Social Security, Equity, Processing Tools; Freddie and Fannie Shifts; Release From Conservatorship Slim
“Rob, what do you hear about Fannie & Freddie being released from conservatorship?” Not much. Although it may change with one random tweet, the idea & process of jettisoning them is not even “on the back burner”… It may be back in the refrigerator. Maybe 2031? Both are certainly building up their net worth, but they don’t have enough capital to be released based on the amount of capital required under an Administrative Rule. The U.S. Government doesn’t want to lose control, or the income, and MBS traders and investors don’t want to lose the government guarantee. Scott Bessent has said, a number of times, that he doesn’t want to do anything to raise mortgage rates. It’s also important to distinguish “release from conservatorship” from what Pulte has oft- tweeted/teased: that the government may sell off a portion of the shares it controls and capture some of the value of the GSEs but still control them from an ownership (and in-conservatorship) standpoint. Perhaps we’ll see some immediate affordability relief by changes in loan level price adjustment, gfee, or MIP changes. Maybe the government should take a hard look at homeowner’s insurance, permit fees, condo fees, utility hookup fees… (Today’s podcast can be found here and this week’s ‘casts are sponsored by RelCu. RelCu is the all-in-one agentic platform driving conversion, retention, and cross-sell across mortgage and deposits. Today’s features an interview with Relcu’s Abhi Thakur on how to improve decision-making, streamline consumer data management and engagement, and where tech needs to respect legacy knowledge of mortgage operations.)
Products, Services, and Software for Brokers and Lenders
Top performers need access to the latest pricing as soon as it’s available… Are you getting that from your tech partners? MCT has rapidly deployed three new Freddie Mac integration updates, including support for Co-Issue All-In Funding (CIX AIF) loan-level pricing and committing, along with new specified pool pay-up categories for LTV and Manufactured Housing. The enhanced Cash Pricing and Cash Committing APIs now deliver both the Contract Asset Price and Contract SRP at the loan level, giving lenders a more complete view of all-in execution. As Phil Rasori noted, “Freddie Mac’s CIX AIF API enhancements unlock loan-level SRP visibility that lenders haven’t had direct access to before. Our job is to make sure our clients have that capability the moment it’s available.” These updates reflect a fast-moving wave of product development and reinforce MCT’s ability to deliver new execution options. The new capabilities are now in MCTlive! for hedge clients and Freddie Mac Cash Window-approved lenders. Read the full press release or contact MCT to learn more.
What would it mean to work with a banking group purpose-built for the mortgage industry? Western Alliance Bank’s Specialized Mortgage Services is exactly that. You’ll work with bankers who have deep mortgage sector expertise and take the time to understand your specific goals before recommending solutions. You’ll find this same approach across Western Alliance. Specialized Mortgage Services is one of 30-plus industry verticals within the bank, which means clients have access to the powerful resources of a national bank with the personal attention of a specialized team. Western Alliance delivers a fully integrated portfolio of services: mortgage warehouse lending, MSR financing, note financing and integrated treasury management. All to help IMBs increase efficiencies and keep capital working harder. Having one dedicated team, one deep relationship and one institution built around your industry is what makes the difference in expert banking. Connect with the Specialized Mortgage Services team to see what purpose-built banking looks like. Western Alliance Bank, Member FDIC.
“MortgageFlex is proud to participate in STRATMOR Group’s Solution Provider Advisory (SPA) program*, where experienced, strategic insight is helping accelerate our innovation. STRATMOR has helped MortgageFlex highlight several strengths that distinguish our platform in today’s market: borrower self‑service as a true differentiator, an unusually mature integrated default and loss‑mitigation workflow for a modern system, and a single‑database, real‑time architecture that delivers meaningful operational advantages. They also noted the power of our unified platform (seven systems in one) along with our API‑first design, rapid data conversion, and seamless migration capabilities. Our work with STRATMOR is helping us sharpen our product roadmap, elevate the user experience, and strengthen the capabilities that matter most to servicers and originators. It’s also inspiring new approaches to implementation and client engagement, ensuring every enhancement delivers measurable value. MortgageFlex remains committed to continuous improvement, and STRATMOR’s perspective is helping us move the industry forward with clarity, confidence, and momentum. To learn more, contact John McCrea. *The SPA Program is open to all solution providers supporting the mortgage industry. Contact STRATMOR to learn more.
