Well That Makes Sense – Page 28 – WTMS Well That Makes Sense

“Damn, there is so much great knowledge out there. Did you know that “BOOKS” are full of smart?? No, I mean like life changing, I-wish-I-knew-that-years-ago type stuff.

I know that I was waaaayyy late to the game figuring it out. And I know that a lot of you are too busy to read as much as you ‘should’. And that is why you need me.

I still remember how it started for me. It started in June of 2008. After 11 years …..Click to continue

Mortgage Today (AM) - 09/08/26

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September 8, 2026

**WTMS Blog Today = What's up in Mortgage Today (AM) - 09/08/2026** Oil prices surged past $98 a barrel on Saudi Arabian production disruptions, reigniting inflation fears that could push the Federal Reserve toward rate hikes in September. The 10-year Treasury yield climbed to 4.80 percent as markets priced in stagflation risk—a toxic combination of rising energy costs and persistent wage pressures. MBS prices remained flat to slightly higher despite broader bond weakness, as investors questioned whether mortgage rates will decline meaningfully before year-end. The three-month Treasury auction calendar kicks off today with a $58 billion three-year note sale, followed by 10-year and 30-year offerings that test demand at elevated yields. This week's inflation data (PPI Thursday, CPI Friday) will likely determine whether the Fed can hold its September 18 rate decision steady or capitulates to higher-for-longer policy expectations. NEXA Lending elevated Geri Farr to Chief Executive Officer while outgoing CEO Mike Kortas transitioned to Executive Partner, marking a structural shift designed to separate operations from strategic vision. The personnel moves at NEXA underscore a broader industry pattern: mortgage originators are tightening expense structures as consumer-direct channels contract amid persistent rate headwinds. Dark Matter bolstered its product leadership by hiring a former national lender's SVP for strategy and a veteran technology implementation executive, betting that automation and AI investment will drive competitive advantage. Meanwhile, Fair Isaac's stock collapsed 17 percent Friday after FHFA Director Bill Pulte mandated Fannie Mae and Freddie Mac accept VantageScore for mortgage underwriting effective immediately, threatening FICO's two-decade pricing dominance. The directive—framed as completing the 2018 Credit Score Competition Act—shifts the competitive landscape as VantageScore costs roughly $1 per pull versus FICO's $10-plus price point. Stronger-than-expected August employment (162k payrolls versus 55k forecast) reinforced expectations that the Fed will prioritize inflation control over labor-market softness. While wage growth decelerated to 3.1 percent year-over-year, the strongest in over a year, underlying labor-force participation hit 61.6 percent, complicating the disinflationary narrative mortgage investors need. The dual pressure from commodity-driven inflation and sticky wage growth leaves mortgage investors facing a prolonged period of elevated term premiums. Fannie Mae 15-year and 20-year MBS retained relative appeal on Thursday afternoon as shorter-duration securities offer partial insulation from further yield bear-steepening. Gen Z borrowers now account for one in five purchase locks despite lower credit scores and smaller down payments, forcing lenders to invest in digital-first guided experiences that scale across origination and servicing platforms. FHFA's VantageScore mandate represents a structural shift for secondary markets and correspondent lending. Lenders selling community reinvestment act (CRA)-eligible loans have historically relied on narrow buyer relationships, but technology platforms like GATHER are expanding execution by connecting originators with broader institutional buyer networks. The credit-score directive combined with broader market access tools could reduce