Brent Nyitray
Fairlington Blade
Let the mutherfuker burn!
jnc4p
Kevin S. Willis
Michigoose
lmsinca
markinaustin
Memetrics
novahockey
quarterback
ScottC
yellojktVital Statistics:
| Last | Change | |
| S&P futures | 3425 | -6.6 |
| Oil (WTI) | 40.35 | -0.29 |
| 10 year government bond yield | 0.82% | |
| 30 year fixed rate mortgage | 2.89% |
Stocks are flattish this morning as earnings continue to pile in. Bonds and MBS are flat.
Initial Jobless Claims fell to 787k last week. We are still a long way from normalcy here.
Amerihome has filed to go public, the latest in a wave of mortgage bankers. That makes Rocket, United Wholesale, Guild, Amerihome, and Caliber. Am I missing anyone? If you were Bank of America, would you resurrect the Countrywide brand and spin it off?
The MBA forecasts that originations will increase to $3.2 trillion this year, and then slowing to $2.5 trillion next year. They see purchase originations hitting $1.5 trillion this year, however they see refinance activity falling to under $1 trillion next year as they forecast the 30 year mortgage rate hitting 3% by the end of the year and rising to 3.3% by the end of 2021. That said, if Black Knight’s numbers are correct – that there are 32 million homes that could save 75 basis points in rate by refinancing – then the refi boom should last as long as rates stay in this neighborhood. Don’t forget, the Fed is actively buying MBS in order to hold down rates. I don’t see that changing. The other wild card is homebuilding. Demand is insatiable for homes right now, and the builders will probably be snapping up undeveloped land in the exurbs all winter. Working from home has changed the entire calculus about living in the exurbs. Bidding wars for starter homes are common these days.
Financial firms are preparing for a Biden Administration, which will mean a return to the Richard Cordray days of “regulation by enforcement action.” This basically means that the agency wouldn’t tell anyone what the rules were; the only way to figure out what they were thinking was from reading an enforcement action after the fact. This would be like driving on a road with no speed limit signs, and the only way to find out the speed limit would be to get a ticket.
Filed under: Economy, Morning Report |
All Things in Moderation 
“regulation by enforcement action.”
Used to be the favorite trick of the Wage and Hour folks. To our pleasant surprise, the Obama Admin began to force that agency to send its agents out on request to do no penalty advising. I had read in the 2010 era that some field offices were better than others about this. Austin was OK, you could ask for an opinion without fear of a steel boot. Not so much in a lot of places.
That change occurred after YEARS of complaints by everyone at every labor law conference in the USA. Pressure from that level might work over time here regardless of the Admin in power.
Frankly, it should be a matter of law that admin penalties cannot be imposed without reasonable notice to correct a perceived deficiency and an opportunity to be heard on the matter. Also, the time and manner of correction should be open for discussion, as well. This is necessary to avoid the ever present problem of quickly correcting to meet one regulatory obligation forcing a non-compliance with another unrelated one.
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Mark:
Frankly, it should be a matter of law that admin penalties cannot be imposed without reasonable notice to correct a perceived deficiency and an opportunity to be heard on the matter.
I don’t understand how admin penalties can be legitimately imposed at all. The whole process seems to me to be a violation of Constitutional separation of powers.
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And very soon you may have a Supreme Court majority that agrees with you.
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That would be awesome, but I am preparing for disappointment.
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There used to be a word that describes it when private enterprise and a political party become enmeshed and help each other. Can’t remember it tho…
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This one is good
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