Subscribe: Mortgage News Daily
http://www.mortgagenewsdaily.com/rss.asp
Added By: Feedage Forager Feedage Grade A rated
Language: English
Tags:
article via  copy story  email send  forward article  read forward  read  send copy  someone read  story someone  via email 
Rate this Feed
Rate this feedRate this feedRate this feedRate this feedRate this feed
Rate this feed 1 starRate this feed 2 starRate this feed 3 starRate this feed 4 starRate this feed 5 star

Comments (0)

Feed Details and Statistics Feed Statistics
Preview: Mortgage News Daily

Mortgage News Daily





 



MBS RECAP: Not The Kind of "Interesting" We Were Looking For

Thu, 18 Jan 2018 21:49:03 GMT

Posted To: MBS Commentary

Well... at least things are interesting . The winter holidays are always a challenge from an analytical and market-watching standpoint. It seems like a vast oversimplification (indeed, I didn't believe it was true when someone tried to educate me years ago), but "new year momentum" can really be the primary motivation for bond markets. And it really can be something we just have to wait for until the 2nd week of January. In the case of 2018, the 2nd week of January suggested the New Year momentum was toward higher rates. As we wrap up the 3rd week of of January, that continues to be the case. It's really that simple. There's no need to dissect causality on smaller scales. But if you want smaller scale causality, we can talk about a fairly massive amount of corporate debt...(read more)

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

(image)



Be Careful With News on Mortgage Rates Today

Thu, 18 Jan 2018 20:45:00 GMT

Posted To: Mortgage Rate Watch

It's Thursday, which means Freddie Mac released its weekly update on mortgage rates . This is typically not that big of a deal because mortgage rates don't tend to move enough in the short term to expose the shortfalls of Freddie's methodology. To be perfectly fair to Freddie, their methodology is fine for those who want a once-a-week look at rates and who aren't currently in the process of shopping for a mortgage or home. Unfortunately , much of the consumer-level interest in mortgage rate news comes from those who are in the process of shopping from a mortgage or home! Granted, they're not seeking out Freddie's rate survey, but they do tend to come across internet news that cites Freddie's data as a source. Enter the pitfalls. Freddie's survey deadline is Wednesday for any given week and...(read more)

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

(image)



A Request; Should Fannie and Freddie Update Their Credit Requirements?

Thu, 18 Jan 2018 17:27:06 GMT

Posted To: MND NewsWire

There is a rather unusual request up on the Federal Housing Finance Agency's (FHFA's) website. Two FHFA analysts, saying that the issue of updating the credit score requirements for Fannie Mae and Freddie Mac (the GSEs) is among the most difficult they have faced, are personalizing an earlier formal Request for Input (RFI) published in the Federal Record. Robert M. Dunsky, Principal Financial Engineer, and Elizabeth R. Spring, Senior Policy Analyst, from the Offices of Housing & Regulatory Policy and Policy Analysis & Research respectively wrote the request. They explain that the GSEs currently use the Classic FICO model, supplementing it with their own automated underwriting systems (AUS) where no credit score is available for a borrower. FHFA believes an update to the GSE credit score...(read more)

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

(image)



New Home Construction Retreats Quickly in December

Thu, 18 Jan 2018 14:57:45 GMT

Posted To: MND NewsWire

Both housing starts and permits were expected to retreat a bit in December , following their strong performances in October and November. Permits did tick down, but housing starts, which were exceptionally strong in November, gave back in a much bigger way. The U.S. Census Bureau and the Department of Housing and Urban Development said starts were at a seasonally adjusted annual rate of 1,192,000, an 8.2 percent month-over-month decline, and were off by 6.0 percent from the December 2016 pace. The November estimate for housing starts was revised up from 1,297,000 to 1,299,000. The housing starts number was substantially lower than analysts had anticipated . Those polled by Econoday had made predictions ranging from 1,230,000 to 1,320,000 units, with a consensus of 1,280,000. The performance...(read more)

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

(image)



MBS Day Ahead: Is it Over?

