Tired of writing those pesky checks? Wait no longer: If you don’t want to send a check through the U.S. Mail, for whatever reason, there’s Deluxe Payment Exchange that delivers an electronic check. Tired of those pesky Freddie Mac and Fannie Mae board members, like the one who won a Nobel Peace Prize for economics? Wait no longer: FHFA Director Bill Pulte didn’t take long to restack the boards and do away with previous appointees. Several appointees are very young, in their 30s. One of the new Fannie board members works at X so we have direct DOGE influence in lending. If you wonder where Freddie Mac and Fannie Mae might go, we have this video making the rounds. Proponents say that the number of preconceived notions on the board is reduced, and the boards will be open to new ideas. The recent moves certainly increase the likelihood of them leaving conservancy. Maybe we’ll see loan level price adjustments improve? Regardless, as non-QM investors sharpen their pricing and underwriting pencils, shrinking the size and scope of F&F is expected. (Today’s podcast can be found here and this week’s is sponsored by CoreLogic. Whether it’s using cash to purchase a home, debt consolidation, or a straight cash-out refinance, CoreLogic’s Precision Marketing’s data-driven insights pinpoint your best opportunities to retain and recapture your clients. Today’s has an interview with nCino’s Jay Arneja on how AI, blockchain, and data are the bookends of the core systems of mortgage)

Lender and Broker Products, Software, and Services

ICYMI: Alliant Credit Union partnered with Optimal Blue for a comprehensive mortgage transformation, overhauling and re-platforming its residential lending business. After a seamless implementation and less than a year using the Optimal Blue® PPE, Alliant saw increased production, attracted top loan officers, and enhanced operational efficiencies. Chris Spaude, Alliant’s director of secondary markets and loan administration, praised Optimal Blue’s automation for enabling Alliant to scale and implement new initiatives. “We started a lock desk, introduced servicing-released and government-insured loan programs, and changed our execution from best efforts to a mandatory model. The Optimal Blue framework gives us a lot of levers to pull as we look at a long-term secondary strategy.” Alliant plans to further fuel its growth and profitability with Optimal Blue's hedging and analytics technology, with implementation underway. For a look at how a transition to the Optimal Blue PPE transformed Alliant’s mortgage business, read the case study.

AFR: Smarter Lending, Stronger Returns. Better Pricing for NOO Loans & Correspondent Flow! AFR is redefining the market with enhanced pricing on Conventional Non-Owner Occupied (NOO) loans, offering real estate investors a competitive edge. With substantially better pricing, no prepayment penalties, and a higher ROI, AFR’s NOO loans provide a superior alternative to DSCR and other conventional financing options. Additionally, AFR has launched its Correspondent Delegated Best Efforts Flow Channel, designed to empower smaller and mid-sized mortgage bankers, especially for loans under $350K, by offering a simplified process without complex hedge strategies. With streamlined programs, improved pricing, and expanded support under new ownership, AFR is your go-to partner for innovative lending solutions. Learn more about AFR’s NOO pricing and Correspondent Flow Channel: Read the full press release here. Learn more today. Reach out: sales@afrwholesale.com, call 1-800-375-6071, or visit www.afrwholesale.com. (NMLS 2826)

This Commentary had a great quote on Monday asking lenders, "What are you doing to fix it?" In his Monday Commentary, the MBA reported a net loss of $40 per originated loan for independent mortgage banks (IMBs) and mortgage subsidiaries of chartered banks in the fourth quarter. Those lenders that serviced saw an income of $142 per loan and for the lenders that had both channels, 61% were profitable. A compelling reason why everyone should consider entering the servicing industry. It's not as hard as you think if you have the right modern, cost-effective system to help you build your future-proof annuity and retain your hard-earned customers for life. MortgageFlex has helped numerous lenders transition into short-term and full servicing with the most work queue-driven, automated servicing and default solution on the market. Built for servicers, by servicers. Here is a sneak peek demo or contact John McCrea.

“Ruining your client relationships or not being able to deliver on what is promised? Choose your HELOC partner carefully! You have worked hard to build your reputation, and Symmetry wants to protect that! A HELOC with Symmetry is a great way to service your clients’ needs today without having to worry about ruining or losing your client relationships tomorrow. We offer competitive rates & close quickly. No prepayment restrictions, no early termination fees, and no EPOs to worry about. Feel free to reach out with any questions or for the latest matrix; Contact your Area Manager. (2nd Home & Investment HELOCs now available; some state restrictions apply)!”

In the crowded world of big-box CRM solutions, Usherpa stands out with its Done-For-You Auto Marketing, offering a truly hands-free approach to client engagement. Unlike many platforms that require extensive setup and customization, Usherpa comes ready to work from day one. Pre-built, automated marketing campaigns are instantly activated, helping businesses nurture leads, reconnect with past clients, and generate valuable referrals—without any extra effort. This level of automation saves time while ensuring consistent, high-quality communication that drives real results. Instead of spending hours building and managing campaigns, users can focus on what they do best: growing their business. For professionals looking for a CRM that doesn’t just store contacts but actively works to expand their reach and increase revenue, Usherpa provides an effortless, intelligent marketing solution that sets it apart from the competition.

Conventional Conforming and FHFA Changes

Days after the confirmation of Bill Pulte as Director of the Federal Housing Finance Agency (FHFA), The Community Home Lenders of America (CHLA) sent a comprehensive letter to Director Pulte, laying out CHLA's priorities for protecting small IMB mortgage lenders and the GSE affordable housing mission.

