Webcasts, HELOC, AI Products; Product and Conv. Conforming News; Shared Equity Report

A big thrust by many lenders and originators is helping homeowners use the equity in their home or offering a shared equity product. And why not: there’s $36 trillion in home equity out there. And in an industry where we’ll be lucky to hit $2 trillion this year, it’s a juicy target. Jim Riccitelli, CEO of Unlock Technologies, sent me a recent study titled, “How Shared Equity Products Work, Who Is Using Them, and Regulatory Recommendations”. (Today’s podcast can be found here. This week’s ‘casts are sponsored by FirstClose, which provides fintech solutions to HELOC and mortgage lenders nationwide. Their home equity lending platform accelerates the home equity lending process, reducing application-to-closing times from 45 days to less than ten. Today’s has an interview with Cinchy’s J. Paul Haynes on helping enterprises safely deploy AI in production, and gain the visibility, runtime policy enforcement, and operational oversight needed to confidently scale AI.)

Broker and Lender Products, Software, and Services

Affordability pressure doesn’t disappear when the loan closes. It comes back later as repurchase risk. Your borrowers are stretched, leaving less room for errors in the file. Truework, a Checkr company, verifies income, employment, and assets before you close, replacing error-prone processes with fast, automated reports pulled directly from sources. Lenders see up to 50 percent cost savings on verifications, with faster turn times and higher accuracy. Learn more.

Every HELOC application that fails to fund represents lost revenue and a missed borrower opportunity. Yet many lenders continue to lose borrowers to application abandonment, lengthy closing timelines, manual processes, and poor communication. By reducing friction across the borrower journey and automating key workflows, lenders can improve HELOC pull-through rates, accelerate funding, and create a better borrower experience. Read how leading institutions are turning more applications into funded loans.

“AI won’t fix a broken process. But the right AI, in the right hands, changes what your team can do. That’s the conversation Total Expert is bringing to Uniquely TMC in Austin on Tuesday, 9/22. Stop by the Partner Showcase, “Becoming a 10X Lender,” at 9:30 AM to see what’s possible when you give AI agents the right context and pair them with proven adoption playbooks. Then, join our whiteboard session on Borrower Retention & Recapture at 10:45 AM (‘the top servicing challenge heading into H2 2026’) to learn how lenders are building retention programs that span origination through servicing. Then, close out the day with us and HousingWire at The Electric Shuffle for happy hour. Book time with our team.”

Rhyze has built a True HELOC solution for the delegated correspondent channel that addresses the problem when your borrower doesn’t accept or qualify for your digital HELOC offering. Many of your clients want a rate that competes with the local market, with True HELOC draw and IO terms. Many of your clients may need more than 1 borrower to qualify, need to be manually underwritten, or simply need expert guidance and advice from their loan officer. To give your clients the best of the best, email Rhyze directly to develop your True HELOC strategy with the market-leading HELOC program.

Chrisman Demo Day is a free perk for all Chrisman Marketplace members. If you’re a technology or service provider and haven’t joined the Marketplace yet, reach out to Jake Perkins at info@chrismancommentary.com to learn more.

The Chrisman Marketplace is a centralized hub for vendors and service providers across the 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.

Webcasts Coming Your Way

“Non-QM grew 31.6 percent year over year, with an estimated $239.3 billion in originations, and the originators who noticed are winning in 2026. This NMP Webinar, our Non-QM Town Hall on Thursday, September 24 at 1 p.m. ET / 10 a.m. PT, puts NMP CEO Andrew Berman in the room with Aaron Leffler of Brokers First Funding, Delfino Aguilar of Kind Lending, and Nick Pabarcus of Pennymac TPO, three executives who see what the top non-QM producers are actually submitting and where they’re getting their loans. They’ll get into which products are driving real volume versus generating chatter, the untapped markets brokers should be sourcing before year-end, who’s buying non-QM paper beyond Wall Street and how it’s performing, and how leading originators are positioning non-QM inside an existing practice. The opportunity is growing, and the question is whether you’re positioned to capture it. Register here.”

A three-year-old can open an app before they can tie their shoes, yet plenty of seasoned originators still spend Sunday nights writing social posts one at a time. Kyle Raineri, founder and CEO of RealEstateContent.ai, used AI to grow a page to 300,000 followers in 60 days, and he is walking mortgage professionals through exactly how it works on Tuesday, September 22 at 1 p.m. ET / 10 a.m. PT for this 60-minute NMP Webinar, Scale Your Business with AI & Social Media. By attending, you’ll learn how to run your social media marketing with AI, build a month of professional content in a single sitting, and set up a simple hands-off system that generates leads while you originate. No AI background, no tech background, no excuses required. Register here.

