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Key insight: Flagstar logged another quarterly loss, though one that was smaller than in earlier quarters this year.Supporting data: The bank's third-quarter net loss was $45 million.Forward look: Observers are focused on when the Long Island bank, which was battling for its survival last year, will return to profitability.Flagstar Bank reported a larger-than-expected net loss for the third quarter, marking the consecutive eighth quarter of profitability challenges as the Long Island-based bank continues its business overhaul.Bank executives continued to express optimism on Friday, pointing to the ongoing diversification of Flagstar's loan portfolio as well as an improving margin and well-controlled operating expenses. Still, they did not commit to returning to profitability in the fourth quarter, which has been a goal for the company this year.Flagstar said its third-quarter net loss was $45 million, or $0.11 per share. That was higher than the $0.08 average loss estimate predicted by analysts polled by S&P Capital IQ. Flagstar, which was formerly known as New York Community Bancorp, hasn't been profitable since the third quarter of 2023. In early 2024, the regional bank experienced significant tumult and nearly collapsed as a result of bad commercial loans, credit mishaps and risk oversights.Its quarterly losses have continued to narrow this year as the bank has made progress on its plan.In a press release announcing the latest results, Chairman and CEO Joseph Otting said the $91.7 billion-asset bank is moving in the right direction. The progress includes revamping the loan portfolio by adding more commercial-and-industrial loans and reducing exposure to commercial real estate loans, including multifamily loans, according to the bank. For decades, New York Community was a significant lender on multifamily buildings throughout the New York metropolitan region."Our third-quarter 2025 performance provides further evidence that we are successfully executing on each of our strategic priorities," said Otting, who joined the bank in 2024 as it was struggling to survive. "We made tremendous progress over the past year in building our [commercial-and-industrial] business and are extremely pleased with the results to date."Flagstar executives had been predicting that the company would return to profitability by the fourth quarter of this year. In response to an analyst's question about whether that expectation still holds, Chief Financial Officer Lee Smith didn't commit to it."We expect to be [profitable], but there's a lot of moving parts," he said. "I would point to the progress we've made quarter over quarter for the last few quarters."Shares were up 5% in pre-market trading.During the call with analysts on Friday, Otting said the July-September period was "a breakout quarter" for C&I loan growth.Read more about Flagstar here: https://www.americanbanker.com/organization/flagstar-financialIn the third quarter, C&I loans totaled $14.9 billion — up 3% compared with the prior quarter, but down 9.7% year over year because the company sold off certain non-core C&I loans. Within the C&I portfolio, momentum is building in two segments in particular, the bank said: specialized industries and corporate and regional commercial banking.Meanwhile, Flagstar's multifamily loan portfolio keeps shrinking. As of Sept. 30, those loans totaled $28.8 billion, reflecting a year-over-year decline of 13%. Net interest income of $425 million was down 17% year over year, reflecting a reduction in average assets caused by a lower yield on interest-earning assets, the bank said. But Flagstar's net interest margin was 1.91%, up 12 basis points year over year.Revenues totaled $519 billion. The bank set aside $38 million in provisions for credit losses.Noninterest income totaled $94 million, down 17% from the same quarter last year. The drop-off was the result of the bank's decision last year to sell its mortgage servicing operation and a third-party origination business.Third-quarter expenses totaled $522 million, down 27% year over year, due to a reduction in compensation and benefits costs, as well as a decline in general and administrative fees and Federal Deposit Insurance Corp. insurance expenses, the bank said. Read more about bank earnings here: https://www.americanbanker.com/earningsLast week, Flagstar completed the dissolution of its holding company, a rare move among banks. Executives have said that folding the holding company into the bank will simplify the corporate structure, lower annual operating expenses by $10 million and reduce regulatory oversight.Instead of being regulated by the Office of the Comptroller of the Currency and the Federal Reserve Board, Flagstar's sole regulator is now the OCC, the agency that Otting led during the first Trump administration.Also during the quarter, Flagstar realigned a portion of its commercial bank. Changes included the creation of a new specialty finance unit and the combination of two equipment finance teams. 

