Morning Roundup (9/26/2023) — Taxpayers On The Hook?

Good Morning! Today is Tuesday, September 26. President Biden will join striking autoworkers on the picket line in Detroit today. Senator Robert Menendez, a New Jersey Democrat facing corruption charges, said he would not resign. Ukraine officials say they killed the commander of Russia’s Black Sea Fleet in a missile strike on Crimea.

The Mortgage Note Reports

Taxpayers On The Hook?: A recent WSJ opinion piece claims taxpayers are standing behind trillions of dollars in risky mortgages due to the way that student loan debt is calculated during the mortgage process. Writer Erin Flynn Jay looked into this and has the story.

New Residential Sales: New home sales sank in August as homebuyers faced soaring prices and rates, reversing a spike the month prior.

Prices Heat Up: Home price appreciation soared in July as prices went up across the country, though some regions are faring better than others.

In other mortgage and housing news…

“A Little Higher”: The Minneapolis Fed President said the Fed may raise rates again and hold them high for some time to bring inflation back down to 2%…

Prepare For The Worst: …while JPMorgan Chase CEO Jamie Dimon is warning clients to prepare for a worst-case scenario of benchmark interest rates hitting 7%.

Moving On: A record 26% of homebuyers are looking to move to a different part of the country as remote workers flock to more affordable areas.

Blame Covid: The total value of the housing market is now 49% higher than before the start of the pandemic in February 2020, breaking the record at $52 trillion.

Company News: Blend added assets-derived income to its existing income product; Ocrolus announced an automated income calculator for both traditional and self-employed borrowers; Frost launched an equity product for low- and moderate-income homeowners.