Great question — the 10-year U.S. Treasury Note (T-Note) is one of the most important benchmarks in finance, and it’s tightly linked to interest rates. Here’s a breakdown of how it works and why it matters:

1. What the 10-Year Treasury Is

• It’s a bond issued by the U.S. government with a maturity of 10 years.
• Investors buy it, loaning money to the government in exchange for:
  • Semiannual coupon payments (interest), and
  • The face value back at maturity.
• Because it’s backed by the U.S. government, it’s considered one of the safest investments in the world.

2. Yield vs. Price

• The yield is the effective return investors earn on the bond.
• The yield moves inversely with the bond’s price:
  • If demand is high and price goes up → yield goes down.
  • If demand falls and price goes down → yield goes up.

3. Connection to Interest Rates

• The 10-year Treasury yield reflects investor expectations about:
  • Future Federal Reserve policy (Fed funds rate).
  • Inflation (higher inflation expectations push yields higher).
  • Economic growth (slower growth often pushes yields lower).
• While the Fed directly controls only the short-term Fed funds rate, the 10-year yield is market-driven and often moves in anticipation of where the Fed will go.

4. Why It’s So Important

• Mortgage rates & lending costs: 30-year mortgage rates generally move in step with the 10-year yield (plus a spread). If the 10-year goes up, mortgage rates usually rise.
• Benchmark for global finance: Companies, governments, and banks often price loans and bonds based on the 10-year yield.
• Risk sentiment: Investors flock to Treasuries in times of uncertainty, driving yields down (“flight to safety”).

5. Practical Example

• Suppose the Fed raises short-term rates to fight inflation.
  • Investors expect tighter policy and possibly lower inflation later.
  • If they believe inflation will fall, demand for 10-years might rise → yields drop.
  • But if they fear inflation will stay high, demand falls → yields rise.
• Mortgage rates, business loans, and even stock valuations all adjust accordingly.

✅ In short:
The 10-year Treasury is the bridge between Fed policy and real-world borrowing costs. It signals market expectations for growth, inflation, and Fed moves, making it a crucial guide for interest rates across the economy.

tune in and learn https://www.ddamortgage.com/blog

Didier Malagies nmls212566

DDA Mortgage nmls324329

Support the show

Speed & Efficiency

AI Underwriting:

Processes applications in seconds to minutes.

1.Can instantly pull data from multiple sources (credit reports, bank statements, income verification, property valuations, etc.).

Ideal for high-volume, standardized cases.

Human Underwriter:

Takes hours to days, depending on complexity.

Manually reviews documents, contacts third parties, and applies professional judgment.

Slower, especially for complex or edge cases.

2. Data Handling

AI:

Uses algorithms and machine learning to analyze massive datasets.

Can detect patterns humans might miss (e.g., spending behavior, alternative data like utility payments, even digital footprints in some markets).

Human:

Relies on traditional documentation (pay stubs, tax returns, appraisals).

Limited by human bandwidth—can’t process as much raw data at once.

3. Consistency & Bias

AI:

Decisions are consistent with its rules and training data.

However, if the data it’s trained on is biased, the system can replicate or even amplify those biases.

Human:

Brings subjective judgment. Can weigh special circumstances that don’t fit a neat rule.

Risk of inconsistency—two underwriters might interpret the same file differently.

May have unconscious bias, but also flexibility to override rigid criteria.

4. Risk Assessment

AI:

Excels at quantifiable risks (credit scores, loan-to-value ratios, historical claim data).

Weak at unstructured or nuanced factors (e.g., a borrower with an unusual income stream, or a claim with unclear circumstances).

Human:

Strong at contextual judgment—understanding unique borrower situations, exceptions, or “gray areas.”

Can pick up on red flags that an algorithm might miss (e.g., forged documents, conflicting information).

5. Regulation & Accountability

AI:

Regulators are still catching up. Requires transparency in decision-making (explainable AI).

Hard to appeal an AI decision if it can’t explain its reasoning clearly.

Human:

Provides a clear chain of accountability—borrower can request explanations or escalate.

Easier for compliance teams to audit decision-making.

6. Cost & Scalability

AI:

Scales cheaply—one system can process thousands of applications simultaneously.

Lower ongoing labor costs once implemented.

Human:

Labor-intensive, costs grow with volume.

Better suited for complex, high-value, or unusual cases rather than mass processing.

✅ Bottom line:

AI underwriting is best for speed, scale, and straightforward cases.

Human underwriters are best for nuanced judgment, exceptions, and handling edge cases.

Most modern institutions use a hybrid model: AI handles the bulk of simple files, while humans step in for complex or flagged cases.

tune in and learn https://www.ddamortgage.com/blog

didier malagies nmls#212566
dda mortgage nmls#324329

Support the show

Excited to share a major update that will make the homebuying process more secure and less stressful.

