Monthly Archives: October 2012

[MBS Commentary] – MBS RECAP: Choppy First Session Back, But Positive Nonetheless

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MBS RECAP: Choppy First Session Back, But Positive Nonetheless

Posted to: MBS Commentary
Wednesday, October 31, 2012 4:08 PM

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As you might expect, the first day back on line after an unscheduled 1.5 days off was a somewhat volatile one for bond markets.  The fact that it was the last day of the month did end up providing a decent level of support with both MBS and Treasuries ending in the green.  MBS began the day in line with Friday’s latest levels and moved higher throughout the session.  Both MBS and Treasuries made a push to their best levels of the day into the 3pm Treasury close, with each backing off slightly from their.  Fannie 3.0 MBS hit 105-00 at their highs, but were trading at 104-28 to 104-29 in the last hour.

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Changes in Correspondent Lending Landscape; Stats Show Very Slow Return of Borrowers that Default

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Oct 31, 2012 12:23PM

Changes in Correspondent Lending Landscape; Stats Show Very Slow Return of Borrowers that Default

With our without the storm damage, here in the U.S. there are 41 million potential trick-or-treaters (children age 5 to 14; see joke at bottom) across the United States. And they can be ringing doorbells or throwing toilet paper rolls at 115 million occupied housing units across the nation in 2011 – thanks to the Census Bureau for those numbers. My wife said, “I think we should do something really scary for the kids this Halloween.” I said, “We could take them to your mother’s.” Some think the future…

Oct 31, 2012 12:39PM

GSEs, Mortgage Insurers Delegate Short Sale Authority to Servicers to Ease Process

Agreements were announced on Wednesday with nine private insurance carriers that will make foreclosure alternatives much quicker and easier for some Freddie Mac and Fannie Mae (the GSEs) borrowers to obtain. Servicers will no longer have to seek approval of private mortgage insurance (PMI) companies when borrowers with mortgages owned or guaranteed by either GSE and carrying PMI seek a short sale or permission to grant a deed in lieu of foreclosure. The agreements, which become effective on November…

Micro News

2:54 PM:

Highest Levels In More Than Two Weeks. Positive Reprices?

10:07 AM:

ECON: Chicago PMI Misses Estimates Slightly, Employment Lower

9:59 AM:

Moderately Weaker Overnight, Bond Markets Improve Into Domestic Hours

8:40 AM:

ECON: Employment Costs Rise Slightly Slower Than Expected

3:37 PM:

SIFMA Recommends Open Market on October 31

9:12 AM:

ECON: Home Prices Continued To Rise In August 2012 – Case Shiller

11:37 AM:

NY Fed Cancels MBS/Treasury Operations For Tuesday

9:08 AM:

Bond Markets In Better Territory To Begin Shortened Session

Around the Web

Video News

Shiller: Housing Recovery Could Take a While

Shuttered Banks Slowly Coming Back

Real Estate Magnate Assesses NYC Damage

Today’s Comments

Pat Ryan

“I try to attend most closings and went to 3 last week. My frustration with the industry is a bit less with the guidelines and more with the increased fees…”
Bette Miller

“Frank: Great article! I attend about 90% of my closings and title agents and realtors are always surprised when the mortgage broker shows up! You have…”
Lewis Poretz

“Spot on Frank! More and more I see originators ‘coming out’ and letting American consumers know just how they feel. It was once an honor to originate…”

Today’s Q&A

“Can I get a FHA loan for a second home if I rent the first one?”

“when lender pays the closing cost, can part of the closing cost charged as pre-paid finance charges?”

“What is the difference between Origination Fee, Loan Processing Fee & Underwriting Fee?”

<!–

Today’s Forum Discussions

allisonkwatkins

“There are many private companies and government companies in U.S. market that provide mortgage services however, when we look at the stats we see its only…”
Latavadias Massey

“WHO: Homeowners and First time home buyers in Tucson Arizona and surrounding areas WHAT: 5 day FREE mortgage modification and home buying event. NACA’s…”
Phillip Aldrete

“Hello — North Carolina mortgage broker-banker here. Any suggestions for a nationwide Jumbo investor? USBank is out, but looking for similar type. Thanks…”

–>
Erick Strobel

Market Data

Mortgage Rates

30YR 3.43 0.00
15YR 2.80 0.00
FHA30YR 3.25 0.00
Jumbo30YR 3.83 0.00
5/1ARM 3.01 0.02

MBS Quotes

30YR FNMA 3 104-29 0-07
30YR FNMA 3 106-16 0-06
30YR FNMA 4 107-03 0-07
30YR FNMA 4 107-29 0-05

Treasuries

2 YR 0.2853 -0.0077
3 YR 0.3831 -0.0189
5 YR 0.7213 -0.0157
7 YR 1.1428 -0.0212
10 YR 1.6927 -0.0173
30 YR 2.8579 -0.0131

Recent Housing Data

Visit our Market Data Center for all of the latest housing numbers, graphs, etc.

