Mortgage Rates At New All Time Lows Ahead Of Key Jobs Report

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May 31, 2012 2:48PM

Mortgage Rates At New All Time Lows Ahead Of Key Jobs Report

Mortgage Rates improved again today as domestic economic data joined with ongoing fear of a European currency collapse to send US Treasury yields well into new all time lows. Mortgage rates duplicated that feat, but not nearly as convincingly. After being stuck in the mud for months at 3.875%, the mortgage rate levy broke, giving way to 3.75% recently. With today’s gains, some lenders are at a 3.625% Best-Execution rate for 30yr Fixed Conventional Loans. (Read More: What is A Best-Execution Mortgage…

May 31, 2012 4:42PM

Lines Drawn over California Homeowner Legislation

There is a bit of a dust-up going on over passage of a Homeowner Bills of Rights in California . The Center for Responsible Lending ( CRL ) and the Mortgage Bankers Association ( MBA ) have weighed in on opposite sides of the package consisting of six bills sponsored by Attorney General Kamala Harris. Harris, when she introduced the legislation, said that they had a goal of providing homeowners with a system where the rules are clear, where everyone gets a fair shot and everyone has equal standing…

Micro News

4:33 PM:

LPS’ April Mortgage Monitor Shows Sharp Jump in FHA Foreclosure Starts

4:26 PM:

Fannie Mae Releases April 2012 Monthly Summary

4:16 PM:

FHFA: DeMarco Announces DeLeo to Oversee DeGSE’s Strategic Plans

2:02 PM:

Fannie 3.5’s Regain The 105 Handle as Risk Reverses Course

12:25 PM:

MBS Fall Back To AM Levels; Negative Reprice Risk? Really?

10:03 AM:

Freddie Mac: 15-Year Fixed Rate Mortgage Falls Below 3%

9:50 AM:

ECON: Chicago Purchasing Managers Index Weaker Than Expected

9:31 AM:

Bond Markets Open Flat; Turn Stronger Following Data

Around the Web

Video News

Rep. Paul Ryan on Fixing the Fiscal Cliff

High-End Real Estate In Manhattan

Bair on CFTC Volcker Rule Meeting, JPMorgan

Today’s Comments

Stan Brody

“Forgive me… “POST CRISIS… my ass… the crisis has been ongoing for some five years… Dr. Shiller and Mr. Case still do not “get it”…”

Ted Rood

“Fundamentals haven’t changed and won’t soon, but the Fed’s intervention in the securities markets (Operation Twist) is scheduled to end in…”

scot shumway

“I find this post slightly amusing actually. There is nothing unconstitutional or illegal about requiring fingerprints for a position (verified by 2 constitutional…”

Today’s Q&A

“Can a conventional loan be refinanaced into a VA loan?”

” Can I get a mortgage to purchase a home?”

“Can a loan officer be employed by two or more brokes in arizona?”

<!–

Today’s Forum Discussions

AP

“Hi. I took an FHA loan for $340000 (30 yr fixed FHA) which closed in end of July 2009 @5.125% which I then refinanced in 2009 to a lower rate of 4.75%…”

Ted Rood

“Loan Scenario View All Post A Scenario Loan State: Washington Loan County: — Loan Type: Refinance (Rate and Term) Loan Amount: $280,000 Property Value…”

Dan Burke

“Loan Scenario View All Post A Scenario Loan State: California Loan County: Los Angeles Loan Type: Refinance (Rate and Term) Loan Amount: $460,000 Property…”

–>

[MND NewsWire] – FHFA Veteran Picked to Run Strategic Plan for Fannie and Freddie

FHFA Veteran Picked to Run Strategic Plan for Fannie and Freddie

Posted to: MND NewsWire
Thursday, May 31, 2012 4:42 PM

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The Federal Housing Finance Agency (FHFA) announced a new office to implement its Strategic Plan for Fannie Mae and Freddie Mac Conservatorships and named the person who will head it.  Acting FHFA Director Edward J. DeMarco appointed Wanda I. DeLeo as Deputy Director of FHFA, responsible for the newly created Office of Strategic Initiatives.

The Plan which was sent to Congress is February established objectives and steps for FHFA to take to meet its obligations as conservator of the two government sponsored enterprises (GSEs).  Under the plan, the next phase of the conservatorship will require FHFA to:

  • Build a new infrastructure for the secondary mortgage market;
  • Contract in a gradually manner the GSEs dominant presence in the marketplace while simplifying and shrinking their operations; and
  • Maintain foreclosure prevention activities and credit availability for new and refinanced mortgages.

