Financial Services: GE to spin off credit-card arm, WSJ reports

MarketWatch

ALERT (INDUSTRY: FINANCIAL SERVICES)
GE to spin off credit-card arm, WSJ reports

By Michael Kitchen MarketWatch
8/30/2013 01:20:40 AM

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LOS ANGELES (MarketWatch) — General Electric Co. plans to spin off its retail lending and credit-card business in an initial public offering as early as next year, The Wall Street Journal reported early Friday, citing unnamed people familiar with the matter. GE Capital has a loan and asset portfolio that would rank it as the fifth-largest U.S. commercial bank, with $50 billion of its total $274 billion in outstanding loans coming from the retail-credit arm, the report said. The unit also issues store credit cards for some 55 million consumers, it said. The report also said that a sale of the unit was unlikely due to the difficulty of finding a buyer for such a large entity amid sizeable regulatory hurdles. 

See full story


Europe Markets: Europe stocks drop ahead of confidence, jobs data

By Sara Sjolin MarketWatch
8/30/2013 04:07:01 AM

European stock markets decline on Friday, as investors await data on unemployment and consumer confidence from the euro zone and digest the latest developments in the Syria conflict.  


Darrell Delamaide’s Political Capital: Picking Summers raises questions about Obama

By Darrell Delamaide 
8/30/2013 06:00:54 AM

President Obama’s apparent decision to nominate Larry Summers to the Federal Reserve raises troubling questions about Obama’s relationship with Wall Street banks, writes Darrell Delamaide. 


Audio Market Update: Newscast: Potbelly bellys up to the IPO bar

By MarketWatch
8/30/2013 07:39:50 AM

And General Electric may spin off its consumer finance arm. MarketWatch’s Ann Cates reports. 


London Markets: Oil firms lead FTSE lower after U.K. vote on Syria

By Sara Sjolin MarketWatch
8/30/2013 08:29:26 AM

Oil firms lead U.K. stocks lower on Friday, tracking oil prices south as worries over a military strike on Syria ease after the British Parliament votes against using force in the country.  


Movers & Shakers: Friday’s movers: Apache, Krispy Kreme

By Saumya Vaishampayan MarketWatch
8/30/2013 08:38:08 AM

Shares of Apache Corp and Salesforce.com jump in premarket trade Friday while shares of Krispy Kreme Doughnuts drop. Here’s a round-up of the day’s movers. 


Treasurys cut losses after tepid consumption data

By Ben Eisen MarketWatch
8/30/2013 08:43:04 AM

NEW YORK (MarketWatch) — Treasury prices cut back earlier losses Friday after personal consumption data showed a slight rise in July. Spending edged up 0.1%, another indicator of the slow pace of economic growth. The benchmark 10-year note yield, which moves inversely to price, rose half a basis point to 2.769%, while the 30-year bond yield rose 1 basis point to 3.726%. The 5-year note yield fell half a basis point to 1.608%. 


David Weidner’s Writing on the Wall: Wall Street’s minority report isn’t good

By David Weidner MarketWatch
8/30/2013 09:25:41 AM

The hallowed halls of finance are still mostly white, writes David Weidner. 


End of the company-issued computer

By Catey Hill 
8/30/2013 09:51:34 AM

To save money, some firms have cut back on free coffee, snack, and other employee perks. Could company-issued computers and smartphones be next? 


Bond Report: Treasurys eye fourth straight month of losses

By Ben Eisen MarketWatch
8/30/2013 10:31:27 AM

Treasury prices bounced around Friday after a tepid round of data, leaving the U.S. government debt market on track for its fourth consecutive month of losses. 


The Week in Charts: See consumer spending falter, low jobless claims

By Ruth Mantell MarketWatch
8/30/2013 10:59:49 AM

This Week in Charts highlights faltering consumer spending, as well as a slow pace of layoffs, illustrating highs and lows for the economy.  


Energy Stocks: Energy stocks inch up, Apache rallies

By Claudia Assis MarketWatch
8/30/2013 12:08:05 PM

Energy stocks edge higher Friday, with Apache Corp. in the lead as it sells part of its assets in Egypt for a price that surprised Wall Street. 


August sees biggest ETF outflows in 3 years

By Victor Reklaitis MarketWatch
8/30/2013 04:27:19 PM

NEW YORK (MarketWatch) — August was the worst outflow month in more than three years for U.S. exchange-traded products, according to preliminary data from No. 1 ETFs provider BlackRock Inc. U.S. ETFs saw $16.1 billion in redemptions through Thursday, representing the biggest outflow in one month since $17.1 billion exited in January 2010. The largest ETF was the main driver, as the SPDR S&P 500 endured $13 billion in August outflows, BlackRock said. The Wall Street Journal’s Money Beat blog first reported on the August exodus from ETFs.  