President Donald Trump recently signed the Homebuyers Privacy Protection Act of 2025 into law. This bill is a significant victory for the real estate industry, as it directly addresses the problem of unwanted calls, texts, and emails that often flood clients upon mortgage application.
What's Changing?
For years, many borrowers have experienced a barrage of unsolicited contact from different lenders immediately after their mortgage application. This happens because of "trigger leads"—a process where credit reporting agencies sell information to other companies once a credit inquiry is made.
Effective March 5, 2026, this new law will put a stop to this practice. It will severely limit who can receive client contact information, ensuring client privacy is protected. A credit reporting agency will only be able to share trigger lead information with a third party if:
• Clients explicitly consent to the solicitations.
• The third party has an existing business relationship.
This change means a more efficient, respectful, and responsible homebuying journey.
We are committed to a seamless process and will keep you informed of any further developments as the effective date approaches.

In the meantime, you can use the information below to inform clients how to proactively protect themselves from unwanted solicitations.
Opting Out:
• OptOutPrescreen.com: You can opt out of trigger leads through the official opt-out service, OptOutPrescreen.com.
• Do Not Call Registry: You can also register your phone number with the National Do Not Call Registry to reduce unsolicited calls.
• DMA.choice.org: For mail solicitations, you can register with DMA.choice.org to reduce promotional mail.


tune in and learn https://www.ddamortgage.com/blog

didier malagies nmls#212566
dda mortgage nmls#324329

Support the show

Good question — refinancing can be a smart move, but the timing really matters. The "right time" to refinance your mortgage depends on a mix of personal and market factors. Here are the main ones to weigh:

1. Interest Rates

If current mortgage rates are at least 2% lower than your existing rate, refinancing could save you money.

Example: Dropping from 7% to 6% on a $300,000 loan can save hundreds per month.

2. Loan Term Goals

Switching from a 30-year to a 15-year mortgage can help you pay off your home faster (though monthly payments are higher).

Extending your term may lower your monthly payment but increase total interest paid.

3. Equity in Your Home

Lenders usually want you to have at least 20% equity for the best rates and to avoid private mortgage insurance (PMI).

If your home’s value has increased, refinancing can help eliminate PMI.

4. Credit Score

If your credit score has improved since you got your mortgage, you may now qualify for much better rates.

5. Life Situation

Planning to stay in the home at least 3–5 years? That’s often how long it takes to “break even” on refinance closing costs.

If you might sell sooner, refinancing may not make sense.

6. Debt or Cash Needs

A cash-out refinance can help if you want to consolidate higher-interest debt, fund renovations, or free up cash — but it raises your loan balance.

✅ Rule of Thumb:
Refinance if you can lower your rate, shorten your term, or eliminate PMI, and you’ll stay in the home long enough to recover the costs.

tune in and learn https://www.ddamortgage.com/blog

didier malagies nmls#212566
dda mortgage nmls#324329

Support the show

1. Getting Leads from AI

AI can help you find and qualify homeowners who may be interested in a second mortgage (home equity loan or HELOC). Common approaches:

Predictive Analytics – AI models look at property values, loan-to-value (LTV), credit trends, and household income estimates to flag homeowners who may be equity-rich but cash-flow constrained.

Behavioral Targeting – AI scrapes signals from online behavior (searches, social media, property sites) to identify homeowners exploring refinancing, debt consolidation, or home improvement.

List Enrichment & Scoring – AI takes raw lead lists (from credit bureaus, title data, etc.) and ranks prospects by likelihood of conversion.

Chatbots & Virtual Assistants – Automated lead capture on websites or ads, qualifying borrowers by asking pre-screening questions 24/7.

2. Using AI in the Mortgage Process (Second Mortgages Specifically)

Once a lead is captured, AI can help streamline:

Prequalification – Instantly running soft credit pulls and property value AVMs (automated valuation models).

Risk Assessment – AI models assess borrower income stability, equity position, and repayment ability faster than traditional underwriting.

Automated Marketing – Personalized drip campaigns (emails/texts) tailored to where the borrower is in their decision cycle.

Compliance Guardrails – AI tools scan communications and ads to make sure they meet RESPA, ECOA, and fair lending rules.

✅ Important Note: Regulations are tightening around AI in lending (bias, transparency, fair lending laws). Any AI-driven lead-gen or underwriting must remain compliant with ECOA, Fair Housing Act, UDAAP, RESPA, and FCRA.

Do you want me to map out an AI-driven workflow for generating and closing second mortgage leads (step by step with tools you could use), or do you want a higher-level overview of companies already doing this?

You said:
Customers are finding thru AI and I am getting them second mortgages thru AI
ChatGPT said:

Got it — you’re saying customers are finding you through AI (likely through AI-driven search, recommendations, or even chatbots), and then you’re also using AI on your end to help them get second mortgages (home equity loans or HELOCs).

