FHFA Extends Emergency Loan Processing Changes

Posted To: MND NewsWire

The Federal Housing Finance Agency (FHFA) has extended several of the ” flexibilities ” it announced in March to assist mortgage originators in processing loans for Fannie Mae and Freddie Mac during shutdown associated with the COVID-19 emergency. The accommodations are designed to eliminate some in-person contact and to make it possible to for processing staff to work from remote locations. Originally intended to remain in effect for loans with application dates on or before May 17, the following are now extended to at least June 30 th . Use of exterior only or Desktop appraisals for purchase and rate term refinances where complete interior and exterior appraisals cannot be obtained due to virus fears. Flexibility for borrowers to provide documentation (rather than requiring an inspection…(read more)

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Source: Mortgage News Daily

Rates Are Still Low, But Let's Talk About Forbearances

Posted To: Mortgage Rate Watch

Mortgage rates moved slightly higher this week, but not enough to worry about too terribly much. Most lenders are still in the mid-to-low 3% range and there’s not much fear about an abrupt move to significantly higher levels any time soon. Whether or not that makes the market complacent remains to be seen. Either way, rates just haven’t moved much when it comes to the rates we can actually talk about. What do I mean by that? While we can talk about any rate for any program, there’s only one way to compare changes in rates from day to day and year to year. To do that, we have to keep track of the best-case rates at multiple lenders. Fortunately, that’s exactly what I do. Unfortunately, the landscape has been far more varied than normal as we step away from those top tier scenarios. The variation…(read more)

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Source: Mortgage News Daily

MBS Day Ahead: Can Bonds Weather Supply Storm?

Posted To: MBS Commentary

When someone asks a salty old bond market person why rates are doing what they'd doing, they might get a seemingly dismissive reply: "supply and demand!" No duh, salty old bond person. Of course supply and demand is going to determine the price of almost anything, but we were looking for the factors underlying the supply and demand. And the salty old bond guy might reply: "No, dummy. I mean SUPPLY and demand! Look: https://home.treasury.gov/news/press-releases/sm1001 " In other words, the conversation would concern the actual announcement of additional supply. Granted, a certain amount of supply is always to-be-expected when it comes to the bond market. Moreover, we already knew that Treasury supply would have to increase substantially in order to finance the coronavirus…(read more)

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Source: Mortgage News Daily

Warehouse, Pricing Products; Agency and Investor Changes; Rates Quiet

Posted To: Pipeline Press

May 6th, of course, is the anniversary of the first tequila hangover. Alcohol consumption has increased as people continue to adapt to the working from home “Groundhog Day.” Yes, adapting. How about this doctor who adapted by handing out clear masks for free to help her hearing-impaired patients? There is training for adapting to remote leadership. Most of us are thankful that we’re able to be at home AND work. “Rob, have you heard rumors that for the next part of the quarantine we can rotate to a different family, or do we have to stay with the same one? (Asking for a friend.)” I don’t know the answer to that one. I do know, however, as we’re in the middle of another week of lockdown, I’ve been thinking about Osama Bin Laden. He was stuck in…(read more)

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Source: Mortgage News Daily

Purchase Volume on Three-Week Winning Streak

Posted To: MND NewsWire

Applications for purchase mortgages increased for the third straight week, keeping overall activity during the week ended May 1 virtually unchanged from the previous week. Refinancing, while drifting lower, still provided the largest share of the market. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of loan application volume, increased 0.1 percent on a seasonally adjusted basis from one week earlier and was up 1 percent on an unadjusted basis. Purchase applications rose 6.0 percent after seasonal adjustment. The unadjusted index was 7.0 percent higher than the previous week but was down 19 percent year-over-year. Refinancing accounted for 70.0 percent of applications during the week compared to 71.6 percent during the week ended April 24, but the Refinancing…(read more)

