“Where do amputees get prosthetics on a budget? The secondhand store.” Budget, stalemate, and shutdown news continues in Washington DC. The sun still comes up in the morning, and there is news on related issues. For example, thank you to Sean S. who told me that HUD opened the suggestions window for improving the HECM (reverse mortgage) product. The reasons why Treasury and mortgage rates remain elevated despite the shutdown and Fed’s rate cuts will be discussed in the Capital Markets Wrap at 3PM ET, presented by Polly. In other shut down news, “USAA has stepped up for military service members and federal employees impacted by the government shutdown, delivering over $232 million in no-interest loans to about 62,000 members to date. As part of this program, eligible USAA members can apply for a no-interest loan equal to one net paycheck, up to $6,000. USAA has also processed tens of thousands of additional payment relief offers for banking and insurance products.” All the while, lenders and vendors are grappling with market shifts due to lack of economic news, interest rates, regulatory landscape (steady vs. being reactive), consumer behavior, and are participating in industry advocacy at the state or national level, thus giving them a voice. (Today’s podcast can be found here and this week’s are sponsored by Floify, an industry-leading point of sale platform. With Floify’s new Dynamic AI feature, lenders can modify applications with no coding required and rely on AI to autofill key application fields, allowing borrowers to fill out only a few fields relevant to their needs. Hear an interview with Tavant’s Mohammad Rashid on how automation and artificial intelligence will reshape customer experience, streamline operations, and address key lender challenges, positioning technology as the catalyst for modernizing and transforming the mortgage landscape.)

Lebda led the company through its initial public offering in 2000, and its sale about three years later to IAC Inc. In 2008, Lebda joined the newly rebranded LendingTree as it spun out as a separate company.

The Consumer Financial Protection Bureau has announced job openings for attorney-advisors to represent the agency in defensive and appellate litigation.

The Office of Management and Budget issued reduction in force notices to Treasury staff working in the Community Development Financial Institution office Friday, saying that the layoffs are necessary to “implement the abolishment” of the fund.

Onity adds former Meta exec as director, Click n’ Close taps industry veteran as president while banks and credit unions boost their mortgage teams.

James was charged with one count of alleged bank fraud and one count of making false statements to a financial institution. The indictment made public on Thursday follows allegations from Trump administration officials that James engaged in mortgage fraud.

While technology has become an important channel for information among homebuyers, many still see real estate agents as smarter than any other resource.

Markets Rocked by New Tariff Drama

Bonds were already having a decent day this morning with overnight market movers bringing yields in line with the lower end of the recent range. Mid-day drama caused massive selling in stocks which spilled over and made for an extension of the already-decent bond rally. The culprit? An unexpected tariff threat from Trump in response to… well… something (seriously, we’re not sure). Then, just minutes before the end of trading for the 3 day weekend, an official announcement (again, with cryptic references to untoward actions by China). Bonds managed to rally a bit more as stocks sank more, but there’s no telling how this will carry over on Tuesday. Tariffs haven’t been reliably beneficial for bonds, but they were beneficial today. 

Market Movement Recap

09:45 AM Overnight gains mostly holding.  MBS up 7 ticks (.22) and 10yr down 4bps at 4.10

11:26 AM Another wave of buying after tariff headlines.  10yr down 8bps at 4.06 and MBS up 10 ticks (.31).

02:17 PM best levels of the day. MBS up just over 3/8ths and 10yr down 9.2bps at 4.048

05:13 PM Even stronger at the close with 10yr down 11bps at 4.033 after new tariffs officially announced.  

The regulator recently nixed Obama and Biden-era guidance for the Office of Fair Housing and Equal Opportunity and apparently reduced staff.

A lapse in the National Flood Insurance Program because of the US government shutdown threatens to snarl home sales in the nation’s riskiest floodplains and leave some homeowners without coverage in the middle of hurricane season.