In the 1980s I fell off my bike and hurt my knee. I'm telling you this now because we didn't have social media then. It doesn’t take social media to know that the S&P 500 is down 10 percent for the year, but fortunately “the stock market is not the economy.” As lenders and vendors everywhere focus on people, processes, and technology in trying to help their clients, on a broader scale, things have turned south. The benchmark S&P 500 index has now notched seven negative weeks out of nine, as tariff developments continue to sour sentiment. After several, sometimes confusing, adjustments and clarifications to tariff policy in recent weeks, things were quieter on that front last week. Lenders working with builders took note of one builder’s comments. “This year’s spring selling season started slower than expected, as potential homebuyers have been more cautious due to continued affordability constraints and declining consumer confidence,” Paul Romanowski, CEO of D.R. Horton, the largest homebuilder in the country, said on the recent earnings call. (Today’s podcast can be found here and this week is sponsored by nCino, makers of the nCino Mortgage Suite for the modern mortgage lender. nCino Mortgage Suite's core products unite the people, systems, and stages of the mortgage process. Hear an interview with Planet Home’s Mike Dubeck on managing a company through market cycles and driving business through technology investments.)

Software, Products, and Services for Lenders and Brokers

Sharks team up with smaller fish called remoras that hitch a ride, clean up leftovers, and make the whole ecosystem work better. It’s nature’s original workflow optimization. That’s the kind of symbiotic relationship Dark Matter had in mind when it built the AIVA AI virtual assistants to work hand-in-fin with the Empower LOS. Documents flow naturally from the Empower Portals to AIVA for automatic classification and data extraction. This partnership allows AIVA to classify some 1,100 document types and 1,500 data elements with extreme accuracy, presenting lenders with actionable data organically integrated into the loan process. The result? Clean desks, faster loans, and time to build the kind of relationships that can’t be automated. Ready to find your remora? Let AIVA lighten the load.

Power up your pipeline with LoanStream’s (DBA of OCMBC, Inc) April Specials! PRICE IMPROVEMENTS Up to 60 BPS on FHA/VA, up to 125 BPS on Non-QM (when combined with select) for loans locked April 1st through 30th. Non-QM Specials: 25 BPS Price Improvement on Standard, includes all Doc Types, Seconds. FHA/VA Specials: 25 BPS Price Improvement on Standard, includes All FICOs, DPA, Standard Balance, High Balance. Terms and conditions apply, contact your AE! April 2025 Specials LoanStream Wholesale - Wholesale Mortgage Lending.

Prepare for home buying season with the only mortgage point of sale fully customized for your business. 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. It’s no wonder that Maxwell Point of Sale is the top ranked mortgage point of sale on Capterra with 4.8/5 stars. Want to learn more? Let us know and we’ll show you what Maxwell can do for you and your borrower.

Another lender just ditched their legacy POS... and they’re not looking back. Tidewater Mortgage Services recently replaced their outdated system with LiteSpeed by LenderLogix, fully integrated with Encompass®, to give borrowers a modern, mobile-first experience. The result? A faster, more intuitive process for borrowers, loan officers, and processors. Read how the transition went.

Sponsored Webinars, Events, and Training

“Timing is everything in the complex and crowded mortgage environment. New borrowers are eager to find their first home, and current homeowners are impatiently waiting to refinance. The opportunities are out there. You just need the right tools to help you find and engage them before your competitors do. Are you missing rate-driven borrow opportunities? Join Total Expert on Thursday, May 1 for our Future-Proof Lending: Rate Data as Your Competitive Edge webinar. Our industry experts will sit down with Matt Adler from Lake Michigan Credit Union to explore how advanced rate insights and enriched borrower data can help originators identify opportunities earlier and engage contacts more effectively. Whether you’re a lending executive or front-line originator, this session will show how market-rate intelligence is shaping borrower conversations and driving results. Register now.”

“Attention all Mortgage Innovators! Join us for the blueprint in cutting edge mortgage technology at the Mortgage Innovators Conference May 7 – 8 in Huntington Beach. Our Co-Chairs Kevin Peranio, PRMG, and Ike Suri, Funding Shield welcome all California MBA lender members FREE OF CHARGE! Texas MBA lender members and MISMO lender members also receive complimentary registrations! For non-lenders, you can use the coupon code MIC25-SALE to receive 25% off your registration through April 25th. Thank you to our Premier Sponsors Cotality (formerly CoreLogic) and ICE Mortgage Technology. This conference will not only cover technology and product innovations in mortgage, but we’re also featuring a session of private equity and venture capital companies discussing factors that go into investing in technology. Of course, we top it off with the best party in the industry: the Innovation Deck Party! Hosted dinner, bars, entertainment, and fantastic networking. See you in May!”