Thu, 18 Jan 2018 14:37:16 GMT

Posted To: MBS Commentary

Is the decades-long bull market in bonds over? I imagine we'll be talking about this sort of thing every time yields spike to multi-month highs and even every time they spike aggressively after hitting multi-month lows. It's a bit of an unfair conversation. As long as you are capable of understanding that rates can't go perpetually lower, you will have a big leg up on anyone who asks you "is it over?" It was never going to last forever in the first place! Let's back up a bit and talk about what's going on in the short term. Simply put , we were hoping to see 10yr yields bounce at a ceiling of 2.60%. We were somewhat optimistic about that after seeing Tuesday's candlestick break lower from the upper Bollinger Band line seen in the following chart, but with plenty...(read more)

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

(image)



Borrowers Get Ahead of Tax Changes, Refinance Activity Up in December

Thu, 18 Jan 2018 14:36:29 GMT

Posted To: MND NewsWire

The new tax law appeared to have slightly influenced mortgage originations in December, ahead of its actual implementation. Ellie Mae, in its December Origination Insight Report , said the share of refinances ticked up and closing rates on both purchases and refinances increased from November, across all loan types. Both increases were possibly due in part to borrowers trying to lock in the existing mortgage interest deduction limit ($1 million) before the new $750,000 limit kicked in on January 1. The closing rates on all loans increased from 70.9 percent to 71.2 percent while closing rates on refinances rose from 65.1 percent to 65.6 percent and that for purchases increased to 76.1 percent from 75.5 percent. Closing rates also increased across FHA, conventional and VA loans for both purchases...(read more)

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

(image)



Mortgage Rates Gently Rising from Recent Lull

Thu, 18 Jan 2018 14:30:28 GMT

Posted To: MND NewsWire

Since 2006, mortgage interest rates have fallen 242 basis points, from 6.41 percent to 3.99 percent. A decline of 246 basis points in the 10-Year Treasury Note during the same period was largely responsible for the change. However, during the first two years of this period, from 2006 to 2008, the risk premium rose by 78 basis points. Michael Neal, writing in the National Association of Home Builders (NAHB) Eye on Housing blog, says it was this premium that was targeted by federal monetary policy and those policies were partly responsible for its decline. The current risk premium, 1.66 percent, is only 4 basis points higher than it was in 2006, before that spike. After nearly 12 years of low rates, often historically so, rates are on the move again . The Federal Housing Financing Agency's (FHFA...(read more)

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

(image)



Upcoming Conferences and Training; Conventional Conforming Changes: Part Two

Thu, 18 Jan 2018 14:18:40 GMT

Posted To: Pipeline Press

“Employee engagement is a hot topic for organizations big and small. Regardless of size, a highly engaged workforce is a company’s greatest asset and can be a determining factor in how successful the company is. But the only reliable way to measure engagement is through an employee survey.” Here are the top five employee engagement survey mistakes , per Clark Schaefer Hackett. Part 2 of Recent News. Stay Tuned for Part 3. Should the mortgage market be supported by shareholder-owned utilities with regulated rates of return and an explicit government guarantee of mortgage bonds? That’s the current feeling of the FHFA , which oversees Fannie & Freddie. New reimbursement criteria have been established for servicer expenses related to foreclosure attorney fees and sale...(read more)

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

(image)



MBS RECAP: No Easy Victories as Bonds Revisit Weaker Levels

Wed, 17 Jan 2018 21:42:51 GMT

Posted To: MBS Commentary

Last week's bounce at a ceiling of 2.60% (twice, essentially) was enough for some DEFENSIVE hope. In other words, it introduced the possibility of the recent selling trend running out of steam near these levels. But as I cautioned at the time, there were connotations for a strong OFFENSE bringing rates in the other direction. For that, we would have at least needed to break below 2.52% and preferably 2.42% in the bigger picture. With yesterday's bounce at 2.52%, today ended up looking like a natural progression back toward higher levels. There were ample headlines relating to the government shutdown and stop-gap funding bill today. At times, markets appeared to react to these, but those reactions are hard to separate from other trading considerations in play. The 'other consideration'...(read more)

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

(image)



