Jan. 3: Zillow vs. Google; thoughts on price analysis; industry thoughts on FHA's MMI Fund; Saturday Spotlight: MortgageRight

“I spent all my rent money leasing a limo and it didn't come with a driver. I wasted all that money with nothing to chauffeur it!” I don’t ever recall living in Manhattan as “affordable.” Ever. Many voters, however, believe that Zohran Mamdani, the new mayor, will have an impact on housing, despite the fact that may decisions are made at the state level. Recall that housing policy has been central to that affordability message for Mamdani, like freezing the rent on the city’s rental stabilized apartments, which represent about half of the city’s rental housing stock. Mamdani introduced a slate of executive orders all aimed at housing. “On the first day of this new administration, on the day when so many rent payments are due, we will not wait to deliver action.” He announced three executive orders including the creation of two new city task forces on housing policy (one to take inventory of city-owned land that could be used for housing and another to identify ways to spur development). “The housing crisis is at the center of our affordability crisis. There are a number of things we are going to be focused on: protecting tenants, going after bad landlords, and building more housing. A huge part of how we get out of our housing crisis is to build more affordable housing across the city.”

Saturday Spotlight: MortgageRight

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“Maximize Your Freedom and Increase Your Revenue”

When was it founded and why, what it does, where, recent growth and plans for near-term future growth?

MortgageRight LLC is a direct mortgage lender headquartered in Birmingham, Alabama, operating under TJC Mortgage, Inc. (NMLS #2239). Founded in 2005 by Chris Carter, Tanner Allen, and Joe Meadow, the company focuses on developing branch managers throughout the country. Early on the focus was lending in Birmingham community but now licensed in 47 states. In 2014 the company started rapid growth and operates 47 branches nationwide. The primary objective is to allow branch managers to run their business with real freedom and flexibility.

Tell us about what type of volunteer work employees are encouraged to engage in, or charities your company supports, and why?

MortgageRight proudly identifies as veteran-owned and operated, something that influences their mission, marketing, and commitment to serving their clients.

What does your company do to help elevate your employees’ growth? Describe any mentoring programs, outside classes or training, in-house training. How does the company help people develop?

MortgageRight’s primary business is providing the best possible P&L platform for Branch Managers to have a clear edge in today’s competitive market. Our branch development team has decades of combined experience to ensure smooth transitions and long-term relationships. MortgageRight offers a true P&L branch model for branch managers to excel. With financial transparency, operational autonomy, and a framework that rewards performance, it's tailor-made for those looking to lead and scale in the mortgage industry.

Things you are most proud of that don’t have to do with sales.

1. Veteran-Owned & Operated

Being part of a company founded and led by veterans means you’re tied to an organization that values service, integrity, and discipline—qualities that go beyond business and speak to character.

2. Client-Centered Values

MortgageRight puts transparency, honesty, and education at the forefront, so you can feel good knowing you help clients make confident, informed financial decisions.

3. Community Impact

Branches often participate in local events, charity efforts, and initiatives supporting veterans, first responders, and other community members in need.

4. Operational Excellence

You’re backed by efficient processes, advanced technology, and real-time financial tools that make the mortgage process smoother for clients, something worth taking pride in even if you’re not in sales.

Explore the platform at BranchRight.com

(For more information on having your firm’s extracurricular activities, employee growth, and your charitable side featured, contact Chrisman LLC’s Anjelica Nixt.) 

Curtis Knuth on pricing and transcripts

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“I think clarity matters here,” said Curtis Knuth, president & CEO of NCS & Service 1st. “There are so many new pricing strategies being offered to originators for ’26. Whether it’s FICO’s program or tri-merge bundling strategies, lenders should lean into their analytics and AI to best gauge whether these approaches will work for their lending footprint. An LLM like ChatGPT or Copilot, they’re all really helpful first-line price analysis tools.”

Knuth went on to discuss IRS transcript data. “There’s a false narrative being circulated that there is one, or maybe two vendors with direct access to IRS data via a form or web based 8821 consent process. That’s just blatantly false. NCS was the first to offer IRS transcript data commercially in 1993, and we brought on direct access via 8821 several years ago.”

He also highlighted several corporate strategies for ’26. “NCS and our resellers will be releasing truncated data sets and report formats to lower price points. We’ve also truncated the full TIN that the IRS decided to re-release into its payloads. Lenders not using NCS or NCS resellers should confirm how this TIN re-release is being handled by their vendor.” Thank you, Curtis!

Zillow feeling the heat from Google?