Here’s how that usually plays out, and how you can structure it:

🔹 How Customers Find You Through AI

Search + Recommendation Engines

Borrowers ask tools like ChatGPT, Google Gemini, or even lender chatbots about “best second mortgage lenders.”

AI-driven SEO tools route them toward your website or ads.

AI-Powered Marketing

Predictive ad platforms (Google Ads, Meta, programmatic ads) use AI to match your services with homeowners who are likely equity-rich.

Smart drip campaigns + automated SMS/Email nurtures keep them engaged until they’re ready to apply.

Conversational AI (Front Door)

Website chatbots or virtual assistants pre-qualify by asking: “What’s your home value?”, “What’s your current balance?”, “What’s your income?”.

These instantly filter serious borrowers from casual shoppers.

🔹 How You Help Them Get the Loan With AI

Lead Intake & Pre-Screening

AI pulls in property data (AVM: Zillow/Black Knight/CoreLogic) + soft credit pulls.

Instantly calculates Loan-to-Value (LTV) and debt-to-income (DTI).

Automated Prequalification

If borrower has enough equity + meets credit standards → AI engine generates a prequalification in minutes.

AI Underwriting Support

OCR (document reading AI) extracts paystubs, W2s, bank statements → fills in 1003 automatically.

AI models flag potential risk (income inconsistencies, high utilization).

Personalized Loan Matching

Support the show

Great question. Markets don’t usually wait until the Fed actually cuts rates to react — they move in advance, based on expectations.

Here’s how it works:

Forward-looking nature of markets – Bond yields, stock prices, and mortgage rates are influenced by what investors think will happen, not just what has already happened. If traders believe the Fed will cut rates in September, they start pricing that in now.

Fed communication – The Fed often signals its intentions ahead of time through speeches and policy statements. If Chair Powell or other Fed officials strongly hint at a cut, the market will react immediately.

Data-dependent – If new data (like inflation cooling or unemployment rising) supports the case for a cut, markets may rally or yields may drop months before the Fed makes the move.

The actual cut – When September arrives, if the Fed cuts exactly as expected, the market reaction may be small (because it’s already “priced in”). But if the cut is bigger, smaller, or delayed compared to expectations, that’s when you see sharper moves.

👉 So to your point: yes, the market already reacts now to a possible September cut. By the time the Fed announces it, most of the impact could be baked in.

tune in and learn https://www.ddamortgage.com/blog

didier malagies nmls#212566
dda mortgage nmls#324329

Support the show

Yes — shopping for your homeowners' insurance annually is generally a smart move.

Here’s why:

1. Rates change more than you think.
Insurance companies regularly adjust premiums based on inflation, claims data, weather patterns, and even changes to your credit or risk profile. A company that was the cheapest two years ago might now be in the middle of the pack.

2. Your coverage needs can shift.
If you’ve renovated, added security systems, bought expensive personal items, or paid off your mortgage, you may need to adjust your coverage — and some insurers may reward those updates with lower rates.

3. Loyalty discounts can fade.
While some insurers offer loyalty perks, others quietly raise rates on long-term customers (“price optimization”), counting on you not to shop around.

4. Bundling opportunities change.
If you’ve switched auto or other policies, you might qualify for better bundle discounts elsewhere.

Tips for shopping annually:

Compare at least 3–4 quotes.

Match coverage limits exactly when comparing prices — don’t just look at the premium.

Check both local agents and online marketplaces.

Ask about claim satisfaction and financial stability, not just price.

Reassess your deductibles; a higher deductible can lower your premium.

tune in and learn https://www.ddamortgage.com/blog

didier malagies nmls#212566
dda mortgage nmls#324329

Support the show

Program Overview
Borrower Contribution: You pay 1% of the purchase price as the down payment.

Lender provides a 2% grant, bringing your total to 3% down, which is the typical minimum for conventional loans.

For example, on a $250,000 home:

You pay $2,500 (1%)

Lender adds $5,000 (2%)

You start owning 3% equity from day one

Eligibility Requirements
To qualify for ONE+, you must meet all of the following:

Income: At or below 80% of your area's median income (AMI)
National Mortgage Professional

Credit Score: Minimum FICO® score of 620


Property Type: Must be a single-unit primary residence (no second homes or investments)

Loan Limit: Loan amount must be $350,000 or l

Total Down Payment: With their 2% grant included, your total down payment cannot exceed 5%

Mortgage Insurance (PMI)
Despite the grant taking you to 3% equity, the program does require mortgage insurance (PMI).
National Mortgage Professional
The Mortgage Report

tune in and learn https://www.ddamortgage.com/blog

didier malagies nmls#212566
dda mortgage nmls#324329

Support the show