How ‘bout some good news? Last week’s apps skyrocketed, and… Builders are sitting on a pile of unsold homes and are slashing prices and offering mortgage rate deals! It sure is hard to have a “steady as she goes” environment in real estate and lending. Word continues to simmer about IMBs (independent mortgage banks) and the Community Reinvestment Act. Even though the CRA is a Congressionally approved law at the federal level, states like Illinois and New York have put rules in place, despite IMBs not accepting deposits. Some states can be more restrictive than the Federal government, but they don’t want to do anything that is unconstitutional. In addition, regulators, it can be argued, use archaic measures to analyze business practices. What difference does it make where the branch is, given that so many LOs work from home? Questions have come up about the CFPB and Justice Department enforcing Fair Lending. How will Fair Lending be enforced, if at all? Ask any LO: Lenders are taking every loan they can get, so claims of redlining are highly suspect. Every lender out there is trying in every way to qualify any borrower. Certainly, inventory shortages in some areas shouldn’t be held against lenders. (Today’s podcast can be found here and this week’s is sponsored by Figure. Figure is shaking up the lending world with its five-day HELOC, offering borrower approvals in as little as five minutes and funding in five days. Lenders, give your borrowers an experience they will rave about. On today’s hear a discussion between Robbie and Rob Chrisman making sense of all the volatility we have seen as a result of President Trump’s tariffs.)

Products, Software, and Services for Lenders

Ever see a finely tuned Formula 1 team in action? They operate in perfect sync, making split-second decisions to give their driver the winning edge. Optimal Blue’s hedging and trading solutions mirror that precision, combining real-time risk management, robust data connections, and automated workflows to help lenders maximize profitability on every loan. Unlike competitors, Optimal Blue integrates advanced AI assistants, automation tools, and user-friendly analytics into a single capital markets ecosystem, streamlining processes and reducing manual errors. From pipeline modeling to margin protection, these tools empower quick, informed moves in any market. Gain an edge at the final stretch and cross the finish line a champion with Optimal Blue’s hedging and trading innovations.

“Have you heard the news? CoreLogic is now Cotality! The same company you trust, with a bold new look. Our new brand reflects our commitment to providing the entire property industry with empowerment, accuracy, and innovation. Our spirit is best expressed by our new tagline: Intelligence beyond bounds™. We’re excited to bring you even more great solutions to help you grow your business and retain clients. As Cotality, we aim to create even more possibilities and value for you! Our goal is to make your business faster, more efficient, and more successful through the use of revolutionary technologies like our Araya platform, where you can easily manage your company’s marketing and growth strategies. Check it out today and see how the new Cotality can help move your business forward!”

Covius has partnered with FoxyAI to bring advanced, condition-adjusted property valuations and ROI estimates on improvements to RealtyBid users. RealtyBid is the first national online auction platform to deliver this level of property insight! With the new integration, RealtyBid users can benefit from AI-powered condition scoring for more accurate valuations, after-renovation value estimates based on local market data and ROI projections to help investors and future homeowners make smarter decisions. Click here to learn more.

MBA and HUD News from DC

There are other things for 500 mortgage bankers to talk about rather than Kenneth DeGiorgio, CEO of First American Financial Corp., facing federal charges after allegedly assaulting a fellow passenger by grabbing his throat and tackling him on board a cruise ship bound for San Juan, Puerto Rico, how much an Apple iPhone would cost if manufactured in the U.S., or how Elizabeth Warren is charismatic but appeared anxious to move off the stage.

At the Mortgage Bankers Association’s National Advocacy Conference, attendees enjoyed a full day of sessions covering the evolving political, economic, and legislative landscape impacting the mortgage industry. The day began with an overview of the current political climate in Washington, followed by key insights on GSE reform and the Tax Cuts and Jobs Act. Participants received guidance on effective lobbying strategies in preparation for Hill meetings and gained exclusive updates on the early trajectory of the Trump 2.0 administration.

Newly confirmed HUD Secretary Scott Turner addressed federal housing affordability and supply initiatives, while MBA Chief Economist Mike Fratantoni provided an in-depth market and economic outlook. Legislative priorities across the residential and commercial/multifamily sectors were thoroughly briefed, equipping advocates with talking points for upcoming congressional meetings. The afternoon featured bipartisan perspectives from Representatives Lisa McClain and Ritchie Torres, and Senators Elizabeth Warren and Mark Warner, all sharing their housing policy priorities.

Builders Are Not Immune to Housing Policy

Housing policy is moving fast, and builders need to be ready. With new opportunities on the horizon, including streamlined permitting, affordable housing incentives, and a push for faster construction financing, major shifts are coming. Rich Swerbinsky breaks down the critical changes builders must prepare for in Housing Policy is Moving Fast – Builders, Get Ready. Don’t miss out on how the government is addressing the affordable housing crisis—and what it means for your next project. Read the full article now!

Conventional Conforming News

Until they price themselves out of the market, or narrow their product guidelines, Freddie and Fannie are still the predominant products in the residential marketplace. Who’s doing what?

To help you prepare for the upcoming Uniform Appraisal Dataset (UAD) and Forms Redesign mandate, we’ve published the Freddie Mac Collateral Feedback Messages: Loan Collateral Advisor® and Uniform Collateral Data Portal® (UCDP®) for UAD 3.6.

Freddie Mac introduced a number of enhancements to the Single-Family Seller/Servicer Guide (Guide) website. Finding information and related sources is easier and faster, with more comprehensive results. Combined with ongoing content refactoring, you'll find better results in a format that’s easy to skim, scroll and read.