DeLeo is moving into her new role from one as Deputy Director of the FHFA’s Division of Examination Programs and Support and has held other positions at the agency including as its Chief Accountant.  She will be the central point of contact for all matters related to the Strategic Plan with an immediate task to identify and organize key stakeholders, work streams and deliverables that flow from the plan.

.

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[MND NewsWire] – Lines Drawn over California Homeowner Legislation

Lines Drawn over California Homeowner Legislation

Posted to: MND NewsWire
Thursday, May 31, 2012 4:22 PM

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There is a bit of a dust-up going on over passage of a Homeowner Bills of Rights in California.  The Center for Responsible Lending (CRL) and the Mortgage Bankers Association (MBA) have weighed in on opposite sides of the package consisting of six bills sponsored by Attorney General Kamala Harris.  Harris, when she introduced the legislation, said that they had a goal of providing homeowners with a system where the rules are clear, where everyone gets a fair shot and everyone has equal standing.

In simple terms, the bills which are modeled to a certain extent on the $25 billion settlement agreement would ban robo-signing, give tenants 90 days rather than 60 to leave a property after foreclosure and end “dual tracking” where a servicer is negotiating a modification while still speeding toward foreclosure. The legislation also proposes a $25 fee to be paid by servicers when they record a notice of default.  The fee would go into a real estate fraud trust fund that would support the AG’s investigation and prosecution of real estate fraud crimes. 

The AG’s legislation has apparently undergone considerable revision since originally submitted.  The thrust appears relatively unchanged but changes in bill numbering have made it difficult to backtrack.

According to a press release from CRL on Thursday, “Lobbyists fighting [the Bill of Rights] in Sacramento have now enlisted mortgage bankers from around the country to help them defeat it.” 

Regardless of who may have enlisted whom, the Mortgage Action Alliance (MAA) MBA’s advocacy arm, has definitely entered the fray.  The group sent out a letter to its members that urged its members to take action NOW (emphasis theirs) to support the state MBA in efforts to defeat the legislation.  The MAA contends that the legislation under consideration is highly flawed, and will not accomplish the objectives of meeting homeowner needs and reviving the state’s economy.  “Consumer costs will increase and force California families to pay more for fewer choices.  If enacted, the legislation also has great potential to seriously damage lenders, servicers, and the fragile state economy.”

MAA urged its members both inside and outside of California to utilize the MAA’s automated contact system to send MAA’s message to California assembly members and Senators.

Today Paul Leonard, California Director of CRL said that Californians need AG Harris’ Bill of Rights to fix mortgage lending abuses and speed economic recovery.  His statement referenced the foreclosure crisis in the state and said the settlement would reduce foreclosures in three key ways:

  • Ensure that homeowners get fair consideration for loan modifications and other alternatives before the foreclosure can proceed;
  • Prohibit robo-signing and provide recourse when servicers violate that ban; and
  • Provide homeowners with additional transparency, information, and protections in the foreclosure process.

Leonard said that the Assembly’s Conference Committee has conducted nearly 20 hours of hearings with industry, homeowners, and consumer advocates and he urged the legislators to protect Californians “with common-sense rules that banks have already agreed to.”

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[MBS Commentary] – MBS RECAP: Some Month-End Volatility, But Bond Markets Hold Gains

MBS RECAP: Some Month-End Volatility, But Bond Markets Hold Gains

Posted to: MBS Commentary
Thursday, May 31, 2012 4:08 PM

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MBS Live: MBS Afternoon Market Summary
In an earlier alert at 2:02pm, we postulated that the rest of the trading day may be some sort of sideways or triangular pattern of narrowing ranges ahead of tomorrow morning’s NFP, and that’s effectively all that’s happened this afternoon.  We saw a big jolt of price movement just ahead of the 3pm hour into the Treasury close (end of day and end of month), but it was purely trade-flow driven.  MBS, TSYs, The Euro, and most everything else took two steps forward, two steps back, and have been trading in decreasing amplitudes since then.  Yes, it’s all about Europe, but NFP is still super important tomorrow morning.  It can definitely move markets even if that movement is more muted due to Europe.  Remember that NFP is less about the state of the economy tomorrow and more about how it informs the upcoming FOMC Announcement.
MBS Pricing Snapshot

Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.