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Daily Rate Update: Mortgage Rates Stay Flat Ahead of 3-Day Weekend

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dailyrateheader.png
30 Year Fixed
4.59% +0.01
15 Year Fixed
3.69% +0.00
10YR Treasury
2.77% +0.0038
FNMA 30YR 3.5
99.81 0.00
FNMA 15YR 2.5
102.20 +0.08
View Today’s Rates
Mortgage Rates Stay Flat Ahead of 3-Day Weekend
August 30, 2013
Mortgage rates had an uneventful day, moving sideways on average. Some lenders were almost perfectly unchanged, while others were slightly higher or lower than yesterday’s latest levels. In virtually all cases, the only thing that would change about a rate quote from yesterday to today would be a slight difference in closing costs (as opposed to a movement in the “note rate” itself). As such, conventional 30yr Fixed quotes for the most ideal scenarios (best-execution) remained at 4.625% though some lenders are an eighth higher or lower.

It’s easy to look at numbers on the computer or TV and think of financial markets as simply being open or closed. For instance, most radio listeners hear an update on stock market averages in the middle of the day and assume markets are open for business as usual, but some days depart from the usual.

Today is one such day, as it’s the last day of summer. That doesn’t seem like it should matter because if markets are open, they’re open, right? The reason it’s not quite that simple–and the factor that’s easy to overlook unless you’ve experienced it first-hand or someone tells you–is that markets require the presence of real live human beings to function efficiently.

Especially in the realm of mortgage rates, where the onus for trading the underlying “mortgage-backed-securities” (MBS) falls on a shorter list of key players than, say, stocks or Treasuries, the absence of a few key people from a few key firms can make a big difference. In this day and age, given how “big and complex” financial markets seem to be, it may seem outrageous that a few people on vacation can change the way the day goes for everyone else in their sector.

Not only is this unequivocally true for the specific sector in question, but due to the highly interconnected nature of similar investments, it can affect other sectors too. For instance, even if Treasury traders are in more abundant supply on days like today, they might adjust strategy based on something that MBS traders are doing. In that case, the absence of just a few people has an exponential effect.

Because of this, there’s almost an unspoken agreement among market participants that makes days like today uneventful in all but the most unexpected scenarios. The economic data was close enough to expectations and the headlines were tame enough that market participants and trading levels were able to file toward the exits in a fairly orderly manner.

All this changes next week as market participation picks up and the massively important Employment Situation Report is released on Friday. While no single point of data has the power to completely set the tone for interest rates, this jobs report is head and shoulders above any other piece of data. It can go a long way toward confirming or rejecting the idea that the Fed will taper asset purchases at the September 18th meeting, and such confirmation could put noticeable upward pressure on rates after weeks of calmer consolidation.

Loan Originator Perspectives

“I have never been a fan of locking on Fridays, and even less of a fan of locking on a Friday ahead of a 3 day weekend. Lender pricing this morning is a little better than yesterday so if you are happy with the rate and costs being offered, nothing wrong with locking especially if within 15 days of closing. Loans closing in over 15 days, I would consider floating and see what lenders offer on Tuesday morning but this does come with some risk as much can happen over the next few days. ” –Victor Burek, Open Mortgage

“Slow, flat Labor Day trading today at MBS desks as the few traders present warily eyed Syria and next week’s data. We retained yesterday’s gains, which is always a plus. Today marks the end of summer for bond traders, expect more volume and definition next week. Don’t expect any decisive moves until August’s NFP on 9/6, regardless of “surprise” Syrian developments.” –Ted Rood, Senior Originator, Wintrust Mortgage

“Definitely a great way to end the week, the month, and head into the long weekend- FLAT! Overall not a bad week, although the volatility was a bit rough, we ended the week with a net gain. Data has been mixed but primarily week, and most of the strong data points like 2nd Q GDP is in the rear view mirror. Friday’s # is huge, but there is data prior to NFP including ADP, Fed beige book, & ISM to name a few that can influence trading over the course of the week. Floating into next week is extremely dangerous and perhaps suicidal if you are closing within 21 days, however if you have more time I am a believer that the 3rd Q should hold an opportunity for fence sitters and rate watchers (September is the last month of the 3rd Q).” –Constantine Floropoulos, Quontic Bank

