All eyes are on the economy, and the most recent set of national employment data provided a pleasant surprise for the financial sector, among others. The news drew a reaction from the top economist at the country’s largest trade organization representing mortgage bankers.
Learn more about this and other issues that are top of mind of mortgage lenders and other financial professionals in this roundup:
MBA economist comments on new jobs report
Mortgage Bankers Association Chief Economist Mike Fratantoni published his reaction to September’s stronger-than-expected jobs report from the U.S. Bureau of Labor Statistics, noting job growth of 254,000 and an unemployment rate drop to 4.1 percent. Wage growth also re-accelerated to 4 percent, signaling a “soft landing,” but raising concerns about inflation’s trajectory, he said. While job gains were concentrated in sectors like food services, health care, and construction, consumer cutbacks could threaten continued growth in these areas. Fratantoni expects mortgage rates to hover around 6 percent throughout the next year, with this report pushing rates to the higher end of that range. Read his comments here.
ICBA expresses opposition to Swift digital asset initiative
The Independent Community Bankers of America (ICBA) noted its opposition to Swift’s pilot for allowing banks across the world to use its network for transactions involving digital assets and central bank digital currencies (CBDCs). Swift was recently named a participant in Project Agora, an international project exploring the integration of tokenized commercial bank deposits and wholesale CBDCs. ICBA asserted federal agencies provide records on whether legislative changes are required to issue a U.S.-based CBDC. Learn more here.
CBA announces new board chair
The Consumer Bankers Association’s (CBA) board of directors elected Brendan Coughlin to serve as its new board chair. Coughlin is vice chair and head of consumer banking at Citizens Financial Group, Inc. and has more than two decades of banking experience. He will succeed Quincy Miller of Eastern Bank, who will remain a member of the board as immediate past-chair. Atlantic Union Bank’s President and Chief Operating Officer Maria Tedesco was also elected as CBA board chair-elect for the upcoming year. Coughlin, Tedesco, and Miller will comprise CBA’s executive committee, which is charged with oversight of CBA. Read more here.
ABA argues in favor of bill to expand investment opportunities in retirement plans
A bipartisan Senate bill “would level the playing field” for retirement plans by allowing 403(b) plans to invest in bank collective investment trusts (CITs), the American Bankers Association (ABA) argued in a letter to the bill’s sponsors. The ABA’s opinion emphasized that CITs are regulated under the Employee Retirement Income Security Act of 1974 and must comply with federal tax laws restricting eligible investors to U.S. tax-qualified and governmental retirement plans. CITs also follow strict bank management standards, investor eligibility rules, and federal anti-fraud securities laws. The ABA believes CITs should be available to 403(b) plans, similar to pension and 401(k) plans. Find out more about the bill and the trade group’s support for it here.