**WTMS Blog Today = What’s up in Mortgage Today (AM) – 10/13/2026**
FHFA Director Bill Pulte cancelled his scheduled appearance at the MBA National Conference in Chicago, drawing sharp criticism from lenders over perceived accountability gaps at the agency overseeing Fannie Mae and Freddie Mac. The decision triggered immediate industry backlash, with originators questioning his lack of lending experience and concern about policy direction at the highest levels of mortgage governance. Meanwhile, the 10-year Treasury yield dropped 4 basis points over the week to 5.19 percent this morning, providing modest relief for mortgage pricing.
Agency MBS prices improved approximately 12.5 basis points from Friday’s close depending on coupon and maturity. Capital markets remain tightly wound around inflation data and Fed policy signals heading into this week’s economic releases. The mortgage industry is flexing its product mix in response to rising rates and tightening conditions.
Total lock volume fell 2 percent month-over-month in September while purchase volume held essentially flat, but non-QM loan volume grew 8 percent from August and now comprises 12 percent of production, up nearly 5 percentage points year-over-year. Adjustable-rate mortgages reached 14 percent of lock volume, the highest share since 2019, demonstrating how originators are pivoting away from fixed-rate conforming products to remain competitive. The September data from Optimal Blue reveals that product diversification is now doing the heavy lifting to maintain purchase activity amid headwinds.
Mortgage sellers must adapt quickly to the new product landscape or risk margin compression. Optimal Blue acquired mortgage CRM and marketing automation platform Usherpa to unify lead generation and borrower engagement with its pricing and eligibility technology used by over 200,000 originators. The integration aims to create a single originator command center connecting pricing intelligence with borrower conversion.
Newrez and eXp Realty jointly launched Revenos Mortgage to serve eXp agents following the wind-down of Success Lending, uniting one of the largest real estate brokerages with a major mortgage lender. These partnerships signal continued consolidation and vertical integration within the mortgage ecosystem. Industry consolidation is reshaping how lenders compete on technology, data, and customer acquisition at scale.
Universal Appraisal Dataset version 3.6 takes effect November 2 across Fannie Mae and Freddie Mac submissions, replacing a dataset unchanged since 2010. Lenders must prepare now to avoid pipeline disruption, appraisal submission rejections, and investor suspense—without an approved GSE policy exception, UAD 2.6 submissions will not be accepted after the deadline. The new format includes significantly more data points and dynamic sections, requiring underwriters to invest substantial time learning the report structure and identifying critical issues.
Lenders and AMCs also need updated review policies to prevent repurchases. Mortgage sellers should prioritize UAD 3.6 readiness immediately to avoid costly compliance failures and operational friction. Capital markets are balanced between convexity selling pressure from recent rate moves and potential Treasury rally support if economic data weakens.
Duration extension uncertainty creates two-sided risk for pipeline hedgers: further rate increases could widen mortgage spreads, while a Treasury rally could shorten MBS duration and force expensive hedge adjustments. Third-quarter earnings from banks and interest-rate-sensitive sectors will test whether the economy can absorb higher borrowing costs and sustained elevated yields. This week’s primary catalysts are September CPI on Wednesday and PPI on Thursday, followed by retail sales, jobless claims, and manufacturing data.
Persistent inflation readings alongside resilient economic activity would justify restrictive Fed policy, while easing price pressures or deteriorating demand could support a Treasury recovery. MBA launched Homebase, a new professional development initiative spearheaded by 2027 Chairman Owen Lee to provide loan officers with education, coaching, and a stronger industry voice regardless of employer or channel. The program reflects growing recognition that loan officer retention and professional pathways are critical to industry stability and origination growth.
Meanwhile, loanDepot continues its turnaround with reported 25 percent unit volume growth last quarter and 33 percent purchase market share gains, though the stock trades around 56 cents following an NYSE deficiency notice in August. The company is expanding into home equity lending and re-entering the wholesale channel while managing capital obligations carefully. Mortgage bankers should monitor loanDepot’s recovery trajectory as a bellwether for market consolidation and capital restructuring across the industry.
**Locking vs Floating**
Traders are navigating uncertain duration signals and convexity risks as rates have moved sharply higher. A sustained Treasury rally will require evidence that inflation is moderating or growth is losing momentum, making this week’s inflation data releases critical to positioning decisions.
**Today’s Events**
September CPI (Wednesday), September PPI (Thursday), retail sales, initial jobless claims, manufacturing surveys, industrial production, and the Federal Reserve’s Beige Book will shape expectations for monetary policy and economic momentum heading into the final two months of 2026.
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