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Zillow shares plunged on a December Monday worries that the online real estate platform could have a big new competitor: Google Search. Google appears to be running tests on putting real estate sale listings into its search results. Real estate tech strategist Mike DelPrete published mobile phone screenshots of Google Search results showing real estate listings, which appeared to be powered by real estate data company HouseCanary. The listings enabled users to view the full details of a property’s page, request a tour and contact an agent. If it sounds familiar, it is: the process is similar to the functions offered on Zillow.com’s online marketplace portal. Google’s home searches appear to work only in select markets and on mobile devices as testing is underway.

CNBC reports that, “The decline in Zillow signals investors are bracing for the eventual impact of Google’s foray into the real estate market. Zillow, which saw shares drop more than 11 percent at one point during Monday’s session, lost about $1.6 billion in market cap. Zillow’s market cap now sits at about $16.26 billion.

“However, Wall Street analysts were quick to point out that Zillow’s exposure to organic search is fairly small, limiting potential downside at least in the near term as more details around Google’s product come to light. Wells Fargo analyst Alec Brondolo said he would not ‘expect a meaningful financial impact from listings on Google shifting from organic to paid’ given that Zillow is not overly dependent on organic search results for traffic.

“’The listings product appears similar to Google Hotel Metasearch results; introduction could increase traffic cost to Zillow, but disintermediation unlikely. In the hotel category, Google merchandises hotel rooms in search results as a metasearch ad product for OTAs. We would expect a similar approach in real estate, with Zillow, Homes.com, Realtor.com, etc. bidding for home listing ad units rather than Google attempting to monetize directly with an ad product sold to agents.’

“But Goldman Sachs’ Michael Ng wrote in a note to clients that he believes the search engine’s real estate listings, which he said are an advertising format for buy-side agents, directly compete with Zillow’s Premier Agent program by ‘facilitating lead generation’ for agents from prospective buyers. ‘While we don’t expect a direct near-term impact on Zillow’s business, given that most of Zillow’s traffic is direct (e.g., Zillow.com, StreetEasy.com, mobile apps) and Google’s new product is currently limited to select markets and mobile browsers, we view this development as a long-term risk for real estate portals like Zillow.’”

The industry weighs in on FHA

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Whether it is about interest rates or programs, politics or shutdowns, it is impossible to not mention the United States Government when it comes to residential lending. HUD, for one, continues to lead the pack in consumer home buying counseling.

A few days ago out came the FHA’s annual report on the Mutual Mortgage Insurance (MMI) Fund, focusing on taxpayer stewardship, program integrity, and prioritizing American citizens while continuing to support homeownership and housing affordability. In fiscal year 2025, FHA insured more than 876,000 single-family mortgages, 83 percent of which supported first-time homebuyers, and over 28,000 reverse mortgages for seniors, with active insurance covering more than 8.1 million forward loans totaling over $1.6 trillion and $64.3 billion in HECM obligations. Strong oversight contributed to a robust financial position, with the MMI Fund’s capital ratio reaching 11.47 percent as of September 30, 2025, and economic net worth rising to $188.87 billion, up $16.11 billion from the prior year, reflecting continued improvement in the fund’s financial strength.

“The latest actuarial report confirms that the FHA remains on a solid financial footing, which is vital for maintaining the broad access to credit that first-time and underserved home buyers rely on," said Isaac Boltansky, Head of Public Policy at Pennymac. "A healthy FHA doesn’t just support individual homeowners; it anchors a balanced housing ecosystem. We are encouraged by this year-over-year strength and remain hopeful that FHA leadership will continue to steadfastly manage its vital responsibility to the market.”

Yes, this week the Federal Housing Administration (FHA) released its Annual Report to Congress on the financial status of FHA’s Mutual Mortgage Insurance Fund (MMI Fund) covering FHA’s Title II Single Family Mortgage Insurance programs for fiscal year (FY) 2025. (You can read the actual press release and Annual Report.)

MBA’s President and CEO Bob Broeksmit, CMB, had thoughts. “Strong underwriting standards and prudent risk and loss mitigation practices across HUD, FHA lenders, and servicers continue to underpin a sound FHA program, marked by robust capital reserves.

“The MBA shares the Trump administration’s goal of making homeownership more affordable and appreciates the FHA’s efforts this year to streamline its single-family financing programs, cut red tape, and remove housing construction barriers.

“With the Mutual Mortgage Insurance Fund holding a very high capital reserve of 11.47 percent (well above the 2 percent statutory minimum) we will review the report in greater detail to assess whether any policy changes are warranted to improve affordability and access to homeownership in 2026, including a potential reduction in FHA’s annual mortgage insurance premiums. Any such changes should be calibrated responsibly and informed by a careful evaluation of the program and the economic factors behind the rising serious delinquency rate to ensure the program remains safe, sound, and sustainable."