FNMA 3.5
104-32 : +0-07
FNMA 4.0
106-16 : +0-05
FNMA 4.5
107-09 : +0-02
FNMA 5.0
108-10 : -0-02
GNMA 3.5
106-23 : +0-08
GNMA 4.0
109-08 : +0-03
GNMA 4.5
109-25 : +0-01
GNMA 5.0
110-17 : -0-03
FHLMC 3.5
104-25 : +0-07
FHLMC 4.0
106-04 : +0-04
FHLMC 4.5
106-25 : +0-01
FHLMC 5.0
107-21 : +0-00
Pricing as of 4:07 PM EST
Afternoon Reprice Alerts and Updates
Below is a recap of instant Reprice Alerts and updates issued via email and text alert to MBS Live subscribers this afternoon.

2:02PM  :  ALERT ISSUED: Fannie 3.5’s Regain The 105 Handle as Risk Reverses Course

Wow… The extent to which the movement of “risk” is harmoniously evident across diverse markets is impressive these days. Risk aversion ramped up into 11am with stocks, bond yields, and the Euro all falling in unison. Then, through 1pm, everything went back in the other direction (“risk-on” or “risk tolerance”), taking MBS roughly from their highs of the morning to their opening levels.

The “risk-on” bounce hit a snag around 1pm and has been progressively trending back in an MBS-friendly direction. Fannie 3.5’s regained their 105-00 handle moments ago, but currently trade at 104-31+. Fannie 3.0’s are back up to 102-14 after dipping to 102-10. All this to say that the selling trend behind the most recent alert (12:25pm) has abated for now. Too soon to bank on in this market, but we may be seeing some sort of ‘leveling-off’ ahead of tomorrow’s NFP data that progresses relatively sideways from here or perhaps in a more triangular pattern of narrowing ranges.

We’re pretty hesitant to make assumptions about that given the unknowns created by “month-end.” There could be poker-faces at trade desks that move things a bit more quickly in one direction or another into the 3pm hour.

12:25PM  :  ALERT ISSUED: MBS Fall Back To AM Levels; Negative Reprice Risk? Really?

As insulting and paradoxical as it might seem, the concept of a negative reprice might merit some discussion based on the current shape of trading in MBS. Fannie 3.5’s have fallen from 105-02 to to trade closer to their morning range between 104-27 and 104-30. Stocks are on a noticeable upswing and the Euro just shot up abruptly. 10yr yields are up around 4 bps from the lows of the morning.

It’s not out of the question that we could see a negative reprice here from an “early crowd” lender or from a lender whose initial rate sheets were aggressive. That said, a decent measure of the recent ups and downs occurred AFTER most lenders released rates, leaving current levels still within the safe zone.

Best bet is to know your lender and keep an eye on MBS. 102-14 is a good line in the sand to watch in Fannie 3.0’s (yes 3.0’s) and 104-27 would serve the same role for Fannie 3.5’s. If prices are below there and falling, reprice risk is increasing. Otherwise, you might not panic too much unless your past experiences with a particular lender lead you to believe otherwise.

Live Chat Featured Comments
A recap of the featured comments from the MBS Live Dashboard’s Live Chat feature, utilized by hundreds of industry professionals each day.

