If you missed the recent story we published on Wells Fargo's letter regarding the 'qualified residential mortgage' test, don't feel bad. The issue isn't going away. In a letter to six different regulators, Wells' suggests the QRM definition should be "simple and balanced" and that such a mortgage would be one with a loan-to-value ratio of 70% or below. On the surface it appears that Wells may've lost its mind. As one MBS investor told me, "Nice try, Wells." But keep in mind a few things: Wells suggests this ratio as an "example" and argues in its Nov. 16 letter to FDIC, FHFA and others that if the QRM definition is too broad it will cause a problem where "loans may have undetected processing defects." It appears that the bank's logic is this: a narrow QRM definition will actually create a large segment of borrowers outside the safe category, thus increasing liquidity to this market. Huh? At least that's how I read it. But is Wells dreaming here? And it should come as no surprise that many in the industry believe the bank is upping its power grab on the mortgage banking business. I ask readers this: how many of the loans that you are funding have LTVs of 70% or lower?

I know the holidays are a busy time for most of us but I’m proposing that with a little planning and leg work, I’m going to share with you three things that you can do for the next three months so you’ll be ready to take on the world.

Mortgage bankers have been living off of refinancings the past six months with applications for the loans running at about 70% of all new business. This, of course, is not a sustainable business strategy for the industry and every mortgage banker in the nation knows it. But with the yield on the benchmark 10-year Treasury now solidly over the 3.5% line, fear is starting to set in. One mortgage banker in Southern California had this to say late last night: "Four — count them, four rate changes to the worse today. Refinances are dead for now. We had $45 million [in loans] floating. Bye bye." He added that production in the new year will be devastated if rates stay above 5%." Then again, rates can fall as quickly as they rose, but right now it doesn't feel that way.

José Torres, senior economist at Interactive Brokers, breaks down the FOMC decision and Fed Chair Jerome Powell's press conference.

Sean Snaith, Director of the Institute for Economic Forecasting at the University of Central Florida, will provide insight into the FOMC meeting.

Monetary policy remains the key to the markets. The Federal Open Market Committee predicts one rate cut in 2026, but the panel will get a lot of data before