Single-Family Seller/Servicer Guide (Guide) Guide Bulletin 2025-4 announced the new Freddie Mac Income Calculator, Flood insurance premium used for qualifying, Uniform Loan Delivery Dataset (ULDD) delivery instructions, and Guide refactoring.

Freddie Mac and Fannie Mae (the GSEs) announced the publication of the updated Uniform Closing Dataset (UCD) v2.0 Initiative Timeline, UCD Critical Edits Matrices and Technical Resources. To help prepare you for UCD v2.0, read the joint GSE announcement, Loan Closing Advisor® will also be updating its login procedures for users to navigate to the tool through a new entry point.

In April, Fannie Mae’s Selling Guide, described in SEL-2025-02, has been updated to combines Desktop Underwriter® (DU®) and Condo Project Manager™ (CPM™) technology, clarify how to calculate the loan-to-value ratio when determining the mortgage insurance for transactions on co-op properties in New York State, clarify the use of Income Calculator and calculations for rental income reported on Schedule E, and other miscellaneous updates.

Find out how recent housing and economic developments could affect home sales, mortgage originations, and other activity in Fannie Mae’s ESR Group’s latest forecast.

Pennymac Announcement 25-37: Pennymac is aligning with the changes announced in Freddie Mac Bulletin 2024-16 regarding the use of restricted stock (RS) and restricted stock unit income (RSU) to qualify for a mortgage. These changes may be implemented immediately but are effective with note dates on or after April 1, 2025.

Pennymac Announcement 25-38: Pennymac will update Conventional LLPAs effective for all Best-Efforts Commitments taken on or after Monday, April 07, 2025.

Upcoming Training and Webcasts

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 Steve Landes from Optifunder.

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 The Mortgage Collaborative’s Jodi Hall!

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.

Tuesday the 15th 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).

There’s the National MI April 2025 webinar sessions with “Status Sells” Marketing for Loan Officers with Dr. Bruce Lund, April 10 at 1 pm ET, and “Prospect Consultatively and Create Value Instantly” with Kendra Lee, April 15 at 1 pm ET.

Melissa Langdale has “assembled an incredible team of mortgage professionals to join me on April 16th to talk about the future of our industry and what’s possible. We’ll cover the future of mortgage manufacturing, high-touch and high-tech solutions that drive customer loyalty and engagement, the risk, reward and real ROI with AI, the future of mortgage regulation, maximizing tech adoption, and preparing companies for the next generation of home buyers and the next generation of mortgage professional.

Capital Markets

President Trump’s recent imposition of sweeping tariffs on many of America’s trading partners has driven U.S. tariff rates to their highest levels in over a century, prompting debate over whether this move is a strategic bargaining tactic or a long-term shift in economic policy. Unlike most economic disruptions (e.g., financial crises or public health emergencies), this one is largely self-inflicted, with Trump having both initiated the tariffs and holding the power to lift them. While there is cautious optimism that some of these tariffs may be rolled back, particularly for countries other than China, significant uncertainty remains.

Meanwhile, the broader economic climate continues to show signs of strain. In March, the NFIB Small Business Optimism Index dropped for the third straight month, falling below its historical average, driven by declining economic expectations and weaker sales forecasts. Labor quality remains the top concern among small businesses, and although there was limited evidence of price increases directly tied to tariffs, the percentage of firms planning price hikes in the near term reached its highest point in a year.

In March's prepayment report (reflecting the April 2025 factor date), aggregate Fannie Mae 30-year speeds increased 31 percent from the prior month, with the overall 1-month CPR rising from 5.0 to 6.6, the fastest pace since November. However, this acceleration came despite mortgage rates holding steady at around 6.6 percent and the MBA refinance index declining by 10.4 percent, signaling that the uptick in prepayments is more about turnover than a surge in refinances.

A detailed look at the conventional universe, specifically Fannie Mae 15- and 30-year coupons, reveals that while differences in prepayment speeds among servicers remain relatively narrow, especially in deep out-of-the-money coupons, top performers like Rocket/Quicken and loanDepot continue to dominate. Rocket appeared among the top five fastest servicers in eight of twelve 30-year coupons, maintaining its lead for a seventh straight month, while Bank of America consistently lagged, ranking in the bottom five across most buckets. The data underscores the importance for investors to monitor servicer behavior closely, as performance differences, though subtle, remain meaningful in a still-muted prepayment environment.

Last week’s news that Rocket plans to acquire Mr. Cooper has stirred up the mortgage bond market. With the two companies set to manage a massive $2.1 trillion in servicing, investors are worried Rocket’s strong ability to refinance and keep clients (an 83 percent recapture rate compared to the industry’s 28 percent) could lead to faster-than-expected mortgage payoffs. This has already caused a dip in prices for certain Mr. Cooper-issued mortgage bonds, especially custom Ginnie Mae pools, as investors factor in the likelihood of quicker refinances. While the impact doesn’t apply to multi-issuer pools, it does raise concerns for lenders selling bonds tied to a single issuer, and some may look to shift servicing to other partners if pricing continues to drop. This situation echoes past lessons from Ginnie Mae’s PIIT program, reminding the market that a change in servicer can significantly affect bond values.

Today’s economic calendar kicked off with mortgage applications from MBA increasing 20.0 percent from one week earlier. Laissez les bons temps rouler! Later today brings wholesale inventories and sales for February, Treasury activity that will be headlined by an auction of $39 billion reopened 10-year notes, remarks from Richmond Fed President Barkin, and the minutes of the March 18/19 FOMC meeting. We begin the day with Agency MBS prices worse .250-.50, depending on coupon, the 2-year yielding 3.78, and the 10-year yielding 4.37 after closing yesterday at 4.26 percent.