Today’s Best-Execution Rates

  • 30YR FIXED – 4.625%
  • FHA/VA – 4.25% or 4.75%
  • 15 YEAR FIXED – 3.75%-3.875%
  • 5 YEAR ARMS – 3.0-3.50% depending on the lender


Ongoing Lock/Float Considerations

  • After rising consistently from all-time lows in September and October 2012, rates challenged the long term trend higher, but failed to sustain a breakout
  • Uncertainty over the Fed’s bond-buying plans is causing immense volatility in rates markets and generally leading rates quickly higher
  • Fears about the Fed’s bond-buying intentions were proven well-founded on May 22nd when rates rose to 1yr highs after the Fed indicated their intention to taper bond buying programs sooner vs later
  • The June 19th FOMC Statement and Press Conference confirmed the suspicions. Although tapering wasn’t announced, the Fed made no move to counter the notion that they will decrease bond buying soon if the economic trajectory continues
  • Rates Markets “broke down” following that, as traders realized just how much buy-in there was to the ongoing presence of QE. These convulsions led to one of the fastest moves higher in the history of mortgage rates and market participants have not been eager to be the among the first explorers to head back into lower rate territory until they’re sure they’ll have some company.
  • (As always, please keep in mind that our Best-Execution rate always pertains to a completely ideal scenario. There are many reasons a quoted rate may differ from 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).

30 Year Fixed Rate Mortgage
30?w=360
15 Year Fixed Rate Mortgage
30?w=360&p=15YRFRM

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Today’s Rates

Best Execution hdr_arrow.png
Rate Change
Current Mortgage Rates »
What are best-execution rates?
30 Yr FRM 4.59% +0.01
15 Yr FRM 3.69% +0.00
FHA 30 Year Fixed 4.27% +0.00
Jumbo 30 Year Fixed 4.57% -0.01
5/1 Yr ARM 3.25% +0.01

Average Mortgage Rates

Rate Points Change
FHFA * hdr_arrow.png
15 Yr. Fixed 3.44% 0.85 +0.40
30 Yr. Fixed 4.27% 1.09 +0.51
MBA ** hdr_arrow.png
30 Yr. Fixed 4.80% 0.41 +0.12
15 Yr. Fixed 3.84% 0.35 +0.13
30 Yr. Jumbo 4.78% 0.34 +0.04
30 Yr. FHA 4.52% 0.32 +0.12
5/1 ARM 3.50% 0.37 +0.06
Freddie Mac ** hdr_arrow.png
Current Mortgage Rates »
* FHFA averages are updated monthly.
** Mortgage Bankers Association (each Wednesday) and Freddie Mac (each Thursday) averages are updated weekly.
30 Yr. Fixed 4.51% 0.70 -0.07
15 Yr. Fixed 3.54% 0.70 -0.06
1 Yr. ARM 2.64% 0.40 -0.03
5/1 Yr. ARM 3.24% 0.50 +0.03

Secondary Markets

MBS hdr_arrow.png
Price Change
30YR FNMA 3.0 95.70 0.00
30YR FNMA 3.5 99.81 0.00
30YR GNMA 3.0 96.70 +0.05
30YR GNMA 3.5 100.81 0.00
15YR FNMA 3.0 102.20 +0.08
15YR FNMA 2.5 99.08 0.00
Treasuries hdr_arrow.png
Yield Change
Current MBS / Treasury Prices »
MBS and Treasury data provided by Thomson Reuters.
Mortgage News Daily and MBS Live! are exclusive re-distributors of Real Time Thomson Reuters Mortgage Information.
Secondary Marketing Managers:
If you are interested in gaining access to the most accurate real-time back-month TBA indications from Thomson Reuters and Tradeweb. Request More Information
2 YR 0.3947% -0.0040
5 YR 1.6227% +0.0101
10 YR 2.7692% +0.0038
30 YR 3.6986% -0.0167
Prices as of: 8/30/2013 3:21PM EST

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About This Report
Mortgage News Daily is a trusted source of mortgage rate market data and analysis, with over 1 million readers each month. Unlike many rate surveys, our survey is conducted on a daily basis and is designed to bring you the most current and accurate rate data available. We use a proprietary formula to calculate averages based on best-execution rates from top lender’s rate sheets, also taking into account feedback from hundreds of mortgage market professionals around the country.
© 2013 Brown House Media, Inc. All rights reserved.
Brown House Media Inc. – 19706 One Norman Blvd – Cornelius, NC 28031
View this Report in your Web Browser | Forward to a Friend | Subscribe
This information is not an advertisement to extend consumer credit as defined by Section 226.2 of Regulation Z. This is not an offer to enter into an agreement regarding interest rates. The rates quoted do not include discount points, origination points, or loan level risk based price adjustments. Rates presented in this report are averages and are subject to change without notice.
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Weekly Rate Report: Rates Improve For 2nd Week Ahead of Jobs Data

