Looking for a legal forms?

CSS And Menu Css3Menu.com

 

MBS RECAP: Big Victory This Week (In Response To Last Week's Big Loss)

 

Posted To: MBS Commentary

Big Victory This Week (In Response To Last Week's Big Loss) Relative to the spectrum of possibilities, ending the week with 10yr Treasury yields under 1.1% is a big victory. Of course that wouldn't have been the case before last week, but everything's relative in the bond market. From here, we'll be watching this week's high yields very carefully for continued support. If rates are going to surge back below 1.0%, the justification for such a thing has yet to reveal itself. Next week is light on data, and bonds are closed on Monday for Martin Luther King Jr. Day. Econ Data / Events 20min of Fed 30yr UMBS Buying 10am, 1130am (M-F) and 1pm (T-Th) Retail Sales -0.7 vs 0.0 f'cast, -1.4 prev Core Annual PPI 1.2 vs 1.3 f'cast, 1.4 prev NY Fed Manufacturing 3.5 vs 6.0 f'cast...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

 

The Real Story Behind The Past 2 Weeks of Mortgage Rate Volatility

 

Posted To: Mortgage Rate Watch

It was easy to get lulled into complacency by the second half of 2020 when it came to mortgage rates. Even as other indicators said rates should be rising, they continued on a calm journey to multiple record lows. 2021 has been very different so far! Covid and its impacts on the economy remain the driving forces behind market trends. That's generally been great for rates, but it also means that rates should gradually rise as we battle back against covid. If the onset of the pandemic pushed rates to all-time lows, it's only fair that progress against the pandemic would result in rates moving up from all-time lows. If you ask 10yr Treasury yields, that's been the case for quite a while. And while the stock market has been singing a similar tune, the mortgage market has been in its own glorious...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

 

Improvements in Forbearance Continue to Slow

 

Posted To: MND NewsWire

A decline in the number of forborne loans in those portfolios serviced for banks and private label securities (PLS) accounted for most of the modest downturn in overall numbers last week. Black Knight said the number of active plans dropped by 9,000 loans or 0.3 percent compared to the previous week. The the total of active plans is only 1.5 percent below where it was in December, continuing a recent trend of slowing improvement . "This further sets the stage for a great many plans to still be active when the first wave of forbearance plans begin to expire at the end of March, the Black Knight report says." Loans serviced for bank portfolios and private label securities (PLS) declined by 13,000 loans. This was partially offset by a 4,000-loan rise in FHA and VA loans. The number of forbearances...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

 

Freddie Sees Mortgage Originations Contracting Nearly 20% in 2021

 

Posted To: MND NewsWire

Freddie Mac's first quarter 2021 economic forecast is unusually short, and, unlike recent forecasts from either of the GSEs, has relatively few revisions. The company's economists say that nearly a year after the first cases of COVID-19 were diagnosed in the U.S., economic growth remains uncertain, with answers largely hinging on the roll-out of the new vaccines. The labor market remains weak with close to 20 million collecting unemployment insurance. December's job losses, the first since last April, didn't change the unemployment rate from 6.7 percent because labor participation also declined. Record low mortgage rates continued to carry the housing market during the turmoil of the pandemic. At the end of the first week of 2021, the 30-year rate hit 2.65 percent, a new low. Freddie Mac expects...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

 

Post-2008 Standardized Practices Have Helped Manage Forbearances

 

Posted To: MND NewsWire

Fannie Mae said that the standardization of servicing standards that followed the 2008 housing crisis appears to have helped the industry manage the recent flood of COVID-19 forbearance plans. The company included a series of questions about forbearance management in its September Lender Sentiment Survey and has now released a special report on the responses. Servicers had to move quickly to implement the forbearance programs, which were first announced by the GSEs Fannie Mae and Freddie Mac and by FHA but were then expanded and mandated by Congress under the CARES Act. They also had to manage the loans in forbearance, continue remittances to investors, and make insurance and tax payments out of escrow accounts. As the plans had three-month terms, borrowers had to be contacted to do renewals...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