If you’re working with real estate investors, you know how frustrating it is when income docs and TRID rules get in the way of a solid deal. That’s why The Loan Store created DSCR Done Right, and on Tuesday, April 23 at 1 PM ET / 10 AM PT, they’re joining NMP’s CEO, Andrew Berman, for a live DealDesk to prove it. With no personal income verification, 30 year or 40-year fixed rate with interest only available, dual compensation allowed, non-TRID structure, and loan amounts up to $4 million, this program is built to close. Join Philip Schulze, Will Pendleton, and Tracy Houck from The Loan Store as they walk through real scenarios live and show you how originators are using DSCR Done Right to scale investor business quickly and confidently. Reserve your seat and bring your deals here.

On today's episode of Now Next Later, Sasha and Jeremy chat with Nathan Den Herder, CEO of Ardley, about the growing importance of loan retention in 2025. They explore how technology is helping servicers keep loans in-house and how Ardley supports lenders in targeting existing clients with personalized offers.

FHA, VA, and USDA Changes

FHA announced the availability of the FHA Catalyst Partner Environment, a new Application Programming Interface (API) testing platform designed to streamline digital interactions and improve the efficiency of FHA’s loan origination processes. Starting April 14, 2025, Loan Origination System (LOS) providers; and Mortgagees that develop their own LOS platforms,

can begin testing the Catalyst Case Binder Business-to-Government (B2G) API in the new FHA Catalyst Partner Environment.

FHA published Mortgagee Letter (ML) 2025-10, Second Extension of the Foreclosure Moratoriums in Connection with Hurricanes Helene and Milton. This ML further extends the foreclosure moratoriums for areas impacted by Hurricanes Helene and Milton through July 10, 2025. FHA believes that further extending the foreclosure moratoriums is warranted due to the devastation caused by Hurricanes Helene and Milton, the extensive property damage sustained, and the reduced capacity for those impacted to access needed resources. Many areas in Florida, Georgia, North Carolina, South Carolina, Tennessee, and Virginia were deemed PDMDAs because of Hurricanes Helene and Milton.

Federal Housing Administration (FHA) issued a limited waiver of its policy regarding Early Payment Default (EPD) review requirements. This waiver applies to FHA-insured mortgages located in the Presidentially-Declared Major Disaster Area (PDMDA) for the recent California Wildfires. FHA is waiving the requirement for mortgagees to conduct certain quality control reviews on EPDs in this disaster area because it believes EPDs on loans closed prior to the disaster could most likely be a result of unforeseen circumstances associated with the disaster, such as loss of employment and/or income, property damage and repairs, forced relocation, and other contributing factors.

FHA published Mortgagee Letter (ML) 2025-12, Tightening and Expediting Implementation of the New Permanent Loss Mitigation Options, which modifies and replaces certain provisions in ML 2025-06, Updates to Servicing Loss Mitigation, and Claims, published January 16, 2025, and provides revised and updated loss mitigation guidance. Through ML 2025-12, the Trump Administration is definitively announcing the end of the relaxed COVID-19 era loss mitigation waterfall administered in FHA’s Single Family Housing program. Additionally, the Administration is announcing that it will continue its review of the entire FHA permanent loss mitigation waterfall to ensure the policy protects taxpayers while mitigating financial risks to the Mutual Mortgage Insurance Fund (MMIF).

MBA's President and CEO Bob Broeksmit, CMB, released the following statement on the Federal Housing Administration’s (FHA) adoption of new loss mitigation safeguards. “The MBA welcomes FHA’s adoption of a new, permanent loss mitigation framework, which will help evaluate performance and ensure the protection of the Mutual Mortgage Insurance (MMI) fund. Specifically, we appreciate FHA’s efforts to reinstate a cap on the number of times a borrower can utilize a home-retention program and require the successful completion of trial payments to demonstrate long-term affordability. Together, these safeguards will improve sustainability, protect the FHA insurance fund, preserve borrower equity, and further align FHA with the GSEs.

“We commend FHA’s approach that appropriately balances borrower access to streamlined loss mitigation with prudent risk management. We appreciate HUD and FHA for implementing these safeguards, and we will continue to advocate for policy changes that will ensure that mortgage servicing remains efficient for both consumers and servicers.”