Mortgage Rates Highest in 9 Months

Wed, 17 Jan 2018 20:35:00 GMT

Posted To: Mortgage Rate Watch

Mortgage rates were only moderately higher today, but the move was enough to officially bring them to the highest levels since the Spring of 2017. In other words, most lenders' rate quotes are fairly similar to recently bad days (like last Wednesday), but in terms of outright costs, you'd have to go back 9 months to see anything worse. There was precious little by way of overt motivations for today's move. Whereas rates have a longstanding history of responding to economic data and other events that speak to the economy/inflation/etc., many of the recent movements have had more to do with arcane considerations among bond traders than the aforementioned history. The timing of today's weakness is unfortunate as rates were just starting to look like they might be reinforcing recent ceilings. To...(read more)

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

(image)



Reverse Mortgages Draining FHA Resources, Overhaul Needed

Wed, 17 Jan 2018 18:54:53 GMT

Posted To: MND NewsWire

Several housing authorities recently suggested changes to the form and operation of the Home Equity Conversion Mortgage (HECM) program, more commonly known as reverse mortgages. The program, administered by the FHA, serves homeowners over the age of 62, allowing them to draw on their home equity while remaining in their homes. Last year the Department of Housing and Urban Development (HUD), FHA's parent agency, made significant changes in rules affecting HECM borrowers . The first change reduced the maximum mortgage amount from 60 to 70 percent of the borrower's home value, and introduced a new formula, tied to not only the property value, but also loan rates and the applicants age. At the time this change was announced, it was predicted the typical applicant, who was previously able to borrow...(read more)

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

(image)



Builder Confidence Down From 18-Year High, Still Strong

Wed, 17 Jan 2018 15:41:56 GMT

Posted To: MND NewsWire

The National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI), which hit an 18-year high in December, backed off a bit this month . NAHB said the composite index, a measure of builder confidence in the market for new homes, was down 2 points from that new peak to 72. All three of the Index components moved down slightly. "Builders are confident that changes to the tax code will promote the small business sector and boost broader economic growth ," said NAHB Chairman Randy Noel. "Our members are excited about the year ahead, even as they continue to face building material price increases and shortages of labor and lots." Analysts had expected a slight decline in the index after its five-point surge in December. Those polled by Econoday had a consensus of 73, with a...(read more)

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

(image)



Freddie and Fannie Changes - Single Security Moving Forward; Upcoming Events

Wed, 17 Jan 2018 14:14:07 GMT

Posted To: Pipeline Press

“It doesn’t matter if you are rich or poor, as long as you have money.” Banks are where the money is, and plenty of them are paying attention to Congress. Eliminate Dodd-Frank? No. Revise? Perhaps. The most significant effort to revise the Dodd-Frank Act has bipartisan support, and we have a co-sponsored Senate bill . The proposed legislation mostly addresses regulations on small and midsize banks – in the future community banks or credit unions with less than $10 billion in assets could offer mortgages outside the typical Qualified Mortgage rule so long as they don’t sell that mortgage but keep it in-house . By holding that mortgage on the books, it would be deemed a Qualified Mortgage. Fannie, Freddie, Conventional Conforming Updates There are too many for just...(read more)

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

(image)



MBS Day Ahead: Bonds Continue Battle For Lesser Evil

Wed, 17 Jan 2018 14:07:00 GMT

Posted To: MBS Commentary

There's bad news and not-quite-as-bad news. Longer-term bonds (the stuff we care about) are either in a modest, steady, long-term uptrend (in rate), or they're in a more aggressive, shorter-term uptrend. Actually, they're currently only truly inside the latter (the worse one), but they're very close to the gentler trend--perhaps even trying to break into it this week. This is what bond bulls have been reduced to by late 2017 weakness. The best we can hope for in the near term is a "less aggressive sell-off. " The lines in the chart below help visualize the trends. The yellow lines mark the gentler trend and the teal lines mark the greater evil. For good measure, the important recent ceiling of 2.60% is marked by the white line. We definitely want to avoid breaking...(read more)

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

(image)



Application Volumes Rise Despite Surging Rates

Wed, 17 Jan 2018 13:36:53 GMT

Posted To: MND NewsWire

Mortgage activity continued strong during the second week of the New Year. The Mortgage Bankers Association (MBA) reports that its Market Composite Index, a measure of loan application volume, increased 4.1 percent on a seasonally adjusted basis during the week ended January 12. Volume on an unadjusted basis was up 32 percent, as the index readjusted from its downturn during the holiday week ended January 5. The seasonally adjusted Purchase Index rose 3 percent from a week earlier while the unadjusted index was up 32 percent. The unadjusted index was 7 percent higher than during the same week in 2017. The Refinance Index increased 4 percent from the previous week but lost market share. It accounted for 52.2 percent of all the week's applications, down from 52.9 percent a week earlier. Refi...(read more)

