This ain’t no April Fools economic news: not only has Hooters declared bankruptcy, but apparently there is yet another push to have credit unions pay income taxes. “Right now, leaders in Congress are discussing how to fund an extension of the Tax Cuts and Jobs Act (TCJA). Some lawmakers are considering a new tax on all credit unions as part of the solution. Credit unions have been tax-exempt since the 1934 Federal Credit Union Act, and will tell you that, “This exemption allows us to return value directly to you through better rates, lower fees, and member-focused service, not to shareholders through increasing stock prices or dividends. A tax on credit unions would put these benefits at risk.” Meanwhile, in IMB Land, in the span of just three weeks Rocket Cos. has thrown around more than $11 billion to buy a world where Americans buy, sell, and finance their homes through… Rocket. Today’s Advisory Angle webcast by the STRATMOR Group focuses on the what every lender should be thinking about given Rocket’s recent corporate moves and how deals are structured. It’s at 2PM ET, 11AM PT. (Today’s podcast can be found here and this week’s is sponsored by Calque. Calque provides a binding backup offer on your borrower’s departing residence to clear the existing mortgage balance and closing costs in 48 business hours or less. Today’s features an interview with Cotality’s (formerly CoreLogic’s) George Gallagher on the latest takeaways from the LA fires as it pertains to housing and insurance, as well as his company’s recent rebrand.)
Products, Software, and Services for Lenders
The Credit Optimization Playbook: Your Guide to Better Lending! Stop leaving deals on the table. Drawing from analysis of over 1 billion credit records, our comprehensive playbook shows you exactly how to spot credit improvement opportunities that others miss. You’ll learn proven strategies to help borrowers qualify for better rates, reduce PMI, and eliminate loan level pricing adjustments, all in as little as 30 days. Whether you’re working with borderline applicants or prime borrowers, these battle-tested techniques will help you close more loans and build lasting client relationships. Download now!
“Partner with Plaza, not compete. Some investors have retail lending arms and servicing retention platforms that compete with their own clients. Plaza Home Mortgage’s National Correspondent Lending Division doesn’t do that. When our correspondent partners sell to us, they are confident that we won’t solicit their borrowers down the road. When you work with Plaza, you can count on a true partnership-first approach, competitive products and pricing, and an unwavering respect for your borrower relationships. Your success is our success, but your borrowers are yours. If you want to learn about Plaza Home Mortgage’s National Correspondent Lending Division, ask us.”
Approximately 40% of loan origination costs are tied to operations, and leveraging intelligent automation helps improve efficiency while reducing risk. ICE Mortgage Technology's Vice President of Product Management, Matt Dowd, recently shared insightful perspectives on how finding the right automation solution can enable you to seamlessly capture information from any source, perfect data across systems and accelerate the underwriting process. Read the full article to discover how you can start using automation to lower costs, enhance decision-making and drive scalability.
This is no April Fool’s joke! April brings more than showers and flowers at Carrington Mortgage Services, LLC. Carrington is springing into April savings with 25 bps off all non-QM loans over $500K submitted this month. Save borrowers some money by taking advantage of this offer today! In addition, Carrington is looking to add qualified account executives with significant Non-QM experience in several markets across the country - take advantage of this opportunity to grow your career. Finally, Carrington will attend the New York MBA Secondary and Capital Markets Conference on May 18-21. Contact Samuel Bjelac to set up a time to meet with the Carrington Team to discuss how they can help grow your Non-QM business. It’s Non-Stop Non-QM at Carrington – make sure to be a part of it!
Modern loan officers face unique challenges in the unpredictable and ever-changing mortgage market. Inventory remains low, rates remain high, and both borrowers and homeowners remain anxious about their options for buying a home, refinancing, or leveraging their equity. To find and maintain success in this era of uncertainty, you need to have the right approach and the right tools to help boost your productivity and ensure you can maximize every opportunity. Learn how top-performing loan officers are seamlessly weaving the Total Expert platform into their weekly routines to stay engaged with contacts, keep deals moving forward, and win customers for life. See a week in the life of a top-performing loan officer.
“Maxwell Point of Sale is the top ranked mortgage point of sale on Capterra with 4.8/5 stars. 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. Want to learn more? Let us know and we’ll show you what Maxwell can do for you and your borrowers.”
Remember when renting a movie meant driving to Blockbuster and hoping it was in stock? That’s how most mortgage tech still feels. The LenderLogix Mortgage Suite brings together LiteSpeed, QuickQual, and Fee Chaser to modernize every step of the borrower journey. No more chasing down docs, waiting on pre-approvals, or manually collecting payments. It’s all connected, all intuitive, and fully integrated with Encompass® by ICE Mortgage Technology™. Ditch VHS tech and meet with LenderLogix today.