With National Guard troops in the streets and federal workers furloughed, house hunters in Washington are stepping back.The number of prospective buyers touring properties in the city last week fell 8.5% from a year earlier, according to data from Bright MLS, a regional multiple listing service. It's the eighth straight weekly decline.READ MORE: Mortgage rates fall to lowest mark in over a yearIn a city where nearly one in four workers has a federal job, the government shutdown that began Oct. 1 has added a new layer of disruption. Showings have been dropping since August, when President Donald Trump deployed troops to crack down on crime, Bright MLS Chief Economist Lisa Sturtevant said.Now, as the shutdown enters its 23rd day, workers have already missed their first paycheck, she said. "We're seeing the impact of the uncertainty we've been living with for six months," Sturtevant said. "People are stressed."High borrowing costs have also sidelined buyers, although mortgage rates have been dropping in recent months, hitting the lowest level in more than a year on Thursday.The market for condos has been especially weak, said Marc Dosik, who leads the Fed City Team of agents at Century 21 Redwood Realty.In the Logan Circle neighborhood about a mile north of the White House, Dosik is finding few takers for a 600-square-foot condo. The list price of $480,000 is already $59,000 below what his seller paid in 2020."Whenever there's uncertainty, people stop buying houses," Dosik said. "I've got more listings than I normally hold."Buyers are still out there, but they're looking for something special, said Rebecca Love, an agent with Redfin.  "Most people aren't flat out stopping their search," Love said. "They are looking for much more perfect places now because they're being cautious with their funds."

It’s been a good couple of weeks for mortgage rates during the ongoing government shutdown.Historically, they tend to do well when the government isn’t operational. The short answer why is a perceived flight to safety (in bonds), which pushes interest rates lower.The 30-year fixed is now at its lowest point in about three years, having fallen about 20 basis points (0.20%) since the shutdown got underway on October 1st.At the same time, a dearth of new economic data from the government makes it hard for rates to do too much.That changes tomorrow, when we get a (delayed) CPI report for the month of September.CPI Report Has the Chance to Be a Big Mortgage Rate Mover TomorrowWhile the CPI report isn’t necessarily the biggest mover of mortgage rates, it does carry a good amount of weight.Especially lately with inflation being top of mind these past couple years, due in part to the record low mortgage rates many enjoyed (and continue to enjoy).I’d argue the monthly jobs report is the heavyweight, but that’s on hold until the government gets back to work.The CPI report was too, but it turns out the Social Security Administration (SSA) needs it to calculate the Cost-of-Living Adjustment (COLA).So it was produced by some government workers who got dragged back into work…Since nothing else is coming down the pike in terms of new data, and because we’ve been in a data blackout for weeks, it’ll clearly matter more than it usually does.The lack of additional data also means it could have staying power, as there won’t be another government report to refute it.For example, if it comes in cool and shows slowing inflation, mortgage rates might get nudged ever closer to the 5% range.As seen in the chart above from MND, the 30-year fixed hasn’t been sub-6% since February 2023!Conversely, if it happens to come in hot and we see that prices are on the rise again, it could send mortgage rates back toward the mid-6s.Then you wouldn’t really have much to get them back to where they were until more data is released.Long story short, it’s a potentially big report and all eyes will be on CPI tomorrow morning.Mortgage Rates Playing Defense on Eve of the ReportBlame it on ongoing trade tensions between the U.S. and China, or perhaps some defensiveness ahead of tomorrow’s report, but the 10-year yield popped today.It climbed about five basis points to get back above the key 4% threshold, which wasn’t necessarily enough to make mortgage rates go up today.But it does show you that there’s some defense being played on the eve of the report. Nobody wants to stick their neck out before the lone government data report gets released.That means mortgage lenders might also be hesitant to lower mortgage rates much more than they already have.However, if that report comes in cold tomorrow, we might see another leg lower, ever closer to the key 5% threshold for the 30-year fixed.It could be helped on by mortgage-backed securities (MBS) plumbing, where investors shift to lower-coupon buckets if they expect rates to come down further.So there is the potential for this to serve as a sort of catalyst for rates that start with a 5.Of course, it might also be an innocuous report that does little to nothing for rates. Or, as stated, it comes in hot and results in higher mortgage rates. Basically everything is on the table here.And it could also sway what the Fed has to say at its meeting next week, before it’s next monetary policy decision.For the record, they are widely expected to cut the federal funds rate another 25 bps next Wednesday, with CME odds currently at about 99%.That likely won’t change regardless of this CPI report. But it could provide downward (or upward) momentum for mortgage rates depending on the outcome.Read on: How to track mortgage rates with ease.(photo: atramos) Before creating this site, I worked as an account executive for a wholesale mortgage lender in Los Angeles. My hands-on experience in the early 2000s inspired me to begin writing about mortgages 19 years ago to help prospective (and existing) home buyers better navigate the home loan process. Follow me on X for hot takes.Latest posts by Colin Robertson (see all)