Matthew Graham  :  “Treasury Close, Month-End. See the quote below.”
John Paul Mulchay  :  “see below”
Oliver S. Orlicki  :  “what happened at 3?”
Matthew Graham  :  “i’d give it a few minutes and just get really angry if a lender reprices on 2 minutes of month end volatility at all-time highs”
Matthew Graham  :  “month-end, may bounce right back”
Brent Borcherding  :  NostraGrahamus
MortgageMan007  :  “why the nosedive?”
Matthew Graham  :  “”There could be poker-faces at trade desks that move things a bit more quickly in one direction or another into the 3pm hour.” few clunky handfuls of chips hitting the table ahead of 3pm close.”
John Paul Mulchay  :  “who traded?”
Adam Quinones  :  “is that an admission of guilt? If so a new trend is starting!”
Matthew Graham  :  “RTRS – SUNTRUST HAS ADJUSTED POLICIES TO ENSURE BORROWERS ARE NO LONGER HARMED BY DISCRIMINATORY PRACTICES IN CREDIT MARKETS, JUSTICE SAYS “
Andy Pada  :  “Enter David Stevens…”
Matthew Graham  :  “RTRS- JUSTICE SAYS $21-MLN SETTLEMENT COVERS 20,000 BORROWERS WHO WERE ADVERSELY AFFECTED “
Matthew Graham  :  “RTRS – SUNTRUST DISCRIMINATED AGAINST PRIME BORROWERS IN 34 STATES AND WASHINGTON, VIOLATED FAIR LENDING LAWS, JUSTICE SAYS “
Matthew Graham  :  “RTRS- U.S. JUSTICE DEPT SAYS HAS REACHED SETTLEMENT WITH SUNTRUST BANK TO COMPENSATE FOR DISCRIMINATION AGAINST AFRICAN- AMERICAN AND LATINO BORROWERS “
Matt Hodges  :  “translation: “We know notheeen” in Hogan’s Heroes language”
Matthew Graham  :  “RTRS- SPAIN’S GOVERNMENT IS NOT AWARE OF ANY STEPS BEING TAKEN BY THE IMF IN RELATION WITH SPAIN-ECON MINISTRY SOURCE “
Matthew Graham  :  “Euro rose sharply on that, then moderated back down, helped along by this: “
Matthew Graham  :  “RTRS – IMF SPOKESWOMAN, ASKED TO COMMENT ON REPORT OF CONTINGENCY PLANS FOR SPAIN, SAYS IMF ALWAYS DISCUSSING DIFFERENT SCENARIOS IN ALL ITS MEMBER COUNTRIES “
Ray J  :  REPRICE: 1:15 PM – Provident Funding Worse
john murphy  :  “ii’v been on the production mgt side since 05 but LOs loved me as an UW because i originated for so long. Every UW should rotate thru production (and vice versa)”
Brent Borcherding  :  “John, what do you like more underwriting or originating?”
john murphy  :  “when i was UW i always liked to see a statement adding “color” fr employer vs VOE. made it more relevant”
Jason Harris  :  “I am guessing management is going to give me the 80k over 12 months with a letter like you mention John….we will see….”
john murphy  :  “80K annualized appears to be the final answer and is a conservative estimate. perhaps a ststament that bonus likely to continue?”
Ted Rood  :  “In a stunning development, several Italian and Greek workers put in full 8 hour days today. More on reaction from the ECB at their weekly news conference tomorrow.”
Jason Harris  :  “I will update and let you know how it sorts….going to chug some pepto now'”
Michael Gannon  :  “continuance that the bonus will continue but not how much……I agree with you guys dont get me wrong. I could see an underwriter saying it couldnt be used at all”
Ken Crute  :  “did uw possibly mean $80 for both years? not 80k /24 months? “
Jason Harris  :  “I will get it overturned but to me the obvious answer is 12 month average of lowest year”
Matt Hodges  :  “that’s just made up, Jason”
Ken Crute  :  “concur with the gentlemen below, unless 09 was way off from 10/11 “
Jason Harris  :  “UW wants to average 80K over 24 months….freaking crazy”
Matt Hodges  :  “lessor of, unless increasing, then you average”
Jason Harris  :  “QQ guys…borrower has $170K bonus in 2010 and $80K bonus in 2011 – how would you calc bonus?”

Read what our user’s have to say about MBS Live on LinkedIn.
» Start a two week free trial of MBS Live.

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[Mortgage Rate Watch] – Mortgage Rates At New All Time Lows Ahead Of Key Jobs Report

Mortgage Rates At New All Time Lows Ahead Of Key Jobs Report

Posted to: Mortgage Rate Watch
Thursday, May 31, 2012 2:48 PM

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Mortgage Rates improved again today as domestic economic data joined with ongoing fear of a European currency collapse to send US Treasury yields well into new all time lows.  Mortgage rates duplicated that feat, but not nearly as convincingly.  After being stuck in the mud for months at 3.875%, the mortgage rate levy broke, giving way to 3.75% recently.  With today’s gains, some lenders are at a 3.625% Best-Execution rate for 30yr Fixed Conventional Loans.

(Read More: What is A Best-Execution Mortgage Rate? )

(Get Caught Up With: Yesterday’s Post)

Although the market continues to be primarily driven by Europe, today saw the addition of slightly negative domestic economic data contribute to an incrementally gloomier outlook for the global economy.  Investors are scared and the common quip being tossed around to justify the progressively lower bond yields is that they want “return OF capital as opposed to return ON capital.”  

The whole phenomenon produces an environment that benefits Treasuries much more than mortgage rates, something we’ve discussed in greater detail in the past (read more: HERE).  Even so, mortgage rates were able to eke out new all-time lows today.  

