President Donald Trump said he would plow ahead with new tariffs on Canada and Mexico starting Tuesday, a broadside against the two biggest US trading partners that underscores his push to remake global trade.

The companies did not disclose a purchase price, nor how many of the Houston-based Nations Reliable Lending employees would join the Ohio firm.

Its Arc Home lending business made money in December and January as the company leans more into home equity originations, which helped financial performance.

At a court hearing on Monday, lawyers for the Trump administration said statutorily required work is being done by the Consumer Financial Protection Bureau, while the union claimed the government is trying to shut the agency down.

Bonds Start Week Off With a Bang

After a weaker overnight session, bonds bounced back swiftly after this morning’s ISM Manufacturing data. The headline was roughly as-expected, but sharply weaker employment and “new orders” outweighed the highest “prices paid” component in more than 2 years. It took less than 15 minutes for moderate losses to flip to moderate gains.  Very little happened after that apart from a slow and mostly steady trickle to even stronger levels. It bears repeating that the gains were centered on econ data as opposed to any other news. 

Econ Data / Events

ISM Manufacturing 

50.3 vs 50.5 f’cast, 50.9 prev

ISM Prices

62.4 vs 56.2 f’cast, 54.9 prev

ISM Employment

47.6 vs 50.1 f’cast, 50.3 prev

ISM New Orders

48.6 vs 54.6 f’cast, 55.1 prev

Market Movement Recap

10:09 AM Bouncing back to positive territory after ISM data.  MBS unchanged and 10yr down 2.1bps at 4.194

01:10 PM Stock losses spilling over to help bonds again.  10yr down 4.1bps at 4.174.  MBS up 2 ticks (.06).

03:22 PM Best levels of the day.  MBS up 3 ticks (.09) and 10yr down 5bps at 4.165

Treasury Secretary Scott Bessent expects the U.S. housing market to quickly pick up steam after recent indicators came in below forecasts.

Authors in two separate Urban Institute papers warn how headcount reductions at the entities could negatively impact borrowers, taxpayers and the housing market.

The Consumer Financial Protection Bureau’s decision to no longer pursue its enforcement action against the credit reporting bureau marks the eighth lawsuit dropped by the agency in recent days.

Nexpoint Real Estate Opportunities has now made its own bid for the REIT, just days prior to a special meeting to vote on the merger with Ready Capital.

California leads the nation with over 1.5 million at-risk properties, but many threatened homes sit east including $68 billion worth of Florida real estate.