Old Republic is set to acquire a major insurer of small farm owners and select commercial agricultural operations.The specialty insurer bought Everett Cash Mutual Insurance Co. and affiliated companies for an undisclosed number, following its conversion to a stock company in a sponsored demutualization transaction. "With ECM's 'narrow and deep' expertise in the farm owners and commercial agricultural market and their commitment to underwriting excellence, there is a strong strategic and cultural fit with ORI's portfolio of specialty companies," Old Republic President and CEO Craig Smiddy said in a press release Thursday. The deal is expected to close in 2026 and be accretive to book value per share and operating income per share. Everett Cash Mutual is headquartered in Everett, Pa. and operates in 48 states and the District of Columbia. It wrote $237 million of direct written premium in 2024, ended the year with consolidated statutory policyholders' surplus of $126 million and has a long-term track record of profitable growth, the release said."After 112 years, ECM has found a partner in Old Republic that shares our culture of underwriting excellence," Everett Cash Mutual President and CEO Randy Shaw said in the release. "With the combined financial and operational resources available to us, we can continue to pursue our mission of becoming the preeminent farm owners carrier in the country."Founded in 1923 and a member of the Fortune 500, Old Republic operates diverse property and casualty and title insurance companies. Old Republic sold its title production business and e-closing platform to Qualia Labs at the beginning of the year, saying in a prior press release that the partnership will provide an improved experience for its agents and insureds.Old Republic also announced its third quarter earnings Thursday, which reported revenue of $2.32 billion, up 8.2% over the same period last year, and earnings per share of $1.11, down from $1.32 a year ago. Both marked significant jumps above estimates.

Limited economic data has economists expecting the Federal Reserve to maintain its rate-cutting posture, but other factors might be having a greater effect on mortgage lending, with the 30-year fixed rate mortgage interest rate average now at a 2025 low. Even with the relatively flat movement of yields, which often sway the direction of mortgage rates, the 30-year fixed average dropped 8 basis points over the past week to 6.19%, according to Freddie Mac's Primary Mortgage Market survey. One week earlier, the 30-year rate came in at 6.27%, while 12 months ago, it finished at 6.54%."Mortgage rates continued to trend down this week, hitting their lowest level in over a year," said Freddie Mac Chief Economist Sam Khater in a press release. "At the start of 2025, the 30-year fixed-rate mortgage surpassed 7%, while today it hovers nearly a full percentage point lower." The 15-year average similarly trended downward, falling to an average of 5.44% compared to 5.52% one week earlier. In the same week of 2024, the mean 15-year fixed mortgage rate was 5.71%. The now three-week-old government shutdown and other economic concerns continues to result in cautious market trading, with investors flocking to the bond market and leaving 10-year Treasurys near par with last week's level. As of 11 a.m. Thursday, 10-year notes sat at 3.99%, up from 3.98% at closing on Oct. 22. Over the past seven days, yields bottomed out at 3.95%, the lowest in over a year, with current levels still below 4.15% posted on Sept. 30, the day before most federal activities ceased.  What influence does next week's Federal Reserve meeting have?Aside from the Treasury markets, many of the usual indicators that help mortgage lenders set their rates are now unavailable, providing little guidance in the near term. As the release of key government economic data remains delayed during the latest shutdown, economists expect the Federal Reserve to cut rates for its second straight meeting next week as earlier predicted. Forecasts called for up to three slashes of the government short-term interest rate before the end of the year.  "Markets now see an October rate cut as near certainty, as alternative data point to a cooling labor market that was already losing momentum before the data blackout," said Kara Ng, senior economist at Zillow Home Loans in a Wednesday evening research statement. Economists and housing researchers will pay close attention, though, to the numbers in September's Consumer Price Index, which was rescheduled to be issued on Friday, to gauge  current sentiment. No matter what CPI delivers, the Fed is unlikely to deviate from what pre-shutdown expectations, agreed Chen Zhao, head of economic research at Redfin.    "It is expected that tariffs will continue to provide upward pressure on inflation while 'trend inflation' (inflation net of tariff effects) is expected to soften," Zhao noted. Whatever the central bank decides, it may have little immediate impact on mortgage rates. Prior forecasts of Fed rate cuts led investors to price in expectations well before the meetings, resulting in limited change once the decisions became official. A new study from Wallethub this week also found a majority of Americans thought a 25 basis point cut would bring little benefit to their own personal finances. Economists have warned, though, that cutting federal interest rates too quickly could lead to an unwanted spike in inflation on top of existing concerns for the housing market."The combination of tariff-fueled price hikes on goods and uncertainty from the shutdown is weighing heavily on overall consumer confidence, making a commitment to a massive big-ticket item like a home purchase the primary area of financial restraint," said Cotality Chief Economist Selma Hepp.While the recent wave of rate drops brought with it a surge in refinancing, many economic forecasters see only modest downward shifts in the year ahead, as the mortgage industry looks for solutions to current home affordability challenges for buyers.  At its annual conference in Las Vegas this week, the Mortgage Bankers Association advised the industry that the current rate situation would likely be the norm for the foreseeable future. "While the mortgage rate environment remains volatile, MBA's new forecast calls for rates to remain in the 6% to 6.5% range over the next year, with total mortgage volume increasing 8%  to $2.2 trillion in 2026," said the trade group's President and CEO Bob Broeksmit in a published statement.  

Sales of previously owned homes in the US rose modestly last month as lower mortgage rates and tamer price gains sparked some activity in the nation's long-stagnant housing market.Contract closings increased 1.5% to an annual rate of 4.06 million in September, the highest in seven months, according to National Association of Realtors figures released Thursday. That matched the median estimate of economists surveyed by Bloomberg.The median sales price climbed 2.1% from a year ago to $415,200, continuing a run of annual price gains stretching back to mid-2023. Year-over-year price growth averaged well over 4% in 2024.READ MORE: Many Americans ho-hum about new Fed rate cut, survey finds"As anticipated, falling mortgage rates are lifting home sales," NAR Chief Economist Lawrence Yun said in a statement. "Home prices continue to rise in most parts of the country, further contributing to overall household wealth."Last month's improved sales built on the flicker of momentum that started across both the existing- and new-home markets in August. Mortgage rates started falling then and continued to decline in September. The latest drop may bode well for sales in the coming months as homes typically go under contract a month or two before they're sold."Demand is beginning to stir" as homes get slightly more affordable and buyers and sellers on the margin come back into the market, according to a blog post earlier this month from Odeta Kushi, an economist at title insurance giant First American Financial Corp.However, any rebound is expected to be slow. Despite their recent dip, rates are almost double what they were at the end of 2021, and the Mortgage Bankers Association sees them holding at 6.4% through the end of next year. And despite the advance, sales have been stuck around a 4 million pace for the better part of the past three years, hitting some of the weakest levels since the Great Recession.One positive sign, especially for buyers, has been the increase in homes on the market. Last month, the supply of previously owned homes for sale surged 14% from a year ago to 1.55 million, one of the highest levels since before the pandemic.Existing-home sales rose in three of four regions, with closings in the South and West rising to the fastest paces since earlier this year. First-time homebuyers accounted for 30% of closings, compared with 28% in the prior month.This is a modal window.Last month, individual investors or second-home buyers bought 15% of homes, compared with 21% a month earlier. That "volatility" could be because investors are anticipating a downshift in rental prices going forward, Yun said on a call with reporters.NAR will give another look at September's previously owned home market on Wednesday with the release of its pending sales report, often seen as a leading indicator of actual sales as it reflects contract signings. Friday's scheduled report on September new-home sales from the Census Bureau will likely be delayed due to the government shutdown.Given the absence of federal data, Yun said NAR staff looked through sales databases to extract the new-homes figure, which he said increased 11.2% last month from a year ago.

