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Mortgage rates climb to 6.58% as Iran conflict lifts oil prices
Edgen Stock·Jul 24 2026, 01:04Share to
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[1] Mortgage rates hit highest level in nearly a year (https://www.foxbusiness.com/economy/mortgage- ...)[2] Average 30-year US mortgage rate climbs to 6.58%, highest level in nearly a year (https://www.news-herald.com/2026/07/23/mortga ...)
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Jul 24 2026, 02:05
Upstart wins OCC approval for first AI-powered national bank charter
**Upstart's conditional OCC approval marks the first national bank charter built entirely on AI-powered underwriting.** Upstart Holdings Inc. received conditional approval from the Office of the Comptroller of the Currency to establish Upstart Bank, N.A., becoming the first nationally chartered bank built from the ground up with AI underwriting. "Conditional approval from the OCC is an important milestone for Upstart Bank and we will continue to work with the OCC, the FDIC, and the Federal Reserve on the remaining steps," said Paul Gu, Upstart's co-founder and chief executive officer. The charter, applied for in March 2026, would allow Upstart to originate loans nationwide and accept FDIC-insured deposits from its Delaware base without physical branches. More than 100 banks and credit unions already use Upstart's AI models to approve borrowers, with over 90 percent of loans processed without human intervention. The company's platform covers personal loans, automotive loans, home equity lines of credit, and its Cash Line revolving credit product. The approval signals regulatory validation of AI-driven credit scoring, a model that has faced scrutiny over algorithmic fairness. Upstart's applications to the FDIC for deposit insurance and to the Federal Reserve for bank holding company status remain pending, with operations not expected to begin until all conditions are satisfied, including capitalization, governance, and operational readiness requirements customary for de novo national bank charters. Upstart's model differs from traditional lenders such as JPMorgan Chase and Wells Fargo, which rely on FICO scores as their primary underwriting input. Upstart uses machine learning to evaluate thousands of data points — including education, employment history, and loan purpose — to predict default risk. The company has said its model approves 27 percent more borrowers than traditional credit scoring at the same loss rate, though critics have raised concerns about potential bias in algorithmic lending. The charter is designed to reduce operational, regulatory, and financial complexity for Upstart and its third-party capital partners. Banks, credit unions, and institutional credit funds are expected to continue purchasing the vast majority of loans originated on the platform, with Upstart Bank intended to complement rather than replace those funding partnerships. The company was advised by Klaros Group on its de novo charter application. For investors, the OCC approval removes a key regulatory overhang that has weighed on Upstart shares since the company went public in 2020. A national bank charter gives Upstart direct access to deposit funding, potentially lowering its cost of capital and improving margin structure over time. The company's ability to hold loans on its own balance sheet also reduces dependence on third-party bank partners, whose willingness to fund loans can shift with the economic cycle. Upstart trades as a high-growth fintech rather than a traditional bank multiple, and the charter could narrow that valuation gap if it delivers on promised cost savings. This article is for informational purposes only and does not constitute investment advice.
