Explaining The MBS Settlement Process
Posted To: MBS Commentary
10yr Notes progressively improved into the PM , ending 5 ticks better on the day with a yield of 3.70. MBS fought off much of the AM weakness in tsy's, and rallied just as well into the PM, reaching 101-15 at 4pm. But then we ended 4 ticks down on the day [...]
HUD Enforcing Job Creation Requirements for State and Local Governments
Posted To: MND NewsWire
The Department of Housing and Urban Development (HUD) has released the results of the first stage of its increased oversight and enforcement of job creation requirements under Section 3 of the Housing and Urban Development Act of 1968. In a press release on Monday HUD said that more than 3,100 state and [...]
MBS AFTERNOON: Potential Reprices For The Better
Posted To: MBS Commentary
MBS Off To The Races with 4.5's up 8 ticks to 101-15! 10yr up 5 ticks on the day dropping yield to 3.70 (through post auction resistance) Reprices for the better = highly likely From the Ninja: Mortgages are still on hold as today’s 3yr note auction held few surprises-everyone loves the [...]
Risk Weighted Returns; Warehouse Lending Credit Manager Needed; Subprime Analysts Lost; Bank News
Posted To: The Garrett Watts Report
We commented last week how a lot of people didn’t know what HSBC stood for… If you go back to when they bought a bank in Buffalo, New York to established themselves in the U.S. The joke was that HSBC stood for "Holy ____, Buffalo's Cold.” City National Bank (Los [...]
Commercial and Multifamily Mortgages Outperforming Overall Bank Holdings
Posted To: MND NewsWire
Commercial and multifamily mortgages continue to have the lowest rates of charge-offs of any loan types at banks and thrifts and perform better than the overall loan portfolios at those institutions according to the Mortgage Bankers Association (MBA). In response to what it referred to as a great deal of discussion and [...]
MBS LUNCH: 3 Year Note Auction Results And Reaction
Posted To: MBS Commentary
Immediately following the 3yr Treasury Note auction, treasuries weakened while MBS held steady. Since then, MBS have lost a few ticks, but the 4.5 remains positive on the day, up 1 tick at 101-07. The 10yr note is also up a tick leaving the yield just under 3.72. The 10yr's post auction [...]
MBS MORNING: Fed President Reminds About Labor Market Weakness
Posted To: MBS Commentary
I am kinda bummed no one laughed at my Kathy Ireland reference in MBS OPEN . Her dress was so tight you could see her liver processing the booze (that's a rumor). I suppose I could have poked fun at Sarah Jessica Parker's "Queen of the Nile" get-up. Ugh. You guys are [...]
Empty Econ Calendar Helps Mortgage Rates Hold Steady. Auctions Biggest Reprice Threat
Posted To: Mortgage Rate Watch
After last week’s rates roller coaster ride that forced multiple reprices for the better and the worse, yesterday was quite boring. Mortgage rates held steady as prices of mortgage backed securities never moved too far in either direction. With very little price volatility, lenders left rate sheets unchanged on the day [...]
Second Mortgages in the Spotlight; Reverse Repurchase Primer; My Opinion on Mortgage Rates After the Fed; Provident Cuts Interest Only
Posted To: Pipeline Press
Often I start the commentary off saying something witty, but I couldn't think of anything clever so I thought I'd suggest you take a look at this video about, of all things, seat belts. It is making the rounds, and with good reason. The Federal Reserve has a little more than ten [...]
MBS OPEN: Flight to Quality in Light Trading Volume
Posted To: MBS Commentary
Good Morning. Happy Standardized Test Tuesday! My nephew has Maryland School Assessment tests today, we were pre-gaming this morning. I remember those days pretty well…mostly because they were so incredibly boring and slow. Also because the test's time slots subtracted from favored subjects such as recess and P.E. What I should really [...]
MBS OPEN: Flight to Quality in Light Trading Volume
Posted To: MBS Commentary
Good Morning. Happy Standardized Test Tuesday! My nephew has Maryland School Assessment tests today, we were pre-gaming this morning. I remember those days pretty well…mostly because they were so incredibly boring and slow. Also because the test's time slots subtracted from favored subjects such as recess and P.E. What I should really [...]
The Day Ahead: Stocks Dip on Sovereign Debt Fears Abroad. Treasuries Get Flight to Quality
Posted To: MND NewsWire
Equity futures are firmly lower this morning following a mixed session yesterday. The Dow looks to open 31 points lower at 10,507 while futures on the S&P 500 are off 4.25 points to 1,132.75. “The mood in global markets is towards risk aversion with no apparent trigger,” said Benjamin Reitzes from BMO. [...]