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

(image)



MBS RECAP: Bonds Scratch Out Victory Despite Headwinds

Tue, 16 Jan 2018 22:00:41 GMT

Posted To: MBS Commentary

Had it not been for a fairly abrupt sell-off in stocks (the first big day of losses in 2018, and the biggest open-to-close sell-off since late August for some major averages), there's no guarantee that bonds would have ended the day stronger. Even then, only some of the yield curve was stronger--specifically 7yr notes and higher. This is part of the "curve flattening" trade that dominated 2017 (2yr and 10yr yields getting closer together). That trade grew volatile at the end of the year as well as last week, corresponding with our last 2 big sell-offs. As the curve flattened over the past few business days, longer-term yields (which more closely follow mortgage rates) have been able to hold under key ceilings (like 2.60% in 10yr yields). There are important floors too --like 2...(read more)

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

(image)



Mortgage Rates Still Working on That Ceiling

Tue, 16 Jan 2018 20:20:00 GMT

Posted To: Mortgage Rate Watch

Mortgage rates didn't move much today. Most lenders were just slightly lower/better this morning, but mid-day market weakness prompted several of them to reissue higher rates. In the bigger picture, however, the past several days represent a welcome stint of relative calm. The general trend had been toward higher rates beginning in mid-December. Granted, that general trend could continue and the past few business days could merely be a pause. But the point is, whether it's a pause or the beginning of a reversal, either would begin the same way. The important development in underlying bond markets has been resilience at the weaker (read: higher rate) levels. Using 10yr Treasury yields as a benchmark for rate in general, we'd want 2.60% to continue to act as a ceiling. The ingredient we're still...(read more)

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

(image)



Housing Demands are Changing, Builders Slow to Follow

Tue, 16 Jan 2018 16:00:05 GMT

Posted To: MND NewsWire

Builders are building more houses, but a survey conducted by the National Association of Home Builders (NAHB) found they are essentially building the same ones . The survey, released during the association's International Builders' Show last week, found the size and configuration of homes built in 2017 changed little from the previous year , even though builders increased their output by 9 percent. Home sizes had been trending down , but they were up ever so slightly last year, from 2,622 square feet (SF) in 2016 to an average of 2,627 SF in 2017. Forty-six percent of homes had four bedrooms and 37 percent had at least three full baths compared to 45 percent and 35 percent respectively in 2016. Home builders continue to battle problems of affordability due to the scarcity of buildable lots...(read more)

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

(image)



MBS Week Ahead: Light Data, Glimmer of Hope, and a Word of Caution

Tue, 16 Jan 2018 14:36:31 GMT

Posted To: MBS Commentary

Don't get too excited. Despite a few close calls and false alarms, bonds managed to close below last Tuesday's highs for three days in a row. Now they begin the 4th day in slightly stronger territory. To an optimist's eye, the bond market is building a case for a ceiling bounce. One way to approach such potential bounces is to consider the implication of technical analysis. One of the more mainstream technicals for this purpose is the Bollinger Band study. It consists of 3 lines. The middle is typically set at a 21-day exponential moving average (or a 20-day simple moving average), with the outer bands typically set 2x standard deviations higher and lower. This results in a moving range that ends up encapsulating most of the trading that takes place in any given security. That's...(read more)

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

(image)



Natural Disasters and Compare Ratios; Q3 Performance and Fee Changes

Tue, 16 Jan 2018 14:16:37 GMT

Posted To: Pipeline Press

Replacing real estate agents with “something else that doesn’t earn a 6% commission” is certainly a discussion topic. Here’s one new venture: peer to peer real estate marketplace . But as Brian B. from New Jersey points out, “If a new company says it’s taking out the middleman and it will handle all the paperwork, isn’t it now the new middleman?” All I know is what I read in the newspapers, and The National Association of Realtors reports 88% of all buyers financed their homes the past year, but 98% of younger buyers financed, showing finding financing is especially key for young homebuyers. I guess they have less moola. At the other end of the mortgage process, servicers of loans along the Gulf Coast are now seeing increasing delinquencies from...(read more)

