Uncategorized

President Donald Trump suggested he would fire Scott Bessent if the Treasury secretary doesn't help secure lower interest rates, expressing ongoing frustration with the Federal Reserve's reluctance to cut rates more quickly.Trump's remarks — made in a joking tone — come amid increased pressure on the administration from voters to lower the cost of living. The US central bank is responsible for setting short-term rates that influence borrowing costs across the economy."The only thing Scott's blowing it on is the Fed," Trump said Wednesday at a US-Saudi investment event in Washington. "Rates are too high, Scott, and if you don't get it fixed fast, I'm going to fire your ass. Okay?"READ MORE: Mortgage activity falls as rates tick up againThe president also reiterated that he would love to fire Fed Chair Jerome Powell, calling him "grossly incompetent" and that the official deserves to be sued over his handling of a costly renovation of the central bank's campus. Trump also confirmed that Bessent had stopped him from trying to force the Fed chief out.Trump indicated that Bessent had told him, "Sir, please don't fire him, he's got three months to go." The president also told the audience that Bessent is "a voice of reason. You're very lucky you have him, I'll tell you that. He's done a good job." Fed watchers have warned that a forced ouster of Powell would have stoked concerns about central bank independence and roiled financial markets."I think Howard's a little bit more for firing," Trump added, in reference to Commerce Secretary Howard Lutnick. "I think Howard would say, get him the hell out of there."READ MORE: Waller backs 25 bps 'risk management' rate cut in DecemberBessent has no direct control over interest rates as Treasury secretary, with the central bank's Federal Open Market Committee being the panel that determines the benchmark policy setting. The FOMC has voted twice this year to lower rates by 25 basis points, but Trump has pushed for a much more aggressive pace.The Fed declined to comment on Trump's remarks.Bessent's MetricBessent has identified 10-year Treasury yields as his main metric for borrowing costs, and has touted repeatedly that they have come down this year — in contrast with what's happened in other advanced economies. Ten-year yields are a reference point for mortgage rates, which have also retreated this year.The Treasury secretary is leading the effort to select the next chair to lead the Fed when Powell's term is up in May 2026. Trump has repeatedly said that he would like to appoint Bessent as the central bank's top official, but that the secretary prefers to stay in his perch at Treasury.Bessent has curated a list of contenders to lead the Fed that includes current central bank officials Christopher Waller and Michelle Bowman, former Fed Governor Kevin Warsh, National Economic Council Director Kevin Hassett and BlackRock Inc. executive Rick Rieder.READ MORE: Unemployment persistent, jobs up in SeptemberTrump on Tuesday said that he thinks he's already identified his choice, but didn't offer any indication of who that candidate might be. The president said he was looking at both "surprising" and "standard" candidates, adding that he was likely to pick a conventional choice.Bessent later Tuesday said that interviews were ongoing and that in mid-December Trump would meet with three finalists to make a decision.The next chair is likely to be named to a 14-year Fed governor term that opens on Feb. 1. The term that expires at that time is currently held by Stephen Miran, who is on unpaid leave from the White House Council of Economic Advisers.

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."

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.