Mortgage Application -4.75%
Mortgage Refinance -6.02%
Mortgage Purchase 0.54%
Home Vacancy -9.52%
Homeownership 0.00%
S&P/Case Shiller 0.88%

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[Mortgage Rate Watch] – Mortgage Rates Hold Steady In Spite Of Improved Market Conditions

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Mortgage Rates Hold Steady In Spite Of Improved Market Conditions

Posted to: Mortgage Rate Watch
Wednesday, October 31, 2012 3:03 PM

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Mortgage rates were all over the board on Wednesday in terms of their movements relative to each other and trading levels in the Secondary Mortgage Market.  Some lenders were priced slightly weaker while a few were notably stronger, but none of them so far off from yesterday’s rates as to suggest a change in the prevailing conventional best-execution rate of 3.375%.  (Read More:What is A Best-Execution Mortgage Rate?).  Typically, it’s the prices of mortgage-backed-securities (MBS) that have the most influence on the day-to-day movements in interest rates and the costs associated with those rates (because it’s less common for the actual quote interest rates to…

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[MND NewsWire] – GSEs, Mortgage Insurers Delegate Short Sale Authority to Servicers to Ease Process

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GSEs, Mortgage Insurers Delegate Short Sale Authority to Servicers to Ease Process

Posted to: MND NewsWire
Wednesday, October 31, 2012 12:23 PM

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Agreements were announced on Wednesday with nine private insurance carriers that will make foreclosure alternatives much quicker and easier for some Freddie Mac and Fannie Mae (the GSEs) borrowers to obtain.  Servicers will no longer have to seek approval of private mortgage insurance (PMI) companies when borrowers with mortgages owned or guaranteed by either GSE and carrying PMI seek a short sale or permission to grant a deed in lieu of foreclosure.   

The agreements, which become effective on November 1, allow the GSEs to approve short sales and deeds in lieu on the insurers’ behalf.  The GSEs are, in turn, delegating these authorities to their servicers.  The delegations will eliminate the separate review required by the mortgage insurers.   Freddie Mac, in announcing the agreements said that this should reduce the potential costs, delays, and uncertainty involved in the transactions, enabling more distressed borrowers to avoid foreclosure…

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[Pipeline Press] – Changes in Correspondent Lending Landscape; Stats Show Very Slow Return of Borrowers that Default

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Changes in Correspondent Lending Landscape; Stats Show Very Slow Return of Borrowers that Default

Posted to: Pipeline Press
Wednesday, October 31, 2012 8:42 AM

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With our without the storm damage, here in the U.S. there are 41 million potential trick-or-treaters (children age 5 to 14; see joke at bottom) across the United States. And they can be ringing doorbells or throwing toilet paper rolls at 115 million occupied housing units across the nation in 2011 – thanks to the Census Bureau for those numbers.

My wife said, “I think we should do something really scary for the kids this Halloween.” I said, “We could take them to your mother’s.” Some think the future of our industry is scary – but it isn’t. Our industry continues to evolve. Companies are certainly interested in moving into the void left by Wells wholesale, Bank of America, and MetLife. We can look for Nationstar, which some call “Wells-lite” due to the hiring of ex-Wells wholesale employees, to be a presence in the correspondent channel in 2013. And not the onesy-twosy best efforts business model, but an entire new correspondent lending channel with 100% mandatory and AOT execution with a goal (from what I’ve heard) of $24-30 billion in the first year. Redwood Trust has signaled its intention to move into the agency channel in addition to its success in jumbo securitization. And don’t expect the existing correspondent lenders to continue to watch their best clients divert their pipelines to the agencies while doing nothing. We’ve already seen Wells beef up their operations centers. We can expect 9 of the top 10 correspondents (in the 2nd quarter: Wells Fargo, Chase, U.S. Bank Home Mortgage, Flagstar Bank, BB&T, Franklin American, Ally/ResCap (GMAC), SunTrust, CitiMortgage, and PHH) to lower their margins, remind clients about sales caps, pay attention to rumors of Fannie raising its minimum net worth to $5 million, increase operational efficiencies, and watch clients retaining servicing to grapple with capital issues. Are we having fun yet?…

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[MBS Commentary] – MBS MID-DAY: Some Volatility, But Reassuringly Positive

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MBS MID-DAY: Some Volatility, But Reassuringly Positive

Posted to: MBS Commentary
Wednesday, October 31, 2012 11:08 AM

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It was hard to know exactly what to expect coming into today’s session, but one of the fairer guesses was that we’d see some measure of support from month-end buying (money managers needing to add longer duration debt to bring portfolios in line with indexes).   Even so, the stock lever is still relatively well-connected, suggesting that the risk-on vs risk-off trade is also part of the positivity.  That’s somewhat reassuring as we wouldn’t want today’s gains to be merely a factor of month-end.  So far, MBS have traded inside a range set by Friday’s latest levels on the low end (around 104-22) and Monday’s highs (around 104-31).  Treasuries are continuing a trend toward lower yields, but haven’t made any moves big enough to suggest it’s anything other than range-trading ahead of tomorrow’s full slate of data and Friday’s NFP.