Tomorrow brings the most important piece of monthly economic data: The Employment Situation Report.  This is always a potential market mover, regardless of the European consideration.  That said, if the report is strong, which would normally cause rates to rise quickly, those effects could certainly be muted due to ongoing concerns over Europe.  Nevertheless, rates are at all-time lows the day before the big Jobs report.  That’s one of the “lockiest” situations we can think of historically, even if we don’t have any reason to believe rates have bottomed out definitively.

Ongoing Guidance: We’d continue to advocate not trying to “get ahead” of current market movements as a high degree of uncertainty is pervasive.  While it’s a reasonably safe assumption that European concerns will generally help rates stay lower than they otherwise would be, that “otherwise would be” part is very much a moving target.  Best bet is to focus on the fact that rates are at their all time lows, and with very close to their all-time low borrowing costs.  Add in the fact that progress has always been increasingly difficult from current levels and risk vs reward for floating vs locking looks a bit larger than we’d like, but not out of the question for those who understand the risks and have an exit strategy if things don’t go their way.

Loan Originator Perspective With Rates At All Time Lows

Constantine Floropoulos, VP, Quontic Bank

It is irrational not to lock prior to the NFP report. It is one of, if not the biggest market mover for us rate watchers. At all time lows in a rally, you need to book your profit and move along. Just like in the stock market, sell the rips buy the dips….today would be a a day to take your profits. Can rates go lower? Sure, but why risk it at these levels….the old trying to catch a falling knife saying comes to mind here. Don’t be greedy, pigs get fat, hogs get slaughtered…

Victor Burek Mortgage Planner,  Benchmark Mortgage

Big rally today, but lenders held onto most of the gains. At current mbs price, rates should be better but lenders are very reluctant to pass along the gains due to volume of business they currently have. That said, today’s rate sheets are the best i have ever seen.

Bob Van Gilder, Originator, FinanceOne

Fresh lows on 10 yr Treasury and Highs on 3.5 mbs coupon—-rates are good. Period. If you are on the fence, get off. The jobs report (NFP) tomorrow has been known to upset to the upside (rates higher). If you lock-please have your originator lock for minimum 45 days on refinances. As Lender volume increases, the incremental cost of a 45 day lock is worth the peace of mind. (should rates rise during processing—you could run outta time and miss the proverbial “Boat”)

Ted Rood, Senior Mortgage Consultant,  Wintrust Mortgage

90% of a lot is better than 100% of nothing! Reminded of this adage today when a client wanted to keep his 5.25% loan “for now” rather than drop to 3.75% “because he heard rates might drop more.” Guess it’s possible, but when rates are already at unprecedented levels, statistics say it’s more likely they’ll go up than down. Fundamentals are still Europe’s foundering economies, and won’t change anytime soon, but opting to keep a high rate in case rates drop even further means continuing to waste money in the meantime.

Julian Hebron, Branch Manager, Loan Agent,  RPM Mortgage

My theme continues: lock these lows if you have low tolerance for volatility. Otherwise if you want to try to squeak .125% lower, eurozone problems now and U.S. fiscal problems becoming a bigger deal this summer could provide that opportunity at very brief trading intervals. If you expect to capture anything lower, you must be pre-approved (meaning all your documentation is submitted to your lender) and your loan agent must have a standing order to lock at your pre-determined target.

Dirk Postupack, Loan Officer, Allentown Mortgage Corp

For the first time in a long time, I am not opposed to floating through this report. Even if we get a better than expected NFP, I believe that there is a lot of room for current pricing to hold its ground, and that a better-than-expected NFP report won’t hurt rates as much as it normally would. Personally, I think tomorrows NFP does not hit expectations.

Brett Boyke, Senior Mortgage Banker, Wintrust Mortgage

I feel like we are at the top of one of those giant drop amusement park rides. I feel like rates will drop at any second, but we are still stuck at the top with a very uneasy feeling of anticipation. For all we know the overly sunburned carnie is taking a nap and forgot about us….

Brent Borcherding, Loan Officer,  Capital M Lending

I commented yesterday that there is the potential lower rates ahead, and I still believe that to be true. However, most of the Pros in our business have seen a similar event to this before (multiple times) and I suggest they will tell you that if you are looking to close in the next 30 days to lock, and I agree. Lenders will be swamped with new locks, meaning new business, and are not likely to pass along any improvements. Additionally, this has been a very nice rally that is likely to back up, slightly higher rates, before we continue lower.

