June 21: Goldman Sachs on rates and the economy; vendor news from soup to nuts; Saturday Spotlight: Finance of America
“I've started telling everyone about the benefits of eating dried grapes. It's all about raisin awareness.” You should also be aware of your posture. Poor posture can have debilitating effects on the body, in part because our heads are weightier than we give them credit for. In a straight-up, neutral position, the head exerts 10 to 12 pounds of pressure on the cervical spine. When it’s tilted at a 15-degree angle (like the one that your head is probably at right now reading the Commentary) it becomes 27 pounds. When it’s at 45 degrees, or “cellphone viewin’ angle,” that force grows to 49 pounds; so again, if that’s you right now, do straighten up. Recently I met someone at a mortgage conference who teaches “desk yoga” which can help. Shoot Jordan Higgins an email or check out her website: she teaches a 30 minute desk yoga class. Take care of yourself, because someone has to help borrowers, or help others help borrowers!
Saturday Spotlight: Finance of America
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“Power your business forward with reverse.”
At Finance of America, we help homeowners 55 and older unlock home equity to support their modern retirement goals. Our innovative, flexible reverse mortgage solutions offer long-term growth opportunities nationwide for mortgage brokers and originators.
Founded in 2003, we offer FHA-insured Home Equity Conversion Mortgages (HECMs) and a suite of proprietary products. Our HomeSafe product is a jumbo reverse mortgage with loans up to $4 million. HomeSafe Second is a smart HELOC alternative that doesn't require the borrower to make a new monthly mortgage payment.
In April, we launched our national “A Better Way with FOA” campaign to raise awareness and educate borrowers on how reverse mortgages can be a powerful tool for unlocking home equity at 55 and beyond. We’re expanding the industry by introducing new proprietary products, deepening borrower education, and equipping more mortgage professionals to offer reverse solutions to their clients.
Jonathan Scarpati, our former Senior Vice President of Wholesale Lending, was recently promoted to Chief Production Officer to support this momentum. With over 20 years of industry experience, Scarpati was instrumental in growing the wholesale channel. His current role overseeing both wholesale and retail production will allow him to improve operational efficiency and scale our impact for borrowers and partners.
Our proudest moments are seeing how reverse mortgages change lives for the better. From helping Ann renovate her forever home to giving Susan the freedom to travel and supporting Craig as he helped his family through tough times, these stories reflect the powerful, personal impact of unlocking home equity. Empowering homeowners to live with confidence and purpose drives everything we do.
If you want to better support clients 55 and older, contact us to explore how partnering with Finance of America can help you strengthen and diversify your business — now and into the future.
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.
The HomeSafe reverse mortgage is a proprietary product of Finance of America Reverse LLC and is not affiliated with the Home Equity Conversion Mortgage (HECM) program. HomeSafe products are only available in certain states. Please contact us for a complete list of availability.
Finance of America | NMLS #2285
(For more information on having your firm’s extracurricular activities, employee growth, and your charitable side featured, contact Chrisman LLC’s Anjelica Nixt.)
Goldman Sachs: Don’t hold your breath for lower rates
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Don't count on rate cuts to meaningfully bring mortgage rates down this year. Goldman Sachs raised its year-end prediction for the 30-year mortgage rate from 6.1% to 6.75%.
That's not much lower than this week's average rate of about 6.9%.
Mortgage rates are pegged to Treasury yields, which have been stuck at elevated levels as the bond market prices in sticky inflation and the possible impacts of higher US budget deficits. Any changes to Treasury yields, and mortgage rates, are likely to be driven by government spending and surprises in economic data.
Goldman Sachs expects 10-year Treasury yields to rise as high as 4.5% by year-end, a level that many investors believe could push back against a stock market rally. With rates remaining high, the bank doesn't expect the home affordability picture to improve for the rest of the year, and home prices are likely to remain high thanks to low supply. The bank expects home prices to rise 3.2% in 2025, but elevated mortgage rates could cap that increase.
Privatizing Fannie and Freddie will have little impact! President Donald Trump has supported the idea of privatizing Fannie Mae and Freddie Mac, a move that some commentators say could lead to elevated mortgage rates. However, Goldman Sachs doesn't think privatization of the mortgage finance firms, which were taken over in the wake of the 2008 crisis, will present material risks to mortgage rates.
