Correspondent Products, STRATMOR on Borrower Psychology; Lender Tools; DSCR Appraisal Issues in Baltimore

Group 1: Borrower Psychology and Market Dynamics - The article from STRATMOR emphasizes the importance of understanding borrower psychology, suggesting that addressing a key borrower interaction can significantly enhance pull-through rates, trust, and long-term loyalty [4][5] - The recent appraisal issues in Baltimore have raised concerns among private lenders, with 70% of homes financed by Roc Capital now in foreclosure, highlighting the risks in the lending market [1] - The mortgage industry is experiencing shifts in demand and borrower behavior, with insights indicating that local market signals may be more predictive of mortgage demand than national trends [1] Group 2: Capital Markets and Economic Indicators - The Federal Reserve's recent actions, including a 25-basis point rate cut and $40 billion monthly T-bill purchases, have led to a focus on the 2026 "dot plot," which suggests only one rate cut next year, despite concerns about job growth and labor market conditions [6][8] - The Treasury curve has steepened, benefiting agency ARMs while pressuring lower-coupon 30-year MBS, indicating a complex interplay between monetary policy and market reactions [7] - Recent jobless claims rose to 236,000, the highest since September, while the trade deficit narrowed to $52.8 billion, reflecting mixed economic signals that are keeping markets in a range-trading pattern [9]