A mullah, a rabbi, and a priest walk into a bar here in New York. The bartender says, “What is this, some kind of joke?” What isn’t a joke is people’s pay, and trends in mortgage compensation, and this month’s STRATMOR’s piece is titled, “Compensation is Still Lender’s Largest Expense.” What also isn’t a joke is likely, or at least possible, further consolidation in the residential mortgage business. There are still over 4,000 institutions reporting HMDA data. The MBA’s Chief Economist Michael Fratantoni (speaking with his array of bandages due to a bicycling accident) told us yesterday that the MBA expects dollar volume slightly higher than $2 trillion for 2025, up 16 percent from 2024. Unit-wise, probably more relevant to the “business” of lenders and vendors, is expected to be 5.7 million units, 14 percent higher in 2025 than 2024. So, if you hear, “A little better than last year” this sums it up. (Today’s podcast can be found here and this week’s is sponsored by Xactus and its commitment to the continued transformation of the mortgage verification industry. Pioneering a new class of technology, “Intelligent Verification,” Xactus is redefining how the industry originates and services mortgages. Today’s has an interview with BOK’s Chris Maloney on Agency MBS issuance trends, prepayment speeds, and why the money supply still matters.) Software, Products, and Services for Lenders and Brokers Merlin’s beard! Turns out you don’t need a crystal ball to see where your margins are heading, you just need to Ask Obi. Available at no additional cost for Optimal Blue clients, Ask Obi is an AI assistant built for capital markets executives who want fast, clear answers to complex business questions. Wondering which branches issued the most concessions last week? Or where margins shifted most last quarter? Just ask. Ask Obi searches across Optimal Blue’s entire platform and delivers real-time insights, no data analyst required. First previewed at the 2025 Optimal Blue Summit, Ask Obi has been tested, refined, and is ready to help lenders see their operations with unprecedented clarity. The more Optimal Blue tools you use, the more powerful Ask Obi’s insights become. Because in this market, knowing exactly where to steer next isn’t magic, it’s just good technology. Learn more about Ask Obi.
