Figure Technology Solutions introduces a gen AI-powered tool dubbed the “stare and compare killer” which aims to help with document reviews.

The arrangement complements the publicly traded nonbank lender’s acceleration of other activity in the servicing space and builds on other business with the REIT.

The company has done 10 of these transactions, and its track record on paying them off shows how successful it has been, Morningstar DBRS noted in a presale report.

The Federal Housing Finance Agency has proposed a change to capital rules on interest-bearing deposit accounts that would increase the Federal Home Loan Banks’ flexibility to manage liquidity during times of stress.

President Biden’s initial disaster declaration made mortgage and other federal assistance available to residents across three Southeastern states.

Bonds Unexpectedly Forced to Focus on War Instead of Data

Just 30 minutes before the month’s most important week of economic data was about to hit its stride, headlines hit the newswires regarding an imminent missile attack on Israel.  While various iterations of such headlines are unfortunately common, these examples got the market’s attention, resulting in a quick “flight to safety” trade (stock prices and bond yields moved lower).  When the AM econ data came out 30 minutes later, the impact on bonds was insignificant by comparison.  The initial flight to safety was unwound in the afternoon, but bonds remained in moderately stronger territory on the day.

Econ Data / Events

S&P Manufacturing PMI

47.3 vs 47.0 f’cast, 47.9 prev

ISM Manufacturing

47.2 vs 47.5 f’cast, 47.2 prev

ISM Prices Paid

48.3 vs 53.3 f’cast, 54.0 prev

Job openings

8.04m vs 7.66m f’cast, 7.71m prev

Job quits

3.084 vs 3.27m prev (lower is better for rates)

Market Movement Recap

10:30 AM Flight to safety rally after Israel/Iran headlines and then flat after data.  MBS up 5 ticks (.16) and 10yr down 7.9bps at 3.704

01:03 PM strongest levels for MBS with 5.0 up a quarter point.  10yr down 7.2bps at 3.711

02:03 PM weakest levels now with MBS still up 2 ticks (.06) and 10yr down 4.4bps at 3.739

03:46 PM Off the weakest levels now.  MBS up an eighth and 10yr down 4.3bps at 3.74.

While the past 5 months have been well-stocked with victories for mortgage rates, the past week and a half brought a bit of a pull back.  Most of that upward momentum can be chalked up to rates rushing to get into position for the Fed’s rate cut on September 18th.  It’s actually quite a bit more complicated than that, but thankfully, the movement has been small enough that it doesn’t demand a detailed explanation. In not so many words, the entire bond market had some “refiguring” to do after Fed day, and that process was pretty good for the shortest-term rates and mildly inconvenient for longer-term rates like mortgages. While there was some uncertainty at times, last week now looks like it clearly marked the end of the reaction phase to the Fed’s policy shift.  That leaves the rate market to move on to watching the normal stuff: scheduled economic data and unscheduled surprises that are big enough to impact global financial markets.  Both came into play today. Interestingly enough, today’s economic data didn’t have a big impact on rates.  Instead, the market focused on headlines regarding missile strikes in the Middle East.  In general, escalating military conflict (if sufficiently alarming) tends to push stock prices and interest rates lower, as was the case this morning.   Mortgage rates fell back to last  Friday’s levels after yesterday saw the highest rates in several weeks. 

We find ourselves in the 4th quarter of 2024. October is here! Do you want to beat the rush for buying the Halloween candy that’s most popular in your state? Here’s the list. Skittles are the most popular in Georgia, where Jimmy Carter celebrates his 100th birthday. Topics here at the ACUMA event in Las Vegas include servicing values, longevity, and prepayments. No one knows how long anyone will live, or even, for sure, when a loan will pay off. If you had a crystal ball, which no one does, and an investor knew that mortgage rates were going to go down, why would that investor pay 103 for a loan? Would you pay up for a VA loan, given the refinance characteristics of that program? There is certainly a lot of information exchanged at conferences, and Senior Partner Garth Graham and STRATMOR Senior Advisors Sue Woodard and Brett McCracken share insights today at 11AM PT, 2PM ET, from the recent events attended, discuss upcoming conferences, and give tips on achieving the most value from upcoming conferences. (Today’s podcast is found here and this week’s is sponsored by Candor. Candor’s authentic Expert System AI has powered more than 2 million flawless, hands off underwrites. Every credit risk decision Candor makes is backed by a Warranty, eliminating repurchase worries. Hear an interview with Fannie Mae’s outgoing and incoming chief economists, Doug Duncan and Mark Palim, on their role at Fannie, what drove them into the profession, trials and tribulations of forecasting, and more.)

This morning’s slate of economic data is certainly higher-profile compared to yesterday with JOLTS and ISM Manufacturing always capable of moving the needle.  Ironically, it was geopolitical headlines that accounted for the lion’s share of this morning’s volatility, however, with Israel/Iran newswires sparking a flight to safety 30 minutes before the data.  Volume and and movement were noticeably larger at that time, bringing bonds to their best levels of the morning.  The data itself hasn’t left a lasting mark on today’s trading.

Banks in the hurricane’s path are focused on finding employees and restarting operations. Those that do business in Western North Carolina are facing an especially grueling recovery.