Trump quips he'll fire Bessent if interest rates not lowered

unitedbrokersinc_m7cmpd2025-11-20T14:23:00+00:00November 20th, 2025|

Unemployment persistent, jobs up in September

unitedbrokersinc_m7cmpd2025-11-20T14:23:04+00:00November 20th, 2025|

Key insight: Unemployment ticked slightly up to 4.4% — from 4.3% in August — and revisions of prior reports show weaker employment gains over the summer.Supporting data: The economy added 119,000 jobs and 7.6 million unemployed, with major losses in transportation and government offset by gains in health care and social services.Forward look: With October data still missing and the labor market cooling, the Fed faces added uncertainty after cutting rates in SeptemberTotal nonfarm payroll jobs rose 119,000 in September, continuing a trend of little net job growth since April, according to the Bureau of Labor Statistics report released Thursday. The unemployment rate ticked slightly up to 4.4%, from 4.3% the prior monthWith 7.6 million people unemployed, unemployment was higher than a year earlier. BLS noted that the six-week release delay caused by the federal shutdown raised the establishment survey's collection rate, but did not affect household survey data already collected before the lapse. BLS will skip the October report due to the shutdown, saying October establishment data will be released with November's jobs report on December 16."Establishment survey data for October 2025 will be published with the November 2025 data. Household survey data were not collected for the October 2025 reference period due to a lapse in appropriations and will not be collected retroactively," the BLS release stated. "For both surveys, the collection period for November 2025 data will be extended, and extra processing time will be needed."This is the first batch of employment data issued since The BLS paused reports, withholding its September jobs report last month after the agency was shut down with the rest of the federal government when funding expired on Sept. 30. September's labor market looked stronger than August's, from August's weak 22,000 gain, which had signaled a cooling labor market and fueled calls for a Fed rate cut. September's data also underscored the variance across different industries. Hiring was concentrated in a few service industries. Health care added 43,000 jobs, the food services sector gained 37,000, and social assistance jobs rose by 14,000. Losses hit transportation and warehousing, shedding 25,000 positions. The federal government lost 3,000 jobs in September, making a cumulative loss of 97,000 federal jobs since January. Most other major sectors were flat.The September figures, however, confirm that job growth has remained sluggish since spring, and BLS revisions show that earlier months were even softer than initially reported. Revisions in the data cut previously reported July and August payrolls by a combined 33,000. That lack of data also clouds the Federal Reserve's calculus for determining short-term interest rates. The agency's Federal Open Market Committee cut interest rates by 25 basis points in September, marking the first rate cut since December. Officials described the move as a prudent cut in the face of labor market weakness, even with inflation still running somewhat above its 2% target rate.Kansas City Fed President Jeff Schmid argued that policy should stay "slightly restrictive" to keep inflation in check, while Vice Chair Philip Jefferson warned that tariffs and immigration limits are clouding the outlook and pressuring both sides of the Fed's mandate. Fed Gov. Miran and Waller, meanwhile, have called for rate cuts in September to further support a deteriorating labor market.Senator Elizabeth Warren D-Mass., Ranking Member of the Senate Banking Committee characterized the numbers as a sign of weakness in the economy, criticizing the administration for withholding October numbers."After sitting on it for weeks, Donald Trump finally released the September jobs report showing the unemployment rate is up," she wrote in a statement. "It's not surprising that he's now refusing to release the October jobs report, despite the Administration's legal obligation to publish employment data each month."

FOA buys Onity's reverse MSRs in strategic shift

unitedbrokersinc_m7cmpd2025-11-20T11:22:51+00:00November 20th, 2025|

Onity's PHH Mortgage Corp. subsidiary is repositioning its reverse mortgage business, selling its loan pipeline and multibillion-dollar servicing rights portfolio in that part of the market to Finance of America while staying involved as a subservicer and niche securitizer.PHH said it is working to accommodate a smooth transition for its reverse mortgage originators when the deal closes and Onity exits the specialty loan production business. Some of the reverse mortgage originators at PHH will have the option to join Finance of America's team. The two companies also plan on a partnership in which FOA's proprietary second-lien reverse mortgage product would be made available to eligible customers in Onity's forward servicing portfolio.The transaction aims to solidify acquiring unit Finance of America Reverse's position in sales of home equity withdrawal loans made to borrowers age 55 and up while Onity refocuses on subservicing and private securitizations of Ginnie Mae buyout loans in the niche. The deal also allows Onity to dedicate more resources to "forward" loans, including PHH's new non-qualified mortgage product suite.What Onity and PHH look to gain from the transactionOnity plans to use the proceeds to reduce debt and potentially repurchase shares. The company anticipates the deal will be accretive over the term of the three-year subservicing agreement, net of costs and including benefits due to redeployed funds from MSR sales. Finance of America Reverse has committed to a minimum volume of new subservicing over the term of the contract, according to Onity.The MSRs being sold are linked to 40,000 Federal Housing Administration-insured loans in home equity conversion mortgage-backed securities that Ginnie Mae guarantees, according to Onity. The portfolio had an unpaid principal balance of $9.6 billion as of Sept. 30.CEO Glen Messina called the deal "a strategic step that we believe will simplify our business and enable us to concentrate our resources on maximizing the growth and earnings of forward originations and recapture, as well as our commercial and reverse subservicing."Onity estimates it will receive $100 million to $110 million in adjusted net proceeds from the transaction, depending on when it closes and what the asset balances are at that time. Based on the UPB of the servicing as of Sept. 30, the unadjusted proceeds would be around $189 million, according to the company's 8-K filing with the Securities and Exchange Commission.The deal also is aimed at simplifying the company's balance sheet and strengthening certain financial metrics at the company like liquidity and capital ratios.How FOA plans to pay for and benefit from the dealFinance of America will draw on warehouse and asset-level financing as the main sources of funding for the transaction, according to its press release. It could also use cash on hand at the time of closing.The cross-selling partnership will market Finance of America's HomeSafe Second product to tens of thousands of forward mortgage borrowers at Onity who qualify for it, according to Finance of America. Other details around how the partnership will work were pending at the time of this writing, according to Onity."Beyond the value of acquiring high-quality assets, we anticipate that our expanded relationship with Onity will meaningfully multiply our origination reach," Finance of America CEO Graham Fleming said in his company's press release.The deal is on track to close in the first quarter of 2026 subject to closing conditions and regulatory approvals, according to both companies' press releases.Michael Fant, senior vice president of finance at FOA, called the proposed acquisition "an opportunity for us to continue to expand our market leadership in the reverse space," in an interview."The opportunity we see with the second-lien product continues our commitment to expanding access to seniors, making home equity part of their mainstream retirement conversation," he added.