Mar. 20: LO jobs; Underwriting, insurance, investor reporting products; Two Harbors in play; who's seeing early payoffs?

On this date, six years ago, Netflix released “Tiger King.” Say what you will about “watching a train wreck” or asking, “Is this the height of our civilization?”, we watched it. I bring this up because, while Joe Exotic (now in prison for animal cruelty) may be stuck in some people’s minds, we, as an industry, shouldn’t forget the magnificent job we did moving to a “work from home environment” and not missing a beat funding loans while people’s spending ground to a halt during the pandemic. Which reminds me of a note I received. “Rob, few politicians seem able to say ‘no’ to spending. Will the U.S. national debt passing $39 trillion in the red, just weeks into war in Iran, impact mortgage rates?” Yes, it keeps going up, and theoretically this should impact the creditworthiness of the U.S., but it hasn’t so far. The United States has been downgraded in the past by the rating agencies, with little effect on mortgage rates. Let’s keep our fingers crossed. The economy and capital markets are always discussed during today’s Last Word at 1PM ET, Sponsored by TRUE, where they will break down key market signals, agency developments shaping the industry, and the overall market narrative. (Today’s podcast can be found here and this week’s ‘casts are sponsored by Ocrolus. Ocrolus is transforming the mortgage industry with AI-powered data and analytics, featuring cutting-edge tools for automated indexing, income analysis, and now automated conditioning. Ocrolus helps mortgage teams move at the speed of automation with the precision of human oversight. Hear an interview with Wilqo's Larry Huff on how lenders identify and address hidden workflow friction in origination, optimizing handoffs and automation, preserving human judgment at high-leverage points, and revealing the weakest points in their stack under stress.

Employment and transitions

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High-performing mortgage producers ready to take their careers to the next level should visit Primis Mortgage’s website to learn more. Primis Mortgage strengthens its national footprint with the addition of divisional sales leader Bobby Shull. Primis Mortgage has named Bobby Shull divisional sales leader for the Central region, adding a proven builder of high-performing teams as the company accelerates growth nationwide. With more than 20 years in mortgage banking, Shull has led multi-branch organizations, coached loan officers at every stage and developed production-driven cultures rooted in collaboration and accountability. His people-first approach aligns with Primis’ commitment to innovation, operational excellence and a customer-obsessed mindset, positioning the Central region for sustainable expansion and stronger support for the families its loan officers serve.

“At Evergreen Home Loans™, in-house servicing gives loan officers a distinct competitive edge, supporting stronger client relationships and long-term business growth. When we service the loans you originate, your clients are not handed off to an unknown company. They continue to receive clear communication, responsive support, and a people-first experience backed by modern technology. That consistency protects your relationships and strengthens your reputation long after closing. In-house servicing on most loans helps you stay connected to your database, generate repeat business, and deepen referral partnerships. If you are considering a move, let’s talk about how in-house loan servicing at Evergreen can help you grow with confidence. Visit discoverehl.com or contact Todd Miles, EVP of Production Growth.”

ServiceLink, the nation’s premier provider of tech-enabled services for all phases of the mortgage lifecycle, welcomes John Erath, Amanda Marin and Zach Schellenberger as national sales executives and Cynthia Pazos as a national account executive within its origination division. They will be responsible for driving client growth strategy and forging new lender partnerships. Congratulations to all! Erath is making a return to ServiceLink, where he previously worked for eight years. Marin joins ServiceLink with more than 15 years’ experience in sales and client-facing roles, Schellenberger entered the mortgage industry in 2012 and has worked on both sides of appraisal management – operations and sales, and Pazos brings more than 30 years’ experience in mortgage banking, specializing in client relationship management, deal negotiations and sales leadership.

The Chrisman Job Board is the go-to platform for employment opportunities across the mortgage industry. For employers, adding a job listing is easy. Simply create an account and drop in your existing application link, or forward the details to our team and we’ll take care of it for you. For job seekers, joining our Talent Community is completely free. Upload your resume to be visible to hiring companies across the industry and stay connected to new opportunities as they go live.

Products, services, and software for brokers and lenders

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Less back-and-forth. More first-time-right verifications. Truework replaces manual verification waterfalls with a single automated platform, so underwriters, LOs, and ops can cut down the document chasing, conflicting numbers, and last-minute corrections. Lenders see up to 50 percent cost savings on verifications, with faster turn times, higher accuracy, and stronger R&W relief. Trusted by 4 of the top 5 lenders in the U.S., Truework gives your team verification results they can rely on. Learn more.

