June 19: Housing data, workflow, corresp. eNote products; Guild deal... do branches have value anymore? STRATMOR on customer service
Sometimes you have just one more thing to “get over” in order to fund that loan. In Hawai’i and other places, the conversation has, to some extent, gotten over being focused on rate to the borrower asking the originator, “Can you help?” regardless of rate. Loan originators are looking at interest rates, and, realizing that predictions made in years past of lower rates never materialized, are talking about “denial, anger, bargaining, depression, and acceptance” of current market conditions. We’re almost halfway through the year, and “Stay alive until ‘25” has become, “Stay in the mix until ‘26’.” We are seeing a “changing of the guard” among lenders and third-party providers as some experts are saying the current market favors either the mega lenders who have held onto servicing or the small, nimble boutique company, as evidenced by the Guild Mortgage news detailed below. There are indications that mid-market players have a higher relative cost per loan and have to work harder, and smarter, to succeed. (The usual podcast, found here and sponsored by TRUE, will return tomorrow after the Juneteenth Holiday.)
Products, software, & services for brokers and lenders
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Evocalize launches industry’s first scaled Digital Co-Marketing Network! Evocalize, the provider of patented digital marketing technology powering many of the largest real estate and mortgage brands (such as Realtor.com, Rate, CMG Financial, United Real Estate, eXp, Synergy One Lending, Atlantic Bay Mortgage, Mutual of Omaha Mortgage, Guild Mortgage, Keller Williams, and many more) is proud to announce the launch of its patented Housing Digital Co-Marketing Network, the real estate industry’s first platform for joint digital marketing. The network connects local retail loan officers and real estate agents to collaborate on digital marketing, sharing costs, generating leads, and deepening critical relationships through seamless, RESPA- and TCPA-compliant automation. Read more...
Planet Home Lending Correspondent now accepts eNotes for Fannie Mae, Freddie Mac, and Ginnie Mae-eligible loans, making it easier than ever to deliver loans efficiently and get funded faster. Whether you're delivering through best effort, mandatory, bulk, or co-issue, Planet's eNote capability enhances execution, reduces errors, and streamlines delivery from lock to sale. It’s just one more way Planet supports your growth with competitive pricing, smooth operations, and responsive service. To learn more, contact Jason Mac Gloan at 518-248-1160 or reach out to your Regional Sales Manager.
If your loan portal were a TV series, would anyone binge it? The Big Bang Theory was the most-binged streaming title of 2024, and it wasn’t even close: viewers watched an average of 265.5 episodes in a year, according to Nielsen. (The runner-up, American Dad, trailed by nearly 100 episodes.) Why? It was consistent, easy to follow, and knew how to keep people coming back. That’s what today’s borrowers expect, too: smooth UX, smart automation and relevant guidance, delivered fast. Tropos gives your team the platform to deliver just that. With modular workflows, real-time updates, and seamless human support handoffs, Tropos isn’t just functional… it’s engaging. If you’re in charge of improving conversion rates or reducing fallout, this is how you keep borrowers hooked from app to close. And no cliffhangers: your team gets full visibility into every borrower’s journey. Create a binge-able borrower experience with Tropos.
Understanding the housing trends in your area is critical
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According to the latest Home Price Index (HPI) report from First American Data & Analytics, national house prices stabilized at a 2.1% annual appreciation rate in May, marking the end of a 16-month deceleration trend. In the report, First American Chief Economist Mark Fleming explains, "Rising mortgage rates in April and May reduced affordability, tempering demand while the supply of homes for sale increased, dragging annual appreciation to the slowest pace since 2012. Slower national price appreciation helps household incomes offset some of the impact of still-elevated mortgage rates on affordability, which is good news for potential buyers.” Their May HPI report offers timely insights into home price trends across national, state, and metropolitan CBSA levels. Download a full copy of First American’s report to learn more valuable insights.
Join ICE for its monthly Mortgage Monitor webinar where you’ll gain critical insights into U.S. housing and mortgage market trends. The information presented in this preeminent, widely attended monthly webinar is based on the most current data available from ICE's vast mortgage, housing, and property data assets, including the largest servicer-contributed loan-level database in the industry. Learn how borrower demand, housing affordability, interest rates, available equity, and other factors may impact your lending strategies. Register for the complimentary webinar which will be hosted on Tuesday, July 1 from 2 – 3 p.m. ET.
