The letter claims the flood insurance premium pricing change has made the product unaffordable, resulting in a large drop off in the number of policies.

The Government Accountability Office was tasked with investigating the Consumer Financial Protection Bureau’s stop-work order, but CFPB officials refused to meet with or provide information to Congress’ investigative arm.

Warsh has voiced support for overhauling the relationship between the two institutions with a new version of an agreement struck in 1951.

State regulators and attorneys general could be picking up the gauntlet on anti-kickback provision enforcement, especially in the mid-Atlantic states.

Early Volatility And a Decent Recovery

Bonds lost ground in the overnight session after Chinese regulators cautioned banks against holding US Treasuries. That move was short-lived and more than fully erased before 9am ET. Part of the bounce back can be attributed to a newswire quoting Hassett saying we should expect slightly lower jobs numbers. Some may view this as telegraphing advanced knowledge of Wednesday’s numbers, but that would be highly unlikely based on the typical protocol (Council of Economic Advisors Chair typically gets advance notice the afternoon before a key economic report).  It was also arguably taken out of context. The rest of the day was uneventful, sideways, and slightly stronger, with bonds ultimately ending at modestly lower yields. MBS were flat.

Econ Data / Events

NY Fed Consumer Inflation Expectations

3.1 vs 3.4 prev

Market Movement Recap

10:15 AM Modestly weaker overnight but mostly erased at 8:20am.  10yr up half a bp at 4.218 and MBS down 2 ticks (.06).

02:27 PM Best levels of the day. MBS up 1 tick (.03) and 10yr down 1.3bps at 4.200

Lenders are always analyzing automation for parts of the manufacturing process, and industry vet and STRATMOR Senior Advisor Sue Woodard has her thoughts about last week’s MBA conference. “The IMB has always been a barometer for where this industry actually is, not where slide decks say it should be. This year, the signal was unmistakable. The mood is more optimistic than it has been in years, attendance is strong, and conversations have shifted from survival to execution. But that optimism is disciplined. Lenders are encouraged, not complacent, and the challenges in front of us are well understood. What stood out most in conversations across the conference floor was not a single technology, product, or policy headline. It was a shared recognition that the industry is at an inflection point. The next phase will be defined less by bold proclamations and more by focused decisions, thoughtful adoption, and follow-through. (Today’s podcast can be found here and this week’s ‘casts are Sponsored by Cenlar. Cenlar supports lenders and investors with scalable, best-in-class loan servicing built for today’s complex market. From compliance to customer experience, Cenlar helps portfolios perform better, borrowers stay supported, and servicers focus on growth. We’re proud to partner with a true industry leader. Hear an interview with Experian’s Joy Mina and Ken Tromer on how to access reliable income, employment, and asset data upfront in the origination process, enabling more precise prequalification decisions while reducing friction and improving the borrower’s early-stage experience.)

The past 2 weeks have seen very little volatility for mortgage rates.  After being near 6% for a week in early January, rates rose abruptly to 6.21% (avg top tier 30yr fixed) on January 20th in response to geopolitical drama. They’ve generally descended since then, but in slow, measured steps.   Today’s result was actually a 0.01% increase in the MND rate index, but that’s not terrible news considering last week ended at 2 week lows. In the bigger picture, apart from the super low week in early January, recent rates have been in line with the lowest levels in years. Last week’s most noticeable move came in response to a trio of employment-related reports on Thursday. That suggests the market will be more than willing to react to any interesting developments in this Wednesday’s big jobs report (a single report that is orders of magnitude more important than last Thursday’s reports combined).

Most nights, Treasuries trade in fairly low volume in a fairly narrow range.  Last night’s range wasn’t much wider than normal, but most of the movement happened all at once. It was also accompanied by much higher volume than normal. These are surefire signs of the market reacting to data or news. In the current case, that news involved Chinese regulators asked banks to limit their exposure to Treasuries. This sounds more meaningful than it is, and domestic traders agreed when the trading day officially began at 8:20am ET.

Trump administration officials are exploring opening an antitrust investigation into US homebuilders as the White House sharpens its focus on tackling the country’s housing affordability crisis.

The Housing for the 21st Century Act includes provisions covering policy, manufactured homes and rural infrastructure introduced in a prior Senate proposal.