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weeklyrateheader.png
30 Year Fixed
4.59% +0.01
15 Year Fixed
3.69% +0.00
10YR Treasury
2.78% +0.0112
FNMA 30YR 3.5
99.75 -0.06
FNMA 15YR 2.5
102.13 0.00
View Today’s Rates
Rates Improve For 2nd Week Ahead of Jobs Data
August 30, 2013
Market Summary
Mortgage rates continued lower this week with 4 out of the 5 days being flat or positive. This is the second week of improvements and makes up for roughly half of the damage done on the week of August 12th.

The most prevalent 30yr Fixed rate quote for top tier borrowers (best-execution) fell to 4.625% from 4.75% last week. Lenders were generally hesitant to adjust rate sheets much ahead of the 3-day Labor Day weekend and next week’s important employment data. Syria-related headlines added to the uncertainty.

“While no single point of data has the power to completely set the tone for interest rates, Friday’s Employment Situation Report is head and shoulders above any other piece of data. It can go a long way toward confirming or rejecting the idea that the Fed will taper asset purchases at the September 18th meeting, and such confirmation could put noticeable upward pressure on rates after weeks of calmer consolidation. It could conversely help rates improve if the data is much weaker than expected.”

Matthew Graham, Chief Operating Officer, Mortgage News Daily

30 Year Fixed Rate Mortgage
30?w=360
Week in Review
Rates shown below are based on the 30 Year Fixed Rate Mortgage

Beginning Average: 4.67%
Ending Average: 4.59%
Weekly Change: -0.08%
Yearly Change: +1.05%

Friday, August 23, 2013 : 4.67% (-0.10%)
Mortgage rates shot significantly lower today after the New Home Sales report showed far fewer executed purchases contracts than expected for the month of July. The move came in phases with most lenders releasing at least 2 rate sheets. Some offered bigger improvements, while others got back in line with the rest of the pack. The net effect was nearly a full eighth of a point drop in average rates for ideal scenarios, bringing best-execution down to 4.625% in many cases while some notable lenders remain at 4.75%.

More detail: “Mortgage Rates Shoot Lower After Housing Data”

Monday, August 26, 2013 : 4.61% (-0.06%)
Mortgage rates continued lower today after a weaker-than-expected economic report this morning from the manufacturing sector. Not only does weak economic data put downward pressure on interest rates in and of itself, it also helps firm up the consensus on when and how the Fed will begin reducing its asset purchases. “Sooner and bigger” is worse for rates, but the more weak data, the more the implication shifts towards “later, less, or both.”

More detail: “Mortgage Rates Continue Lower as Data Disappoints”

Tuesday, August 27, 2013 : 4.53% (-0.08%)
Mortgage rates hit their lowest levels in nearly two weeks today. Conventional 30yr Fixed quotes for the most ideal scenarios (best-execution) are back down around 4.5% for some lenders and remain at 4.625% for many others. The most visible, mainstream explanation for the move is the geopolitical risk surrounding Syria and the effect global markets. Such risk can indeed motivate a “flight to safety” where investor demand tends to shift toward the least-risky assets like US Treasuries and out of more risky assets like stocks. While these two things are indeed happening, the whole story isn’t quite that simple.

More detail: “Mortgage Rates Near Two-Week Lows”

Wednesday, August 28, 2013 : 4.60% (+0.07%)
Mortgage rates bounced higher today, moving back in line with Monday’s levels. Conventional 30yr Fixed quotes for the most ideal scenarios (best-execution) are back to 4.625% on average though some lenders are an eighth higher or lower. Frustratingly, this is one of those days where there is no overt “cause and effect” for the movement whereas yesterday’s could more readily be chalked up to geopolitical risks surrounding Syria.