Reports of a sub-1% mortgage rate are no exaggeration. D.R. Horton was offering that ultra-low rate last month on certain new homes, a salesperson confirmed this week. Today, the industry giant and its homebuilder peers are still promoting attractive terms, with fixed rates as low as 3.99% and with buydowns, down to 1.99%.Jeremy Schachter, a Phoenix-based branch manager with Fairway Independent Mortgage, is seeing super-competitive rates from builders and thinking about them when talking to clients. "[If] new builds are in their mix to look at for home purchase, I always recommend contacting the builder's preferred lender, just so I don't waste my time as well as their time, just because they give incentives that are usually hard to beat," he said. The low rates can be misleading, Schacter said. Builders typically achieve them through temporary buydowns and forward commitments, in which they buy bulk financing at a particular rate — tools that some brokers or other loan officers across the industry can't access. A 4.99% fixed-rate from a homebuilder is more common, while some will set a smaller portion of their inventory at 3.99%, said Dan Pena, president of partnerships lending at Loandepot, which has numerous joint ventures with homebuilders. "You are seeing the ultra-low ones, not as prevalent as I think people think are out there," he said. Homebuilders are upping their incentivesPena said he's heard the discourse around the steep competition by some of the nation's biggest homebuilders going lower on rates. In recent weeks, homebuilder executives in earnings calls have discussed the impacts to their bottom lines from greater incentives, as the housing market remains relatively sluggish amid wider affordability challenges. D.R. Horton leaders last month told investors in an earnings call they used buydowns on 73% of closings in the recent quarter, including more buydowns on adjustable-rate mortgages, and they're leaning more heavily into their 3.99% offering. "For our buyer, again, it still comes back to the monthly payment," company president, CEO and director Paul Romanowski said during the call. "And the most attractive monthly payment we can put them in is with a lower rate."In October, 65% of builders reported using sales incentives, according to the National Association of Home Builders. Additionally, 38% of builders reported cutting prices last month, with an average price reduction of 6%. Why builders slash rates more than pricesU.S. Federal Housing Director Bill Pulte last week posted a quote to social media stating builders "are excessively using buydowns to keep prices higher than they should be." Freddie Mac representatives met with Loandepot this week and asked about the issue, Pena said. Loandepot is fighting for builders to stop lowering prices, the executive said, and there's "no way" they're raising sales prices at the moment. In further explaining the sales tactics to National Mortgage News, Pena echoed Romanowski's comments about lower monthly payments. "Cutting the sales price by $20,000 might get somebody in the door, but it doesn't help them with their monthly payment as much," he said. "And secondly, you've just created a new (sales comparison) for every resale and for every new home you sell in that area." Alternatively, it's beneficial for borrowers to secure that discount in situations where they can't secure a lower rate, Schachter said."You can refinance once rates come down, so you have a lot more equity in the house right off the bat if you get a reduction in the sales price versus taking whatever incentives they're offering for a low rate," he said. Will attractive buydowns stick around?Pena, a longtime veteran of the builder space, explained builder-lenders have securitization considerations, as capital markets investors have parameters around how many loans can have temporary buydowns.Some builder executives in those recent earnings calls said they anticipate incentives to run higher than usual in the near future but expect them to taper off as market conditions stabilize. The Loandepot leader questioned how competitive buydowns would be if interest rates at-large were to decline and even the playing field. Schachter expects interest rates to stay around the same level, even if the Federal Reserve moves forward with rate cuts this winter. He offered some advice for buyers mulling new home purchases."Your real estate agent sometimes can find resales that might be lower in price with a similar layout," he said. "So if you're looking at new builds, just make sure you look at all avenues."

The monthly jobs report from the Bureau of Labor Statistics (BLS) is largely seen as the biggest potential mover of mortgage rates.It gives us a quick check on how the economy is faring, and more importantly the consumer. Wages, job creation, unemployment, and the like.So the September jobs report that will be released tomorrow was already very important.It became even more important thanks to the government shutdown, which stopped the flow of all economic data for a month.And somehow it just got even more important because the BLS announced it’s not even going to release an October jobs report.In addition, November’s jobs report will now come out after the December Fed meeting.This Jobs Report Carries Even More Weight Than Normal for Mortgage RatesTomorrow morning we’ll finally find out if the labor picture brightened, or continued on its recent dark path.The past few jobs reports were really ugly, both falling short of expectations and even going negative thanks to revisions for the month of June.That led to some of the lowest mortgage rates in nearly three years, a big win for existing homeowners looking to refinance to a