correspondent seller reliance on legacy pricing relationships and unlock competitive tension that benefits both originators and institutional buyers. Treasury borrowing remains aggressive—the government faces $40 trillion in outstanding debt and a bear-flattening yield curve that tests investor demand at longer tenors. Short-duration Agency MBS with durations under four years may represent the least-painful parking spot for mortgage investor capital if rates remain locked higher through year-end. The conference season kicks into high gear this week with the Western States CREF Conference, PNMLC Annual Meeting, and Loan Vision Innovation Conference all running through mid-September. Industry discussions center on balance-sheet risk management, servicer expectations for lender capital adequacy, and how firms are positioning for the next mortgage-market phase. Larger originators are hosting multiple podcasts and market panels to address originator concerns about rate stability, credit risks, and staffing in a volume-constrained environment. Technology vendors report strong interest in AI-powered loan processing and document automation, with some platforms claiming 8x processor output improvements and 80 percent defect reductions. The talent market remains active despite layoff rumors: OptiFunder earned its fourth consecutive Inc. 5000 recognition for warehouse-funding automation, while Click n' Close expanded its down-payment-assistance product suite and hired a two-decade secondary market veteran as director of whole-loan trading. Mortgage investors should expect Treasury yields to oscillate tightly around 4.80 percent until Friday's CPI print provides directional clarity. Iran-oil supply disruptions and China's tariff retaliation could sustain commodity-based inflation fears through the Fed's September meeting, keeping long-end yields anchored near recent highs. MBS price momentum remains fragile given negative carry dynamics and the unwind of speculative long positioning in shorter-dated securities. Refinance activity remains dormant across most vintages except 2025 cohorts showing steeper early-aging curves, indicating borrowers retain some willingness to refi if rates collapse decisively. The mortgage industry's focus on cost control, technology automation, and secondary market optionality reflects a professional consensus that rate relief may not arrive until 2027, forcing originators to compete on execution rather than rate environment tailwinds. **Locking vs Floating** Economic data arriving next week—particularly mid-week CPI and PPI prints—carries decisive weight for mortgage-rate direction. The combination of ongoing geopolitical risk from Iran tensions and absence of clear disinflationary momentum argues for a defensive rate-lock posture until inflation proves definitively contained. MBS prices provide intraday risk management, while 10-year Treasury yield ceilings and floors track broader bond-market momentum that ultimately drives mortgage pricing. **Today's Events** August NFIB Small Business Optimism Index (released, down 1.1 to 98.7) $58 billion 3-year Treasury note auction (11:30 AM ET) July Consumer Credit (later today) $39 billion 10-year Treasury note auction (Wednesday) August Existing Home Sales (Thursday) Producer Price Index inflation data (Thursday) Consumer Price Index inflation data (Friday) Preliminary September University of Michigan Consumer Sentiment (Friday) **Bond Pricing** **UMBS 30 yr** | Coupon | Price | Intra-Day Change | | 5.0 | 96.46 | 0.1 | | 5.5 | 98.92 | 0.05 | | 6.0 | 101.06 | 0.01 | **GNMA 30 yr** | Coupon | Price | Intra-Day Change | | 5.0 | 96.78 | 0.09 | | 5.5 | 99.03 | 0 | | 6.0 | 101.19 | 0.05 | **Treasuries** | Term | Yield | Price | Intra-Day Yield Change | | 2 yr | 4.371 | 99.535 | 0.007 | | 3 yr | 4.445 | 99.458 | -0.002 | | 5 yr | 4.543 | 99.256 | -0.003 | | 7 yr | 4.651 | 99.108 | -0.005 | | 10 yr | 4.774 | 98.825 | -0.014 | | 30 yr | 5.23 | 98.425 | -0.015 |

