Mortgage News: Discount Rate, Weekly Survey & D & I


The Feds led by Jerome Powell announced yesterday, discount rates would remain unchanged.  Although Donald Trump has been up to his usual antics of butting in to agencies which demand independence, Powell has been clear and intimated to Trump to stop harassing him or threatening to fire him.


Here is his remarks about why there was no need to change rates.


This week’s mortgage rate survey

June 20, 2019

30-Yr FRM 15-Yr FRM 5/1-Yr ARM
Average Rates 3.84 % 3.25 % 3.48 %
Fees & Points 0.5 0.4 0.4
Margin N/A N/A 2.76

Diversity & Inclusion

While some will swear congress, specifically the House of Representative is doing nothing for the people was they are mired down in whether to impeach Donald Trump or not, in fact there is lots going on.

One such group, the Financial Services Committee has been busy (in addition to coordinating impeachment discussion) hold critical hearings about financial issues affecting the American people.  Today, they held a very important hearing on Corporate Diversity & Inclusion.

Here is the full hearing

Mortgage news: GSIBs as a group have paid at least $163.7 billion in fines!!!


above photo - House Financial Services Committee Holds Hearing On Keeping Megabanks Accountable
WASHINGTON, DC - APRIL 10: (L-R) Michael Corbat, chief executive officer of Citigroup Inc., Jamie Dimon, chief executive officer of JPMorgan Chase & Co., James Gorman, chief executive officer of Morgan Stanley, and Brian Moynihan, chief executive officer of Bank of America Corp., listen during a House Financial Services Committee hearing on April 10, 2019 in Washington, DC. Seven CEOs of the country’s largest banks were called to testify a decade after the global financial crisis. (Photo by Alex Wroblewski/Getty Images)

The news was initial reported in April but it is worth repeating today because at first the amount seemed like a prank but it truly is real!  Ever since the Democratic party assumed control of the House of Representatives they have moved quickly to implement more accountability as part of their oversight.  Global Systemically Important Banks known as GSIB’s make us some of the largest U.S. commercial banks.

The TARP Bailouts

During the financial crisis or mortgage meltdown of 2008, in 2009 the GSIB’s as mentioned appeared before the Financial Services Committee to discuss the bailouts they received.  On April 10th they reappeared before the committee chaired by Rep. Maxine Waters.  The purpose was to discuss “lessons learned” as well as steps they have engaged to balance the lending spectrum across the nation.

WASHINGTON, DC – APRIL 10: Chairwoman of the House Financial Services Committee Rep. Maxine Waters (D-CA) speaks during a House Financial Services Committee hearing on April 10, 2019 in Washington, DC. Seven CEOs of the country’s largest banks were called to testify a decade after the global financial crisis. (Photo by Alex Wroblewski/Getty Images)

$163.7 in FINES

As a group to date they have paid $163.7 BILLION in fines for various consumer abuses and other violations of the law.  Questions remain but one thing is clear; many banks chalked up the fines as the cost of doing business as evidenced by their current behavior and fact collectively they have made over $780 billion in profits.  Has anything changed?

The hearing shed light on why accountability is critical.  The committee has more hearings planned to address specific steps the banks plan on incorporating to benefit all consumers, particularly those that have been historically marginalized.

Here is a list of the fines some of the largest banks have paid in the last ten years:

  • Bank of America has paid $76.1 billion in fines.
  • JPMorgan Chase has paid $43.7 billion in fines.
  • Citigroup has paid $19 billion in fines.
  • Wells Fargo has paid $11.8 billion in fines.
  • Goldman Sachs has paid $7.7 billion in fines.
  • Morgan Stanley has paid $5.4 billion in fines.

Here is the full hearing on video

Despite the obvious……Team Trump claims a great week while insisting no crime has occured?


cartoon courtesy of David Brown studios (Los Angeles Sentinel)

“After two years and millions of pages of documents (and a cost of over $30 million) no collusion!” Donald Trump – Dec. 7, 2018
“If the President puts Russian salad dressing on his salad tonight, somehow that’s a Russia connection,” the White House spokesman insisted during a contentious exchange with reporters.
He said every official that’s been briefed on the matter has said there’s no sign of “collusion” between the Trump campaign and Russia.”  Sean Spicer March 2017
“from what we know on the public record, Mueller has failed to prove the Trump-Russia collusion that he was appointed to investigate 19 months ago.” Fox News

“I have nothing to do with Russia. I have no investments in Russia, none whatsoever. I don’t have property in Russia. A lot of people thought I owned office buildings in Moscow. I don’t have property in Russia … I built a great company, but I’m not involved with Russia. I have had dealings with them over the years where I sold a house to a very wealthy Russian many years ago. I had the Miss Universe pageant which I owned for quite a while. I had it in Moscow a long time ago, but other than that, I have nothing to do with Russia.” Donald Trump


[Postscript]  This was a critical week for a few of Donald Trump’s close allies who have pled guilty and simply are waiting for their sentencing.  The filings regarding Paul Manafort, Michael Flynn and Michael Cohen provide the public a better picture of what occurred during the 2016 presidential campaign.  Despite emphatic communication from Trump supporters, their claim is despite the filings no crime has been committed and proves people are out to get Donald Trump simply because he won the election!

In the meantime, those who swore the SC investigation is a witch-hunt or it would end in a few days……might want to wake up and stop their prognostication.

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