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The Pulse May 18

MBA flips to forecasting a 2027 rate HIKE; TWO vote lands tomorrow

The Mortgage Bankers Association now sees the next Fed move as a hike in 2027 rather than a cut, formalizing last week's regime shift; UWM's final push to Two Harbors stockholders lands ahead of Tuesday's vote, and the 10Y briefly hit 4.63% overnight.

Monday, May 18, 2026 30-yr 6.360%10-yr Treasury 4.470%

The Mortgage Bankers Association officially updated its forecast today to project a 2027 Fed rate HIKE — not a cut — alongside slowing housing-price growth over the next two years. That's a substantive reframing from the consensus that held a month ago, and it formalizes the regime shift Goldman and BofA telegraphed last week when they pushed first-cut forecasts to mid-2027. Bond market got the message: the 10Y hit 4.63% overnight (a new 12-month-plus high) before recovering on rumors the U.S. agreed to lift Iran oil sanctions. MND's MBS desk titled today's morning recap "Early Gains and Losses on Conflicting War Headlines." If the Iran sanctions rumor solidifies into action, that's the kind of catalyst that pulls yields back below 4.50; if it doesn't, the next leg up from 4.47 starts immediately.

Friday's 13-bp daily spike on conventional and 18-bp jumps on FHA/VA are still operative. Combined with today's MBA forecast flip and overnight 4.63 print, the LOs who didn't make Saturday/Sunday outreach calls per Saturday's rate brief have a harder Monday morning waiting for them. The MBA's CEO, Bob Broeksmit, also hammered regulators today on cost drivers — framing rates as "stubbornly high for the foreseeable future" — which reads as the trade group officially planting its flag in higher-for-longer territory.

The connection cluster today is real: MBA forecast flip + Iran-sanctions volatility + Friday's overnight gov-loan spike + Rocket's $100M lawsuit against UWM + tomorrow's TWO shareholder vote all coordinate around a single thesis — the industry is recalibrating around a posture of higher-for-longer rates AND consolidation pressure on the IMB side. Origination-volume forecasts for 2026 are now anchored to a flat-to-down trajectory unless something breaks the inflation tape. Rate sheets for Tuesday: probably 3–5 bps better than Monday morning IF the Iran rumor holds and the 10Y closes around 4.45; worse if it doesn't. Don't lock anyone today before the Iran headlines clarify.

The Clear Cooperation Policy "is dead" per HousingWire's analysis today — nominally on the books but enforcement fading as MRED expands, Compass cuts Zillow feeds, and Zillow files its antitrust suit. The new model is a fragmented listing-distribution layer across multiple competing networks rather than one MLS-driven consensus. OCC issued News Release 2026-38 on reducing regulatory burden for community banks — another data point in the agency-realignment story (CFPB narrowing, OCC firming bank-side flexibility). Separately, listing-agent demands for specific buyer-agent compensation forms are getting raised as antitrust-ethics issues, worth tracking for any LO whose pipeline runs through traditional listing-side referrals.

On the lender side, Panorama Mortgage Group consolidated multiple brands into a single banner — SimplyPMG — appointing Fernando Ospina as CPO. Chrisman's commentary today covered equity tapping, Non-QM hedging, AI processing, and subservicing tools — the Non-QM hedging mention matters for any LO seeing more bank-statement or DSCR pipeline. And the day's most concrete near-term catalyst: UWM is making its final push to Two Harbors stockholders ahead of TOMORROW's vote. If shareholders accept UWM's $12.50 over CCM, the IMB consolidation story takes another major turn; if they reject — which TWO's board already recommended — UWM's organic-growth-only posture gets reinforced through year-end, and Refi '86 starts looking less like a one-off and more like the structural Q3/Q4 strategy.

if you have any locked file scheduled to close on or before Wednesday, push the close date OR confirm with your lock desk that the rate can hold through Friday. The Iran-sanctions headline volatility could move rates 5–10 bps in either direction over the next 48 hours, and you don't want to be inside relock-eligibility exactly when the market is whipsawing. The proactive borrower call is straightforward: "we're managing this carefully through this week's news cycle; nothing for you to do, just keeping you informed."

What this brief is built on

1
National Mortgage NewsMay 18

MBA adjust forecasts for a 2027 federal rate hike

The Mortgage Bankers Association now predicts a Federal Reserve rate hike to arrive in 2027, as housing price growth also slows over the next two years.

2
Mortgage News Daily — MBSMay 18

Early Gains And Losses on Conflicting War Headlines

Bonds began the overnight session by drifting somewhat higher in yield. The 10yr hit 4.63 before recovering modestly just before domestic trading began. Yields were still slightly higher at 7:30am but moved lower after headlines cited rumors that the U.S. agreed to lift Iran's oil sanctions. Subsequent headlines cited…

3
Mortgage Professional AmericaMay 18

UWM makes final push to Two Harbors stockholders ahead of crucial vote

With the clock running out, UWM urges shareholders to reject CrossCountry's deal and back its $12.50-per-share bid

4
HousingWire — Real EstateMay 18

The Clear Cooperation Policy is dead. The MRED model is what replaces it.

CCP remains on the books, but MLS enforcement is fading as MRED expands, Compass cuts Zillow feeds, and Zillow files an antitrust suit.

5
HousingWire — MortgageMay 18

Broeksmit presses regulators on cost drivers as “stubbornly high” rates persist

Mortgage Bankers Association (MBA) president and CEO Bob Broeksmit said regulators should prioritize rolling back rules that raise costs as mortgage rates are likely to stay “stubbornly high” for the foreseeable future.

6
OCC — News ReleasesMay 18

OCC Advances Priority of Reducing Regulatory Burden for Community Banks

The Office of the Comptroller of the Currency (OCC) continues to prioritize supervisory and regulatory reforms to reduce burden for community banks and support their role as drivers of economic growth.

7
The Mortgage Point (DSNews/MReport)May 18

Rocket Mortgage Sues Rival UWM for $100 Million

The lawsuit alleges that UWM broke an agreement with mortgage servicing company Mr. Cooper, which Rocket acquired last year. Rocket alleges UWM tried to siphon business away after Rocket took over the company. The post Rocket Mortgage Sues Rival UWM for $100 Million first appeared on The MortgagePoint .

8
HousingWire — OriginationMay 18

Panorama Mortgage Group consolidates channels into SimplyPMG

Las Vegas-based Panorama Mortgage Group has unified its multiple brands under a single banner — SimplyPMG — and appointed Fernando Ospina as chief production officer to oversee all channels.

9
HousingWire — Real EstateMay 18

Redfin Early Access adds pre-market and coming soon listings

Redfin adds Early Access listings from Redfin Coming Soon and Compass brands, aiming to boost inventory by up to 12%

10
Mortgage News Daily — Chrisman CommentaryMay 18

Equity Tapping, Non-QM Hedging, AI Processing, Subservicing Tools; MBA Hallway Talk

For those of you who like maps, here’s one of the states’ closing costs. And here’s something for companies who have training programs: New hires should check out the Business Glossary from MISMO. It covers business processes, events, calculations, documents, forms, regulations, AI terminology, and more. LOs of…

11
HousingWire — Real EstateMay 18

Listing agent demands raise antitrust and ethics risks

A buyer’s agent says a listing agent required a specific compensation form and demanded the buyer agreement, raising antitrust and ethics issues.