After gaining access to On Q systems via vendor software, unknown parties were able to obtain and remove client personal information, including Social Security numbers.

By imposing this designation, the Federal Housing Finance Agency and the Biden Administration will only drive more industry consolidation and increase systemic risk writes the Chairman of Whalen Global Advisors writes.

Mysterious Afternoon Gains Bring Yields Back Into The Range Just Before Jobs Report

It was a surprisingly and mysteriously decent day for the bond market (and even more decent for mortgage rates).  Unlike other days this week, overnight and early morning weakness was minimal.  Gains began ramping up right after the Jobless Claims data.  The direction of the move is no mystery, considering claims came in at 221k vs 214k, but the pace of the move is harder to explain.  Claims don’t typically have as noticeable an impact.  No matter… yields drifted sideways to slightly higher into 2pm and everything seemed to make sense until another sharp little rally over the following 2 hours.  A big stock sell-off was clearly involved and perhaps some buzz surrounding geopolitical risks.  All told, it was enough to get yields back into the range that was broken on Monday (4.32% key level in 10yr) right before the jobs report flips a coin on another big breakout.  Of course if the coin lands on the other side, rates are more likely to take a friendly lead-off heading into next week’s CPI.

Econ Data / Events

Jobless Claims

221k vs 214k f’cast, 212k prev

Continued Claims

1791k vs 1810k prev

Market Movement Recap

09:40 AM Sideways to slightly weaker overnight. Stronger after data.  MBS up an eighth.  10yr down 3.2bps at 4.318

01:26 PM Off the best levels with MBS up only 1 tick (0.03).  10yr 0.4bps higher at 4.354.

03:40 PM Flight to safety surge in the PM with 10s down 4bps to the lows of the day at 4.31.  MBS up an eighth.

Thursday is shaping up to be a calmer and less eventful trading day than the two most recent examples.  It’s similar in the sense that there was some weakness to overcome this morning, but pleasantly different in the sense that the weakness was overcome very quickly.  The morning’s economic data played some role in the resilience with both Challenger Job Cuts and Jobless Claims conveying some incremental labor market weakness.  With no other scheduled data today and no fireworks expected from the afternoon’s Fed speakers, the focus is decidedly shifting to Friday morning’s jobs report.

Mortgage rates may have been able to claim some resilience over the past few days, but it hasn’t been a great week in general.  The average lender jumped quickly over 7% for a top tier conventional 30yr fixed rate on Monday.  The next two days were much less interesting. Now today, the not-so-great week is showing some signs of promise.  Without much by way of provocation or justification, rates dipped just a hair under 7%.  The nuts and bolts explanation is that the bond market improved this morning following a somewhat weaker reading in Jobless Claims, but other factors relating to timing and recently defensive pricing strategies among lenders help flesh out the story. More importantly, everything that has happened up until today is of secondary importance to what’s about to happen when it comes to interest rate volatility, or at least to the POTENTIAL for volatility.  That’s because tomorrow morning brings the Employment Situation, otherwise known as “the jobs report.”  Along with the Consumer Price Index (CPI), this is one of two reports with vastly more power to cause drama for rates than any other report. The jobs report will be released at 8:30am tomorrow morning.  There is no way to know if it will be good or bad for rates ahead of time–only that it can do either of those things in grand fashion.  That said, it occasionally threads the needle without much fanfare.  If that were to happen, it would place even more focus on the next CPI report which happens to be coming out next week.  

Think you can predict the future? I don’t think so. (Click on that link and think about that caption.) Some foresaw the drop in volume and income after cramming 4-6 years’ worth of production into 2020 & 2021, others were too busy funding loans to make predictions. But things have certainly changed. According to Curinos, March 2024 funded mortgage volume decreased 11 percent YoY but increased 22 percent MoM. The average 30-year conforming retail funded rate in March 2024 was 6.88, 8bps higher than February 2024 and 58bps higher than the same month last year. (Curinos sources a statistically significant data set directly from lenders to produce these benchmark figures.) (Found here, this week’s podcasts are sponsored by Loan Vision. With Loan Vision, the mortgage banking industry’s premier mortgage accounting solution, you can take your accounting department from “cost center” to “revenue generator,” operating more efficiently and profitably. Hear an interview with Lereta’s John Walsh on a recent survey that shows nearly half of respondents would be unable to pay their monthly mortgage payment if their escrow accounts increased by 25 percent.) Lender and Broker Services, Products, and Software Looking for insights to help drive your business strategy? Richey May’s 2023 Interactive HMDA Dashboard is now live! The mortgage industry experts at Richey May have scrubbed the raw 2023 Home Mortgage Disclosure Act (HMDA) data, offering a window into mortgage origination trends nationwide, and organized it into a dynamic dashboard that allows lenders to drill down on specific markets and companies to aid in strategic business planning. This dashboard allows you to compare your loan characteristics to your peers’ so you can see where you stand. Lenders will also find this dashboard valuable for identifying new markets for expansion, understanding market share trends, seeking out M&A opportunities, measuring the success of sales efforts, and more. Access the dashboard on our website today and reach out to info@richeymay.com with any questions you may have.

A hedge fund-backed newsroom accused the industry giant of overcharging borrowers by hundreds of millions of dollars through “corrupt UWM loyalist” brokers.

The order in the Cenlar loan modification case highlights what courts may look for in qualified written request responses, something other servicers like Specialized Loan Servicing also are contending with in litigation.

If Ocwen shareholders approve, the parent company will first change names in June, followed by PHH and Liberty Reverse at a later date.

Since the launch of vacant-loan sales, a majority have come from properties located in 10 states, HUD reported.