“I thought swimming with dolphins was expensive until I went swimming with sharks. It cost me an arm and a leg.” Through the wonders of modern air travel, I find myself in St. Louis for the MBA of St. Louis event. Here in St. Louis, lending costs, rates, and regulations are on the minds of lenders, as well as where Freddie and Fannie are going and how. “Rob, although the funding mechanism is in place, couldn’t the U.S. Government cut off funding for the CFPB, therefore leading to it scaling back because it doesn’t have the money? And if that happens, won’t the states ramp things up?” Yup. “Rob, what’s the deal with rates? Wasn’t a campaign promise lower rates?” Slightly hot consumer and producer inflation data, along with a comment from Federal Reserve chair Jerome Powell on Thursday that suggested the Federal Reserve would not be “in a hurry to lower rates” weighed on markets. With longer-term Treasury yields holding high and a December cut on shaky ground, mortgage rates are prone to staying elevated… not good heading into the winter. (Today’s podcast can be found here and this week’s is sponsored by PHH Mortgage. If you are looking for a Correspondent Lending partner or an experienced, award-winning subservicer who can manage your forward and reverse, residential and commercial, and performing and non-performing loans look no further than PHH. Hear an interview with Diverse Mortgage Services’ Chuck and CJ Sanders on how the mortgage industry can become less pale, male, and stale, and the benefits associated with that.)