M&A continues and there is no reason it will stop
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In today's episode of The Big Picture at 12pm PT, Rich and Rob talk with James Dwiggins, CEO of NextHome, about the mergers and acquisitions trend, major real estate trends, offering an unfiltered take on market shifts and industry blind spots. Topics include new legislation on trigger leads, the future of Fannie Mae and Freddie Mac, Zillow's delisting move, and what’s really driving agent recruitment in 2025.
(Editor’s note: I am a stockholder in Guild Holdings. I have no inside knowledge of the company, nor have I bought or sold GHLD based on any such information.)
Yesterday we learned that Bayview Asset Management entered an agreement to acquire all outstanding shares of Guild Holdings (GHLD), which it does not currently own, for $1.3 billion in equity value, taking the company private probably in the 4th quarter. The closing price equates to roughly 1.3 tangible book value. Guild will operate as a privately held entity in partnership with Lakeview Loan Servicing (Bayview's servicing company). Guild stockholders will receive $20.00 in cash per share of common stock, a 56 percent premium over Guild’s unaffected closing stock price on May 23, 2025 ($12.84) and a 27 percent premium compared to Guild’s tangible book value as of March 31, 2025 ($15.77). The Board plans to authorize a special cash dividend of up to $0.25 per share in 2025, and if the deal does not close in 2025 the company will pay a $0.25 dividend until the deal is closed, contingent on available cash. The dividend payments will not impact the purchase price of $20.00.
This is the second acquisition of a public mortgage originator in the sector in 2025 (Rocket announced in March that is acquiring Mr. Cooper). So, what’s the attraction? “Numerous opportunities to unlock additional customer opportunities, new product offerings, and growth capital to fund expansion and innovation.” For example, historically, Lakeview utilized alternative firms to subservice its loans. Given Guild's servicing platform and servicing recapture potential, it is possible that Bayview increases the percentage of loans that it services internally.
At this point, "The company’s brand, product and service offerings, and strategic relationships will all remain in place. Guild’s executives and management teams will also remain intact. Guild will continue to operate as an independent entity."
With $770 billion, Bayview Asset Management is the nation’s second-largest owner of mortgage servicing rights, but Guild is no slouch (having an MSR portfolio of $94.4 billion as of March 31. Bayview’s production arm, Lakeview, ranks 32nd in MSR holdings.
Analysts were quick to slice and dice the numbers. Guild’s MSR Book was valued at $1.3 billion at the end of March, which matches Bayview’s purchase price of $1.3 billion. Is Bayview paying for the MSR value and nothing for originations? Know that MSR values have gone up since the end or Q-1-25, so Guild will most likely write up is MSR valuation at the end of June.
Industry vet James Johnson observes, “It’s interesting that Bayview is paying very little, given its size, for Guild’s origination platform. This is very much like when Stone Point sold Home Point. There was negative value for that TPO origination platform and ultimately the origination platform was given away. In this case, shareholder equity at 3-31-25 was $1.2 billion but Guild had $223 million in goodwill and Intangibles due to the premiums Guild paid for acquisitions over the years. The Tangible Book Value on 3-31-25 was about $977 million. So, Bayview paid about $323 million over Tangible Book… So, Bayview did pay something for the origination platform and Goodwill.”
At this point in the business cycle, investors are not placing much value on distributed retail (aka, branch) models. Guild stock, for example, traded at a 20 percent discount to book. There is a sense that branch models have cost structures that are too high compared to other models, especially with middle management and DBAs receiving part of the profits.
STRATMOR’s Garth Graham weighed in, which is valuable given STRATMOR’s role in the mergers and acquisitions going on around the biz. “Guild certainly has been in the news as a successful acquirer of IMBs as they have continued their impressive growth over the past few years. Yesterday, it was news of their sale to Bayview, which completes a cycle of going public in 2020 (to great fanfare) and planning to exit the public markets through this transaction in Q4.
“I have a lot of personal views on this. The first is respect for both entities who happen to be clients of STRATMOR. Both have some ‘wow capabilities’ in their respective areas and a strong history of success, so it will be interesting to see what they can do together.
“Also, I have seen up close how well Guild has executed buy-side M&A and have no doubt they have the skills and the team to be successful with this sell side transaction. And finally, a personal perspective…. I recall my own experience of excitement when my company, mortgage.com, went public during the dot.com boom, followed later by a sense of relief when we were taken private through the sale to ABN AMRO. That was 25 years ago, but the memory is fresh.