Non-QM Deep Dive on 9/29: Business Purpose Loans and TRID Requirements. Take the guesswork out of Business Purpose loan compliance. Save your spot for Pennymac TPO’s upcoming Non-QM Deep Dive, “Business Purpose Loans and TRID Requirements” on September 29th at 10AM PT/1PM ET. You’ll gain insights on core TRID criteria for Business Purpose loans, how to navigate documentation requirements, and strategies to keep your pipeline moving forward. Register today, contact your Pennymac TPO Account Executive, or become a partner to learn more. We hope to see you there! (Equal Housing Lender, NMLS #35953)

Last Word is today at 10AM PT. Brian Vieaux, Kevin Peranio, Christy Soukhamneut, and Coby Hakalir break down the week’s biggest market signals, agency developments, and industry storylines. The discussion focuses on what the industry got right, what it missed, and what lenders should be watching next.

Investor and Lender Tidbits

Yesterday the Commentary noted that United Wholesale Mortgage (UWM) announced the extension of Bullseye 90, its 90 basis points (bps) pricing incentive, and the removal of certain high balance LLPAs through October 30, giving more pricing power to brokers. To clarify, brokers can now use the Bullseye 90 incentive two more times through October 30”. Additional details about Bullseye 90 can be found here and high balance LLPA removal details can be found here.

Plaza Home Mortgage reminded brokers of its program to help borrowers who already have equity in their homes and want to access it and have predictable payments, there’s the Plaza Home Mortgage® Closed-End Seconds. The program perks: Loan amounts from $50K–$500K, FICO scores starting at 680, up to 85 percent CLTV (80 percent in TX), Full Doc and Bank Statement options, Cash-out freedom, and no first mortgage disruption.

Pennymac issued Announcements 19-66 and 19-70, requiring all loans to include a consent form meeting the requirements of the Taxpayer First Act. View Announcement 26-97 for more information.

After a thorough review of Fannie Mae’s condo project standards, policies, and eligibility requirements when using the Full Review method, AmeriHome Mortgage is providing the following best practices and tips for successfully delivering loans as another resource for their Sellers. For more information, view AmeriHome Mortgage 20260807-CL Operations Announcement.

Conventional Conforming Changes

Despite the steady increase in market share by non-Agency investors, what Freddie Mac and Fannie Mae do is still important and has ramifications in the primary markets.

FHFA director Bill Pulte, who fired a swath of senior Fannie executives a few weeks ago, on Tuesday directed Fannie Mae to align its servicing policy with Freddie Mac, allowing mortgage servicers to proactively contact borrowers who may qualify for mortgage insurance cancellation based on their home’s current value, potentially resulting in reduced monthly payments. “Today, I directed Fannie Mae to update their Guide to reflect Freddie Mac’s Guide, namely that mortgage servicing companies can notify borrowers who qualify for mortgage insurance cancellation based on current market value.”

Clarify requirements, improve consistency, and expand eligibility with Fannie Mae’s September selling guide updates. Learn how September updates simplify rental income decisions, support highest and best use appraisal requirements for Uniform Appraisal Dataset 3.6 reporting, and expand Native American lending opportunities.

Pennymac updated Conventional LLPAs effective for all Best-Efforts Commitments taken on or after Wednesday, September 2, 2026. See Announcement 26-105 for details.

Pennymac updated Conventional, Jumbo, and Non-QM LLPAs effective for all Best-Efforts Commitments taken on or after Friday, September 4, 2026. See Announcement 26-106 for details.

Newrez Correspondent issued a reminder regarding Freddie Mac Bulletin 2026-10 updates to Accumulated Assets as Income Guidelines. Assets used for qualifying income are an overlay at Newrez and only permitted for non-delegated underwriting.

Pennymac updated Conventional LLPAs effective for all Best-Efforts Commitments taken on or after Tuesday, August 25, 2026. See Announcement 26-100 for details.

Effective June 3, 2026, Fannie Mae SEL 2026-06 introduced a policy revision regarding the use of IRS Form 8821 as an alternative to IRS Form 4506-C to obtain IRS tax transcripts.

Effective with new commitments taken on or after September 3, 2026, Temporary Buydowns are eligible with purchase transactions only. Temporary Buydowns are ineligible with any refinance transactions. See AmeriHome Mortgage 20260901-CL Product Announcement for more details.

Newrez Correspondent updated Conventional & VA LLPAs effective for all Best-Efforts Commitments taken on or after Wednesday, August 26, 2026.

Fannie Mae has expanded the use of VantageScore® 4.0 from a limited rollout to broad availability. The expansion gives Fannie Mae-approved lenders another credit score option and represents continued progress toward a more modern and competitive credit score framework.