Robbie Chrisman wrote to me, saying, “As policymakers look for ways to improve housing affordability in 2026, reducing FHA mortgage insurance premiums (MIP) is an obvious option given the Mutual Mortgage Insurance (MMI) Fund’s strong capital position, with that 11.47 percent capital ratio well above the 2 percent statutory minimum. However, eliminating upfront or annual MIP, particularly once a borrower’s loan-to-value ratio falls below 80 percent, carries meaningful risks, as home equity can quickly erode during price declines and the MMI Fund’s health is heavily dependent on home price appreciation assumptions, a vulnerability exposed during the post-2008 period when the fund fell below required levels.

“Ending MIP for low-LTV FHA borrowers would materially reduce future cash flows into the fund, as roughly 57 percent of FHA loans backing Ginnie Mae II 30-year securities already meet that LTV threshold and reversing such a policy during a downturn would likely be politically infeasible. Moreover, comparing FHA borrowers to conventional borrowers is misleading given FHA’s higher-risk credit profile, suggesting that any MIP relief would be more prudently tied to loan seasoning (i.e., after 10 years of performance) rather than to LTV levels that can prove fleeting in a housing downturn.”

Seth Appleton, President of U.S. Mortgage Insurers (USMI), the association representing the nation’s leading private mortgage insurance (MI) companies, said, “The FHA must remain well-capitalized in order to perform its critical countercyclical function in America’s housing market and enable access to mortgage credit for those who may not otherwise be able to secure financing through the conventional and portfolio mortgage markets that are backed by private capital. We commend HUD Secretary Scott Turner and FHA Commissioner Frank Cassidy for their prudent stewardship of the MMIF in 2025.

“While the MMIF Capital Ratio stands at 11.47% with Total Capital Resources for the forward program at 8.25%, USMI urges policymakers to continue the current disciplined approach to ensure the long-term health of the MMIF, while also considering modernized stress-based, loan-level risk-weighted standards for FHA similar to the frameworks applied to Fannie Mae and Freddie Mac (the GSEs) and the private MI industry in order to withstand times of severe economic stress.

“To increase transparency around the fiscal condition of the MMIF and FHA’s forward mortgage program and contextualize the numbers published in the Annual Report, USMI previously commissioned a third-party actuarial firm to estimate the risk-based capital FHA would be required to hold if subject to the same stress-based, loan-level risk-weighted capital frameworks as private mortgage insurers and the GSEs, as compared to FHA’s Total Capital Resources for the forward program stated in last year’s Annual Report to Congress.

“If held to the same capital standard that private mortgage insurers must meet to insure loans acquired by the GSEs in the conventional market, the Private Mortgage Insurer Eligibility Requirements (PMIERs), it is estimated that FHA’s Total Capital Resources for the forward program, as of the end of FY2024, would run a $31.7 billion shortfall. Similarly, as of the end of FY2024, the FHA would need to hold $50 billion more to meet the GSEs’ capital framework’s minimum requirement if applied to FHA’s book of business.

The Community Home Lenders of America (CHLA) and Executive Director issued the following statement. "In light of the MIP report showing continued FHA financial strength, CHLA renews its call for an end to the FHA practice of charging premiums for the life of the loan. Borrowers who get an FHA loan down to 78 percent LTV deserve a dividend from FHA's strong performance, especially since they have paid premiums more than 3 times the actuarial loan risk by that point." (The CHLA reminds us that the FHA initiated its Life of Loan premium policy in 2013, in the wake of the 2008 housing crisis, but has rebounded exceptionally strongly since then, as measured in its MMIF performance and capital numbers.) Thank you, Scott.

As this short video illustrates, be vigilant out there!

Visit www.ChrismanCommentary.com for more information on our industry partners, access archived commentaries, or subscribe to the Daily Mortgage News and Commentary. You can also explore the Chrisman Marketplace, a centralized hub connecting mortgage professionals with trusted vendors and solutions. If you’re interested, check out my periodic blog on the STRATMOR Group website. This month’s piece is titled, “Artificial Intelligence in Mortgage Lending.” The Commentary’s podcast is available on all major platforms, including Apple and Spotify.

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(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes, visit the Chrisman Job Board. This newsletter is intended for sophisticated mortgage professionals only. There are no paid endorsements by me. For the latest mortgage news, visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.ChrismanCommentary.com. Copyright 2026 Chrisman LLC. All rights reserved. Paid job & product listings do appear. This report or any portion hereof may not be reprinted, sold, or redistributed without the written consent of Rob Chrisman. The views and opinions in this newsletter are mine alone unless otherwise specifically stated herein.)