The company will fund the discount across the first two years through a special escrow account.

Lower interest rates could bolster loan demand, credit quality and securities portfolios. But they could also curb lending profitability faster than they ease deposit costs, crimping net interest margins and eating into near-term profits.

The Federal Trade Commission has arranged the payment of hundreds of thousands of dollars to people a law firm charged for lower rates they never received.

Uneventful Monday Despite AM Volatility

Durable goods data made for a semblance of volatility this morning, with the core components resulting in a small rally at 8:30am.  Bonds bounced back into weaker territory at 9:30am amid NYSE tradeflows.  There was another mini-rally and another mini-sell-off ultimately giving way to an extremely narrow range near unchanged levels for the rest of the day.  MBS outperformed Treasuries by an amount that makes good logical sense on a Treasury auction week.  All in all, it may as well have been a 3 day weekend.

Econ Data / Events

Durable Goods

9.9 vs 5.0 f’cast, -6.9 prev

Core Durable Goods

-0.1 vs 0.0 f’cast, 0.5 prev

Market Movement Recap

08:46 AM Modestly weaker overnight and recovering after Durable Goods data.  MBS unchanged.  10yr down 0.6bps at 3.794

10:01 AM Back into negative territory.  MBS down 2 ticks (0.06) and 10yr up 1.7bps at 3.817

03:19 PM Sideways in a narrow range since the last update.  MBS unchanged and 10yr up 1.4bps at 3.814

New-home sales in the U.S. bounced back to the highest level since May 2023 as buyers took advantage of lower mortgage rates and more listings to choose from.

Vice President Kamala Harris’ pledge to deliver 3 million homes has drawn applause from homebuilders, lenders and affordability advocates, but experts are uncertain how her administration would pull it off.

In a complaint filed by the Justice Department on Friday, antitrust enforcers said RealPage’s software, which helps landlords set rental unit pricing, has effectively raised prices on renters illegally.

Mortgage fintech Maxwell suggests lenders position themselves closer to consumers as the post-commission changes landscape evolves.

In his speech at the Federal Reserve’s Jackson Hole Economic Symposium, the Fed chair said employment losses are now a bigger risk than elevated inflation.

“There’s a fine line between a numerator and a denominator. Only a fraction of people will find this funny.” Our business is a business of numbers. My son Robbie and I were fortunate to spend some time with the MBA’s Chief Economist Mike Fratantoni, Ph.D, earlier this week who mentioned that there is $500 billion in home equity debt compared to about $33 trillion of total home equity in the U.S. You gotta figure that many people who own their homes free and clear aren’t going to obtain a home loan. But still, there’s a lot of room for 2nds and HELOCs! In other primary market supply news, there are fewer loans to find buyers or portfolios for: we recently learned that single-family home building decreased by 6.8 percent and building permits decline 4 percent. (In the primary markets, this is bad news for home buyers as they continue to struggle with the lack of supply.) Want some good news? FHA delinquencies are now above the pre-COVID book, but FHA foreclosure levels are still very low. (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 what Robbie says is one of his favorite interviews year-to-date, with Imperial Fund’s Jared Neale on all aspects of residential mortgage-backed securities, from how they are packaged to current market demand.) Lender and Broker Software and Services