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Mortgage Today (AM) - 09/04/26

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September 4, 2026

**WTMS Blog Today = What's up in Mortgage Today (AM) - 09/04/2026** Strong August jobs data surprised to the upside with 162,000 nonfarm payrolls added, crushing expectations of just 56,000 new positions and shifting market sentiment toward an imminent rate hike by the Federal Reserve. Mortgage rates surged to 6.71 percent as bond investors fled the market on recession fears dissolving and inflation concerns intensifying. The 10-year Treasury yield climbed to 4.79 percent, pushing UMBS 5.5 coupons down 17 ticks to 98.79 as MBS investors faced margin pressure. Unemployment held steady at 4.1 percent while labor force participation surprisingly improved, signaling a resilient job market that complicates the Fed's inflation-fighting mission. For originators, today's employment surprise erases yesterday's brief hope for a supportive Fed pivot and locks in elevated rate environment for the foreseeable future. Pending home sales turned negative for the first time since November, dropping 0.2 percent year-over-year in August after an eight-month winning streak peaked in May at 4.8 percent growth. Price reductions hit 20.4 percent of August listings, matching last year's rate as housing affordability deteriorates across the market. New active listings jumped 3.6 percent year-over-year to 1.14 million, though inventory still trails pre-pandemic levels by 11.1 percent, constraining purchase volume. Median list prices fell for the tenth consecutive month to $424,500, reflecting weakening buyer demand under persistent rate pressure. This slowdown signals originators that refinance opportunities remain muted while purchase business faces headwinds as borrowers retreat from the market. Rocket Mortgage expanded its lawsuit against UWM, alleging the wholesale lender violated nonsolicitation agreements covering nearly 182,000 mortgages sold to Mr. Cooper in 2024 through aggressive refinancing programs. According to the amended complaint, these targeted loans prepaid at roughly 2.5 times the rate of comparable mortgage pools, with more than 15,500 loans refinanced by December 2025 and UWM handling over 48 percent of those refinances. Rocket claims the activity violated programs including Refi75, KEEP, and Refi Shield 100, and is seeking at least $100 million in damages. UWM has denied all allegations and called the lawsuit baseless. This legal battle underscores servicing rights disputes and the competitive tension in loan origination channels. eXp Realty is winding down its Success Lending joint venture with Kind Lending, which originated only $270 million year to date compared with $526.5 million in all of 2025, and is now exploring a partnership with Newrez to scale its mortgage platform. Newrez originated $31.3 billion in the first half of 2026, more than four times Kind Lending's $7.5 billion, positioning it as a far more robust partner for eXp's nationwide agent network. Success Lending currently operates 113 loan officers across 22 branches while Newrez manages about 15 mortgage joint ventures. The shift reflects eXp's recognition that larger origination platforms offer better leverage for capturing purchase and refinance volume from its agent base. This consolidation trend continues reshaping how real estate platforms compete in mortgage origination. Mortgage rates are now locking in near historically elevated levels as borrowers reassess lock versus float decisions against a hardening Fed rate path. August earnings growth met expectations at 0.3 percent month-over-month while participation rate improvements suggest more resilient labor supply than anticipated. With Fed Governor Waller's recent dovish hints now erased by today's strong payrolls, traders are repricing Fed funds futures toward a September hold or potential October hike as inflation data becomes the decisive factor. Originators should prepare for sustained rate pressure and heightened volatility through next week's inflation data releases. The shift from refinance opportunities to purchase lending under elevated rates requires rapid repricing and lock-strategy guidance. **Locking vs Floating** Today's blowout jobs report erased yesterday's glimmer of hope for Fed accommodation and shifted lock-float calculus decisively toward locking. With the unemployment rate holding at 4.1 percent despite participation rate gains, the Fed's focus on labor market stability means rate hikes remain on the table if inflation data disappoints next week. Borrowers facing 6.7 percent rates should consider locking immediately rather than floating, as further weakness in bonds could push rates toward 7 percent. The combination of sticky service-sector inflation and resilient employment suggests the Fed cannot ease aggressively, making rate locks protective for loan pipelines. **Today's Events** Average earnings month-over-month (Aug): 0.3% vs 0.3% forecast, 0.1% prior Non Farm Payrolls (Aug): 162,000 vs 56,000 forecast, -23,000 prior Participation Rate (Aug): 61.6% vs 61.4% prior Unemployment rate month-over-month (Aug): 4.1% vs 4.1% forecast, 4.1% prior **Bond Pricing** **UMBS 30 yr** | Coupon | Price | Intra-Day Change | **GNMA 30 yr** | Coupon | Price | Intra-Day Change | **Treasuries** | Term | Yield | Price | Intra-Day Yield Change |