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Source: Mortgage News Daily

Agencies are Cutting Access to Mortgage Data for Low-Income Borrowers

Posted To: MND NewsWire

Two Urban Institute (UI) analysts have raised an alarm about changes to federal regulations that threaten to limit access to important data about the mortgage market and credit availability for low and moderate-income borrowers and communities. Most of the changes are coming through rulemaking at the Consumer Financial Protection Agency (CFPB) and relate to the Home Mortgage Disclosure Act (HMDA). Researchers Ellen Seidman and Lauri Goodman said the loss of access to important data has been quiet and steady. However, three current rulemakings, one final, one proposed, and one at an early stage, promise to exacerbate the situation and affect both the public and policymakers. They add that the possibility the COVID-19 pandemic could trigger another credit crisis makes this especially troubling…(read more)

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Source: Mortgage News Daily

Digital, Marketing Products; Tech and Training Webinars; Agency and Investor Changes

Posted To: Pipeline Press

As California prepares to open some retail stores , the racoon has been named the official mascot of 2020: washes hands insanely, always wears a mask, and when you rearrange the letters of its name… Leave it to Cinco de Mayo to fall on Taco Tuesday, which is now messed up due to a virus with the same name as a Mexican beer! Keep in mind that today celebrates Mexico’s victory over France in the Battle of Puebla on May 5, 1862. It was a relatively minor battle (the French reclaimed Puebla a year later) but a symbolic one because a small Mexican army defeated a larger occupying force. By 1867, Mexican troops had driven France from the country. Cinco de Mayo is not Mexico’s Independence Day . That holiday falls on September 16 and commemorates the Grito de Dolores, a priest’s ringing of…(read more)

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Source: Mortgage News Daily

MBS Day Ahead: Temporary Weakness Or Bigger-Picture Resistance?

Posted To: MBS Commentary

Despite being in a narrow range in the bigger picture, 10yr Treasury yields have generally been moving moderately higher since April 21st. MBS have managed to avoid a similar trend, but they haven't managed to break above their best levels from the same week. To make matters somewhat more disconcerting , they just broke below their supportive trend-line from the past 2 weeks. Are we witnessing a bigger picture shift or just some temporary trepidation? As we discussed yesterday, the notion of " supply " is central to the current bout of bond market weakness. Supply can take many shapes. The most directly relevant form is that of new Treasury debt hitting the market. While we don't have any new auctions this week, there is the matter of Treasury's quarterly refunding announcement…(read more)

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Source: Mortgage News Daily

Home Price Growth Slows, Mostly Unchanged in April

Posted To: MND NewsWire

CoreLogic’s Home Price Index for March showed that the spring market started out strongly, with price appreciation from the previous month of 1.3 percent compared to a gain of 0.6 percent from January to February. The annual increase was 4.5 percent, a half point more than the year-over-year increase the previous month That, however, is history. The company, in its first official HPI forecast since a national emergency declaration regarding the COVID-19 pandemic, predicts that home price growth will fall to an annual rate of 0.5 percent by March 2021. It also estimates that given the strong market for homes that existed at the beginning of the year, home prices did not plummet precipitately immediately after the virus began to spread and the country official entered a recession. Despite a decline…(read more)

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Source: Mortgage News Daily

Cost of Imperfection Remains High in The Mortgage World

Posted To: Mortgage Rate Watch

Mortgage rates moved off their recent lows to start the new week, but only slightly. That keeps the average lender very close to the lowest rates in roughly 2 months. It also keeps us fairly close to the lowest rates ever. In fact, some lenders were at their best rates ever last Friday, but they were the exception. Am I perhaps splitting hairs here? Absolutely. When you follow rates as closely as we do, we’re forced to consider not only the quoted interest rates themselves, but also the fluctuations in upfront costs for any given rate. In other words, the actual rate at the top of a loan quote is likely the same for most mortgage seekers as it was on Friday. The only difference is that the upfront costs associated with that rate are slightly higher. Thus, rates are effectively higher. Notably…(read more)

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Source: Mortgage News Daily