The Federal Reserve announced a quarter-point drop in interest rates on September 17^th, bringing the federal funds rate to 4 – 4.25%. This is the first rate cut seen in 2025. The Federal Reserve stated that they will continue to monitor the data closely before making further rate cut decisions.

In anticipation for the rate cut, mortgage interest rates have dropped over the last few weeks to an average of 6.13% on September 16^th, the lowest level in the last three years. The market already capitalized on the impact of the rate cut. The Mortgage Banker Association reports that mortgage applications increased 29.7% and refinancing applications increased 58% for the week ending September 12^th. Following this surge, refinance activity did begin to cool off, but this helps demonstrate the impact that rate cuts can have on volume. According to Mortgage News Daily, the refinance index remains 18% higher than one year ago.

With the potential for additional interest rate drops in the future, more homebuyers are eagerly watching the market to decide when they should enter the market and homeowners are now trying to decide whether to refinance their current mortgage. As more potential homebuyers and homeowners are contemplating their next moves, lenders should consider planning for scalability and adaptability in preparation for more market shifts.

In today’s fast-paced mortgage lending environment, lenders may lose borrower interest if they can’t deliver speed, ease, and convenience. Lenders who position themselves to best meet these borrower needs will help reap the benefits that declining interest rates may bring, potentially boosting purchase and refi transaction volume. It’s equally important for lenders to review their list of vendors to ensure they are equipped with technology and innovative solutions to help them and their borrowers at scale. As a lender, here are some key attributes to look for in your service providers:

• End-to-end Solutions: comprehensive services that span your varied needs from mortgage services to title insurance to correspondent lending services. Consider limiting vendors that provide one-off services to avoid managing an unruly vendor portfolio.
• Nationwide Title Footprint: licensed in states across the country to ensure smooth transactions for borrowers, regardless of the property’s location.
• Agile Workforce: a large team ready to support your business when it's booming. A flexible staffing strategy, ongoing training programs, and cross-functional teams that allow them to quickly adapt to your changing needs.
• Trusted Network: cultivated relationships with reliable local notaries, appraisers, inspectors, and title abstractors nationwide, helping to provide top-notch service for every order.
• Comprehensive Reporting: automated and technology-powered reporting capabilities to help you and borrowers stay informed.
• Agency Participation: active participation in GSEs latest innovative programs and pilots.
• Cutting-Edge Technology: tech-savvy providers that continuously invest in and implement the latest innovations to help streamline your operations and boost efficiency.
• Seamless Integration: tech solutions designed for easy adoption, minimizing disruption to your workflows while helping to maximize your competitive edge.

Lenders may benefit from doing an in-depth review of their portfolio of vendors to ensure each vendor has the technology, experience, and relationships to help you confidently scale your business in today's dynamic market.

Centralized Refinance: Built for Scale and Speed

Our centralized refinance operations provided by Radian Settlement Services Inc., are built for scale and efficiency. An expansive footprint, competitive rates, and exceptional customer service are our recipe for a better take on title®. Building on this foundation of efficiency and exceptional service, let's explore the potential benefits that make Radian Settlement Services the ideal provider for lenders and borrowers alike:

• Flexible Staffing Model: our team can adjust to support your varying needs from fluctuations in refi transaction volume.
• Breadth of Services: we support lenders across the spectrum of refi and home equity paths, making data more accessible and transactions more seamless.
• Expansive Footprint: centralized rates are filed in 33 states and strategic workshare agreements in other locations provides a streamlined source for your needs.
• Competitive Pricing: Radian Title Insurance Inc., our affiliate title underwriter, has rates filed for both refinance and purchase transactions.
• Expedient Claims Processing: Radian Title Insurance Inc. also has a history of resolving or paying claims with speed and efficiency.
• Cutting-Edge Technology: our innovative systems help streamline operations, reducing turnaround times and minimizing errors.

Choosing Radian Title Services helps lenders like you move seamlessly through closing. Experience the difference that a truly comprehensive product and services suite can make for refinance business. With Radian Title Services, lenders can turn refinance volume into a competitive advantage.

Title insurance is provided and underwritten by Radian Title Insurance Inc., 6100 Oak Tree Blvd, Suite 200, Independence, OH 44131; Tel: 800.362.2305, NAIC#: 51632, CA- License# 5093-0. FL – Title insurance license #51632, AZ – Title Insurer 51632 (not licensed in AK, HI, ID, IA, ME, NH, NJ, VT and WY). Title Services are provided by Radian Title Insurance Inc. and Radian Settlement Services Inc., 1000 GSK Drive, Suite 210, Coraopolis, PA 15108, Tel: 800.646.8258, FL- Non-Resident Title Agency #A271379, AZ- Non-Resident Title Agent #1800016008, both subsidiaries of Radian Group Inc. Radian Settlement Services Inc. is a title insurance agency for Radian Title Insurance Inc. Additional licenses available at https://www.radian.com/licensing-disclosure.  This communication is provided for use by business professionals only and is not intended for distribution to consumers or other third parties. This does not constitute an advertisement as defined by Section 1026.2(a)(2) of Regulation Z.