lower rate.And a positive for prospective home buyers who may have previously been priced out of the market.However, it also paints a not-so-great picture of the economy, which many believe is beginning to show some serious cracks.That makes home buying a little less inviting if you fear for your job security, or believe home prices are going to experience a major correction.So we’ll call it a silver lining at best. But that’s kind of the catch-22 of mortgage rates.They tend to move lower when the economy is slowing, and higher when the economy is expanding.September Jobs Report Has a Very Low BarThat’s brings us to tomorrow’s jobs report, which was supposed to be released all the way back on October 3rd!As noted, there’s been a lot of anticipation about it since we’ve had a dearth of new data thanks to the longest government shutdown in U.S. history.So all eyes were already on the report’s release and the stakes are higher than ever.The current forecast is for 50,000 new jobs created during the month of September, per the median forecast compiled by Marketwatch.That’s a pretty low bar, despite the jobs numbers coming in so low in prior months, including a 22,000 print in August.But it pales in comparison to earlier months that had estimates in the six figures, which wound up falling short.In other words, a beat tomorrow is technically easier to achieve since the forecast is so low.Mortgage Rates Could Jump or Plummet TomorrowIf job creation happens to come in above that 50,000 forecast, bond yields could jump higher and that would be bad for mortgage rates.It would signal that the economy is still chugging along and that the Fed wouldn’t necessarily need to cut again in December.Strengthening that argument is the fact that Nvidia released earnings today and they exceeded expectations.All of a sudden, the economy might not look so bad. Stocks could rally, bond yields and mortgage rates could jump.On the other hand, if the jobs report somehow manages to come in below expectations, which is entirely possible (if not probable) given how bad it’s been lately, bond yields could plummet.In the process, mortgage rates would likely have a very good day and could continue back on their merry way toward the 5s.Long story short, tomorrow is an especially important day for mortgage rates because of the delayed report coupled with the fact that we won’t get an October report.And the November report will come AFTER the last Fed meeting of 2025.Buckle up folks.Read on: Mortgage rates tend to be lowest in winter. 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)

Rocket Mortgage has come out with a debt service coverage ratio product in both its wholesale and retail channels, joining a rather competitive landscape of both non-qualified mortgage specialists and more traditional lenders like its rival United Wholesale Mortgage, that already serve investors looking to finance rental properties.Another recent entrant with a suite of non-qualified loan products including DSCR is PHH Mortgage, whose parent company Onity approximately one month later announced the disposition of its reverse mortgage operations to Finance of America. Dan Sogorka, general manager at Rocket Pro TPO.Courtesy of Rocket Cos. "If you go back through the year, every quarter we added at least one new product," said Dan Sogorka, the general manager of Rocket Pro in an interview. "This was a really exciting one, because it's been a strong market for investors in terms of home buying."Why Rocket added a DSCR productWhen asked about why Rocket is jumping in at this point to a market niche others are already occupying, Sogorka replied that the company's partners asked for the offering because they want to do more with the Detroit-based lender."When you think about what really makes us stand apart, it's our best-in-class technology, operations, pricing, support, our AI suite, our Navigate product," he continued. "Our partners now want to continue to use all of these regardless of what product they're doing."Others have technology offerings specific to the DSCR market. Earlier this month, Angel Oak Mortgage Solutions launched a rental automated valuation model. The product incorporates Clear Capital's Rental AVM.It's very time consuming when an appraiser has to be hired to do a rent valuation and it does not come in as expected, said Tom Hutchens, president of Angel Oak Mortgage Solutions, in a recent interview. When that happens, the closing is likely to be delayed.This technology helps to come up with a more accurate valuation of the rent rolls which is used to underwrite a DSCR loan, helping to speed the process.Why lenders should add investor products to their menuAngel Oak is primarily a third party originator, and Hutchens was asked why mortgage lenders would want to offer investor loans."So many people in the last 10 years that have just become investors in real estate, given the lack of supply of housing, the demand for rental housing is just continuing to grow," Hutchens said. "I think that's why people, from an origination standpoint, believe, 'hey, I've got to participate in this space.'"Single-family rental is becoming a bigger part of the market and "they're just an excellent opportunity to lend upon," added Ben Fertig of Constructive Capital, another non-QM wholesaler, also in a recent interview."If you're an IMB and you want to retain and recruit loan officers, you better have products that you know are at least hitting the market," Fertig continued. "Both the DSCR rental loans and residential transitional loans do."UWM entered DSCR lending in March 2022 and expanded on its offering at a couple of points during 2023.For now, Rocket has no plans to enter the RTL market, Sogorka