 

Retail, Ops Jobs; Appraisal, Non-QM, Jumbo, DPA Products; Industry Weighs in on Good Freddie/Fannie News

 

Posted To: Pipeline Press

As Flagstar’s Marcus L. points out, “1999 doesn't sound like that long ago until you realize that people with a birth year starting with ‘2’ are starting to be old enough to legally drink.” And plenty of them have student debt, the forgiveness of which is now in the press and could very well impact lending & home ownership in a positive way. All of these households and corporations, and the U.S. Government, refinancing debt at lower rates and saving money has to have a beneficial impact on finances and growth going forward, right? Rates are certainly impacting bank earnings, and their mortgage earnings. More about that tomorrow. Lender and Broker Jumbo, DPA, and Non-QM Products “If your New Year’s resolution was to roll out a NonQM product, eResi’s...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

 

MBS Day Ahead: Bonds Not Threatened By Stimulus; Consolidation Continues

 

Posted To: MBS Commentary

After the GA senate elections, the bond market immediately knew it needed to prepare for additional stimulus, even if moderate democratic voices might serve to limit the size and scope. We hazarded a guess that this was worth 10yr yields rising 25bps, roughly and finding support around 1.17%. Bond traders have now effectively made the same guess with yields switching into rally mode almost immediately after breaking above 1.17%. If that sell-off was based on the expectation for additional near-term stimulus, then last night's Biden speech was exactly what traders had priced in. The name of the game is "consolidation" now... the bridge... the intermission between the initial push up from super low covid-inspired yields and the significantly higher levels that traders can imagine...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

 

MBS RECAP: Bonds Playing it Extra Safe Ahead of Biden's Stimulus Details

 

Posted To: MBS Commentary

Bonds Playing it Extra Safe Ahead of Biden's Stimulus Details As we discussed yesterday, the strong mid-week rally suggested a good amount of short covering was behind the move. This merely means traders who bet on rising rates were finally cashing in. It doesn't mean there are lots of new buyers interested in owning Treasuries. Today's weakness supports this narrative. Traders are indeed hesitant to buy bonds until they have more clarity about the stimulus plan that the new administration will attempt to pass. Biden is expected to offer additional details tonight after markets are closed, but the real question is whether or not the plan can get moderate democratic votes in the senate. That may be the talk of the town tomorrow. Econ Data / Events 20min of Fed 30yr UMBS Buying 10am...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

 

MBS Day Ahead: Waiting On Stimulus Details, Shrugging Off Early Reports of $2 Trillion

 

Posted To: MBS Commentary

A few hours after markets closed yesterday, news began coming out regarding a Biden aide mentioning tonight's stimulus proposal would be in the $2 trillion neighborhood. That's quite a bit more than the $1.3 trillion that had been making the rounds a few hours prior (the same number was thrown around more than a month ago as well). Treasuries reacted to this overnight with a whopping sell-off of 3bps. This reflects the fact that markets have largely priced in some sort of $1.3+ trillion in additional spending/relief. We won't get a chance to any additional reaction until tomorrow's trading session, as Biden won't be speaking until after 7pm ET. It's another light day in terms of economic data, with Jobless Claims already out at 965k vs 795k forecast and 784k previously...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

 

Warehouse, Sales Jobs; Digital, AMC, Pricing Tools; Comp Survey; Cap. Markets, Broker Products

 

Posted To: Pipeline Press

With the money I’m saving on “Dry January,” I was able to buy some great edibles at the dispensary yesterday. “Come on, come on, listen to the money talk” sang AC DC. Wells Fargo’s stock price is up 60 percent since late Halloween… that’s money! Some are curious about bitcoin, with proponents saying it is the worldwide currency of the future while critics say… well, the list of what critics say is too long for this lead paragraph. But I found this article titled, “Lost Passwords Lock Millionaires Out of Their Bitcoin Fortunes” fascinating. “Bitcoin owners are getting rich because the cryptocurrency has soared. But what happens when you can’t access that wealth because you forgot the password to your digital wallet...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