Mortgage technology dollars are flowing away from the consumer. While industry investment has historically flowed into front-facing aspects, home loan players have shifted spending to back-office efficiencies in recent years, multiple experts said Wednesday at the Mortgage Bankers Association Annual conference in Las Vegas. "What we're seeing now is more investments on planning, risk, (quality control), appraisal servicing," said Garth Graham, senior partner at Stratmor. "AI and machine learning are predominantly part of solutions that some of the tech are using, versus a big vertical investment."Attendees packed smaller rooms on the conference's final day to hear consultants and lenders share more tech and artificial intelligence strategies. They repeated overwhelming messaging for mortgage firms to take great care in implementing tech, and avoid unfocused spending simply to keep pace with competitors. Nonbanks spent billions of dollars in the recent downcycle, but investment dry powder has since dried up considerably, said Dimitrios Lagias, managing director and partner at Boston Consulting Group. He pointed to fintechs, which are still commanding large initial public offerings, versus lenders which typically have one or two IPOs per year but haven't since Better Home & Finance's Wall Street debut in August 2023. Graham also previewed upcoming Stratmor research which showed industry executives sharing they had "fairly average" satisfaction with their tech stack, although most of them aren't planning to replace vendors. "Many times we see dramatically different levels of satisfaction and adoption with identical solutions from two different lenders," he said, adding it's dependent on a company's staff and evaluation processes. Implementation advice and productivity questionsLending executives emphasized thorough vetting of technologies, suggesting missteps would only add to already lofty origination expenses. Just think it through before you buy the technology," said David Gates, chief operating officer at Premium Mortgage Corp. "Are you solving one problem and creating 15 others?"Lagias advised companies to double the change requirements in big transformations. His consulting firm recommends clients start with two vendors on the same module for a 2-to-3 month period and compete, to prevent the frustrations that could arise 6-to-12 months into a new partnership. Graham also urged lenders to not be afraid of failing fast. While banks are "incredible" at capturing return on investment, they're resistant to innovation, he said. Panelists weighed productivity, which the MBA said is falling, although by no fault of full-time employees. While monthly retail applications per underwriter and loans closed per loan officer have sunk from the highs of the refinance boom, they're running below averages in the past decade following the Great Financial Crisis. Graham, disclosing that he was a former loan officer, shared one take that he acknowledged was slightly snarky. "If we keep paying people on basis points, they don't need to do as many loans to make money," he said.  