Analysts at JPMorgan and PIMCO have warned that privatization could lead to higher and more volatile borrowing costs, but Goldman Sachs argues that cost increases will be primarily constrained to higher loan-level price adjustments on "non-core" mortgage products such as investor loans and second-home loans, leaving those in the market for a primary residence untouched.
Home construction will hold up even as immigration declines: Concerns have grown about the impact of reduced immigration on single-family home construction, as immigrant workers make up roughly a quarter of the construction labor force. In an already supply-constrained market, reduced single-family construction could exacerbate the housing crisis by making labor more expensive and raising home prices for buyers.
Yet, Goldman Sachs doesn't see reduced immigration as a major near-term risk to construction for two key reasons. Economic uncertainty and high mortgage rates have already put a damper on homebuilding activity, subsequently reducing labor demand. Single-family housing starts declined 12 percent year-over-year in April.
Additionally, labor supply saw a big boost under the Biden administration, with around five million unauthorized or humanitarian immigrants entering the country between January 2021 and January 2025. Starting from a position of elevated immigration will lessen the negative impact of immigration outflows. Goldman Sachs estimates around 700,000 negative net immigrants through the end of 2026, or a 14 percent reduction.
Third-party provider morsels
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What lenders don’t rely on outside parties for their business? Let’s take a random look at who’s up to what.
We’re excited to announce the official launch of the Chrisman Marketplace, a centralized hub for vendors and service providers across the mortgage industry. This initial rollout features a curated selection of companies from our Founding Cohort, offering a first look at the powerful partnerships and solutions driving innovation in the space. We’ll be adding new vendors daily, so check back often to see what’s new. To reserve your place or learn more, contact us at info@chrismancommentary.com.
The 2025 STRATMOR Technology Insight® Study is now underway. The first part of the study—the Lender Intelligence Survey—is live and focused on how lenders really feel about the tech they use every day. From LOS and CRM systems to underwriting automation and servicing platforms, this is the only independent study capturing lender experiences with mortgage tech systems and vendor support. Lenders who complete the survey will receive a summary report of 2025 Technology Insight® Study results at no cost. This is actionable intel to help guide tech decisions in today’s competitive environment. Take the survey and help shape the future of mortgage tech. The survey is open to lenders only. Questions? Reach out to STRATMOR’s Technology Insight team for details: technologyinsights@stratmorgroup.com.
Have you heard about the new Encompass® LO mobile app, part of ICE Customer Acquisition? Integrated with Encompass, it’s designed to give loan officers the tools they need to keep their pipelines moving with a single-pane, mobile-first experience. With this app, your team can stay connected to borrowers, manage pipelines efficiently and make informed decisions no matter where they are. Wondering how this tool can help your team respond faster, work smarter and close more business? Nick Belenky, Managing Director of Solution Sales at ICE Mortgage Technology, dives into the details in his latest blog. Read the blog here to learn more.
“AFR Tech Update: Enhancements to Drive Efficiency! AFR is excited to announce several powerful new features to streamline workflow and enhance the experience. ICD Enhancements: New required fields (real estate agent info for purchases, MERS MIN for Correspondent Non-Del) to boost accuracy and compliance. Disclosure package: Invites with messaging based on loan registration status. Smarter Pricing Search: Select “Not Specified” as the underwriting type to view FNMA and FHLMC pricing in one search. AUS Transparency: Full DU or LPA error messages now display when AUS issues occur. From automation improvements to simplified borrower engagement and smarter processes, these updates are built to save you time and keep your loans moving. Already a partner? Check out these details now. Not yet a partner? Partner with AFR today. We’re continuing to invest in the tools and pricing that help you succeed. Learn more: sales@afrwholesale.com, 1-800-375-6071, or www.afrwholesale.com. (NMLS 2826)”
Informative Research, a premier technology provider delivering data-driven credit and verification solutions to the lending community, announced a strategic integration with Halcyon, a fintech innovator revolutionizing income verification through real-time access to IRS tax transcript data. This integration delivers verification of employment and income (VOE/I) reports—including payroll and paystub data directly into Halcyon’s income calculator, enabling faster, more automated income assessments. The data is obtained through Informative Research’s AccountChek® consumer-permissioned connectivity to major payroll providers. By directing this information into Halcyon’s income calculator, the integration facilitates real-time, automated income validation that complies with investor guidelines and rep and warrant relief strategies.
