Mortgage Rates Inch Toward 2-Week Lows

Posted To: Mortgage Rate Watch

Mortgage rates are primarily a function of trading levels in the bond market and bonds have enjoyed (or suffered) an interesting mix of volatility and stability in June. US Treasury yields (which share a strong correlation with ,mortgage rates) moved sharply lower at the beginning of the month. Mortgages didn’t move quite as much, but nonetheless made it to their best levels since late February. After that, the Fed announcement on June 16th was the next major source of volatility. It pushed rates quickly higher and they’ve been gradually recovering since then. Today adds another almost imperceptible brick to that wall, but it’s enough to nudge the average 30yr fixed rate to its lowest level since the morning before the Fed announcement. Some see those levels as a sign that it’s time to be more…(read more)

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


Source: Mortgage News Daily

CFPB Updates Servicing Rules to Ease Transition from Forbearance

Posted To: MND NewsWire

The government stakeholders involved in the various pandemic related forbearance programs appear to be directing their full attention to their upcoming expirations. Ginnie Mae earlier announced a new class of mortgage-based securities (MBS) to absorb loans that have been modified to return them to performing status. Now the Consumer Financial Protection Bureau (CFPB) has announced amendments to the federal mortgage servicing regulations to “help protect mortgage borrowers from unwelcome surprises as they exit forbearance.” CFPB said the temporary special safeguards will help ensure borrowers sufficient time to explore their options before facing foreclosure. These options include loan modifications and selling their homes. The rules cover loans on principal residences, generally exclude small…(read more)

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


Source: Mortgage News Daily

Pandemic Continuing to Fuel Home Price Gains

Posted To: MND NewsWire

When the S&P CoreLogic Case-Shiller and Federal Housing Finance Agency’s price reports for March were released we wrote that the superlatives were getting tired. The April report has prompted Case Shiller to roll out the term “extraordinary.” Where do we go from here? The Case-Shiller U.S. National Home Price Index, which covers all nine census divisions, reported a 14.6 percent annual gain in April , up from 13.3 percent in March. It was the 11 th straight month of increasing prices. The 10-City Composite posted a 14.4 percent increase and growth on the 20-City Composite was 14.9 percent. In March, their respective changes were 12.9 percent and 13.4 percent. The monthly gains were just as significant. On a non-seasonally adjusted basis, the National Index and the 20-City Composite were…(read more)

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


Source: Mortgage News Daily

No, FHA Won't Be Offering 40 Year Loans

Posted To: MND NewsWire

Ginnie Mae sent out a press release last week could create some confusion for those readers who only skimmed the lede. The opening paragraph states that the agency is creating a new pool of mortgages for securitization on the secondary market. The pool, to be known as Pool Type C-ET, will contain loans with terms up to 40 years while the current set of pool types only supports loans with 30 year or shorter terms. It is easy to miss that this special pool is not a new offering for borrowers but is limited to loans that have gone through a loan modification. It is probable that this pool is being created in anticipation of the number of FHA, VA, and USDA loans that will be coming out of pandemic-related forbearance plans. The latest survey by the Mortgage Bankers Association estimated that 5…(read more)

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


Source: Mortgage News Daily

Community Lending, 1099, Compensation, NOO, Non-QM products; Government Loan Program Changes

Posted To: Pipeline Press

Say what you will about huge companies not having an impact on housing, MLOs can’t ignore the fact that they’re here. The latest example is global real estate investment and land asset management company Walton Global Holdings launching a build-to-rent (BTR) line that will leverage its more than 81,000 acres of U.S. land assets to create near-term opportunities for single-family home rental developments. On a much smaller scale, living at the beach sounds nice… but expensive. So this might be handy: The 10 Most Affordable Beach Towns for 2021 . Doesn’t matter what you pay people if they don’t have the time off occasionally to enjoy it, right? (The audio version of today’s commentary, available here , is sponsored by Origence and features an interview with Brit Barker…(read more)