“Rethinking Mortgage: Grow Volume Without Expanding Staff! The market is shifting. After years of boom-and-bust cycles, mortgage volume is stabilizing, creating a rare opportunity to modernize. At the same time, technology has matured, opening the door for automation powered by trusted, verifiable data. Now is the moment to act. Gateless Smart Underwrite® helps lenders increase volume without adding headcount, automating document review, verifying borrower data, and clearing conditions in minutes, not weeks. Eliminate bottlenecks. Remove repetitive tasks. Expand capacity without adding a single desk. This isn’t just a better process… it’s a self-scaling way to lend. Our clients are reporting meaningful gains in operations while reducing processing time. Automate Intelligently – Scale Logically. Book your demo.

The new user experience in MSP, ICE’s loan servicing system, goes beyond aesthetics, positioning MSP to streamline high-frequency workflows such as escrow analysis and investor reporting. ICE is already introducing more advanced automation and data analytics, providing servicers with the tools to manage their portfolios with greater precision. For example, escrow automation can cut manual touchpoints by as much as 87% and reduce processing times from about 10 days to as few as two. This evolution will help servicers better adapt to market changes, improve customer engagement, and scale operations as needed. Read the full interview with Matt Dowd, vice president of product management at ICE, to learn more about what these advancements mean for servicers.

Covered Insurance is Now Integrated into Total Expert Journeys! Homeowners insurance has become a major source of volatility, causing delayed closings, loan fallout, and frustrated borrowers. That's why Covered is thrilled to announce the integration of its digital insurance marketplace with Total Expert. Now, you can deliver personalized, automated insurance quotes to your borrowers at the exact right moment in their mortgage journey, reducing friction, helping prevent fallout, and creating a better experience for borrowers. With Covered + Total Expert, borrowers can instantly compare rates from 65+ top-rated carriers, helping them find affordable coverage. The best part? Your loan officers do zero extra work. Once a policy is bound, the evidence of insurance automatically syncs right back to the borrower's Total Expert profile, keeping your loans on track. Eliminate insurance problems and activate your turnkey journeys today - no new contracts required. Reach out to your account manager to learn more!

Mortgage lenders don't need more fragmented tools. They need one coordinated system that works across roles, from LO to processor to underwriter to close. Most AI in mortgage automates tasks inside a single step. JazzX orchestrates work between them: reasoning over your guidelines and overlays, continuously reassessing every file as new information arrives, and citing the specific policy behind every finding. Governed, auditable, and instrumented to measure its own impact from Day One. Book a demo with the JazzX team to see it in action. 

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.

Two Harbors is the belle of the ball

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It’s nice to be wanted. Back in mid-December, United Wholesale Mortgage and Two Harbors Investment Corp. (“TWO”), an MSR-focused REIT and one of the largest servicers of conventional mortgages in the country announced that they have entered into a definitive merger agreement pursuant to which UWM will acquire TWO in an all-stock transaction for $1.3 billion in equity value. What does it mean for the industry? The STRATMOR Group put some perspective on the UWM acquisition of Two Harbors.

But wait! The shareholders said, “Not so fast,” and Two Harbors Investment Corp.'s merger with UWM Holdings may not happen under current terms, and another bid has entered the picture. UWMC is a much larger corporation, with a $5.8 billion market value and much better credit via its unsecured funding rates. On Monday the vote was supposed to happen for the TWO shareholders but they adjourned its special meeting to provide additional time for its shareholders to vote on the proposed acquisition of the mortgage servicing rights-focused REIT by UWM Holdings Corporation (UWMC), the company said. Because it appears the management team realized they would not get a 'Yes' vote, they postponed the meeting.

If the UWMC common shares had rallied this year, the merger likely would have already been approved… but they haven’t. The TWO book value is $11.13 per share as of the latest reporting, while the implied value of the UWMC shares is significantly below that. Why approve a merger where you get shares for a value below book?

Two Harbors Investment Corp. (TWO) stock surged 11 percent yesterday’s premarket trading after it received an unsolicited proposal for $10.70 per share in cash, the company said on Thursday.

In the last several months there has been a spate of deals. Amanda Gibson of the STRATMOR Group noted, “It’s important to note that what we’re seeing is not just a servicing plus originations consolidation trend. People have been talking about that for years, and I’ve been lucky to work at a few “balanced business model” IMBs myself. This is different. It is a multi-dimensional restructuring of the mortgage value chain, specifically around technology-enabled scale, lifecycle monetization (including recapture), ancillary revenue streams, and capital efficiency. The end game is building an ecosystem that is resilient across cycles—and while firms are choosing different entry points, the direction is consistent and the domino effect is real. There is no single ‘right’ lifecycle model, but controlling more touchpoints, either directly or indirectly, is becoming table stakes.” Thank you, Amanda.

