“Warning: don’t use your pet’s name for your password. We were hacked, and had to change our dog’s name.” “Experts” are saying that passwords will be on the way out in 2026 as passkeys take over. Good, as I am tired of carrying around a notebook with my usernames and passwords for dozens of sites. For fans of artificial intelligence (AI), we have news that a) AI generated weather predictions are making up new towns, and b) Utah is allowing AI to prescribe medicine to humans. (Taking that to an extreme, is sure sounds like the plot of a sci fi movie where us humans are unwitting slaves to computers through drugs in our food.) OpenAI has launched ChatGPT Health which wants access to your medical records. What could possibly go wrong? On the mortgage side of things, Newrez has made an investment in HomeVision to create an AI-driven mortgage underwriting platform, enabling an industry-first solution designed to deliver real-time mortgage decisions across loan types. Meanwhile, Volkswagen is bringing back physical buttons to its dashboards. Yay! (Today’s podcast can be found here. Today’s has an interview with the Texas Stock Exchange’s Jeff Karcher on the origins of the TXSE, why its founders believe U.S. markets need more competition, and how its 2026 launch aims to reshape capital markets through technology-driven trading and long-term vision.) Lender and Broker Products, Software, and Services Primis Mortgage is excited to announce the launch of its latest innovation in home financing: the Access Total Mortgage (ATM) loan, a principal-first lending solution designed to give mortgage professionals a more flexible option for today’s borrowers. The ATM loan combines a mortgage, checking account, and a HELOC into one integrated account, allowing deposits to immediately reduce principal while maintaining access to funds, without refinancing. Structured as a non-traditional, 30-year HELOC with an integrated sweep-checking account, the ATM loan supports ongoing liquidity and efficient cash-flow management. Funds can be accessed through standard banking channels, providing flexibility for evolving borrower needs. This solution is available to qualified borrowers with a minimum initial draw of $150,000 and reflects Primis Mortgage’s continued focus on innovative, relationship-driven lending solutions. Learn more about the ATM loan and how it fits into Primis Mortgage’s forward-looking lending platform.

US bonds have been taking clear cues from Europe in overnight trading recently. Today’s example involved a 3bp sell-off on both sides of the Atlantic. The 8:30am Jobless Claims data may be garnering more volume, but it has only added modestly to the morning’s selling pressure so far. 

Loanlogics rolled out the LoanBeam NQM income analyzer in October and has four users for the non-qualified mortgage underwriting technology, including Pennymac.

The company was founded in 1986 by current CEO Mat Ishbia’s father Jeff and became the No. 1 originator by dollar volume in the third quarter of 2022.

Walker & Dunlop Affordable Bridge Capital will originate flexible, short-term first-mortgage bridge loans for properties designated for government programs.

The Department of Housing and Urban Development is selling more due-and-payable HECMs on homes that are occupied while reviewing the loan program.

President Trump said he would prohibit large institutional investors from buying single-family homes. While the executive couldn’t bar such investments on its own, a legislative ban could gain bipartisan support.

Ultimately Underwhelming Despite Seemingly Significant Data

There was certainly the potential for volatility today with the confluence of ADP, ISM, and Job Openings data. But the results ended up being close enough to consensus to obviate any massive reactions. Yields hit their lowest levels in a week after ADP came in slightly softer, but most of the rally was already in place from the overnight session. Stronger ISM and job openings pushed bonds back in the other direction, but not enough to result in bond market losses or negative reprices. 

Econ Data / Events

ADP Employment

41k vs 47k f’cast, -32k prev

ISM N-Mfg PMI (Dec)

54.4 vs 52.3 f’cast, 52.6 prev

ISM Services Employment (Dec)

52.0 vs — f’cast, 48.9 prev

ISM Services New Orders (Dec)

57.9 vs — f’cast, 52.9 prev

ISM Services Prices (Dec)

64.3 vs — f’cast, 65.4 prev

USA JOLTS Job Openings (Nov)

7.146M vs 7.60M f’cast, 7.670M prev

Market Movement Recap

08:17 AM Steadily stronger overnight and slightly stronger after ADP.  MBS up 5 ticks (.16) and 10yr down 4.2bps at 4.123

10:02 AM Losing ground after 10am data. MBS back to unchanged and 10yr down 1.3bps at 4.152

12:06 PM Recovering a bit into mid-day. MBS up 3 ticks (.09) and 10yr down 2.8bps at 4.138

04:42 PM Off the strongest levels, but still in stronger territory. MBS up 2 ticks (.06) and 10yr down 1.6bps at 4.149

Wednesday had the potential to cause bigger volatility for rates due to the confluence of several important economic reports. If that data had been lopsided in one direction or the other, rates likely would have moved more. As it happened, the data was mixed. The net effect was an exceedingly modest drop in the average 30yr fixed rate. Despite the tiny move, this brings MND’s 30yr fixed rate index back in line with the 2-month lows seen on several recent occasions. Bottom line: today ended up being uneventful in an inoffensive way.  From here, Friday’s jobs report represents the same sort of potential for a volatile reaction.

What are the attributes of a successful loan officer? In my years of listening to LOs compare notes, many mention “mindset” since the job sometimes can be a grind. LOs fully explore possible niches, manage their database, strive toward leadership, and are willing to understand lending regulations and comply. Regarding that last one, tomorrow’s The Big Picture (January 8) at 3PM ET features MQMR’s Scott Weintraub to break down the regulatory outlook under a new administration, including potential CFPB changes, enforcement priorities, and areas of lingering uncertainty for lenders. They also discuss the growing role of state regulators, where enforcement risk may surface in 2026, and what lenders should be doing now around QC, compliance, and risk management. For example, anyone doing business out in California is watching AB 801 which sets up CRA requirements in that state. (Today’s podcast can be found here. This week’s are sponsored by Polly. Polly operates the industry’s only vertically integrated capital markets platform, purpose-built to maximize profitability through precision cost reduction, margin expansion, and real-time, loan-level attribution and profitability analysis. Today’s has an interview with Aliya’s S.P Wijegoonaratna on properly structuring risk profiles of borrowers and the future of financial services embedded lending.) Asurity Forum Registration is now open for The 2026 Forum by Asurity®, presented in collaboration with premier sponsor RiskExec®, and taking place April 20–22 at The Roosevelt New Orleans. The 2026 Forum brings together leaders in Fair and Responsible Banking, CRA, compliance, and financial crimes for two days of practical, real-world insight. Hosted at The Roosevelt New Orleans, a Waldorf Astoria Hotel, the conference features dynamic panels of regulators, legal experts, and practitioners, along with hands-on sessions covering CRA modernization, fair lending, AI governance, and emerging supervisory priorities. Attendees can earn CRCM and CERP continuing education credits, with CLE credit anticipated pending state approvals. Designed for banks, credit unions, mortgage lenders, and their advisors, the Forum emphasizes candid peer discussion, actionable problem-solving methods, and meaningful professional connections. Capacity is limited. Reserve your place today!