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

(image)



Mortgage Rates Avoid More Dire Outcomes After Inflation Report

Sat, 13 Jan 2018 01:00:00 GMT

Posted To: Mortgage Rate Watch

Mortgage rates caught a break yesterday by moving lower for the first time this week. They arguably caught a break again today by not moving any higher than they did. Underlying bond markets (which drive mortgage rate changes) were rocked this morning by stronger inflation data. The important Consumer Price Index (CPI) was expected to hold steady at the same low levels that have persisted since the middle of 2017. The modest uptick in inflation sent bond yields higher and resulted in most mortgage lenders putting out noticeably higher rates this morning. Lenders don't like to put out more than one rate sheet per day if they can help it, but if markets move enough, they will "reprice." After the initial trauma, bond markets began a trend of improvement that ultimately resulted in widespread...(read more)

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

(image)



MBS RECAP: China Must be Buying

Sat, 13 Jan 2018 00:58:02 GMT

Posted To: MBS Commentary

I laughed out loud today--something I rarely do when reading typed words--after MBS Live cornerstone Sung Kim quipped "thank God China is buying today!" This joke works on so many levels. Much of the week was devoted to chasing a red herring of a story that claimed China was mulling a reduction in its US Treasury portfolio. Rational people or those who believed the things I was yelling knew the story was mostly bogus, but it went fairly viral nonetheless because it offered an explanation for market movement that was otherwise not easily explained. Cue this afternoon's bond market rally. Bonds had just finished a fairly quick sell-off in response to this morning's stronger CPI data. Apart from technical levels and potential "value buying" among traders who think they've...(read more)

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

(image)



Broker News; Mergers/Acquisitions; Guild to Buy Cornerstone

Fri, 12 Jan 2018 14:14:31 GMT

Posted To: Pipeline Press

Plenty of people tell me that I’m “long in the tooth.” (A way of gauging a horse’s age.) Tooth? Thanks to Emily W. for sending in something that all of us have probably wondered about, even though you weren’t aware that you were wondering about it: an article on the origin of "Bluetooth," "eBay," "Google," and other terms and names. Nomenclature, and technology, are always changing. The car business certainly changes, and it appears that with the recent Toyota/Mazda plant announcement, foreign auto manufacturers are on a path to soon surpass the Detroit giants as the largest auto producers in the US by volume! Foreign automakers and their US competitors are expected to produce the same number of vehicles in the US for the first time ever in 1Q18. Broker News -...(read more)

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

(image)



MBS Day Ahead: CPI is the New NFP, Sometimes

Fri, 12 Jan 2018 13:34:30 GMT

Posted To: MBS Commentary

A majority of market participants (or their mentors) were steeped in the extraordinary inflation/rate volatility of the late 70's and early 80's. As the recovery from the financial crisis began, and as the Fed was pumping trillions of dollars back into the system, these market participants thus had an unhealthy fear of every little uptick in inflation at first. As reality unfolded, we've seen that worrying about inflation was a waste of energy at best, and a fool's errand at worst. I know I had a great time making fun of them from 2011-2015 at least. Things began to change in late 2015. Inflation began a quick and unequivocal return to relevance as core CPI shot up from a steady, depressed state at 1.6-1.7 to 2.3% by Febraury 2016. Had it not been for Brexit, we likely would...(read more)

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

(image)



MBS RECAP: Another Strong Auction Helps Bonds After China News Debunked

Thu, 11 Jan 2018 21:50:02 GMT

Posted To: MBS Commentary

Yesterday morning's news regarding China potentially buying fewer (or selling) US Treasuries has been a big talking point. While most pundits and even a few traders jumped on the bandwagon right off the bat, we immediately flagged it as a Red Herring . By the end of business yesterday, there were a few good news stories that also began to push back on the suspicious assertion. But the best push back came from China itself, with the State Administration of Foreign Exchange going on the record saying that the news either quoted the wrong sources or was altogether fake . Enough of the market was conned into selling bonds based on yesterday's fake news that today's real news provided a bit of a rally opportunity overnight. The bigger move hit bonds in a negative way just after the European...(read more)

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

(image)