MBS CLOSE: Strong Vs. Treasuries, But Lackluster Day All Around
Posted To: MBS Commentary
No material change since 10:30AM MBS 4.5's unchanged on the day at 101-07 10yr note 4bps higher on the day to 3.72 Stocks were up, down, up, closed flat No data tomorrow either, then 3yr note auction at 1pm Fed Evans at 930am Big Picture: something's gotta change, or long, slow, grind [...]
MBA: Servicing Specialists Should Not be Required to Obtain SAFE Act Licensing
Posted To: MND NewsWire
The Mortgage Bankers Association (MBA), American Bankers Association (ABA), and the American Financial Services Association (AFSA) joined with 11 state and local mortgage lending groups on Friday to send a letter to the U.S. Department of Housing and Urban Development expressing concerns about the way in which HUD is proposing to implement [...]
GSEs: Long Term Rates Again Below 5 Percent
Posted To: MND NewsWire
Mortgage rates reversed course yet again during the week ended March 4 with the 30-year fixed-rate mortgage (FRM) once more falling below 5 percent. According to Freddie Mac's Primary Mortgage Market Survey, the 30-year FRM averaged 4.97 percent with an average of 0.7 point compared to an average rate of 5.05 percent [...]
MBS AFTERNOON: Extremely Quiet Day Winding Down
Posted To: MBS Commentary
ridiculously flat trading in MBS and Tsy's low volume, sparse data calendar, looking toward auctions Did we mention flat trading? You'll rarely see MBS and Treasuries trade this flat for this much of the day. From 10:45 on, MBS haven't moved more than 1 tick and tsy's not more than 1bp. Volume [...]
HVCC is Here to Stay. Any Chance for Improvements to the Process?
Posted To: The Garrett Watts Report
Our FOCIS –plus study has a section on Home Value Code of Conduct (HVCC) compliance. Warehouse lenders in particular are interested in whether a mortgage company has a written HVCC policy and what process lenders use to comply. Some lenders have an internal appraisal management process to comply. The process [...]
MBS LUNCH: Support Found at Mid-Range Marks. Preparing for More Debt Supply
Posted To: MBS Commentary
Did anyone happen to catch Saturday Night Live this weekend? Alan, the lovable moron from "The Hangover" was the host. I suppose I should share his real name too: Zach Galifianakis. I usually watch SNL on Hulu whenever I have time…but this weekend I happened to be in front of the boob [...]
The Ultimate Solution for the Appraisal Industry
Posted To: Community Commentary
Since the inception of the Home Valuation Code of Conduct (HVCC) in May 2009, there has been much discussion, and misinformation, about the benefits and harm caused by the controversial agreement with the New York Attorney Generals office and the Federal Housing Finance Agency. This agreement, originally made with the Office of [...]
Mortgage Rates Hold Near Best Levels of 2010 as Benchmark Yields Rise
Posted To: Mortgage Rate Watch
I described last week as a roller coaster ride for mortgage rates. A busy schedule of economic data provided much of the motivation for movement in the rates marketplace with the release of the Employment Situation Report on Friday capping off the volatile action. The jobs report indicated fewer jobs were [...]
Credit Unions Expanding Loan Production; Ready for Buybacks?; Lender Rating Model; FHA Approval News; Four More Bank Failures
Posted To: Pipeline Press
When I was a kid, I used to pray every night for a new bike. Then I realized that God doesn't work that way. So instead I stole a bike and asked Him to forgive me. Neither strategy worked for four more banks, as the FDIC shut them down Friday (without finding [...]
MBS MORNING: Benchmark Rates Higher in Quiet Trading Environment
Posted To: MBS Commentary
Good Morning. Happy Monday. I don't know what the weather was like this weekend where you live, but here in the DC/Baltimore metro area we finally had a change of pace from snow and ice: SUN ! Every field was occupied with some sort of sporting event or recreational activity…mostly lacrosse where [...]
MBS MORNING: Rates Higher in Quiet Trading Environment
Posted To: MBS Commentary
Good Morning. Happy Monday. I don't know what the weather was like this weekend where you live, but here in the DC/Baltimore metro area we finally had a change of pace from snow and ice: SUN ! Every field was occupied with some sort of sporting event or recreational activity…mostly lacrosse where [...]
The Week Ahead: Treasury Auctions Highlight Slow Econ Calendar Until Friday
Posted To: MND NewsWire
Equity futures are moderately higher ahead of a fairly light week of economic data. Dow futures are trading 18 points higher at 10,563 and S&P 500 futures are up a 2 points to 1,138. Commodities are also edging slightly higher with WTI crude oil up 33 cents to $81.83 per barrel and [...]
MBS CLOSE: Stunning Display Of Courage Under Fire
Posted To: MBS Commentary
"Little Engine That Could" status certainly has to go to MBS this week. Like the rest of the fixed income market, after a largely positive 2 weeks, MBS came under heavy fire today with the better than expected NFP print. When that happens, bonds of all shapes and sizes head south in [...]