said.Investor mortgages growing market shareOptimal Blue, a product and pricing engine, finds non-QM lending is continuing to expand, both in terms of loan production and in the number of entities offering these loans, said Brennan O'Connell, director of data solutions."In October, the non-QM share of total rate lock volume hovered near its recent peak at 8%," O'Connell said. "DSCR loans, which represent nearly 30% of total non-QM lock activity tracked by Optimal Blue, were up more than 50% in October versus the same time last year."The category was up by 95 basis points from September, Optimal Blue's Market Advantage report said.Meanwhile bank statement loan share was just shy of 35%, while all other non-QM was 36%. Bank statement locks were 168 basis points higher than September but 216 basis points less than one year prior.At 16.6% of all locks in October, nonconforming (including jumbo as well as non-QM) was relatively flat from the prior month but up by 154 basis points from the same time in 2024. Rocket's DSCR mortgage parametersRocket is already processing applications for the DSCR loans.Its loan limits are up to $3 million for purchases and rate-and-term refinancings, along with $2.5 million for cash-out refis.If the amount is over $2 million, two appraisals will be required, with the lower valuation used to qualify the property.Most importantly, "the product's not eligible for first-time real estate investors," Sogorka warned.  Borrowers will need to have a minimum of one-year property management experience within the past 36 months and/or one year of receiving rental property income."This is an experienced investor product," Sogorka said. "You can close it in an LLC, which was another big ask from the community." UWM's DSCR offering also allows the borrower to be an LLC, according to its November 2023 announcement.Rocket has several investors for this product but it declined to name them.

Aaron Schwartz/Bloomberg Key Insight: Federal Reserve Gov. Stephen Miran said certain bank regulations are preventing the Fed from further shrinking its balance sheet.Expert Quote: "Trying to settle the ongoing debates on how monetary policy is best implemented before settling the regulatory framework is putting the cart before the horse." — Federal Reserve Gov. Stephen Miran.What's at stake: As the central bank moves to streamline its oversight processes, concerns are emerging that reducing proactive supervision could allow risks to build in the banking system.Federal Reserve Gov. Stephen Miran said further regulatory rollbacks could allow the central bank to continue shrinking its balance sheet in the future.Speaking Wednesday at a Bank Policy Institute event, Miran stressed that monetary policy and regulation are intertwined and that regulation can ultimately dictate policy outcomes.He argued that banks hold more reserves than necessary because regulations incentivize them to do so, leaving the Fed with a balance sheet that is larger than it needs to be."For all the talk about fiscal dominance of monetary policy, the reality is that the size of the balance sheet is a result of regulatory dominance," Miran said. "Regulations boost demand for reserves, which in turn requires us to end runoff or purchase securities for reserve management purposes."He added that debating "how monetary policy is best implemented before settling the regulatory framework is putting the cart before the horse."Miran's comments come as the Federal Reserve prepares to end its "quantitative tightening" on Dec. 1. The governor said during his BPI speech that he supported the move and had favored ending the runoff of the Fed's balance sheet "immediately" at the Federal Open Market Committee's October meeting rather than waiting until the end of the year.Miran highlighted that relaxing certain oversight measures, such as liquidity and capital requirements, would reduce banks' incentives to hold reserves and give the central bank more room to allow assets to roll off its balance sheet.Miran said banks should be encouraged to hold Treasurys instead of reserves because it would allow them to earn more."A consequence of the Fed's large balance sheet is significant payments of interest to the banking sector," he said. "Now, this is little different for banks' income than if they held Treasurys directly, as would occur in a scarce-reserves regime. In fact, an upward-sloping yield curve would suggest banks would earn more from holding Treasurys rather than reserves."He also said encouraging banks to hold Treasurys could reduce the perception that the Fed "is unfairly subsidizing the banking system with billions of dollars.""These perceptions can affect the Fed's credibility and thus its effectiveness," said Miran. "Several times now, the Senate has debated whether the Fed ought to be stripped of its statutory authority to pay [interest on reserve balances] despite its necessity as a tool for managing the federal funds rate."The regulatory arm of the Federal Reserve has already moved to loosen a number of oversight tools in recent months, including releasing the stress-testing models it uses to gauge the largest U.S. banks' resilience, as well as cutting back on bank supervision. The deprioritization of certain supervisory practices comes alongside plans to reduce the supervision and regulation division's staffing by 30% by the end of 2026.Miran expects the Fed to continue making "more progress peeling back regulations," which as a result will cause the "optimal level of reserves [to] drop below where it is now.""It is possible that in the future, it will be appropriate to resume shrinking the balance sheet; stopping runoff today does not necessarily mean stopping it forever," Miran added.