U.S. homeowners saw their available equity pull back in the third quarter, contributing to an upward creep in the percentage of underwater mortgages, according to a new report. Approximately 2.8% of mortgaged properties in the country were considered seriously underwater during the quarter, maintaining a year-long trend, according to real estate data provider Attom. The share rose from 2.7% in the prior quarter and 2.5% one year ago. Homes are considered seriously underwater when the unpaid balances of loans secured by their property are 25% higher than estimated market value. The upward climb coincided with overall declines in home equity reported by the real estate intelligence firm. The percentage of homes whose value exceeded outstanding mortgage balances by 50% or more, came in at 46.1%. The share dropped when compared to this year's second quarter level of 47.4%. Twelve months earlier, the share was at 48.3%.Still, the recent changes are not equivalent to unhealthy homeowner finances in the country. "After several years of strong equity growth that peaked in 2022, homeowner equity levels appear to be stabilizing. The modest fluctuations seen over the last few quarters may suggest a housing market that's finding balance after an extended period of appreciation," said Attom CEO Rob Barber in a press release. The rise in underwater loans, though, remains a pain point mortgage lenders are keeping an eye on for signs of growing homeowner stress. While national mortgage delinquency rates eased over the summer, the rate of late payments exceeding three months point to segments running into serious financial distress. Of concern is the status of some Federal Housing Administration mortgage holders who appear to be struggling. While underwater mortgage rates are creeping higher, they are yet to approach levels seen after the Great Financial Crisis.At the end of 2013, 19% of all properties with a mortgage were seriously underwater, according to Realtytrac, the forerunner of Attom Data Solutions.Further hints of consumer stress this year have shown up in property tax delinquency levels, calls for foreclosure assistance and payment activity for other types of credit.  What's behind decreased home equity?The pullback in home equity levels appears as housing price indicators report nationwide flattening or even monthly decreases throughout 2025 despite median values hitting all-time highs. Year-over-year average home values continue to increase, but at a slower pace compared to earlier this decade. House prices dropped across the U.S. by 0.1% from June to July, but headed up 2.3% annually, according to the Federal Housing Finance Agency. Meanwhile, similar losses in home equity this year have shown up in research from other data providers, including Cotality. Despite the contraction, homeowners today have plenty of tappable equity available to them thanks to a years-long surge in property values, with amounts still sitting at or near record levels.  Where underwater rates increased the mostAs with home price trends, changes in home equity accrual and loss varied greatly by region during the most recent quarter. A majority of homeowners in the country with more than 50% equity were concentrated in 37.8% of U.S. ZIP codes.  Regions seeing regular month-to-month drops in home prices in FHFA's 2025 data —  Mountain, Southern and Mid Atlantic — were also more likely to post falling equity.Florida saw the largest dip in high-equity properties by homeowner share compared to last year with a drop from 52.5% to 46%, followed by Arizona, Colorado, the District of Columbia and Georgia. Overall, the percentage of high-equity properties fell in 71.8% of metropolitan areas with populations above 500,000 over the quarter and 77.3% year over year. Largest gains in the percentage of homes with 50% or more equity were scattered across the country, led by Alaska, Illinois, New Jersey, New York and Connecticut.  Attom also noted a rise in the underwater share of mortgages in 35 states quarter to quarter and in 46 compared to the same three months in 2024. The District of Columbia saw the biggest year-over-year growth from 3.3% to 5.1%. Maryland, Louisiana, Georgia and Oklahoma followed. Louisiana also landed in the "top" spot in terms of total share of underwater properties relative to the state's total mortgage volume with 11.2%, followed by Mississippi and Kentucky at 6.6% and 6%.  

Fannie Mae Chief Operating Officer Peter Akwaboah has added the acting CEO title following the departure of Priscilla Almodovar, the company announced late Wednesday afternoon.Akwaboah, a former Morgan Stanley executive, came on board at Fannie in February 2024.In addition, John Roscoe and Brandon Hamara have been named as co-presidents of the government-sponsored enterprise.  Peter Akwaboah has been named acting CEO of Fannie Mae "Peter's deep operating background, as the former Morgan Stanley COO of global technology, makes him the perfect fit for the acting CEO position while the board conducts its search for a permanent CEO," said William Pulte, who is the chairman of Fannie Mae in addition to his role as head of its regulator U.S. Federal Housing, in a press release."With the addition of Peter as acting CEO and John Roscoe and Brandon Hamara as co-presidents, we now have a deep bench of three experienced leaders at the very top of Fannie Mae," Pulte continued. "This means a safer, sounder Fannie Mae, all while growing our great Fortune 25 Company,"Almodovar joined Fannie Mae in September 2022 as CEO, replacing Hugh Frater, who had retired in May of that year. She also held the president's title, a role she took on in 2024 following the retirement of David Benson."We appreciate Priscilla Almodovar for her years of service to Fannie Mae, and we wish her great success in her next endeavor," Pulte said in the press release. The release did not specify why she is leaving the company.Almodovar, who came to the job with a background in affordable housing and community development, said leading Fannie Mae had been "the privilege of a lifetime."Together, we have made Fannie Mae stronger than ever," Almodovar continued. "I will be eternally grateful to the entire Fannie Mae family, our many partners and Director Pulte for the opportunity to lead this incredible organization that helps millions of American homeowners and renters access their American Dream."Roscoe, in the first Trump administration, had been chief of staff at what had been known as the Federal Housing Finance Agency.Hamara, who had been vice president of land acquisition at Tri Point Homes, was supposed to start in November as Fannie Mae's senior vice president and head of operations for single-family and multifamily, a Securities and Exchange Commission filing dated Oct. 6 said.Hamara was also named to Fannie Mae's board starting on Oct. 7. He had been one of Pulte's first appointments to a revamped Freddie Mac board. An SEC filing said he resigned from that post on Oct. 6.

