Federal Housing Finance Agency (FHFA) reports mortgage finance delinquency rates holding at 0.62%, a historically low level. This metric supports bullish outlooks on agency MBS performance in the next quarter. Columbia Financial reported revenues of $61.41 million, up 20.3% year on year. This result beat analysts’ expectations by 15.4%. Overall, it was an exceptional quarter as it also recorded a beat of analysts’ EPS and tangible book value per share estimates. On the winning side, Fair Isaac Corporation ( NYSE: FICO ) stands out. By taking its flagship product directly to the market, FICO reasserts control over its intellectual property, captures a larger share of the revenue generated from its scores, and strengthens its position as the preeminent credit scoring provider. The surge in FICO's stock price today is a testament to investor confidence in this strategic move. Furthermore, mortgage lenders and brokers are poised to benefit significantly. The promise of immediate cost savings—up to 50% on average per-score fees and the elimination of re-issuance charges—translates directly into lower operational costs, which could potentially be passed on to consumers, enhancing affordability and competitiveness in the mortgage market. Mortgage finance-linked REITs recorded higher net interest income as spreads on agency paper widened. Investors watching book value stability view this as a signal of manageable interest-rate risk.