Interestingly enough, when Syria seemed to have been a source of market movement yesterday, we characterized it as the easiest mainstream explanation, with the whole story being less simple. It’s those “less simple” factors that came into play today. In an effort to be sure they received their adequate treatment yesterday, today’s move higher was basically accounted for in advance. Here are the relevant parts of yesterday’s comments:

More detail: “Mortgage Rates Give Back Yesterday's Improvement”

Thursday, August 29, 2013 : 4.58% (-0.02%)
Mortgage rates began the day in slightly higher territory, but most lenders adjusted rate sheets mid-day, bringing the average rate just below yesterday’s latest offerings. Underlying market conditions are as much a culprit in the welcome turnaround as anything. Conventional 30yr Fixed quotes for the most ideal scenarios (best-execution) are still most readily found at 4.625% though some lenders are an eighth higher or lower.

The typical correlations between economic data and market movements broke down to some extent (for the 4th time this week) due to lighter participation among traders and looming geopolitical uncertainty surrounding Syria. In the same way that markets refused to take rates any lower on Tuesday afternoon, they weren’t eager to take them any higher this morning. It continues to be the case that the biggest movements will be dependent on more thorough market participation, which isn’t guaranteed to show up until next week.

More detail: “Mortgage Rates Change Course Mid-Day to End Lower”

Friday, August 30, 2013 : 4.59% (+0.01%)
Mortgage rates had an uneventful day, moving sideways on average. Some lenders were almost perfectly unchanged, while others were slightly higher or lower than yesterday’s latest levels. In virtually all cases, the only thing that would change about a rate quote from yesterday to today would be a slight difference in closing costs (as opposed to a movement in the “note rate” itself). As such, conventional 30yr Fixed quotes for the most ideal scenarios (best-execution) remained at 4.625% though some lenders are an eighth higher or lower.

It’s easy to look at numbers on the computer or TV and think of financial markets as simply being open or closed. For instance, most radio listeners hear an update on stock market averages in the middle of the day and assume markets are open for business as usual, but some days depart from the usual.

More detail: “Mortgage Rates Stay Flat Ahead of 3-Day Weekend”

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Today’s Rates

Best Execution hdr_arrow.png
Rate Change
Current Mortgage Rates »
What are best-execution rates?
30 Yr FRM 4.59% +0.01
15 Yr FRM 3.69% +0.00
FHA 30 Year Fixed 4.27% +0.00
Jumbo 30 Year Fixed 4.57% -0.01
5/1 Yr ARM 3.25% +0.01

Average Mortgage Rates

Rate Points Change
FHFA * hdr_arrow.png
15 Yr. Fixed 3.44% 0.85 +0.40
30 Yr. Fixed 4.27% 1.09 +0.51
MBA ** hdr_arrow.png
30 Yr. Fixed 4.80% 0.41 +0.12
15 Yr. Fixed 3.84% 0.35 +0.13
30 Yr. Jumbo 4.78% 0.34 +0.04
30 Yr. FHA 4.52% 0.32 +0.12
5/1 ARM 3.50% 0.37 +0.06
Freddie Mac ** hdr_arrow.png
Current Mortgage Rates »
* FHFA averages are updated monthly.
** Mortgage Bankers Association (each Wednesday) and Freddie Mac (each Thursday) averages are updated weekly.
30 Yr. Fixed 4.51% 0.70 -0.07
15 Yr. Fixed 3.54% 0.70 -0.06
1 Yr. ARM 2.64% 0.40 -0.03
5/1 Yr. ARM 3.24% 0.50 +0.03

Secondary Markets

MBS hdr_arrow.png
Price Change
30YR FNMA 3.0 95.63 -0.08
30YR FNMA 3.5 99.75 -0.06
30YR GNMA 3.0 96.63 -0.03
30YR GNMA 3.5 100.78 -0.03
15YR FNMA 3.0 102.13 0.00
15YR FNMA 2.5 99.00 -0.08
Treasuries hdr_arrow.png
Yield Change
Current MBS / Treasury Prices »
MBS and Treasury data provided by Thomson Reuters.
Mortgage News Daily and MBS Live! are exclusive re-distributors of Real Time Thomson Reuters Mortgage Information.
Secondary Marketing Managers:
If you are interested in gaining access to the most accurate real-time back-month TBA indications from Thomson Reuters and Tradeweb. Request More Information
2 YR 0.3987% +0.0000
5 YR 1.6260% +0.0134
10 YR 2.7766% +0.0112
30 YR 3.7004% -0.0149
Prices as of: 8/30/2013 3:31PM EST

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This information is not an advertisement to extend consumer credit as defined by Section 226.2 of Regulation Z. This is not an offer to enter into an agreement regarding interest rates. The rates quoted do not include discount points, origination points, or loan level risk based price adjustments. Rates presented in this report are averages and are subject to change without notice.

