“Why do millennials think the government saved their lives? Because they are indebted to it forever.” Here in Colorado, the United States federal government owns more than a third of Colorado land. Quick, build subdivisions! But the federal government is in the news for another reason. Either I’m getting older, or these budget stalemates seem to come more often every year. Furloughed people don’t buy houses, some may not make their mortgage payments, and hundreds of thousands of federal employees will be furloughed if additional funding cannot be approved. Lenders are on alert, of course, and there are more details in the Capital Markets section below. Meanwhile, LOs are just trying to keep up on trends and in today’s Mortgage with Millennials at 1PM ET, sponsored by Tidalwave, the hosts sit down with Bradley Clerkin, Head of AI at ThoughtFocus, and Jayendran GS of Prudent AI, to explore how stronger data pipelines, compliance-ready models, and borrower-facing innovations are transforming underwriting, risk management, and the customer experience. And at 2PM ET, the hosts are joined by Liz Green and Michael Simmons on Mortgage Pros 411 to discuss appraisal trends. (Today’s podcast can be found here and this week’s are sponsored by Spring EQ, one of the nation’s leading non-bank home equity lenders, giving partners more ways to serve customers. Known for speed, service, and innovation, Spring EQ makes tapping into home equity easier. Hear a discussion between Robbie and Rob Chrisman about what lenders are seeing.)
Services, Products, Software, and Tools for Lenders and Brokers
Discover Flagstar Bank's Specialized Mortgage Banking Solutions Team! Flagstar Bank understands the unique needs of the mortgage industry. That's why the Specialized Mortgage Banking Solutions Team is dedicated to helping lenders and loan servicers streamline operations, manage funds efficiently, and deliver fair pricing to keep borrowers happy. The bank offers a suite of Control Account Agreements tailored to provide lenders and servicers with enhanced account oversight and efficient cash flow management. Treasury Management products are designed to enhance operational efficiency and safeguard funds with tools like ACH Fraud Filter to prevent unauthorized transactions, secure PO box access for controlled check collection and RDC (Remote Deposit Capture) scanners that eliminate excessive manual handling of checks. The experienced SMBS team at Flagstar is committed to helping lenders and borrowers succeed and welcomes the opportunity to connect, explore how to enhance the borrower’s experience, improve cash flow visibility and support business growth. Flagstar is ready to move your business forward. Visit Flagstar.com/SMBS or email Hermine Chorekchyan or Andrew Konopka to learn more.
“30 percent of all mortgage applications are denied due to credit challenges. And many are just a few points shy of the 620-threshold. With the right follow-up, these borrowers could qualify in months, yet most lenders let them walk away, losing trust and business along the way. In our latest webinar, Building Your Future Pipeline, you’ll learn how a structured re-engagement strategy can turn today’s credit denials into tomorrow’s funded loans. Capturing just 10 percent of these applicants could mean $70–$100 million in additional volume for a $2B lender without chasing a single new lead. We’ll also show you how to turn Credit Improvement Alerts into a goldmine of revenue. With 7,000+ alerts a year representing $200 million in potential applications, the opportunity is enormous… if you know how to act. Watch now to learn how to build a smarter pipeline and maximize ROI >.”
“Stay Ahead of the MERS Annual Review Deadline with Clayton. If your organization serviced 1,000 or more MERS loans as of March 31st, you are required to complete an Annual Review with a qualified third-party vendor by December 31st. Missing this deadline can result in steep fines or even suspension from the MERS system. Clayton Servicing Oversight is your trusted partner to make this process painless. With deep expertise and proven experience, our team ensures your review is conducted efficiently, accurately and in full compliance with MERS requirements. We help you avoid risk while giving you confidence that your operations are protected. Don’t wait until it’s too late. Engage with Clayton now and get the help you need before the year-end deadline.”
“We get it…CE usually ranges from ‘meh’ to ‘please make it stop.’ Most courses are either too long, too boring, or taught by people who've never actually worked in the real world. That's exactly why Diehl is offering 25 percent off all your 2025 NMLS continuing education. Built by mortgage professionals with decades of experience in lending compliance and daily operations, our real-world knowledge makes us exceptional educators who create fast, affordable, and way less terrible CE you'll maybe actually want to take. Simply fill out the form, and BAM, you’re in!”
The commercial lending market is exploding, with $1.5 trillion in maturing loans over the next few years and a shortage of brokers to handle the surge. Oceanview Commercial Lending, led by 25-year veteran Chris Perez, offers a turnkey broker partnership that lets residential brokers tap into this booming opportunity without disrupting their current business. Brokers receive marketing support, AI-powered tools, expert training, and access to a 6,000-lender network. With just a few hours a week, brokers like Claudia in Illinois are earning $20,000–$30,000 monthly. Chris is seeking 5–10 brokers per state to join this exclusive program. Schedule a strategy session. Join the free weekly seminar (Wednesdays, 1PM EST).
The Chrisman Marketplace is a centralized hub for vendors and service providers across the mortgage industry to be viewed by lenders in a very cost-effective manner. We’re adding new providers daily, so check back often to see what’s new. To reserve your place or learn more, contact us at info@chrismancommentary.com.
Correspondent and Wholesale Products
Borrower stuck with high DTI? Daniel in CA was blocked at 55 percent DTI and couldn’t qualify for his new home. His LO used Flyhomes Buy Before You Sell: a backup offer on his departing home let the underwriter disregard that mortgage. His DTI dropped to 40 percent, approval came instantly, and he closed, avoiding a double move and gaining 180 days to prep his old home for sale. This nationwide solution requires no loan, offers a competitive flat fee, and can be ready in 24 hours. Over the past 10 years, Flyhomes has helped 5,000+ buyers move into their next home. On average, LOs close 1.2 more loans per month with Buy Before You Sell, now available nationwide. Bonus: Now through Oct. 31, get 50 bps off interest rate on all locks! Book a call today to learn more.
