Bank Statement, DSCR, LOS, CE, Compliance Tools; Conference Chatter About Credit and Agency News

Industry Overview - The Mortgage Bankers Association (MBA) forecasts an increase in total single-family mortgage origination volume to $2.2 trillion in 2026, up from $2.0 trillion in 2025, with purchase originations expected to rise by 7.7% to $1.46 trillion and refinance originations projected to increase by 9.2% to $737 billion [1] - Total mortgage origination volume is anticipated to grow by 7.6% to 5.8 million loans in 2026 from 5.4 million loans in 2025 [1] Technology and Innovation - MortgageFlex has launched a cloud-native Loan Origination System (LOS) called LoanQuest, which offers flexibility, scalability, and automation, aiming to redefine the origination experience for lenders [4][5] - Figure has developed an end-to-end DSCR origination platform that allows for quick eligibility determination and closing in as few as 5 days, enhancing efficiency in the DSCR loan market [6] Regulatory Updates - The mortgage lending sector is facing numerous regulatory changes, including updates from the CFPB and new cybersecurity requirements from Fannie Mae, necessitating financial institutions to stay informed on compliance [2] Market Trends - The DSCR loan market is experiencing significant growth, with over $2 billion in loans originated in January alone, highlighting the competitive edge for lenders who can close quickly [6] - The NAHB Housing Market Index improved to 37 in October, indicating a boost in builder sentiment due to lower mortgage rates, although it remains below the 2015-2019 average [14] Agency News - Freddie Mac and Fannie Mae are transitioning agency products into private label securities while assuring that any move away from conservatorship will minimize increases in mortgage rates [9][10] - Freddie Mac has introduced a "Refi Transition Report" and both agencies are focusing on the concentration of servicing in non-depository institutions [11] Economic Insights - The Federal Housing Finance Agency (FHFA) is seeking public feedback on its proposed Strategic Plan for FY 2026–2030, which includes overseeing Fannie Mae and Freddie Mac and managing U.S. Federal Housing Operations [12] - The U.S. Bureau of Labor Statistics is set to release consumer price index figures for September, which will inform the Federal Reserve ahead of its monetary policy meeting [16]