What Lenders Are Talking About: Non-QM, Credit Scores, and AI + Market Update | August 4, 2026

In this episode of Optimal Insights, Jim Glennon, Alex Hebner, and James Cahill break down the latest market developments impacting mortgage rates and capital markets. The discussion focuses on the Federal Reserve's recent decision to leave rates unchanged, market reactions to the continued lack of forward guidance, and the resulting volatility in Treasury markets. The team also explores inflation concerns, global debt dynamics, foreign currency interventions, and why investors remain focused on upcoming employment and inflation data.Later, Kevin Foley joins Jim Glennon for a discussion on the topics lenders are talking about most frequently today. They examine continued growth in non-QM lending, emerging strategies around non-QM hedging, adoption of alternative credit score models such as VantageScore and FICO 10T, and practical applications of AI across the mortgage industry. The conversation highlights how lenders are evaluating new technologies and products to improve efficiency, profitability, and borrower access.Key TopicsMarket reaction to the Federal Reserve's latest meetingTreasury yields, inflation concerns, and global debt pressuresJapanese currency intervention and potential market impactsUpcoming employment and labor market dataContinued growth in non-QM originationsAlternative credit score model adoptionPractical applications of AI and knowledge agents in mortgage lendingClient priorities and emerging industry trendsChapters00:18 — Welcome & Mortgage Market Snapshot02:44 — Fed Holds Rates Steady and Market Reaction07:42 — Inflation Risks and September Rate Outlook09:45 — National Debt, Treasury Yields & AI Investment Impact11:41 — Japan, Currency Intervention & Global Market Risks16:52 — Yen Carry Trade and Potential Market Contagion17:57 — Jobs Week Preview: ADP, Claims & Employment Data20:08 — AI's Impact on the Labor Market22:12 — What Clients Are Talking About Today24:36 — Non-QM Growth and New Lending Opportunities26:07 — Non-QM Hedging: Risks and Strategies32:45 — VantageScore, FICO 10T & Alternative Credit Models37:52 — AI Adoption Across Mortgage Lending40:24 — Knowledge Agents, Virtual Economist & Practical AI Use Cases44:20 — Closing RemarksOptimal Insights TeamJim Glennon, SVP, Hedging and Trading OperationsAlex Hebner, Hedge Account ManagerJames Cahill, MSF/MSR Account ManagerKevin Foley, Director of Product ManagementProduction TeamExecutive Producer: Sara HoltzProducers: Matt Gilhooly & Alex KreuterDisclaimerCommentary included in the podcast shall not be construed as, nor is Optimal Blue providing, any legal, trading, hedging, or financial advice.Mentioned in this episode:Get Ahead of What’s Next at Optimal Blue Summit 2027The mortgage market keeps moving. Optimal Blue Summit 2027 brings together industry leaders, innovators, economists, and technology experts for three days of market intelligence, hands-on learning, and meaningful connections. Join us February 1–3 in Scottsdale, Arizona, to hear from Troy Aikman, Bob Broeksmit, Michael Fratantoni, Joe Tyrrell, and other influential voices shaping the future of mortgage. Optional training sessions and a championship golf experience are also available. Early-bird registration is just $199 through October 31. Register today at Summit.OptimalBlue.com.