A Department of Government Efficiency team is working with FDIC leadership to “increase efficiency,” which could include cuts to contracts and streamlining staff. FDIC says DOGE staffers have “appropriate clearances.”

A recent letter addressed to the FHFA fueled a consumer advocacy group to look at salaries, which have been criticized as not aligned to the system’s purpose.

DeLory joined Equity Prime Mortgage from Carrington and helped to transition the Atlanta-based mortgage lender into a wholesale-only originator.

The latest foreclosure report adds to evidence from housing research groups that economic difficulties are beginning to impact a rising number of homeowners.

The Reasons May be Esoteric, But The Selling is Real

Bonds sold off today, in spite of a very bond-friendly CPI. One reason for that is the market’s assumption that it will need to wait and see what tariffs do to inflation in the coming months. Another reason is the laundry list of reasons discussed in yesterday’s recap. A new reason added to today’s mix in the form of the passage of the budget framework in the House.  As passed, there is $1.5 trillion in spending cuts staked simply on reassurances from Johnson and Thune. Markets didn’t love the implications for Treasury issuance.  The long end of the yield curve (10yr, 30yr, etc) took most of the damage while Fed rate expectations keep the short end of the curve anchored (i.e. a 2yr Treasury won’t drift too far above medium term Fed Funds Rate expectations).  So bonds had selling to do and 2s weren’t eligible, per se. Result: bigger sell-off than we otherwise would have seen in 10s/30s.  

Econ Data / Events

Core MM CPI 

0.1 vs 0.3 f’cast, 0.2 prev
unrounded 0.057

Core YY CPI

2.7 vs 3.0 f’cast, 3.1 prev

MM Headline CPI

-0.1 vs 0.1 f’cast, 0.2 prev

Jobless Claims

223k vs 223k f’cast, 219k prev

Market Movement Recap

11:19 AM Paradoxically modestly weaker after CPI data.  MBS down 5 ticks (.16) and 10yr down 1.3bps at 4.34 ( up from lows of 4.29+).

12:13 PM Weakest levels.  MBS down nearly 3/8ths and 10yr up 2bps at 4.373

03:30 PM New lows, down almost half a point in MBS and up 5bps at 4.40 in 10yr yield.

The move comes three months after Katie Sweeney, former BAC CEO, announced she would be stepping into an executive advocacy role for Rocket’s Pro channel.

Congressional Review Act resolutions to nullify the Consumer Financial Protection Bureau’s overdraft and larger participant rules now go to President Trump for his signature.

Lenders and borrowers have taken advantage of the dips in interest rates, but the industry has long-warned of pain for players like home builders.

A federal appeals court panel seemed open to accommodating the Trump administration by putting some conditions on a preliminary injunction that has blocked it from reductions in force at the Consumer Financial Protection Bureau.

President Trump placed a 90-day pause on most of his sweeping tariff package, but for banks and other financial market participants, the threat of volatility remains.