AI Governance, License Renewal, Servicing Transfer, SOC Products; Fannie Earnings

The other day I went to Costco, and for $5.99 bought a pumpkin pie the size of a hubcap. What inflation? Costco’s hot dog/soda combo or the rotisserie chicken are loss leaders, but actual gasoline, beef, lettuce, restaurant meals, goods from overseas, and other items’ price changes have kept inflation in the headlines and impacted mortgage rates. (Other headlines include Fannie Mae earning $4.2 billion in the 3rd quarter; more below.) What about water prices and availability… are they important to homeowners or potential buyers? What happens when you combine something like clean water with a private supplier? How about “a problem.” I am not saying that this is similar to private companies investing in mortgage-backed securities, but in the Navaho Nation, mostly in Northeast Arizona, a large percentage of residents don’t even have running water. Hawai’i was hit with a hurricane which has shut down water service on the Big Island. One community’s water and sewer needs are served by a utility that is not insured, has no money secured for repairs, and no timeline for restoring service. What does that do to the value of mortgage servicing rights in that area? (Today’s podcast can be found here. This week’s ‘casts are presented by FICO. As the industry's most predictive credit score, FICO Score 10T combines proven performance with deeper insight into borrower behavior to help support a stronger and more resilient housing finance system. Today’s has an interview with Steve Richman on mortgage-market conditions and how industry professionals can adapt through continued growth, education, and customer-focused differentiation.)