Government shutdown

Bank of America has a playbook for government shutdowns, which includes providing fee and payment waivers as well as loan deferrals and forbearance programs, CEO Brian Moynihan said at the American Bankers Association's annual convention.

A judge agreed to expand her temporary restraining order to add more federal worker unions after their lawyers said there's an "urgent" need to prevent layoffs.

Fannie Mae and Freddie Mac's credit risk-transfers and some older private-label mortgage-backed securities have exposures to the Washington DC area.

A lapse in the National Flood Insurance Program because of the US government shutdown threatens to snarl home sales in the nation's riskiest floodplains and leave some homeowners without coverage in the middle of hurricane season.

The shutdown halted the release of employment data, typically a driver of mortgage rate activity, likely resulting in trackers moving in varying directions.

Some lenders have a workaround for the Federal Housing Administration's suspension of reverse mortgage endorsements but fewer options exist in other instances.

"It's likely going to be in the thousands," White House press secretary Karoline Leavitt told reporters on Thursday, saying that the "entire team at the White House" was working to identify possible cuts.

As the government shutdown stalls key housing programs, lenders are shifting tactics to keep loans moving and preparing for bigger challenges ahead.

Department officials pushed back on criticism that a banner on its homepage violated a statute meant to curb partisanship in government operations.

The shutdown started with a flight into treasury bonds, putting downward pressure on financing costs, but several other developments slowed mortgage activity.