© 2013 Brown House Media, Inc. All rights reserved.
Brown House Media Inc. – 19706 One Norman Blvd – Cornelius, NC 28031

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MND NewsWire – CRL Looks at Spillover from Foreclosures

CRL Looks at Spillover from Foreclosures

Posted to: MND NewsWire
Friday, August 30, 2013 1:45 PM

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The Center for Responsible Lending (CRL) estimates that between 2007 and 2012 some 12.5 million homes in America have been put into the process of foreclosure. Beyond the harm this has done to the families who have lost or face the loss of their homes there is a spillover effect on the neighborhood and the larger community. In an update to a report issued in 2012, CRL has just published a brief on the economic impact on the larger community when a home in the area is foreclosed.

CRL based its analysis on mortgage data collected by the government under the Home Mortgage Disclosure Act and by Lender Processing Services. It estimated the number of foreclosures in each community, the number of affected neighboring properties, and the loss in value to those properties applying a the 2008 estimate derived by Harding, Rosenblatt, and Yao of a 0.744 percent house price depreciation to every home within 1/8 mile of a foreclosure. The depreciation amount was then aggregated at various geographic levels to arrive at the total of spillover losses.

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MBS Commentary – MBS Pinata is Out of Candy; Afternoon Volatility Expected

MBS Pinata is Out of Candy; Afternoon Volatility Expected

Posted to: MBS Commentary
Friday, August 30, 2013 2:49 PM

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In the spirit of a day where many market participants are leaving early, here’s an sneak preview of a recent MBS Live update that would normally appear in the Recap later today–an early “MBS Recap,” for those leaving early! Bond Markets are closed on Monday for Labor Day.

MBS Pinata is Out of Candy; Afternoon Volatility Expected – 2:44PM

Fewer and fewer traders are left to take swings at the MBS pinata at this hour. Some of those swings would move prices higher–some lower. Under normal conditions, when the market has lots of active positions, the proverbial pinata is full of candy, harder to move, and likely to be getting hit from both sides at any given moment.

But with most of the candy having been drained ahead of the holiday weekend, and the number of stick-swingers reduced to essentially zero, anyone who deigns to take a swing is liable to send the pinata flying through the air.

“Stuff like this” was already evident yesterday (look at 2pm in Fannie 4.0), and is even more so today. The implication is mostly benign, especially for savvy market participants who aren’t batting eyelashes in the slightest (they’re not even watching). But we’ve historically seen one or two lenders get a bit put-off by the late day volatility and reprice.

Bottom line: the reprice situation is similar to the last alert where it’s not impossible, but probably unlikely and absolutely unwarranted. More than anything, the message is that any seemingly silly swings are less than representative of reality.

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MND NewsWire – Loan Profits Were Already Down 14 Percent Before July

Loan Profits Were Already Down 14 Percent Before July

Posted to: MND NewsWire
Friday, August 30, 2013 11:41 AM

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Mortgage loan profits tumbled by 14 percent in the second quarter of 2013 the Mortgage Bankers Association (MBA) said on Friday. Independent mortgage banks and mortgage subsidiaries of chartered banks reporting to an MBA survey said they had an average profit of $1,528 on each loan they originated during the quarter compared to $1,772 on each loan in Quarter 1. In basis points, the average production profit or net income was 75 basis points, down from 86 basis points in the previous quarter.

MBA’s Quarterly Mortgage Bankers Performance Report said that, measured by dollar volume, the purchase share of originations increased from 40 percent in the first quarter to 52 percent in the second. This was the first time purchase originations had taken the majority share of originations since the third quarter of 2011. MBA estimates that the purchase share for the entire industry was 36 percent in the second quarter compared to 26 percent in the first.

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MBS Commentary – MBS MID-DAY: Calmly Holding Gains; Unofficial Early Close

MBS MID-DAY: Calmly Holding Gains; Unofficial Early Close

Posted to: MBS Commentary
Friday, August 30, 2013 12:07 PM

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Bond markets were flat for most of the overnight session before weakening in tandem with late European data and early domestic trading. 10yr yields went no higher than 2.788 before buyers stepped in, potentially hinting at further month-end buying support throughout the session. That may indeed be the case as trading levels have held up (or bounced back) well despite the two more relevant reports of the morning coming in as-expected or better. So far, we’re not seeing any of the characteristically frustrating Friday sliding toward weaker levels though neither have we seen month-end buyers swoop in to lift bond prices to new highs. With Labor Day Weekend ahead, most of the day’s bond trading activity will have come and gone within the hour–especially in MBS.

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