If you close your eyes during an audit, the problems magically vanish, right? April Fools! Because let’s be honest: problems don’t go away when you close your eyes… ignoring risks won’t make them disappear… They’ll just show up later as costly findings. That’s where a strong internal audit partner comes in. At MQMR, each audit is thoughtfully planned, minimally disruptive, and rooted in a risk-based approach tailored to your organization. MQMR delivers clear, actionable reports backed by strong documentation, consistent communication, and meaningful follow-up. Internal audit isn’t just about checking a box… It’s a strategic advantage that helps you reduce risk, improve processes, and protect your bottom line. While we love a good April Fools’ joke, your audit program shouldn’t be one. Looking to strengthen your Internal Audit program? Let’s talk.
Rocket Acquires Mr. Cooper, and More M&A
This month’s STRATMOR piece is titled, “Mergers and Acquisitions Aren’t Going Away, and In Fact…”
Today, Brookfield, a global investment firm, announced it has taken a majority stake in Angel Oak Companies, which includes its affiliates Angel Oak Capital Advisors, the asset management division with over $18B in AUM and Angel Oak Mortgage Solutions, a leading wholesale non-QM lender. Details can be found in the press release here: Brookfield Asset Management and Angel Oak to Enter into Strategic Partnership.
Yesterday we learned that Mechanics Bank, based in California, and HomeStreet, Inc. (NASDAQ: HMST) (“HomeStreet”), the holding company of HomeStreet Bank, have entered into a definitive merger agreement providing for an all-stock business combination between HomeStreet and Mechanics Bank. HomeStreet Bank will be merged with and into Mechanics Bank, with Mechanics Bank surviving as a banking corporation incorporated under the laws of the State of California and as a wholly owned subsidiary of HomeStreet. Existing shareholders of Mechanics Bank will receive common stock in HomeStreet in exchange for their Mechanics Bank shares. Upon completion of the Merger, HomeStreet will be renamed Mechanics Bancorp and remain a publicly traded company.
The transaction will expand Mechanics Bank’s West Coast footprint and create a combined company with 168 branches and $23 billion in assets. The transaction values HomeStreet at a pre-transaction estimated equity value of $300 million and Mechanics Bank at a pre-transaction estimated equity value of $3.3 billion. Upon completion of the Merger, existing HomeStreet shareholders are expected to own approximately 8.3% of the combined company, and the remaining ownership of approximately 91.7% will be held by legacy Mechanics Bank shareholders, with Ford Financial Fund and its affiliates owning approximately 74.3% of the combined company. The board of directors of the combined company will consist of directors of Mechanics Bank and one director of HomeStreet, to be named at a later date. The officers of Mechanics Bank will be the officers of the combined company. Mark Mason, Chairman, President and CEO of HomeStreet, will remain with the combined company in a consulting capacity.
And don’t forget that recently Cornerstone Capital Bank (parent of Cornerstone Home Loans) formed joint ventures with homebuilders in Texas and North Carolina. Watch out for Twin Tree Mortgage in Texas and Liberty Ridge Lending in NC. “Cornerstone has now formed and managed joint venture mortgage companies for 15 homebuilders nationwide. These new companies deliver faster loan approvals and a seamless mortgage experience for homebuyers while giving homebuilders greater certainty in closing homes on time, better control of their backlog, and a dedicated home financing and bank partner in Cornerstone. By integrating into the home purchase process, Cornerstone serves as a high-quality extension of the homebuilder’s brand.”
Twin Tree Mortgage, based in Waxahachie, Texas, is a joint venture with Elmwood Homes that provides tailored mortgage solutions for homebuyers throughout the greater Dallas market. Based in Fayetteville, North Carolina, Liberty Ridge Lending is a partnership with local homebuilders JSJ Builders and Ben Stout Construction. The company serves homebuyers across Fayetteville and the surrounding Raleigh suburbs, with a strong focus on assisting military families near Fort Bragg.
Webcasts and Training This Week
Why not learn more about your profession from the comfort of your favorite chair at home? A good place for longer term conference planning is to start is here for in-person events in the future; and organizers can post their event!
Lenders One and CHLA Virtual Roundtable: Fannie Mae and Freddie Mac Exit From Conservatorship, April 3rd! Join Lenders One and Community Home Lenders of America (CHLA) on Thursday, April 3rd at 1:00 PM ET for a virtual roundtable discussion on the Fannie Mae and Freddie exit from conservatorship. Moderated by Justin Demola, CMB, President of Lenders One, the panel features Ken Fears: NAR's Director of Conventional Housing Finance; Joshua Rosner, Managing Director of Graham Fisher & Co.; Scott Olson, Executive Director of CHLA; and Taylor Stork, CMB, President of CHLA. The panel will take a look at recent events and frame the debate issues for the discussion, including the parameters of Fannie Mae and Freddie Mac’s mission, how they can be preserved, the odds of whether they will actually exit the conservatorship, and much more. Bring your questions for the Q/A session. This event is open to anyone in the mortgage industry.
Today at 2PM ET we have “Rocket & Mr. Cooper: What Does it Mean and How Does it Work?” moderated by Sue Woodard and featuring Garth Graham and yours truly.