WTMS Video Summary

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Mortgage Today (PM) - 09/03/26

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September 3, 2026

**WTMS Blog Today = What's up in Mortgage Today (PM) - 09/03/2026** Fed Governor Waller signaled the central bank probably doesn't need to hike at next week's meeting, sending mortgage-backed securities and Treasury futures higher in morning trading. UMBS 5.5 coupons climbed to 98.96, while 10-year yields dipped to 4.744%, but afternoon weakness reversed most gains as global bond yields and oil prices remained elevated. Markets remain highly sensitive to geopolitical headlines and data releases, with tomorrow's jobs report and next week's inflation print critical to bond momentum. Jobless claims ticked up to 206,000 versus a 205,000 forecast, while continued claims held at 1.779 million, suggesting some labor market resilience. The trade deficit narrowed to $88.6 billion against a $90 billion forecast, and unit labor costs fell below expectations at 1.2%, offering modest relief on inflation pressures. Origination demand faces headwinds as pending home sales turned negative in August after eight consecutive months of growth, with mortgage rates climbing to 6.67% and price cuts reaching 20.4% of listings. United Wholesale Mortgage faces three shareholder lawsuits over a $603.2 million derivatives loss tied to a failed Two Harbors acquisition, raising questions about risk management and board oversight. UWM had built a $27.5 billion notional hedge position that persisted even after the merger agreement collapsed, prompting investors to demand answers about oversight failures. Meanwhile, NEXA continues consolidating the broker space, bringing Mortgage Nerds onto its platform while allowing the brand to retain its identity, the second such retention deal in two weeks. Purchase market activity cooling under rate pressure presents a strategic moment for servicers and mortgage technology platforms to focus on retained servicing and home equity opportunities. **Locking vs Floating** Afternoon weakness erased morning gains despite positive Fed commentary, creating uncertainty for daily rate sheets. Watch tomorrow's jobs report closely: a meaningful slowdown in hiring could ease rate pressure ahead of the Fed's September decision. War headlines and oil prices remain wild cards that could overwhelm bond market direction regardless of economic data strength. **Today's Events** Jobless Claims (Aug)/29: 206.0K vs 205K forecast, 203K previous Continued Claims (Aug)/22: 1779.0K vs forecast not available, 1778K previous Trade Gap (Jul): -88.60B vs -90B forecast, -73.3B previous Unit Labour Costs QoQ Final Q2: 1.2% vs 1.3% forecast, 1.3% previous **Bond Pricing** **UMBS 30 yr** | Coupon | Price | Intra-Day Change | | 5.0 | 96.47 | 0.16 | | 5.5 | 98.96 | 0.14 | | 6.0 | 101.07 | 0.07 | **GNMA 30 yr** | Coupon | Price | Intra-Day Change | | 5.0 | 96.77 | 0.16 | | 5.5 | 99.24 | 0.17 | | 6.0 | 101.24 | 0.1 | **Treasuries** | Term | Yield | Price | Intra-Day Yield Change | | 2 yr | 4.342 | 99.588 | -0.027 | | 3 yr | 4.41 | 99.555 | -0.026 | | 5 yr | 4.519 | 99.362 | -0.017 | | 7 yr | 4.635 | 99.198 | -0.015 | | 10 yr | 4.769 | 98.869 | -0.013 | | 30 yr | 5.249 | 98.134 | -0.011 | Market Data

Why Your $20 ChatGPT Subscription Costs OpenAI $200 to Deliver (And Why That’s a Problem)

admin2026-06-09T22:29:10-07:00June 13th, 2026|Money|

Why Your $20 ChatGPT Subscription Costs OpenAI $200 to Deliver (And Why That's a Problem) Inside the eye-watering economics of AI that have tech giants burning through billions faster than a teenager with their [...]

UWM’s Courtroom Drama: When “I’d Rather Not” Meets a Federal Judge

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