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The Pulse May 17

Slow Sunday — things you may have missed in the week's noise

Genuinely quiet news flow on Sunday after Friday's dense session; the LO-relevant items worth flagging are the ones that didn't lead this week — HUD's HECM-LESA audit, an LO-tactics piece on saving deals above 6.6%, AD Mortgage's $407M non-QM, and IMB profit data.

Sunday, May 17, 2026 30-yr 6.360%10-yr Treasury 4.590%

Today is genuinely quiet on the mortgage news front — typical for a Sunday, and there's no point pretending otherwise. The weekend's only fresh news item with LO relevance was Jimmy Burgess's Sunday Inman piece "Stop experimenting with AI. Start using these 5 prompts instead" — workflow-focused, useful for any LO who has access to AI tools but hasn't built a consistent prompt library yet. Beyond that, the news cycle is on pause until Monday, when the Two Harbors shareholder vote and the next bond-market open take focus.

The rate backdrop carried over from Friday is what matters going into Monday. The 10Y closed at 4.59% — a fresh 12-month high after the Trump/Xi summit produced no de-escalation news — and Bankrate's Saturday daily 30Y print held 6.49% (90-day high). FHA and VA rates spiked 18 bps Friday and held the weekend; conventional 30Y spent its sixth straight day on the 6.45–6.49 shelf, but Friday's underlying bond move means the shelf is no longer stable into Monday. Don't lock anyone Monday morning before the bond market opens and tells you the tone.

Things you may have missed this week — items that didn't lead Friday's or Saturday's briefs but still deserve eyes. First, HousingWire's "How loan officers are saving deals as mortgage rates cross 6.6%" — practical tactics piece on buydowns, ARM pivots, and lower-LTV restructuring, required reading for any LO with active rate-sensitive pipeline this week. Second, the HUD OIG audit on HECM LESA accounts: 1,237 reverse-mortgage borrowers may see set-aside funds run dry up to six years early, with up to $258 million at risk. Material for any LO with reverse-mortgage pipeline, and a leading indicator on where HUD enforcement attention is going. Third, AD Mortgage closed a $407 million non-QM securitization — 25% Florida collateral, 979 loans backing the deal — which says the non-QM secondary market remains liquid into a rising-rate environment. Fourth, the MBA Q1 IMB production-profits data dropped: $727 per loan, up from $674 in Q4 2025. The profit print is the good headline; the cost-climb story underneath it is the one that matters.

Two regulatory-flavored items also worth noting. Mortgage News Daily covered a BLS research paper on how the agency handled missing shelter inflation data during the October 2025 government funding lapse — the technical fix to the CPI shelter component matters for anyone modeling forward inflation prints. Supreme Lending's John Luddy gave a "3 deadly sins of reverse mortgages" talk at the Reverse Mastermind Summit — useful for any LO new to the segment or trying to grow into it (paired with the HUD HECM story above, the reverse market is having a moment in coverage even if not in volume).

spend the Sunday quiet drafting your Monday-morning outreach SMS to active pipeline with quotes from Tuesday–Thursday this week. Lead with "weekend rate-move heads-up, no action needed, fresh number Monday morning." Saturday's spike and Friday's overnight 10Y move at a 12-month high will catch every borrower who checks Zillow before they check their email — be the proactive note in their inbox, not the reactive one. Schedule the SMS for 8 a.m. EST Monday before market open. Half an hour of work on a quiet Sunday saves five hours of reactive calls Monday.

What this brief is built on

1
HousingWire — MortgageMay 15

How loan officers are saving deals as mortgage rates cross 6.6%

Loan officers are shifting their playbooks to keep deals alive as mortgage rates climb north of 6.6%.

2
HousingWire — MortgageMay 15

HUD audit warns that some HECM LESA accounts may run dry

HUD OIG audit says 1,237 HECM borrowers may see LESA funds depleted about six years early, with up to $258 million at risk.

3
Inman NewsMay 17

Stop experimenting with AI. Start using these 5 prompts instead

It's not enough to simply use artificial intelligence tools, Jimmy Burgess writes. You need to use them with intention. These prompts provide the starting point.

4
HousingWire — MortgageMay 15

AD Mortgage announces $407M non-QM securitization

AD Mortgage launched a $407M non-QM securitization backed by 979 loans, with Florida properties accounting for 25% of the collateral.

5
HousingWire — OriginationMay 15

IMB production profits hold steady in Q1 as costs climb

Independent mortgage banks (IMBs) and mortgage subsidiaries of chartered banks posted a pretax net production profit of $727 per loan in the first quarter of 2026, up from $674 per loan in the fourth quarter of 2025.

6
Mortgage News Daily — NewsMay 15

April Housing Inflation Data Fills in The Dots That Went Missing During The Government Shutdown

The Bureau of Labor Statistics released a highly technical research paper this week examining how the agency handled missing shelter inflation data during the October 2025 government funding lapse. The issue stemmed from the CPI’s housing survey, which was unable to collect rent data during the shutdown period. With…

7
HousingWire — MortgageMay 15

Supreme Lending’s John Luddy on the ‘3 deadly sins’ of reverse mortgages

At last week’s Reverse Mastermind Summit in Tennessee, Luddy took the stage to offer in-depth advice for loan officers who are new to the segment or attempting to grow their business.