“Have you ever found a $100 bill in an old jacket pocket? That’s what our ReverseMatch service feels like, except the payout could be much greater! Finance of America helps you identify reverse mortgage opportunities hiding in your book of business. These are clients you’ve already helped with a first mortgage who may now be eligible and in need of extra cash. Fill out our HomeSafe Second ReverseMatch form to get started. Our team will be in touch soon! The borrower must meet all loan obligations, including meeting all loan obligations under the first lien mortgage, living in the property as the principal residence, and paying property charges, including property taxes, fees, hazard insurance. The borrower must maintain the home. If the homeowner does not meet these loan obligations, then the loan will need to be repaid. Finance of America | NMLS #2285”
Redesigning the Borrower Experience
What if mortgage lending took a page from the hospitality industry? In their latest InFocus article, STRATMOR Group’s Garth Graham and Will Ayer make the case that it’s time for a systematized, human-centered redesign of the borrower experience. Too often, getting a mortgage feels confusing and transactional. STRATMOR argues that lenders who intentionally build in care, clarity, and confidence at every step can turn borrowers into loyal fans—and generate more referrals in the process. “Welcome to the Era of Hospitality: Why Mortgage Needs a Systematized, Human-Centered Redesign Now,” lays out why hospitality principles matter now more than ever, and how leaders can engineer moments that reduce friction while creating positive emotional peaks. It’s not about adding “nice touches” here and there. It’s about creating a consistent, repeatable model that puts people first. Check out the full September Insights Report here.
Reverse Mortgage Divisions
Yesterday I received an “MLO VieauxPoint” from Brian Vieaux, CMB, President & COO of FinLocker & Founding ‘Expert’ of MLO Live, discussing an opportunity “hiding” in plain sight.
“Active Adults, homeowners 55 and older, control trillions in housing wealth and now represent the largest share of buyers and sellers in the housing market. Yet too many loan officers overlook this segment, focusing (rightfully so) on early-journey first-time buyers. What if you did both?
“As Jesse Allen, President of Reverse Mortgage Financing at Rate, shared on my podcast, reverse mortgages, especially reverse for purchase, create powerful optionality for clients. Imagine a homeowner selling their $500,000 property and buying a $700,000 ranch closer to family. With a reverse for purchase, they could put 60% down and live without a monthly P&I payment for life (taxes and insurance still required).
“The opportunity for loan officers is bigger than any single product. By adding strategies to serve Active Adults, you position yourself as a true homeownership advisor, from the point of thought with a first-time buyer through their full life cycle of homeownership. You also expand your referral network: family members, financial planners, CPAs, and Realtors all have a stake in these transactions. Practical tactics include segmenting your database for clients 55+, hosting community seminars on rightsizing and aging in place, partnering with Realtors to “unstick” sellers, and using simple scenarios to explain options in plain language.
“Serving Active Adults isn’t just about adding volume. It’s about building trust, unlocking inventory, and extending your career impact. The full article just may inspire you to learn more about this channel.” Thank you, Brian! #VieauxPoint
Capital Markets
Despite a federal government shut down, expect mortgage-backed securities to trade without interruption, and those in the financial markets know that the SEC will operate with minimal market oversight. There will probably be delays on Social Security payments, small business loans, and clinical trials for medical treatments, while exporters won't be able to get licenses.
For investors, a shutdown could postpone economic data releases. The first delay could come on Friday, when the closely watched non-farm payrolls report for September is due to be published. If a shutdown continues, it could affect upcoming inflation readings, complicating the Federal Reserve's meeting on interest rates at the end of October. The White House has also threatened mass firings if the government shuts down, with the Office of Management and Budget instructing federal agencies to prepare reduction-in-force notices that could go beyond the DOGE cuts instituted earlier this year.
Whether or not we see the jobs data Friday, know that the Federal Reserve has resumed interest-rate cuts to address a stalled job market, but lower rates alone might not be sufficient to quickly revive hiring. Businesses cite issues such as high costs, tariffs, and tight credit as more significant challenges than demand, and the traditional benefits of lower rates, such as rising stock prices and reduced mortgage rates, are less effective in the current environment.
Yesterday's economic data was limited to the Pending Home Sales report for August, which at 4.0 percent was well ahead of expectations thanks to a dip in mortgage rates. Rates aren’t really budging this week though. In Washington, a federal government shutdown looks like it will be just hours away, with a last-minute deal in Congress needed to prevent agencies from closing at 12:01 a.m. Wednesday. The Bureau of Labor Statistics confirmed that it will not release the September Employment Situation report on Friday if the government shuts down. When released, the September jobs report is forecast to show another month of modest employment growth, holding the unemployment rate steady. The labor force participation rate, the average workweek, earnings, and job openings likely eased.
Today’s month- and quarter-end session’s data kicks off with Redbook same store sales for the week ending September 27, and will be followed by July house prices from Case-Shiller and FHFA (both expected to decrease), Chicago PMI for September, consumer confidence, August JOLTS job openings, Dallas Fed Texas services, some short-duration Treasury auctions, and remarks from no fewer than four Fed speakers. Overnight, the Royal Bank of Australia was out with its latest monetary policy decision, with no change in the cash target rate. We begin the day with Agency MBS prices unchanged from Monday’s close, the 2-year yielding 3.61, and the 10-year yielding 4.14 after closing yesterday at 4.14 percent.
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