The Trump administration is ending a Department of Veterans Affairs program started by the Biden administration intended to help keep veterans struggling to pay their mortgages in their homes. The VA will stop accepting new participants for what's called the Veterans Affairs Servicing Purchase program, or VASP, starting May 1, the department confirmed Friday.

MBA's President and CEO Bob Broeksmit, CMB, released a statement on the Department of Veterans Affairs’ (VA) reported plans of a phase-out of its Veterans Affairs Servicing Purchase (VASP) program: “Halting the VASP program will increase the number of veterans facing foreclosure unless the VA and Congress implement a permanent partial claim option as soon as possible…”.

Ginnie Mae’s mortgage-backed securities (MBS) portfolio outstanding grew to $2.73 trillion as of March 2025. In addition, Ginnie Mae issued $33.2 billion in total MBS, resulting in a net portfolio growth of $5.9 billion. Ginnie Mae facilitated the pooling and securitization of 146,000 loans for first-time homebuyers year to date. Key highlights from the March issuance include: $31.4 billion in Ginnie Mae II MBS, $1.7 billion in Ginnie Mae I MBS, including $1.6 billion for multifamily housing loans, The pooling and securitization of loans for more than 98,000 households, including 46,000 first-time homebuyers. For detailed information on monthly MBS issuance, unpaid principal balance, Real Estate Mortgage Investment Conduit issuance, and a broader analysis of global market trends, visit Ginnie Mae Disclosure.

Pennymac aligned with change announced in FHA Info 2025-04. The update includes minor policy changes, technical edits, and incorporates previously published policy. Two notable updates are included within Pennymac Announcement 25-43 and must be implemented for mortgages with case numbers assigned on or after April 10, 2025.

Recently, FHA published ML-2025-09, updating the Borrower’s residency requirements to be eligible for FHA-insured financing. See the AmeriHome Mortgage 20250404-CL Product Announcement for details and additional clarifications for USDA Qualified Aliens.

Capital Markets

Simplifying the Whole-Loan Market with Homelend Direct! Whether you're an established whole-loan investor burdened by legacy tech and high fixed costs, a hedge fund or asset manager entering the mortgage space, or a mortgage seller in search of reliable liquidity, Homelend Direct is built for you. Homelend Direct’s end-to-end platform simplifies the entire loan acquisition process, from sourcing and commitment to transaction management and post-purchase operations. For investors, it eliminates costly internal infrastructure by providing direct, streamlined access to mortgage flow across multiple originator channels, with full support for lock commitments and post-trade execution. For sellers, Homelend Direct connects you to a wide and growing network of mortgage investors (many exclusive to the platform) delivering more pricing and product options, faster execution turn times, and no upfront or ongoing costs. If you’re looking to modernize your approach to the whole-loan market, Homelend Direct isn’t just another tool… It’s the infrastructure advantage.

A hawkish Federal Reserve chair played his part in the evolving bond and stock market drama. Last week Jerome Powell, at the Economic Club of Chicago, expressed concerns about the likely higher-than-anticipated effects from tariffs, including possibly putting pressure on the central bank's dual mandate of stable prices and strong employment. Trump later criticized him for not lowering interest rates and has been said to be mulling over whether to remove Powell.

Now that the tariff announcements have settled somewhat, focus is shifting toward the economic impacts. We've already seen a surge in industrial imports to get ahead of extra costs, and changes have been observed in consumer survey responses. March’s retail sales increased 1.4 percent from February with gains broad based across market segments. The equity shock didn’t occur until April so any headwinds due to a “wealth” effect would show up in later months. There hasn’t been a meaningful change in manufacturing data either although output was down 0.3 percent in March due mostly to utilities while most industries reported growth. Housing starts in March fell 11.4 percent dovetailing downward with falling builder confidence. Meanwhile, the Fed's dual mandate of stable prices and maximum employment would be under pressure in a scenario where tariffs push prices higher while also slowing economic growth.

This week’s data includes Feds surveys, S&P Global PMIs, housing data, durable goods orders, and Michigan sentiment. Treasury will conduct month-end auctions from Tuesday through Thursday. Several Fed presidents are also scheduled to speak, and the Beige Book will be released Wednesday Afternoon. For MBS, Class D 48-hours is tomorrow. And on all Wall Street, earnings pick up. With only Leading Economic Indicators later, we begin the week with Agency MBS prices worse than Thursday by about .125, the 2-year yielding 3.78, and the 10-year yielding 4.40 after closing last week at 4.33 percent.