“U.S. Bank is committed to delivering personalized support, insights, and education designed to support your business growth and solutions for your borrowers. Our leadership in mortgage lending and dedication to sustainable homeownership are matched only by our recognition as a World’s Most Ethical Company® by the Ethisphere Institute for 12 consecutive years, an organization recognized globally for advancing ethical business standards. Connect with a U.S. Bank account executive at upcoming industry events, including the Wyoming Mortgage Lenders Conference, Texas Annual MBA, Great River MBA, and MBA Secondary and Capital Markets Conference. To learn more about our HFA offering visit us at NALHFA Annual Conference or contact a U.S. Bank client sales executive. Together, we empower sustainable homeownership.”
Originating a loan can now cost lenders up to $10,806, making operational efficiency more critical than ever. Independent research from MarketWise Advisors shows that lenders using the Encompass® platform see an average benefit of $1,056 per loan and a 5:1 return on technology investment. Dig into the data to see how Encompass has driven a 10.6 percent year-over-year lift in gross profit potential through automation tools, exception-based workflows and ongoing platform enhancements. Explore the full ROI breakdown now.
The non-Agency market is hitting $400 billion in 2026. Are you positioned to win? 1 in 5 loans will fall outside agency guidelines and that means non-QM, home equity, and residential transition loans are no longer optional for serious originators. They’re essential. Most investors can handle one category. Some can manage two. Deephaven Mortgage does it all: Non-QM, Equity Solutions, Digital HELOCs, and RTL. Deephaven is the only true one-stop shop for every non-Agency deal in your pipeline. One partner. One relationship. One conversation. No more turning away deals that don’t fit the agency box. No more adding 4-5 investors – partner with Deephaven. Ready to start saying yes? Connect with Tom Davis, Deephaven’s Chief Sales Officer, or visit Deephaven at Become A Partner | Deephaven Mortgage and let’s put Deephaven to work for your business. Deephaven is also actively hiring talented Wholesale Account Executives nationwide. If you’re ready for your next chapter, reach out to Tom for a confidential conversation.
Unlock the Full Value of Social Security for Your Employees! As a Registered Social Security Analyst (RSSA®) and founder of That Social Security Gal, Wendy Barnett offers an engaging, easy-to-understand 45–60 minute webinar designed specifically for employees age 55+ (and those planning ahead). In this session, employees will learn how Social Security benefits are calculated, key claiming strategies (it’s not always best to wait until 70!), how working, marriage, divorce, or survivor status impacts benefits, and common mistakes that can cost tens of thousands of dollars. These sessions are educational, practical, and tailored to help employees make confident, informed decisions about their retirement income. Special offer for employers: Live webinar for your team ($500 per session), includes Q&A time for general questions, and no investment or product sales… education only. Providing this benefit can help your employees feel more secure, supported, and prepared for retirement, at a minimal cost for your organization. Contact Wendy directly to reserve a date.
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.
Freddie Mac and Fannie Mae Updates
By some estimates, 20-25 percent of 2026 volume will be non-Agency, equity products, jumbo, non-QM, portfolio, etc. Freddie and Fannie, however, still garner the lion’s share of business. What have they been up to recently? After all, their changes ripple through our industry.
Fannie Mae updated its rental income policy to allow income from an Accessory Dwelling Unit (ADU) to be considered towards qualifying income. Pennymac is aligning with these changes. View Announcement 26-29 for more details.
Gain the data‑driven appraisal insights you need to evaluate appraisal quality through Fannie Mae’s Collateral Underwriter. Appraisal Management Companies (AMCs) can now request access to this free, web‑based tool used to help manage collateral risk. AMCs should complete the intake form to get started, and a Fannie Mae representative will follow up within two weeks.
Recent technological advancements and a growing interest in alternative collateral valuation options have led to the growth of property data collection. Learn the basics of property data collection: what it is, how it works, who can do it and where it fits into Freddie Mac’s spectrum of collateral valuation options. Fannie Mae issued a new Lender Letter to provide temporary guidance on selling and servicing policies that may be impacted by the federal government shutdown that occurred on February 14, 2026. The temporary policies outlined in Lender Letter LL-2026-02 are effective immediately and will automatically expire when the federal government resumes full operations.
Fannie Mae posted updated income and appraisal guidance in its March Selling Guide.