Polly, the leading provider of innovative enterprise technology and artificial intelligence for mortgage capital markets, continues to redefine industry standards, including the loan officer (LO) experience in its next-generation product, pricing, and eligibility (PPE) engine. Bolstered by Polly/™ AI, which leverages state-of-the-art AI/ML algorithms and Polly's proprietary technology, data, and analytics, these enhancements further the best-in-class flexibility, automation, and real-time decision-making available to loan officers and mortgage brokers. LOs and mortgage brokers benefit with Polly's advancements.
ServiceLink, the nation's premier provider of digital mortgage services, announced enhancements to its award-winning EXOS® Close technology that provide even more flexibility for lenders and borrowers using the technology to schedule their closings in real-time. Enhancements include new options for online and in-branch closings in addition to an instant in-platform determination of remote closing eligibility, assessing state and county acceptance requirements and, with lender approval, automatically giving borrowers who are eligible the immediate option to schedule their closing online.
MISMO® announced the publication of Unique IDs that can be leveraged to streamline impact analysis and to accelerate implementation efforts. Unique IDs will facilitate reduced time and cost required to determine if internal system changes are required, reduced concern that a new Reference Model version will break an organization’s processes, and enhanced adoption of newer Reference Model versions. MISMO’s work to solve key business challenges is made possible by its members, champions, sponsors, and lender support through the Innovation Investment Fee. Visit MISMO.org to learn how to get involved.
Lead+ Wholesale, a premier Non-QM wholesale mortgage lender has selected OptifiNow as its sales workflow platform. OptifiNow’s unmatched expertise in wholesale mortgage lending and its comprehensive platform, which includes Seamless Loan Origination System (LOS) integration, advanced email and SMS marketing tools, real-time loan pricing capabilities, and ongoing training and support tailored to lenders.
Alpha7x, the AI-Agent Data and Document Orchestration Engine built for mortgage operations, announced that the United States Patent & Trademark Office has accepted its provisional patent application, officially granting the platform patent-pending status. Delivered as a service, Alpha7x functions as a digital workforce, executing high-cost, compliance-critical tasks with precision and auditability, all without system integration, data persistence, or workflow disruption. The breakthrough platform that automates the manual tasks still required across origination, servicing, and post-close workflows.
Lead+ Wholesale, a premier Non-QM wholesale mortgage lender announced it has selected OptifiNow as its sales workflow platform. The partnership marks a strategic move to enhance broker engagement, drive sales efficiency, and fuel scalable growth in the wholesale mortgage space. OptifiNow’s unmatched expertise in wholesale mortgage lending and its comprehensive platform includes Seamless Loan Origination System (LOS) integration, advanced email and SMS marketing tools, real-time loan pricing capabilities, ongoing training and support tailored to lenders. The partnership marks a strategic move to enhance broker engagement, drive sales efficiency, and fuel scalable growth in the wholesale mortgage space.
MISMO®, the real estate finance industry's standards organization announced that it is seeking public comment on the SMART Doc® V3 eHELOC Specification. This standard was developed to meet requests for natively created electronic documents to support the growth of home equity lines of credit (HELOCs). The use of the MISMO SMART Doc provides assurance that loan documents and associated data are consistent, reliable, and unaltered. The 30-day public comment period runs through July 5, 2025. The public comment period allows at least 30 days’ notice prior to final release to review and disclose any applicable Patent Rights (as defined by MISMO's 2018 Intellectual Property Rights Policy).
As previously announced, on December 13, 2024, New York Governor Kathy Hochul signed Assembly Bill A9686 that enacts NY Banking Law § 35, which contains a new requirement for mortgage lenders and other banking organizations offering residential mortgage services to provide a “What Mortgage Applicants Need to Know” pamphlet to applicants. View the Compliance post Document Updates: New NY “What Mortgage Applicants Need To Know” Pamphlet.
Arch MI announced a strategic integration with Wilqo. In fact, Arch is the first mortgage insurer to integrate directly with Wilqo’s Charlie platform. View the Press Release for details.
Last night was the summer solstice, schools out, and with summer vacation, plenty of people are hitting the road. And what better way to add value to the family in the car than to have some cool knowledge, trivia, and hidden engineering facts about gas stations (created in 1913, they pump out 3 billion gallons of gasoline a day)?
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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(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 2025 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.)