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[MND NewsWire] – CFPB Reminds Homeowners to be Aware of Loan Scams After a Natural Disaster

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CFPB Reminds Homeowners to be Aware of Loan Scams After a Natural Disaster

Posted to: MND NewsWire
Wednesday, October 31, 2012 10:22 AM

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The Consumer Financial Protection Bureau (CFPB) reposted one of its earliest blog postings today to help the victims of Hurricane Sandy avoid the types of crimes that invariably follow any big disaster.  The Bureau said consumers should be watchful as they start the clean-up and repairs and be aware that some crooks live for the opportunities a disaster presents.  Homeowners can be victimized by shoddy workmanship or by persons using the access a disaster presents to set victims up for larger scams.

Cleanup from a disaster can be expensive and unfortunately many families don’t have a ready source of emergency funds and the need to borrow many in a hurry can make storm victims easy targets for financing schemes. For examine, in the “home improvement loan scam” a contractor comes to the homeowner and proposes repairs at an attractive rate and offers to arrange the financing.  Even where the homeowner is reluctant he can pressured by threats to leave the work undone unless he signs a bewildering number of papers and forms which only later does he realize have obligated him to a home equity loan with high interest and points and with his house as the collateral.  Then the work is done poorly or may not even be completed.  

CFPB offered homeowners some common warning signs that should alert them to potential scams…

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[MND NewsWire] – 57,000 Foreclosures Completed in September; Down Nearly a Third from Last Year

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57,000 Foreclosures Completed in September; Down Nearly a Third from Last Year

Posted to: MND NewsWire
Wednesday, October 31, 2012 9:38 AM

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While completed foreclosures continued to drop in September, CoreLogic’s National Foreclosure Report points out that they are still nearly triple what could be considered the typical level prior to 2006.  According to the report released on Wednesday, there were 57,000 completed foreclosures across the country in September, down from 59,000 in August (-3.4 percent) and 83,000 in September 2011 (-31.3 percent.)  In the period between 2001 and 2006 completed foreclosures averaged 21,000 per month.  Since the financial crisis began in September 2008 there have been approximately 3.9 million foreclosures completed nationwide.

The three-month moving average of completed foreclosures is continuing to increase in those states using a judicial foreclosure process but it has leveled off at a much lower level in non-judicial states.

 

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[MND NewsWire] – Refinancing Applications Fall as Rates Rise

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Refinancing Applications Fall as Rates Rise

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Wednesday, October 31, 2012 7:53 AM

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Applications for refinancing declined for the fourth straight week according to information from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey. This dampened overall application numbers despite a slight uptick in home purchase business. MBA’s Market Composite Index, a measure of application volume decreased 4.8 percent on a seasonally adjusted basis during the week ended October 26 and 5 percent on an unadjusted basis from the previous week. 

MBA’s Refinance Index decreased 6 percent from the previous week to the lowest level since the end of August and the refinancing portion of mortgage applications decreased to 80 percent from 81 percent during the week ended October 19.  The seasonally adjusted Purchase Index increased 1 percent from one week earlier but the unadjusted Purchase Index declined 0.3 percent compared with the previous week and was 6 percent higher than the same week one year ago.

Mortgage rates were mixed…

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[MBS Commentary] – The Day Ahead: Bond Markets Back Online but Not Business as Usual

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The Day Ahead: Bond Markets Back Online but Not Business as Usual

Posted to: MBS Commentary
Wednesday, October 31, 2012 6:55 AM

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After the once-in-a-lifetime unscheduled hiatus of the past 1.75 days, bond markets will be open again on Wednesday, but we’re not expecting the same sort of “business as usual” return that we would after a scheduled mid-week holiday.  In fact, it’s altogether possible that we’d still be operating on some sort of emergency schedule if not for the pressing matter of “month-end.”  Quite simply, this means that some trades HAVE TO HAPPEN for certain market participants before the end of the month, and those trades didn’t all happen in the first few hours of Monday morning (though we DO suspect the anticipation of the storm contributed to a sort of “early month-end” at the end of last week).

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