 

Mortgage Rates Continue Healing, But Remain Well Above Recent Lows

 

Posted To: Mortgage Rate Watch

Mortgage rates had another solid day today--this time without any of the early drama seen yesterday. If you're just getting caught up, the bond market (which drives day-to-day interest rate movement) has been selling off aggressively since the Jan 5th Georgia senate election. When bonds sell-off, it means bond PRICES are getting lower and bond YIELDS (aka RATES) are getting higher. The GA election sparked the move because it gave democrats total control of the government, thus making it easier to pass legislation--especially as it concerns some sort of upgrade to the most recent round of covid-relief stimulus. Covid-relief stimulus may do great things for people in the short term and for the economy in the longer term, but it does bad things for interest rates (assuming you like low rates,...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

 

MBS RECAP: Important Victory For Bonds, and Another Battle Ahead

 

Posted To: MBS Commentary

Important Victory For Bonds, and Another Battle Ahead Rates rallied today. Despite a positive reaction to a strong 30yr bond auction, it looks like traders made their minds up to be buyers well before that. The rally greatly improves the odds that 10yr yields are finding a supportive ceiling in the 1.1-1.2% zone. The show of support is still a bit tentative to rest easy, but things certainly could have been worse over the past two days. Some traders are still waiting to see what Biden has to say about stimulus tomorrow (and more importantly, whether they think moderate democrats will be in support). Econ Data / Events 20min of Fed 30yr UMBS Buying 10am, 1130am (M-F) and 1pm (T-Th) Core Annual CPI 1.6 vs 1.6 f'cast, 1.6 prev Market Movement Recap 08:10 AM Fairly calm overnight session--especially...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

 

Retail, Recruiting Jobs; Servicing, Appraisal, Income Calculation Tools; Upcoming Virtual Training; MSA FAQs

 

Posted To: Pipeline Press

There are plenty of MLOs (mortgage loan originators) out there very pleased with their earnings for 2020. In a non-random sample, several CEOs with whom I spoke had retail LOs earn more than a million clams, all in a compliant manner. It is good to remember that some of the changes made as a result of the “Financial Crisis” were in the area of LO comp(ensation), especially to prevent steering and taking advantage of borrowers. Importantly, LO Comp doesn’t restrict how creditors price their loans, only how they compensate LOs (including brokers). This has many ramifications, For example, many in the industry question worse pricing for self-employed borrowers, or better pricing for W-2 borrowers. The pricing has always varied for high credit score borrowers, or loan to value...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

 

MBS Day Ahead: An Important Day For Bonds' Attempt to Establish a Ceiling

 

Posted To: MBS Commentary

With yesterday offering the first legitimate push back against the recent sell-off, today becomes one of three critically important days in establishing a ceiling for bond yields (or a floor for MBS prices). With Biden announcing stimulus details tomorrow, and Retail Sales on Friday, we wouldn't expect a bond rally to get too far ahead of itself today (if it does, that would be very telling, in a good way). The goal for bond bulls is simply to avoid slipping back into sell-off mode. Conventional wisdom suggests weakness is a bigger risk in the hours leading up to the 1pm 30yr bond auction. Trading doesn't always stick to that script, of course, but the point is this: if yields are rising between 10am and 1pm, we'd want to wait to see what happens after 1pm before concluding all...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

 

Refi Applications Highest Since March

 

Posted To: MND NewsWire

It was a typical first-work-week-after-the holiday bounce for the mortgage indexes, although the surge was significantly more restrained than last year. Perhaps the nation was otherwise distracted. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of mortgage loan application volume, increased 16.7 percent on a seasonally adjusted basis during the week ended January 8. During the first week of 2020 the increase was over 30 percent. On an unadjusted basis, the index was up 69 percent. The Refinance Index increased 20 percent from the previous week , less than half the 2020 post-holiday recovery. The Refinance Index is 93 percent higher than a year ago and the refinance share of total applications rose to 74.8 percent of total applications from 73.5 percent the...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.