Jul 24 2026, 02:00
Big banks return to CRE lending as sector shows signs of stabilization
Major US banks are returning to commercial real estate lending, reversing a multiyear pullback that followed investor warnings of a wave of defaults across office and multifamily properties. "The disruption in our local marketplace remains very high, and the environment for our organic growth strategy as it relates to acquiring clients and bankers continues to be very attractive," said Stuart Lubow, chief executive officer of Dime Commercial Bancshares, on the bank's second-quarter earnings call Wednesday. Dime Commercial posted record second-quarter revenue of $126 million, above the $123.46 million consensus estimate, as business loans grew 26% year over year to about $743 million. The bank's net interest margin expanded for a ninth consecutive quarter to 328 basis points, and its efficiency ratio fell below 50% for the first time. Western Alliance Bancorporation, which reported results a day earlier, posted $995.7 million in revenue, beating the $980.53 million forecast, with commercial and industrial loans accounting for more than 80% of its $1.8 billion in quarterly held-for-investment loan growth. The shift marks a notable departure from 2023 and 2024, when most large US lenders tightened underwriting standards and reduced CRE exposure amid rising vacancy rates and higher borrowing costs. The last time a comparable rotation into CRE lending occurred was in late 2021, when low interest rates and strong property valuations drove a surge in origination volumes that peaked at about $700 billion in aggregate CRE loan originations across US banks, according to Federal Reserve data. That cycle ended abruptly after the Fed began raising rates in March 2022, pushing the average CRE loan delinquency rate to a peak of 1.6% by mid-2024. Dime Commercial said its loan pipeline stands at about $1.4 billion with a weighted average rate of 6.25%, and that it expects to resume share repurchases in the third quarter after reducing its commercial real estate concentration ratio to about 350%. Western Alliance lowered its full-year loan growth target to $5 billion from $6 billion, redirecting capital toward $150 million in planned buybacks in the second half of 2026, while maintaining a CET1 ratio of 11%. The renewed appetite for CRE lending reflects a broader stabilization in property markets. Office vacancy rates in major metropolitan areas have plateaued near 20%, according to Moody's Analytics, while multifamily rents have resumed growth after a two-year slowdown. Dime Commercial said its non-performing assets fell 28% from the prior quarter, though it took a $6 million specific provision on about $27 million in multifamily loans nearing 90 days past due. Western Alliance reported that two of six previously disclosed non-accrual loans had been resolved, with the remaining four on track for resolution in the second half of the year. For regional banks, the return to CRE lending carries both opportunity and risk. A net interest margin of 328 basis points means Dime Commercial earns $3.28 for every $100 in interest-earning assets, a level that becomes more valuable as loan volumes expand. But the provision for credit losses at Dime Commercial rose to about $14 million in the quarter, and the bank's allowance for credit losses reached 98 basis points of total loans, near the top of its 90-to-100-basis-point target range. Western Alliance's allowance stood at 89 basis points, with management expecting incremental increases as the loan mix shifts further toward C&I lending. The strategic calculus differs by institution. Dime Commercial, which rebranded from Dime Community Bank in June, is leaning into its transformation from a legacy multifamily thrift to a diversified commercial lender, with more than 70% of deposits now coming from commercial and municipal customers. Western Alliance is deliberately slowing balance-sheet growth to prioritize share repurchases, arguing its stock trades at a meaningful discount to intrinsic value. Both approaches reflect a shared conviction that the worst of the CRE downturn has passed — and that the banks best positioned to lend into the recovery will capture market share from competitors still on the sidelines. This article is for informational purposes only and does not constitute investment advice.
Jul 24 2026, 01:59
JGBs edge lower as UST yields hit 4.63% in Tokyo
Japanese government bonds edged lower in the morning Tokyo session, tracking overnight price declines in U.S. Treasurys that pushed the benchmark 10-year yield to 4.628%, its highest level since January 2025. The 10-year JGB yield rose about 2 basis points in early trading, extending a global bond selloff driven by resilient U.S. economic data and fading expectations for aggressive Federal Reserve rate cuts. The dollar index held near a one-week high at 101.20, while the yen remained under pressure at 163.06 per dollar. "The JGB move is a mechanical spillover from UST weakness rather than a shift in domestic rate expectations," said James Okafor, markets analyst at Edgen. "There is no domestic catalyst driving the selloff." The 10-year UST yield climbed 0.77% to 4.693% in the prior session, according to market data, while Brent crude settled at $91.24 on Middle East supply threats, adding to inflation concerns that complicate the Fed's path toward rate cuts. The S&P 500 snapped a three-day losing streak to close at 7,509, up 0.89%, as semiconductor stocks rebounded on strong Korean and Taiwanese export data, though the recovery in risk appetite did little to stem the bond selloff. The widening rate differential between the U.S. and Japan has been a primary driver of yen weakness, with the yen near a four-decade low that keeps alive the prospect of intervention by Japanese authorities. For Japan, the persistent rise in UST yields puts pressure on the Bank of Japan to consider further policy normalization at its next meeting, as global yields continue to climb and the cost of defending the yen floor rises. This article is for informational purposes only and does not constitute investment advice.