“The refi wave is coming at some point. Who is servicing a lender’s borrowers? And what is the lender’s plan to make sure their past borrowers don't leave the lender when it comes time to refi?”

Prepayment speeds matter

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Supply and demand are the name of the game when it comes to mortgage rates. Prepayment activity in the Ginnie Mae II 30-year mortgage universe accelerated in February (March 2026 factor date), with aggregate speeds rising 14 percent month-over-month to 12.1 CPR, driven primarily by stronger activity in mid-to-higher coupons. The 5.5 percent, 6.0 percent, and 6.5 percent coupons posted the largest prepayment gains (up 14 percent, 18 percent, and 16 percent, respectively) while the rest of the coupon stack increased a more modest 7 percent on average.

Performance differences between loan types remained pronounced: U.S. Department of Veterans Affairs (VA) mortgages continued to prepay faster than Federal Housing Administration (FHA) loans, particularly in higher coupons where the VA streamline refinance program gives borrowers a clear advantage. In lower coupons (5.0 percent and below), VA loans prepaid only about 2.8 CPR faster than FHA loans, but the gap widened significantly above 5.5 percent, where speeds averaged roughly 27.7 CPR despite having a smaller outstanding balance.

Servicer behavior also played a meaningful role in shaping speeds: Freedom Mortgage, loanDepot, Planet Home Lending, and Village Capital were among the most frequent fast-paying VA servicers, while PHH and NewDay appeared most often among the slowest. In FHA pools, Colorado HFA led the fast-paying cohort for the second consecutive month, followed by Fifth Third and Village Capital, while Idaho HFA and SunWest most often landed among the slowest. Early-life loan cohorts (WALA ≤36 months) showed similar dispersion, with Village Capital and CrossCountry driving faster VA speeds and Amerihome, Lakeview, and Village Capital leading FHA prepayments, underscoring how servicer strategies and borrower program dynamics continue to shape prepayment behavior across the $2.4 trillion Ginnie Mae II coupon stack.

Capital markets: rates driven by war news and oil prices

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Much of the economic news we are receiving is from the past, but people are looking at the now, which includes negative reactions to rising oil prices and the realization that rate cuts from the Fed (and other central banks) are going to be pushed further into the future. Lower rate cut expectations are due the increased likelihood of economic slowdown and the uncertainty surrounding the war with Iran. The 2-year note yield reached 3.94 percent, and the 10-year note yield hit 4.32 percent at their highs of the day yesterday in the wake of the Bank of Japan, Bank of England, Swiss National Bank, and European Central Bank following our Fed in voting to keep their policy rates unchanged.

With the Federal Reserve remaining on hold, the mortgage industry is quietly regaining its footing, with profitability turning sustainably positive for the first time since the post-QE boom as refinance activity rebounds and a growing share of borrowers regain incentive to act. Improved margins, a higher proportion of lenders operating in the black, and a stabilization in industry employment all point to a successful rightsizing after a painful contraction, even if the recovery is measured.

Many think that we’ll see a shift toward looser capital requirements following new proposals from the Federal Reserve, a move that could free up substantial capacity for lending, buybacks, and dividends. Vice Chair for Supervision Michelle Bowman has framed it as a recalibration rather than a rollback, the changes reflect a broader pivot toward a more accommodating stance on bank regulation, particularly as policymakers seek to boost the competitiveness of traditional lenders against the growing influence of private credit and non-bank institutions. An implementation, alongside adjustments to leverage ratios and stress testing frameworks, would mark one of the most significant overhauls to bank capital rules since the post-2008 era, showing how quickly the pendulum can swing toward flexibility in response to shifting political and economic priorities.

Today brings no scheduled economic data, Fed speakers, or supply, leaving markets to their own devices. Yesterday, we learned that mortgage rates again rose across programs in the latest Primary Mortgage Market Survey from Freddie Mac, with the 30-year rate rising for the third straight week and now about .25 percent above the local low. For the week ending March 19, the 30- and 15-year rates rose 11-basis points and 4-basis points to 6.22 percent and 5.54 percent, and are respectively 45-basis points and 29-basis points lower than a year ago. The Census Bureau reported that new home sales declined more than expected in January to 587k (versus expectations of 720k), while December was revised lower to 712k from 745k. Harsh weather was a major factor, though affordability pressures (including economic uncertainty, elevated construction costs and tariff risks) continue to constrain activity. We begin Friday with Agency MBS prices slightly down/worse from Thursday’s close, the 2-year yielding 3.86, and the 10-year yielding 4.30 after closing yesterday at 4.28 percent.

"A very rich person should leave his kids enough to do anything, but not enough to do nothing." (Warren Buffet)

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, “Helping Borrowers in a Market Defined by Complexity and Change.” 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.)