“I think the lesson here is that it’s HARD to be a public company in mortgage, which is very cyclical, highly regulated, and very complex for the public markets to understand. When you have a good team (like Guild) the best outcome is probably for them not to have to focus on stock market fluctuations, and instead focus full time on their employees, customers, and their continued growth objectives. While we may no longer be able to track their stock price, I look forward to tracking their continued success. Meanwhile, I will be taking calls and working with lenders who may be the next one to make a strategic move.”
STRATMOR on customer service
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In his latest CX Tip, STRATMOR Group’s Customer Experience Director Mike Seminari explores the costly blind spots created by “peak polling”: gathering borrower feedback only during the happiest moments of the loan process. While it may feel good to get positive reviews, this selective timing can mask real pain points that hurt borrower satisfaction and repeat business. Mike shares practical strategies for collecting more balanced feedback that reveals what borrowers truly think, not just what they think when they’re signing closing docs.
Roy Roger’s horse’s name was…
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It is time for you to spring into action, or at least gently send an email. Next week, on Monday, June 23, H.R. 2808, as slightly amended by the House Financial Services Committee on June 10, will be considered on the House floor for a vote, under suspension of the rules. The Homebuyers Privacy Protection Act of 2025 would eliminate the abusive use of mortgage credit trigger leads while preserving their deployment in appropriately limited circumstances.
Six months after the enactment of this proposal, trigger leads would be permissible under the Fair Credit Reporting Act only in limited circumstances during a real estate transaction and only to provide a firm offer of credit. A credit reporting agency (“CRA”) would not be able to furnish a trigger lead to a third party unless the third party has certified to the CRA that either the consumer explicitly consents to such solicitations, the third party has originated the current residential mortgage loan of the consumer, he third party is the servicer of the current residential mortgage loan of the consumer, or the third party is an insured depository institution or insured credit union and holds a current account for the consumer.
S. 1467, slightly different than H.R. 2808, as offered by Senators Bill Hagerty (R-TN) and Jack Reed (D-RI), passed the full Senate by unanimous consent on June 12. If the House passes H.R. 2808 on Monday, the Senate and House will need to reconcile the minor differences between their two bill versions so that a uniform bill can be sent to the President for enactment. The Mortgage Bankers Association will continue to work with the sponsors and congressional leadership in both chambers to get this important proposal signed into law as quickly as possible.
Capital markets: the Fed does the expected
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The financial markets are closed today in observance of the Juneteenth Holiday, but yesterday the U.S. Federal Reserve did exactly as expected and did nothing. The move led to Trump and Pulte verbally attacked Chair Powell; more on this tomorrow.
Ginnie Mae's mortgage-backed securities (MBS) portfolio outstanding grew to $2.76 trillion as of May 2025. In addition, Ginnie Mae issued $48 billion in total MBS, resulting in net portfolio growth of $17.6 billion. Ginnie Mae facilitated the pooling and securitization of 268,000 loans for first-time homebuyers year to date. Key highlights from the May issuance include: $46.3 billion in Ginnie Mae II MBS, $1.7 billion in Ginnie Mae I MBS, including $1.5 billion for multifamily housing loans, and the pooling and securitization of loans for more than 140k households, including 63k first-time homebuyers. For detailed information on monthly MBS issuance, unpaid principal balance, Real Estate Mortgage Investment Conduit (REMIC) issuance, and a broader analysis of global market trends, visit Ginnie Mae Disclosure.
Intercontinental Exchange has announced that it’s publishing an average prime offer rates (APOR) index that mirrors work already done by the Consumer Financial Protection Bureau. ICE said its APOR index is “intended to provide additional and continued transparency for both lenders and participants in the mortgage-backed security market.”
This tale was making the rounds yesterday at the Honolulu Airport…
His request approved, the CNN News photographer quickly used a cell phone to call the local airport to charter a flight.
He was told a twin-engine plane would be waiting for him at the airport.
Arriving at the airfield, he spotted a plane warming up outside a hanger.
He jumped in with his bag, slammed the door shut, and shouted, "Let's go!"
The pilot taxied out, swung the plane into the wind, and took off.
Once in the air, the photographer instructed the pilot, "Fly over the valley and make low passes so I can take pictures of the fires on the hillsides."
"Why?" asked the pilot.
"Because I'm a photographer for CNN," he responded, "and I need to get some close-up shots."
The pilot was strangely silent for a moment.
Finally he stammered, "So, what you're telling me, is...You're NOT my flight instructor?"
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, “Beyond the Primary Market: How MBS and ABS Impact Lending Strategy.” The Commentary’s podcast is available on all major platforms, including Apple and Spotify.
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