. With this launch, effective 2/10/25, MCT continues its tradition of innovation in secondary marketing technology, offering clients instant access to expert knowledge and paving the way for future AI-driven workflows that will save clients time and improve their financial performance. “We’re proud to be the first mortgage capital markets platform to put AI in the hands of every client,” said Phil Rasori, COO of MCT and architect of Atlas. “AI has the potential to improve performance and act as a force multiplier for capital markets professionals, but only if it is deployed responsibly and transparently with careful protections for client data ownership and privacy.” Learn more about the data security and privacy standards built into Atlas or watch MCT’s webinar, AI Blueprint for the Future of Mortgage Capital Markets Technology.
“Home Insurance for your California Clients: Meet Bamboo Insurance! At Bamboo, we know better than most that the California insurance market is putting unnecessary stress on you and your clients. With coverage options disappearing and loan delays piling up, it’s tough to get things done. But at Bamboo Insurance, we’ve got you covered. More than covered, actually. While many insurers are exiting the market, we’re still here, actively writing homeowners’ policies to help keep your deals on track. But we don't just stop at coverage. We’re dedicated to providing quick, reliable, and hassle-free solutions that protect your clients and let you focus on growing your business. With limited partnership opportunities available for brokers and lenders, don’t wait: reach out to Chris Irvine, VP of Bamboo Agency, today. Let’s work to get your clients insured so you can both stay assured in an uncertain market. NPN 18657046, CA Lic #0M31082.”
Capital Flowing Into Residential Lending
Figure Technology Solutions (“Figure”), a technology platform powering an efficient, liquid, blockchain-based marketplace for financial products, and Sixth Street, a leading global investment firm, today announced the formation of a new joint venture vehicle in which Sixth Street’s Asset Based Finance platform has committed to invest $200M of equity. This commitment is unique in that it can be recycled and used for future Figure production driving additional liquidity for Figure private credit loans.
This is the latest development for Figure Connect, Figure’s transformative marketplace for private credit loans, making it easier for loan origination partners to scale their businesses. Figure Connect’s key advantages include attractive warehouse lines to manage cash flow, hedging to manage market risk, and modern infrastructure that automates loan sales and deliveries, all on a public, transparent blockchain. With Figure Connect, partners can also use the marketplace infrastructure for price discovery by putting out pools of loans for bidding.
Investor and Agency News
The news flow out of Washington DC, and around the nation, has been immense, and often does not impact underwriting guidelines directly. Here’s a smattering of what’s happening.
PHH Correspondent Lending posted information on FEMA’s update end date of California disaster declaration, DR-4856-CA.
AmeriHome issued a reminder to Sellers of important ROV disclosure and loan delivery requirements that may impact purchase eligibility. See AmeriHome Product Announcement 20250202-CL for details.
The Council of Large Public Housing Authorities’ (CLPHA) Executive Director Sunia Zaterman released the following statement regarding the latest threats to public housing authorities (PHAs) posed by cuts to HUD programs and staff and a potential government shutdown. “A government shutdown disrupts PHA operations and continuity of service to residents, voucher holders, private owners, investors, and partners. Appropriators have still not agreed to the total amount of the budget, which is the first step in the budget process. After that it takes weeks to finalize and pass full year appropriations bills. Securing HUD funding is critical in protecting PHAs, residents, and staff. Congress must pass a full year FY25 appropriations bill that provides adequate funding for HUD programs.” Learn more at clpha.org.
Consistent with President Trump’s January 20, 2025, Executive Order: Delivering Emergency Price Relief for American Families and Defeating the Cost-of-Living Crisis, which includes pursuing appropriate actions to lower the cost of housing and expand the housing supply, today the Federal Housing Administration (FHA) issued a temporary partial regulatory waiver and related Single Family Housing Policy Handbook 4000.1 (Handbook 4000.1) waiver to its minimum property standards (MPS) requirements. Without this partial waiver, the new MPS required elevation standard would have limited the land available for development and increased the cost of construction for FHA-insured single-family properties, thereby contributing to the insufficient supply of new construction housing and rising home prices.
Capital Markets
Mortgage rates have dropped as of late, largely due to skepticism about potential tariffs and the ongoing federal cost-cutting, both of which have potential to slow the overall economy. The market yesterday benefited from some more buying in the afternoon after the U.S. Treasury sold $44 billion in 7-year notes, making for the third strong note auction in a row. There were some noteworthy developments in Washington, as the House passed a budget bill, President Trump ordered a review of U.S. copper imports, and Ukraine is expected to accept a rare earths deal with the U.S. to help facilitate the end of the war with Russia.
New home sales dropped 10.5 percent in January, extending the string of weak housing data to start the year. However, upward revisions to December’s figures helped soften the impact of the decline. Even so, January’s annualized sales pace of 657,000 units was still 1.1 percent lower than the same time last year, highlighting how elevated mortgage rates continue to dampen buyer demand. With inventory levels remaining high relative to sales, builders are likely to proceed cautiously in the months ahead, balancing economic uncertainty with shifting policies on trade, immigration, and broader market conditions.
Today’s economic calendar kicked off with a second look at Q4 GDP (+2.3 percent, as expected, but the price index was tad high at +2.4 percent), durable goods orders, and jobless claims (242k, much higher than expected). Later today brings January pending home sales, Kansas City Fed manufacturing for February, Freddie Mac’s Primary Mortgage Market Survey, and a laundry list of Fed speakers. We begin the day with Agency MBS prices are roughly unchanged from Wednesday evening, the 2-year yielding 4.08, and the 10-year yielding 4.28 after closing yesterday at 4.25 percent.
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