Tuesday the 1st at 11AM PT, origination concerns and issues are the focus with Mortgage Pros as Audrey B. and Kevin C. address issues facing residential originators. Today’s has Selma Happ, economist from Cotality (CoreLogic).
Looking for more in-depth commentary on weekly mortgage news? Register here for Wednesday the 2nd at 11AM PT "Mortgage Matters: The Weekly Roundup” presented by Lenders One! This week’s has Rich Jefferson with Network Funding.
Thursday will be another episode of The Big Picture at 3PM ET. Rich Swerbinsky hosts a variety of guests. You can click here to register for Thursday’s 3 PM ET show which features Dark Matter Technologies CEO Sean Dugan.
Q2 Economic Outlook webinar is 2PM ET on April 3. As we move deeper into 2025, the economy remains in flux. Consumer spending habits are shifting, and the evolving economic landscape makes it more important than ever to stay informed. On April 3rd WFG’s Patrick Stone will offer an expert perspective on the factors influencing the economy and what you can expect in the months ahead on the complimentary October Research webinar Q2 Economic Outlook. Join us to learn the latest on the trajectory of mortgage rates and their impact, trends in refinance and resale activity and much more. Register today to gain a clear understanding of the economic outlook for Q2 and discover strategies to adapt and thrive in a changing market.
Friday the 4th on Last Word, Brian Vieaux, Christy Soukhamneut, Kevin Peranio, and Courtney Thompson discuss the recent decision by the Federal Housing Finance Agency to end Fannie Mae and Freddie Mac's down payment and closing-cost assistance programs for first-time homebuyers. They'll explore the potential impact on affordability, the housing market, and the future of government-backed homeownership support.
Technology and innovation in residential lending are the focus of Now Next Later next Monday at 1pm ET.
The Chrisman Commentary is pleased to bring you a variety of video shows hosted on Zoom throughout the week. Take your pick: We have a show focused on technology and innovation (Now Next Later Mondays at 1pm ET), origination (Mortgage Pros Tuesdays at 2pm ET), big-name interviews (Mortgage Matters Wednesdays at 2pm ET, presented by Lenders One), headline news (The Big Picture Thursday’s at 3pm ET), opinion (Last Word Fridays at 1pm ET), advisory services (Advisory Angle first Tuesday of the month at 2pm ET, presented by STRATMOR Group), capital markets (Capital Markets Wrap second Tuesday of the month at 3pm ET, presented by Polly), regulation and compliance (Regulation Central third Tuesday of the month at 3pm ET), and reaching the next generation of homeowners (Mortgages with Millennials last Tuesday of the month at 1pm ET, presented by The Mortgage Collaborative). (If you don’t see a presenting sponsor, please reach out to Chrisman LLC’s Anjelica Nixt to inquire about opportunities.)
Skipping ahead, on Thursday, May 15th, at 10:30 AM PST, Garris Horn LLP’s Senior Litigation Partner, James Brody, in collaboration with The Mortgage Collaborative (TMC) will present a webinar, titled: “Annual Regulatory Roundup: Invaluable Tips for Maintaining Compliance in 2025 & Beyond.” Click here to register; registration is free. In this co-sponsored Regulatory Roundup webinar, Mr. Brody will leverage his decades of experience as a financial services litigator and compliance attorney to ensure your organizations remain compliant during a time of upheaval all across the mortgage banking industry. Specifically, Mr. Brody will address compliance topics involving LO Comp, RESPA, Cyber, TILA, UDAP, M&A, MSAs, and more. For any registration related questions, please contact Mr. Brody (415-246-3995).
Capital Markets
Bonds ended March on a largely flat note as markets seem to be in a “wait and see” mode regarding the direction of events out of Washington D.C. and their ultimate impact on the economy. President Trump last week signed an executive order placing a 25 percent tariff on imported cars and light trucks, set to kick in tomorrow, along with reciprocal tariffs that will match whatever other countries charge the U.S.
The brinkmanship has brought uncertainty to global trade, with markets watching to see if it’s a negotiation move or if/how long these tariffs will go into effect. If they do go into effect, prices could climb even faster, materializing inflation fears shown in recent consumer sentiment surveys. While most economists don’t think a recession is imminent, consensus points to an economic slowdown. Or worse, that the economy ends up stuck in stagflation (where growth stalls, but prices keep rising) making things tougher for both businesses and consumers.
Redbook same store sales kick off today’s economic calendar and will be followed by final March figures for the S&P Global manufacturing PMI, the ISM manufacturing PMI for March, construction spending, JOLTS job openings for February, and Dallas Fed services for March. The ISM Manufacturing PMI will probably report the manufacturing sector slipped back into contraction last month, and construction spending is expected to have eased in February. Treasury activity will be highlighted by a buyback in 20- to 30-year coupons for up to $2 billion. The day’s lone Fed speaker is Richmond President Barkin. We begin the day with Agency MBS prices are better than Monday’s close by about .125, the 2-year yielding 3.84, and the 10-year yielding 4.15 after closing yesterday at 4.25 percent.
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