Key insight: Hill's continued tenure at the FDIC isn't likely to change the agency's direction on bank policy. Forward look: His nomination now goes to the full Senate, where he's expected to be confirmed. What's at stake: Hill's policies at the FDIC have included rescinding ILC rules and pursuing policies that he has said will lower capital requirements for small banks. WASHINGTON — Travis Hill, President Donald Trump's nominee to permanently lead the Federal Deposit Insurance Corp., passed through the Senate Banking Committee on a party-line vote. Hill's nomination hit an unexpected stumbling block in his confirmation hearing, as Sen. John Kennedy, R-La., said he might withhold his vote if Hill didn't produce a report showing the progress that the agency has made on the culture scandal at the agency. Last week, Kennedy said that a report released to his office showed that 26 employees linked to verified misconduct are no longer with the FDIC. "I am satisfied with the progress the agency is making," Kennedy said. "I intend to vote to confirm Mr. Travis Hill as FDIC Chairman." Hill's nomination was reported favorably to the full Senate in a 13-11 vote. He's expected to similarly receive a party-line vote and ultimately be confirmed by the upper chamber. Hill's confirmation will bring little in the way of change to the agency, as Hill has been serving as acting chair since former FDIC Chair Martin Gruenberg stepped down in January. Since taking the helm of the agency, Hill has repealed a Biden-era rule on industrial loan companies and proposed measures that he said would lessen regulatory burdens on small banks. The FDIC under his leadership has also made it easier for private equity to bid on failed banks, and he's said that the agency is working to implement stablecoin rules pursuant to the recently passed GENIUS Act. Democratic lawmakers voted against Hill's nomination. Senate Banking Committee ranking member Sen. Elizabeth Warren, D-Mass., said that she is unsatisfied with the information that the FDIC under Hill has released about the culture issues at the agency. "I have repeatedly requested copies of the monthly assessments conducted by the FDIC independent transformation monitor, a third party who was hired to track the agency's progress on its cultural improvement efforts," Warren said at the vote. "Not only has Mr. Hill failed to provide these documents to Congress, he has also explicitly blocked the independent monitor from sharing those reports with us." Warren said that her staff was able to get copies of those reports, and that they outlined a shortage of staffing in key offices meant to address the FDIC's workplace issues. "The reports are abysmal. The independent monitor found that parts of FDIC's action plan to resolve its cultural problems had been nullified by President Trump's policies, it found that 'the manner in which the FDIC communicates progress to FDIC staff, causes confusions and is at times inaccurate,' and two of the critical new offices that the FDIC set up to address its toxic workplace, the Office of Professional Conduct and the Office of Equal Employment Opportunity, offices that Mr. Hill, himself, touted in front of this very committee as critical to the FDIC cultural improvement efforts, are understaffed." 