Today’s BEST-EXECUTION Rates 

  • 30YR FIXED –  3.75%
  • FHA/VA -3.75%
  • 15 YEAR FIXED –  3.125 edging down to 3.00%
  • 5 YEAR ARMS –  2.625-3. 25% depending on the lender

Ongoing Lock/Float Considerations 

  • Rates and costs continue to operate near all time best levels
  • Current levels have experienced increasing resistance in improving much from here
  • Rates could easily move higher or lower, but given the nearness to all time lows, there’s generally more risk than reward regarding floating
  • But that will always be the case when rates operate near all-time levels, and as 2011 showed us, it doesn’t always mean they’re done improving.
  • (As always, please keep in mind that our talk of Best-Execution always pertains to a completely ideal scenario.  There can be all sorts of reasons that your quoted rate would not be the same as our average rates, and in those cases, assuming you’re following along on a day to day basis, simply use the Best-Ex levels we quote as a baseline to track potential movement in your quoted rate).

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[MND NewsWire] – HOPE NOW Reports 43K Loan Modifications in April

HOPE NOW Reports 43K Loan Modifications in April

Posted to: MND NewsWire
Thursday, May 31, 2012 1:22 PM

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HOPE NOW is reporting that servicer-members of its alliance completed 43,000 mortgage loan modifications during the month of April, down 8 percent from the 47,000 modifications done in March.  These modifications, done through proprietary programs do not include the April modifications completed by servicers through the Home Affordable Mortgage Program (HAMP) which are reported separately.

HOPE NOW was an early response from the mortgage industry to the growing foreclosure crisis.   It is an alliance of mortgage servicers, investors, counselors, and other mortgage market participants that has developed and is implementing a coordinated plan to help homeowners.  In addition to loan modifications, HOPE NOW operates a homeowners’ hotline, sponsors community events to help homeowners navigate the process of getting a modification, coordinates some of its activities with the HAMP program, and is increasingly focusing on assisting military families who are in trouble with their mortgages.  

Eighty-three percent of the modifications done during April, a total of 36,000, included a reduced principal and interest payment and 33,000 or 76 percent of all proprietary modifications reduced principal and interest payments by 10 percent or more.  Fixed-rate modifications with at least a 5-year initial fixed period accounted for 89 percent of the modifications.

April data shows a decline in foreclosure.  There were approximately 60,000 completed during the month compared with 66,000 in March.   Foreclosure starts were down slightly from 178,000 in March to 177,000 in April.

As part of its military focus, HOPE NOW sponsored two special events in April; one at Fort Gordon and another at Fort Jackson.  The alliance plans to host at least four more on-base events this year.

Faith Schwartz, Executive Director said, “HOPE NOW’s members continue to be proactive in outreach to at-risk borrowers through face to face events, the Homeowner’s HOPETM Hotline, managed by the Homeownership Preservation Foundation, and other outreach efforts.”

The mortgage industry has completed 5.46 million total modifications since 2007.  This number includes modifications achieved through HAMP as well as through proprietary programs.

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[MND NewsWire] – Mortgage Insurers Wrote $7 Billion in PMI Last Month

Mortgage Insurers Wrote $7 Billion in PMI Last Month

Posted to: MND NewsWire
Thursday, May 31, 2012 12:05 PM

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The Mortgage Insurance Companies of America (MICA), the association representing private mortgage insurers, said today that its members companies had $395.7 billion in primary insurance in place in the month of April.  In March the reported coverage was $396.6 billion. The new figure is a substantial reduction in coverage from the $615.7 billion MICA reported one year ago however some year-over-year comparisons are skewed due to the subsequent receiverships of PMI Insurance Company and Republic Mortgage Insurance Company.

Private mortgage insurance is required by many conventional lenders for mortgages written with less than a 20 percent down payment.

Companies wrote $7.2 billion in coverage for newly originated conventional mortgage loans during April compared to $6.7 billion in March and $3.7 billion in April 2011.   Applications were received from 33,013 potential borrowers in April and the insurance was used in the purchase or refinance of 30,575 homes.

Members reported 22,569 defaults in April compared to 21,624 in March and 40,875 one year earlier.  There were 20,678 reported cures in April down from 28,026 in March and 43,362 in April 2011. 

MCIA reports data from three of the country’s largest private mortgage insurers:  Genworth Mortgage Insurance Corporation, Mortgage Guaranty Insurance Corporation, and Radian Guaranty Inc. 

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