The new Fannie Mae Custodial Bank Account Management application, launching April 30, 2026, eliminates PDF submissions and gives servicers and subservicers a single, streamlined platform to create and manage required letters of authorization from start to finish.
Recent technological advancements and a growing interest in alternative collateral valuation options have led to the growth of property data collection. Learn the basics of property data collection, what it is, how it works, who can do it and where it fits into Freddie Mac’s spectrum of collateral valuation options. Prepare for Fannie Mae’s upcoming servicing platform changes. Reduce risk and stay on track for upcoming servicing platform changes by downloading the updated Technical Specifications.
View Fannie Mae’s latest policy updates from the Selling Guide, Servicing Guide, Lender Letters, and Desktop Underwriter?/Desktop Originator? release notes in the February In Case You Missed It.
Fannie Mae Lender Letter LL-2026-03 updates various project standards policies, as well as property insurance requirements for one-to four-unit properties and project developments.
Revisions support a more stable and resilient housing finance system and manage financial risk. Updated property insurance requirements supersede previous guidance on citing findings for noncompliance related to obtaining replacement cost values.
Fannie Mae reissued February Selling Guide announcement with updated effective date language for GSE alignment of MH Advantage® and CHOICEHome® manufactured home requirements.
More detailed guidance is now available to help you support homeowners as Fannie Mae’s March Servicing Guide, SVC-2026-02, clarifies remittance requirements for stop‑delinquency advances and temporary interest rate buydowns. It also includes updates to income assessment policy.
It is now easier than ever to find answers to common selling questions. Check out Fannie Mae’s updated Income Assessment section for real-world lending scenarios and guidance that can help streamline your work so you can serve more borrowers.
Capital Markets
Rising mortgage rates, driven by inflation concerns and shifting expectations for fewer Fed rate cuts, have increased MBS duration and sharply reduced refinancing activity, highlighting growing extension risk concentrated primarily in higher-coupon securities while lower coupons remain relatively stable. Although refinance applications have dropped significantly in recent weeks, they are still above late-2023 levels and unlikely to revisit the severe downturn seen then unless rates rise further. Higher coupons carry more volatility and prepayment risk, while lower coupons offer more predictable cash flows, reinforcing the idea that positioning within the MBS stack is critical.
Agency MBS performance weakened in March, posting its worst monthly excess return since April 2025 as rising volatility, increased supply, and geopolitical uncertainty pressured the sector, with longer-duration 30-year securities underperforming while shorter-duration products held up relatively better. Despite negative recent momentum, the sector remains modestly positive year-to-date, supported by steady demand from ETFs and incremental bank buying, though elevated volatility and inflation risks continue to cloud the outlook. With spreads near recent wides and prepayment concerns easing amid higher mortgage rates, investors are increasingly favoring higher coupons and shorter-duration exposure, emphasizing capital preservation as uncertainty around the war and macro conditions persists.
There was some positive sentiment and market movement yesterday as investors grew more optimistic that the Iran conflict could wrap up within weeks after comments from President Trump. Economic data largely backed that positive tone: ADP showed 62k jobs added in March (well above expectations), retail sales rose 0.6 percent with broad-based strength, and manufacturing continued to expand with the ISM index at 52.7… hardly signs of an economy under stress. That said, the catch is that most of this data came before March’s spike in oil prices and equity market volatility, which are likely to weigh on consumer spending going forward. Additionally, rising input costs in manufacturing reinforce the idea that inflation isn’t going away quickly, making Fed rate cuts less likely in the near term.
Today’s economic calendar kicked off with March job cuts from Challenger (60,620 job cuts in March, up 25 percent from 48,307 cuts announced in February. It is down 78 percent from the 275,240 cuts announced during the same month last year), which was followed by weekly jobless claims (202k, roughly as expected; 1.841 million continuing claims) and the trade deficit ($57.3 billion). Later today brings Treasury announcing the refunding supply (consisting of $58 billion 3-year notes, $39 billion 10-year notes, and $22-billion reopened 30-year bonds), Freddie Mac releasing its Primary Mortgage Market Survey, and remarks from Dallas Fed President Logan. We begin the day with Agency MBS prices worse .125-.250 from Wednesday’s close, the 2-year yielding 3.83, and the 10-year yielding 4.35 after closing yesterday at 4.32 percent.