Consecutive weeks of mortgage rate increases suppressed refinance activity, causing a notable fall in mortgage applications, the Mortgage Bankers Association found.The MBA's Market Composite Index, a measure of mortgage loan application volume,  decreased 5.2% on a seasonally-adjusted basis from one week prior for the week ending Nov. 14. On an unadjusted basis, the Index dropped 7% compared with the previous week.The Refinance Index primarily drove the fall, declining 7% from the week before, but was still 125% higher than the same week last year.The seasonally adjusted Purchase Index decreased 2% from a week prior, while it dropped 7% on an unadjusted basis. The unadjusted Purchase Index was still up 26% from the same week a year ago."Mortgage rates increased for the third consecutive week, with the 30-year fixed rate inching higher to its highest level in four weeks at 6.37 percent," said Joel Kan, MBA's vice president and deputy chief economist, in a press release Wednesday. "Application activity over the week was lower, with potential homebuyers moving to the sidelines again, although there was a small increase in FHA purchase applications," he added. "Refinance applications decreased as borrowers remain sensitive to even small increases in rates at this level."Refinance volume surged late last month as mortgage rates hit their lowest level in more than a year, naturally resulting in slower activity as rates tick back up this month.The refinance share of total mortgage applications decreased to 55.4% from 55.6% the previous week and 57% two weeks prior. The adjustable-rate mortgage share of total activity slumped to 7.5% from 7.8%."The overall average loan size across both purchase and refinance applications dipped to its lowest level since August of this year, driven by another drop in the ARM share," Kan said.Loans backed by the Federal Housing Administration, the Department of Veterans Affairs and U.S. Department of Agriculture all saw their share of total applications increase last week. FHA loans saw a 0.5 percentage-point rise to 19.9%, VA loans climbed to 15.2% from 14.8% and USDA loans increased 0.1 percentage points to 0.3%.Three of the five types of mortgages the MBA tracks saw an incline in interest rates last week compared with the week prior, including:30-year fixed-rate mortgages with conforming loan balances, 6.37% from 6.34%;15-year fixed-rate mortgages, 5.83% from 5.70%;and five-year ARMS, 5.65% from 5.50%.The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances decreased to 6.39% from 6.46%, while 30-year fixed-rate mortgages backed by the FHA held at 6.14%.

Figure filed for a proposed offering of its new Blockchain Stock Monday, with hopes of disrupting the vertical equity stack.The Blockchain Stock will be a blockchain-native class of equity securities, trade on Figure's alternative trading system and will be convertible one-for-one into shares of Figure's Class A Common Stock, the company said in a press release."This is a new capital markets infrastructure moment for efficiency and risk management — a huge leap forward from the legacy securities market infrastructure, and the start of a world that no longer needs it," said Mike Cagney, executive chairman and co-founder of Figure, in the release.Traditionally, equities move through a stack of intermediaries, from custodians and clearing firms to prime brokers and introducing brokers. Figure's blockchain structure aims to cut out third parties, improving efficiency, security and cost savings, representatives said."This is a direct, competitive attack to the current equity stack," Cagney said in a conference call Tuesday.The proposed offering, which Figure calls the first blockchain-native public equity security issuance, would allow investors to hold, transfer and collateralize Figure stock on the Provenance Blockchain with four key advantages: faster settlement, 24/7 trading, cross collateralization of the security to other assets and the ability to lend or borrow the stock transparently, the company said on the call.While many of the advantages are investor-focused, the infrastructure also provides benefits for issuers who want to engage more with individual investors, as they can use a listing to further market their company, CEO Micahel Tannenbaum said on the call. The blockchain nature of the security also allows for broader access to investors who struggle with a traditional brokerage account."You don't want to discount the buy side's ability to push this," Cagney said. "You look at [BlackRock CEO] Larry Fink, for example, he talks repeatedly about the tokenization of everything ... We expect the buy side is going to play an important role here in driving this because of how much utility it accrues back to the investor."Figure is currently selling issuers on the idea of the blockchain, but doesn't expect to see material results this quarter.The number of shares of Blockchain Stock to be offered and the price range have not been determined yet. Figure also does not expect it to go live until next year.Figure went public in September, opening at $36 per share. It hit a high of $49.17 in October, but stumbled on Tuesday, falling 7.22% to $39.19.The offering will be non-dilutive to current shareholders of Figure, as existing investors will sell Class A shares to underwriters, and then Figure will repurchase and hold those shares in treasury."It is a very ambitious undertaking," Tannenbaum said on the call. "It's hard to do new things, but there's valor and economics in doing so."