The four key recommendations in the CHLA letter were as follows. Fannie and Freddie should maintain their affordable housing footprint, including condo, investor, and second home loans - without volume caps or fee increases unrelated to risk. Fannie and Freddie should strictly adhere to PSPA cash window requirements - and should not arbitrarily reduce the number of seller-servicers, out of convenience or to cut costs. Fannie and Freddie should complete the process of replacing repurchase demands for performing loans with loan defects with an indemnification fee based on Enterprise risk. Fannie and Freddie should take actions to cut mortgage origination costs – e.g., rejecting bi-merge in favor of tri-merge and addressing FICO’s monopolistic credit score price hikes.

The CHLA letter began by expressing appreciation for the first Trump Administration’s actions to create a permanent equitable cash window requirement and supporting the Administration's interest in moving forward on a Fannie and Freddie exit from conservatorship.

A major focus of the CHLA letter was on Fannie and Freddie maintaining their commitment to their affordable housing mission, identifying reasons why they should not shrink their housing footprint, including addressing investor loans and second homes, which were the subject of restrictions in 2020. The CHLA letter closed by promising in the near future to separately weigh in on small lender priorities as part of a potential Fannie/Freddie exit from conservatorship.

Freddie Mac Single-Family Seller/Servicer Guide (Guide) Bulletin 2025-3 announces updates pertaining to expanded age of questionnaire requirements for the Project Certified Submission process in Condo Project Advisor®, Uniform Loan Delivery Dataset - Phase 5 contains a notes update for the Universal Loan Identifier, Guide refactoring and relocation of Guide chapters, and Guide update related to the refactoring of Chapter 5306. Read Bulletin 2025-3 for details on these and other updates that impact your business and your borrowers.

On March 28, Freddie Mac will introduce enhancements to the Single-Family Seller/Servicer Guide (Guide) website (Guide.FreddieMac.com) that will improve how Seller/Servicers find relevant information about Guide requirements. The new user experience will include a variety of search filtering and display options. Combined with the ongoing refactoring advancements and the enhanced search function, users can find better results faster and in a format that’s easy to read, skim and search. Additionally, Guide-related FAQs have been updated and refactored for enhanced readability and will be accessible directly on the Guide website in search results on related Guide section pages and on a new dedicated FAQ page.

Fannie Mae posted Survey Results regarding Consumer housing sentiment dips in February Growing pessimism toward mortgage rates and consumers’ personal financial situations led to the first year-over-year decline in Fannie Mae’s Home Purchase Sentiment Index® in nearly two years.

Fannie Mae explored different ways consumers have been using their homes since the pandemic, and how these changes could impact future homebuying decisions in the latest National Housing Survey® analysis.

Pennymac Announcement 25-27 addresses Freddie Mac’s update on treatment of authorized User Accounts.

Capital Markets

To improve transparency for fourth-month securities, Agile has introduced competitive electronic bidding for the fourth month. This development promotes a better understanding of where fourth month securities are trading and enables more informed decisions on whether they are priced attractively relative to standard TBA security settlements. This functionality also minimizes the need for frequent rolls, thereby streamlining the process of maintaining an aggregate hedge position. Andrew Price, Secondary Marketing Trader at Highlands Residential Mortgage, stated, “I use fourth month securities to hedge long-term builder forward contracts. Electronically trading fourth month on Agile is extremely efficient, and anytime I put fourth month in competition, my execution is better than a single-dealer bid. It’s always helpful to have that extra protection while trading an off-screen security.” Contact Agile to learn more about bidding on fourth month TBA mortgage-backed securities or schedule a meeting with their team at the upcoming Great Rivers Conference.

We received a welcome surprise yesterday in the form of stronger-than-expected growth in February Housing Starts (1.501 million versus 1.385 million expectations), which rebounded from an 11.5 percent decline in January to jump 11.2 percent in February. Single-family permits were essentially unchanged for the second straight month and multifamily permits decreased in March due to weakening builder confidence from increased economic and policy uncertainty. We also received a reminder of some stubborn inflation in Import (+0.4 percent month-over-month)/Export (+0.1 percent month-over-month) Prices for February.

As investors readied themselves for today's FOMC events, the market was tasked with absorbing $13 billion of 20-year bonds, which was met with strong demand. The supply event followed a weak takedown at last Thursday's 30-year auction (which tailed by 1.2-basis points). While the reception to the 30-year long-bond wasn't suggestive of strong end-user demand for duration at the current juncture, it turns out it wasn’t predictive of anything as it relates to the 20-year. It bucks a trend, as the last three consecutive 20-year auctions tailed when the preceding 30-year auction did so by at least a basis point. Correlations aside, 20-year yields are trading roughly 20-basis points off the early-March lows and in the upper end of the recent range. That helps explain some of the end-user demand for what is still the cheapest sector on the curve. That said, the continued steepening of 20s/30s over the last several months has lessened the relative value case for the 20-year sector versus 30s.

Today’s economic calendar kicked off with mortgage applications decreasing 6.2 percent from one week earlier, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey. Potential fireworks could be in store this afternoon when the FOMC releases its updated Summary of Economic Projections and dot plot, along with the statement, followed by Chair Powell’s press conference. We begin the day with Agency MBS prices unchanged from Tuesday’s close, the 2-year yielding 4.05, and the 10-year yielding 4.29 after closing yesterday at 4.28 percent.