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


Source: Mortgage News Daily

MBS Day Ahead: Bonds Take a Few Steps Back Ahead of Another Light Event Calendar

Posted To: MBS Commentary

Since the 2nd week of June, the bond market has been operating in a fairly narrow range with trading momentum being largely flat in the bigger picture. That range is in slightly stronger territory compared to most of the previous 2 months with credit going, in part, to a weaker than expected jobs report at the beginning of the month. Now, with the next jobs report days away, bonds are arguably setting up in the same sort of sideways pattern, ready to make an adjustment based on the data's implication for Fed policy. 10yr yields are operating between the mid 1.40's and mid 1.50's for now with only two quick breakout attempts: one after the Fed announcement 2 weeks ago and one more serendipitous example driven by illiquidity early in the overnight session last Monday. Serendipity…(read more)

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


Source: Mortgage News Daily

Freddie Mac's Volume Dropped Sharply in May

Posted To: MND NewsWire

Freddie Mac reported this week that its total mortgage portfolio increased at an annualized rate of 8.6 percent in May compared to a 13.2 percent gain in April. The portfolio balance at the end of the period was $2.980 trillion compared to $2.959 trillion the prior month and $2.448 trillion a year earlier. Purchases and Issuances totaled $91.739 billion, and Sales were ($1.292) billion. The April numbers were $121.668 billion, and ($1.761) billion, respectively. Single-family refinance loan purchase and guarantee volume was $57.1 billion in May compared to $82.9 billion in April, representing a 66 percent share of total single-family mortgage portfolio purchases and issuances, down from 72 percent the previous month. Purchases in Freddie Mac’s Mortgage Related Investments Portfolio totaled…(read more)

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


Source: Mortgage News Daily

Housing Activist Named FHA Commissioner

Posted To: MND NewsWire

The White House has announced another key appointee to a federal housing post. Julia Gordon has been named Assistant Secretary for Housing at the Department of Housing and Urban Development (HUD). This position also serves as commissioner of the Federal Housing Administration (FHA). Gordon is currently president of the National Community Stabilization Trust (NCST) which works to provide local community-based programs an opportunity to acquire vacant, abandoned, and distressed properties to redevelop. The Trust has implemented the transfer of $1.5 billion in real estate to local organizations over the last 10 years, much of it “first look” properties from Freddie Mac and Fannie Mae’s foreclosure inventories. Gordon’s name may be familiar to MND readers. We have frequently covered her remarks…(read more)

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


Source: Mortgage News Daily

Forbearances Show Slight Increase

Posted To: MND NewsWire

Black Knight reports that the number of loans in forbearance rose by 1,000 during the week ended June 22. The company says this was a continuation of what’s become a common trend of marginal mid-month increases. The uptick offset some of the 7,000 loan decline during the previous week, which we did not report. The increase was in loans serviced for bank portfolios and private label security (PLS) investors. The 18,000 growth in those loans offset a reduction 10,000 in the number of GSE (Fannie Mae and Freddie Mac) loans and the removal of 7,000 being serviced for the FHA and VA. With those changes, GSE loans now total 641,000 or 2.3 percent of those portfolios. There are 836,000 forborne FHA and VA loans (6.9 percent) and 579,000 portfolio/PLS loans (4.5 percent.) Entries into the program edged…(read more)

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


Source: Mortgage News Daily

AE, MLO, Ops Jobs; Credit, Warehouse, Tax and Flood, MI Tools; FHA Changes

Posted To: Pipeline Press

Seattle will hit 110 degrees F today. Change is afoot. Last week changes of personnel within the CFPB and the FHFA (hence Fannie & Freddie) captured our industry’s attention since they may lead to eventual changes in their footprint or policies. (But the FHA’s program changes, spelled out below, are worth noting.) For decades stability, liquidity, and transparency have been, more or less, provided by the Agencies. Currently that has become debatable. Lenders know that if products are shifted to private label pricing and execution, borrowers will see a direct price hit. Risk must be aligned to price. For example, every lender knows that plenty of NOO and 2nd home borrowers are of a higher quality, and lower risk, than many owner occupied or primary residence borrowers. Those…(read more)

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


Source: Mortgage News Daily