In the July 21 episode of Optimal Insights, Jim Glennon and Alex Hebner unpack the week’s economic signals and market movements, while, later in the episode, Jim Glennon and Kevin Foley sit down with special guest Greg Sher, managing director at NFM Lending, for a conversation on industry advocacy, leadership, and credit reform.
Here’s what you need to know this week.
Market Trends & Economic Signals
The macroeconomic landscape continues to present a complex narrative. Inflation data – CPI at 2.7% and PPI flat – suggests a steady but simmering economy. Yet, as Alex Hebner observed, “The market didn’t freak out… everyone’s expecting inflation to go up at this point.”
Key Insights:
Tariff Tensions: With the August 1 deadline fast approaching, unresolved trade negotiations with China and the EU could trigger tariffs as high as 30%, particularly affecting high-value imports such as German automobiles.
Housing Market Signals: Despite constrained inventory, 40% of homebuilders reported price reductions in June – an early signal of potential softening in the new construction segment.
Labor Market Watch: Initial jobless claims are trending upward, and residential construction employment – a historically reliable recession indicator – is beginning to contract.
Fed in Focus: While no rate cuts are anticipated at the upcoming Fed meeting, the ongoing political discourse surrounding the Fed’s leadership continues to inject uncertainty into the market narrative.
Greg Sher on Advocacy, VantageScore, and Elevating the Mortgage Industry
In a special guest segment, Greg Sher, managing director at NFM, shares his perspective on industry advocacy, credit scoring reform, and the importance of leadership visibility.
The Rise of #AllOfUs
Sher’s grassroots movement, #AllOfUs, was born from a desire to unify the industry around its shared mission: helping consumers. “We just don’t have that many voices in our industry at a C-suite level that are willing to step out and stand up for the entire industry beyond what’s in between their own walls,” he explains.
The hashtag has since become a call for collaboration across retail, wholesale, and independent mortgage banks.
VantageScore: A Case Study in Collective Influence
Sher’s advocacy has possibly also played a role in expanding the VantageScore conversation. With the FHFA now accepting VantageScore for agency use, the industry is entering a new chapter in credit scoring. But as Sher cautions, “There are so many more questions than answers.” From MI company readiness to secondary market appetite, implementation remains a work in progress.
Still, Sher believes the industry’s collective voice makes a difference: “Had we not gotten together as an industry to elevate our voices, I’m not sure we’re at this place right now.”
Social Media as a Strategic Lever
Sher underscores the growing influence of platforms like LinkedIn and X (formerly Twitter) in shaping policy and public perception. “The conversations all happen in the back room… but then you need the advocates to come in and start speaking up,” he says. He notes how his own engagement with policymakers and industry leaders online has helped amplify key issues, including credit access and housing affordability.
Elevating Women in Mortgage
Sher calls attention to the need for greater representation and support for women in the mortgage industry. He described the need for leaders to actively support and encourage women to take the stage, contribute to public discourse, and feel empowered to lead. Sher framed this as both a responsibility and an opportunity for the industry to evolve and reflect the diversity of talent it already possesses.
Practical Actions You Can Take Today
Watch Tariff Deadlines: The August 1 deadline could be a market-moving event. Prepare for potential volatility in pricing and supply chains.
Monitor Builder Behavior: Price cuts and rate buydowns signal margin compression. Stay alert to shifts in builder strategy and consumer affordability.
Engage in Advocacy: Join the conversation and support industry-wide initiatives.
Support Industry Diversity: Elevate underrepresented voices. Advocate for inclusion not just in hiring, but in leadership and visibility.
The mortgage industry is shaped not only by economic forces, but by the people willing to speak up, challenge the status quo, and lead with purpose.
Listen to the latest episode of Optimal Insights for deeper analysis and expert commentary. Available on all major podcast platforms: https://optimal-insights.captivate.fm/listen
The views and opinions expressed in this program are those of the speakers and do not necessarily reflect the views or positions of Optimal Blue, LLC.