As thousands of borrowers potentially face job interruption resulting from the government shutdown that's disrupted some loans, the housing finance industry is working to identify the right messaging and resources to keep payments and originations on track.With a Congressional Budget Office report pegging the number of jobs impacted at 750,000, mortgage businesses are offering options to borrowers as allowed by the investor and government-related programs associated with different loan types."We will check the guidelines for them. We will walk them through the options," said LaQuanda Sain, executive vice president of servicing at Rocket Mortgage. "What we recommend is to reach out."Rocket is encouraging customers to call or review online information such as this FAQ, which the company has posted for a broad range of borrowers who are or could face challenges paying their mortgages.Two pieces of information Rocket has found important to clarify are that interest does accrue in forbearance, and those who qualify for and afford a rate-lowering refinance can alternately use that to reduce their balance and monthly obligations."We're not saying a refinance is a better solution, but it's something they should consider, because it could potentially lower their monthly payments for the long term," Sain said.While there is more job uncertainty than in previous shutdowns due to potential layoffs that aren't in line with past industry playbooks for handling furloughs, Sain said Rocket has available options that will help those affected "navigate that and figure out what the right solution is."'Steady as she goes' for some lenders, at least for nowNew loans at mortgage firms in areas with many federal workers or that are prone to risks covered by the National Flood Insurance Program may be disproportionately impacted by the shutdown. Those making certain government loans could be too.But some companies that make more mainstream loans outside those categories say they've been able to cope so far and have generally seen aggregators and other secondary market partners react quickly with clear guidance."We're not a big government lender. We're very heavy conforming/conventional, so it has just been kind of 'steady as she goes,'" said Jim Collier, a senior vice president responsible for fulfillment, operations and strategy at Key Mortgage Services.While typical home loans, like those purchased by government-sponsored enterprises that aren't directly affected by the shutdown, are moving forward, mortgage-related work for them is piling up, which furloughed workers in the public sector will have to handle upon their return.That means certain lenders can keep new loans on track for now, but the longer the shutdown goes on, the more of a chance delays or other issues could surface, Collier said.   "We are going to go through the queue when the government reopens. So the longer this goes on, that's going to start to be problematic."For lending divisions with government-worker exposures, the potential for furloughs becoming layoffs could become a concern for new loans that haven't closed yet as well as for existing borrowers, he said."If you are not employed, that could stop the train immediately on those loans, because now you have an income problem. It isn't that you can't get verification, it's you don't have a job," Collier said.More cap markets uncertainty, but also less to move ratesThe shutdown deprives the capital markets of public data they typically rely on to gauge Federal Reserve policy direction and move rates. That uncertainty can lead to fluctuation, but it also gives them less to react to, which has made rate changes less choppy during this shutdown."Without those indicators coming out, actually it's been relatively calm," said Dave Mueller, senior vice president of capital markets at Key. The next one of note is a delayed inflation report that the government has prioritized and set for Friday.At the time of this writing, market participants appeared to generally be of the mind that the Fed would cut its key short-term rate, exerting mild downward pressure as lenders have adjusted their pricing in anticipation of this development."I think that the market has already decided that they are going to cut rates this month, and possibly in December, given previous public or private sector data," Mueller said.