Maximize qualifying income for more borrowers with Fannie Mae’s Income Calculator, with support for wage-earner income, including paystub/W-2 and variable earnings. Available through select integration providers, with web interface access coming later this fall.

Capital Markets

Wonder what happens to your FHA & VA loans? Ginnie Mae’s mortgage-backed securities (MBS) portfolio outstanding grew to $3.01 trillion as of August 2026. In addition, Ginnie Mae issued $52.14 billion in total MBS, resulting in net portfolio growth of $24.46 billion. Year to date, Ginnie Mae facilitated the pooling and securitization of 478,434 first-time homebuyer loans. Key highlights from the July issuance include: $49.97 billion in Ginnie Mae II MBS and $2.17 billion in Ginnie Mae I MBS, including $2.09 billion for multifamily housing loans. This included the pooling and securitization of loans for more than 151,000 American households, including over 69,000 first-time homebuyers.

The Fed’s return to tightening has restored some investor confidence in its commitment to fighting inflation, with Wednesday’s unanimous 25-basis point hike and Chair Warsh’s hawkish messaging emphasizing that inflation remains the primary problem while growth is proving more resilient than expected. MBS and U.S. Treasuries rallied modestly Thursday, led by the long bond, as lower oil prices and the Bank of England’s decision to halt long-dated gilt sales supported broader strength in longer-term sovereign debt. Despite the Fed’s hawkish stance, the case for additional hikes is less clear-cut because yesterday’s move may have served partly to reestablish inflation-fighting credibility rather than respond to an economy that clearly demanded tighter policy. Fiscal concerns should continue to provide a headwind to long-duration bonds and make a sustained move below 5 percent in the 30-year difficult without a meaningful deterioration in growth or risk assets. The median dot implies only one additional hike this year and steady rates through 2027, but the distribution is more hawkish than the median suggests: 16 of 18 policymakers see 50-basis points to 75-basis points of cumulative tightening in 2026, eight see a 4.375 percent terminal rate in 2027, and the market is pricing roughly 75-basis points of additional tightening by June 2027. The near-term question is whether the Fed hikes again in October, with markets assigning roughly a 53 percent probability versus 75 percent for December. Economic data, not concerns about political optics around the midterms, should ultimately determine the pace of further tightening.

Since much of the expected tightening is already priced in, bond yields are expected to drift lower as investors reassess how much additional tightening can realistically restrain an economy supported by resilient growth and inflationary pressures tied to geopolitics, energy, and AI-driven demand Agency mortgage-backed securities (MBS) have unusual, often negative, convexity (which leads to an asymmetric payoff when rates go down) because homeowners effectively hold a prepayment option: when rates fall, they can refinance and repay their mortgages at par, accelerating investors’ cash flows just as MBS prices would otherwise rise, while when rates rise, prepayments slow and investors remain exposed to longer-duration assets. This makes MBS prices and duration more sensitive to rate moves than comparable option-free bonds and helps explain their yield premium; not as compensation for credit risk, since Agency MBS carry an implicit or explicit government guarantee, but for uncertainty over the timing of principal repayment and the resulting hedging costs. Mortgage investors therefore generally prefer range-bound rates, which keep duration more stable, while deeply out-of-the-money mortgages can become positively convex when rates rise enough to eliminate refinancing incentives. That dynamic became especially pronounced after the Fed’s 2022 tightening pushed mortgage rates sharply higher, leaving much of the low-coupon MBS universe with little or no refinancing incentive and, unusually, positive convexity.

With mortgage rates rising again, roughly 98 percent of 30-year borrowers reportedly now lack a refinancing incentive, pushing the sector’s convexity back toward (or in some cases into) positive territory, particularly in higher-coupon 5.5 percent mortgages, while 4.5 percent coupons are approaching the same threshold. U.S. housing economic data yesterday was modestly weaker. August housing starts and building permits both fell short of expectations. Single-family construction, the key driver of Agency MBS supply, continued its gradual decline seen over the past year. The slowdown is broad-based across regions, with single-family starts down 9 percent in the Northeast, 8 percent in the West, and 5 percent in the South as builders respond to rising inventories and borrowing costs. Permits, the more forward-looking measure, showed softness across all regions for single-family construction. Pending home sales edged up only 0.3 percent after a downward revision to July.

The Philadelphia Fed Index remained strong at 37.8, but it showed renewed price pressures, with both prices paid and prices received rising sharply. Overall, growth remains resilient, but the housing sector is losing momentum, and inflation pressures are becoming more pronounced. Today’s economic calendar kicks off later today with August Industrial Production and Capacity Utilization, and will be followed by the August Leading Index. We begin Friday with Agency MBS prices slightly worse than Thursday’s close, the 2-year yielding 4.71, and the 10-year yielding 4.96 after closing yesterday at 4.95 percent.