The wholesale giant meanwhile is suing four partners for selling loans to Rocket Mortgage and Fairway Independent Mortgage Corp., in violation of its 2021 decree.

Treasury Secretary Janet Yellen didn’t directly address the turmoil at New York Community Bank, and said that while some smaller institutions could be hit by a changing commercial real estate market, she doesn’t anticipate these mortgages will become a systemic risk.

The original lawsuit was one of several filed in 2014 in a coordinated effort among federal and state regulators aimed at fraudsters trying to cheat distressed mortgage borrowers.

Mortgage rates were technically a hair higher today when compared with yesterday’s latest offerings, but it’s just as fair to say they’ve been unchanged since hitting recent highs on Monday.  That pattern lines up with the well-known predisposition for the bond market (bonds dictate rates) to focus on a handful of the most important economic reports.  The last important report came out on Monday. Economic data will give traders and the Fed the info needed to determine the next move for rates.  At the moment, they’ve come down quite a bit from October’s highs, but have abruptly refused to go any lower without more convincing from the data. If the monthly Employment Situation (the big jobs report) is the biggest influence on rates in terms of economic reports, the Consumer Price Index (CPI) is not far behind.  The latest installment hits next Tuesday.   There’s no guarantee that rates will stay fairly flat between now and then.  Surprises are always possible, but that’s as fair a baseline as any.  The average top tier 30yr fixed rate is holding just under 7% for now.  It was over 8% briefly in October, and well into the mid 6’s last Thursday.

Bonds Increasingly Look Like They’re Waiting For CPI

It wouldn’t be the first time and probably won’t be the last that the bond market finds itself in a lull during a week that separates the most significant top tier economic data.  Last Friday’s NFP swung for the fences (in a bad way for rates), but it’s not game over unless next week’s CPI proves to be a bash brother.  Between one and the other, it’s a great time to hit the concession stand.  This isn’t to say exciting things can’t happen outside of NFP and CPI-type reports, only that there’s nothing on the calendar of scheduled events that demands attention until Tuesday morning at 8:30am ET.

Econ Data / Events

Jobless Claims

218k vs 220k f’cast, 227k prev

Market Movement Recap

08:20 AM Modestly weaker overnight with losses led by Europe.  MBS down 5 ticks (.16) and 10yr up 2bps at 4.135

10:47 AM modestly weaker drift with MBS now down 7 ticks and 10yr yields up 4bps at 4.154

12:49 PM Very flat through mid morning hours.  MBS down 5 ticks (.16) and 10yr up 4.5bps at 4.16%.

01:08 PM Slightly stronger 30yr bond auction and a decent reaction in Treasuries.  10yr now up only 2.7bps at 4.142.  MBS down an eighth of a point. 

Economists have their favorite indices to measure the health of the economy. GDP, if men are buying underwear, CPI, RV shipments, GDP, plastic surgery appointments, PCE, hemlines… tomorrow on The Mortgage Collaborative’s Rundown Skylar Olsen, the Chief Economist of Zillow, will discuss some of this, and more, for 30-45 minutes starting at noon PT, 3PM ET, in “The Rundown”. Meanwhile, lenders are shifting the focus from things they can’t change to things they can: changing regional managers comp plans to incorporate profits instead of volume. Or honing marketing systems now, not when rates drop further and opening up refi opportunities. Or shifting to paying less for a refi and putting the difference into rate sheet pricing. And who’s buying the properties we’re lending on? Women. Okay, that was a bold generalization, but still… (Today’s Commentary podcast can be found here and this week’s is sponsored by Vesta, the new, modern Loan Origination System (LOS) which helps lenders reduce their costs to originate and improve their ability to integrate with new technologies in the ecosystem. Hear an interview with Ally Home’s Glenn Brunker on what’s happening in the housing market and what to expect going into spring homebuying season.) Lender and Broker Software, Products, and Services Matic, a digital home insurance platform built for the mortgage industry, recently announced an exclusive partnership with PRMG to extend their marketplace of over 40 A-Rated carriers into PRMG customer offerings. PRMG joins over 100 mortgage lenders, servicers and banks, representing 20 percent of home loans processed in the U.S., that partner with Matic to integrate the insurance shopping experience into the homeownership lifecycle. Now more than ever, mortgage leaders are turning to Matic to help them offer value to customers, generate revenue, and reduce costs in a tough housing market. Mortgage leaders, don’t miss out: book a demo with Matic to discover how to add an ancillary revenue stream that removes friction from the insurance process and keeps customers within your existing systems. And if you’re attending MBA’s Servicing Solutions Conference in two weeks, stop by booth 806 to learn more! Book a demo with Matic.

It’s an interesting little interlude in the story of the bond market as yields wait to find out what’s next after (probably) confirming long-term highs in October.  The initial, rapid correction is out of the way, as is the correction to that correction.  In deciding what happens next, this week’s ongoing glut of Fed speakers continues chanting the same data dependent refrains.  But ironically, there really isn’t any actionable data this week.  This morning’s jobless claims report was the only arguable exception and it showed just how hungry the bond market is.  Despite the data being almost perfectly sideways, it nonetheless elicited a noticeable response in volume and even a modest selling bias.

The San Francisco-based electronic signature company’s chief executive Allan Thygesen announced Tuesday that roughly 400 employees across the company were being let go as part of restructuring for the 2025 fiscal year.

The Irvine, California-based senior housing and assisted living property firm opened Wednesday at $12.85, after it sold 56 million shares for $12 and closed at $13.22.

The real estate investment trust lowered its dividend to 25 cents a share after the company realized a nearly $59 million loss on a Philadelphia office loan.