Morgan Stanley cuts 2,500 jobs across divisions

👋 Good morning! This is Mortgage Nuggets, your mortgage news cheat sheet - because who wants to read the textbook? Let’s dive in…

1. Better's new ChatGPT app targets lenders Rocket and UWM

Online mortgage firm Better has partnered with OpenAI to launch a ChatGPT app that can cut mortgage underwriting from about 21 days to as little as 47 seconds.

The tool combines Better’s mortgage engine with OpenAI’s models to automate dozens of underwriting checks for loan officers at banks, brokers and fintech firms.

Better says the platform targets industry leaders including Rocket Mortgage and United Wholesale Mortgage by enabling rival lenders to approve loans faster and reduce costs.

2. Morgan Stanley cuts 2,500 jobs across divisions

Morgan Stanley is laying off about 3% of its workforce, roughly 2,500 employees, with some cuts affecting staff involved in mortgage origination services for wealth management clients.

The layoffs span multiple divisions including investment banking, trading, investment management and wealth management, where private bankers and back-office staff were impacted. The job reductions began last week and were first reported by The Wall Street Journal.

The restructuring reflects shifts in business priorities, geographic strategy changes and performance considerations. It comes despite strong financial results, as Morgan Stanley reported $70.6 billion in revenue and $16.9 billion in net income for 2025.

Related: Capital One cuts more than 1,100 Discover employees

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3. More Nuggets

📊 Mortgage rates jump after Iran strike rattles markets. (HousingWire)

📝 Long-term care costs average $135K, a key factor in reverse mortgage retirement planning. (Millman)

🏡 Relistings jump as home sellers bet on stronger spring market. (Redfin)

🛎️ Trigger lead restrictions begin as Homebuyers Privacy Protection Act takes effect. (NMP)

4. USDA lending changes could handcuff low-income California homebuyers

Changes to the U.S. Department of Agriculture’s Section 502 Direct Loan program will reduce the maximum loan size for rural homebuyers to 60% of local FHA limits, down from 80%, and remove prior exceptions.

The program, which offers up to 100% financing and payment assistance, has historically been widely used in California.

Housing advocates say the revision could make many rural homes in California ineligible for financing. The California Coalition for Rural Housing warned the change could limit homeownership options for low- and very low-income buyers, as home prices in many rural areas exceed the new cap.

5. UWM, Chase launch temporary mortgage pricing incentives

United Wholesale Mortgage introduced temporary mortgage pricing incentives, including a 75-basis-point discount on eligible refinance loans through March and a $600 appraisal credit for eligible purchase loans through April. The lender said the incentives aim to help independent brokers compete while lowering borrowing costs for homeowners and buyers.

Separately, JPMorgan Chase’s home lending unit launched a limited-time rate sale for purchase and refinance loans through March 8, offering personalized interest-rate discounts that can be combined with other relationship-based pricing programs.

☀️ You’re all caught up. See you on Monday!

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