HUD Jobs; Borrower Satisfaction Report; Vendor News and Updates

Posted To: Pipeline Press

For folks who like numbers and trends, according to the U.S. Census Bureau’s national and state population estimates released in December, 42 states and the District of Columbia had fewer births in 2019 than 2018. Natural increase, or when the number of births is greater than the number of deaths, dropped below 1 million in 2019 for the first time in decades. The nation’s population was 328,239,523 in 2019, growing by 0.5 percent between 2018 and 2019, or 1,552,022 people, which is reflective of a multiyear slowdown since 2014. New York state lost the most population, while California had the largest net domestic migration loss, though still remains the most populous state (39,512,223 people). Nationally, net international migration continues to decrease, falling to below 600k between…(read more)

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Source: Mortgage News Daily

MBS RECAP: Most Interesting Part of Today is That it Comes Just Before Tomorrow

Posted To: MBS Commentary

Today marked a rare mid-week "total dud" in terms of bond market momentum developments. This was made all the more striking by the fact that bonds certainly COULD have developed some sort of reaction strategy based on the particulars of the US/China trade deal signing (it included several new clarifications on the deal). But I'd be the first to admit that trying to connect the dots between those boring trade-related details and actionable decisions in the bond market sounds about as tedious (or even impossible) as any trading motivation I can imagine. So bonds punted, yet again, and in so doing, carved out their narrowest trading range in more than a week. Treasuries gained modestly ahead of the 3pm CME close, but inconsequentially so. As discussed in the attached video, yields…(read more)

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Source: Mortgage News Daily

Mortgage Rate Volatility Still a No-Show For 2020

Posted To: Mortgage Rate Watch

Mortgage rates improved modestly today, adding to yesterday’s slightly less compelling improvement. Taken together, they keep an air of calm and steady progress intact during a week that ran the risk of stumbling across volatility. One of the key sources of potential volatility was today’s signing of the US/China “phase 1” trade deal. Granted, it was only much of a risk in the event that something unexpected happened. Needless to say, nothing unexpected happened! Mortgage rates and the underlying bond market reacted accordingly as they merely went about their business for reasons known only to the traders pushing the buttons behind the scenes (i.e. market movement was so well contained today that we’re not able to connect any underlying events with the movement). All of the above having been…(read more)

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Source: Mortgage News Daily

Lower Housing Affordability Linked to Slower Job Growth

Posted To: MND NewsWire

The National Association of Realtors® (NAR) has uncovered another downside to the increasing lack of housing affordability in the U.S. A new study found that, in many areas where affordability has declined over the last five years, so has the rate of job growth. NAR measures affordability by calculating the ratio of the median family income to the metro area’s qualifying income for a home mortgage or QI. QI is the income needed so that the 30-year fixed mortgage payment on a median-priced single-family home purchased with a 20% down payment accounts for no more than 25% of income. NAR looked at the top 174 metro areas and ranked them by this measure of affordability. It them analyzed the shift in each area’s affordability ranking and the pace of non-farm payroll job growth (generally known…(read more)

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Source: Mortgage News Daily

VA Removes Loans Limits, Increases Fees

Posted To: MND NewsWire

U.S. military veterans and active duty personnel who buy or refinance a home in 2020 will have more buying power if they use a VA loan. They will also pay more money for that loan. The Blue Water Navy Vietnam Veterans Act of 2019, which become effective on January 1, 2020, will eliminate loan limits on VA loans but will also increase many of the associated fees. VA loans are available with a loan-to-value ratio of 100 percent and in some circumstances the leverage can be even higher. The loans however have always been subject to the same limit that applies to conventional and FHA loans. That limit is $510,400 in most U.S. counties this year, with larger limits in defined “high cost” areas. These limits will no longer exist for veterans with full access to the benefit. The removal of loan limits…(read more)

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Source: Mortgage News Daily

MBS Day Ahead: Dear Bond Market, I Challenge You To Do Something Interesting

Posted To: MBS Commentary

Bonds have been able to put in a few days with moderate movement both higher and lower in yield, but have generally been holding inside a range that is even narrower than the one seen during December. December's range, in turn, was narrower than November's, and so on and so on, all the way back to August 2019. Narrowness is one thing, but it's currently being compounded by a lack movement. In other words, while November was narrower than October in terms of the distance between highs and lows, it at least occurred at slightly different trading levels. Dec and Jan, on the other hand, have each occurred INSIDE November's range. This isn't a very common occurrence for the bond market, and when it happens, it's only a matter of time before more interesting movement starts…(read more)

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Source: Mortgage News Daily

Retention, Fraud Prevention Tools; Events and Training Coast to Coast; Capital Markets

Posted To: Pipeline Press

We find ourselves at Wednesday already. How about some numbers for Hump Day? Years ago Arnold Schwarzenegger famously said, “Having more money doesn’t make you happier. I have $50 million dollars, but I’m just as happy as when I had $48 million.” JPMorgan Chase’s profit surged 21% in the fourth quarter, reaching $8.52 billion, while Wells Fargo reported a 53 percent year over year drop after setting aside $1.5 billion for litigation fees. The US budget deficit reached $1.02 trillion in 2019, according to the Treasury Department. This marks the first time the deficit has topped $1 trillion since 2012. And Atlas Van Lines tells us that California is simultaneously #1 in both people moving into the state and moving out of the state! (Texans can chant, “We’re #2! We’re…(read more)

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Source: Mortgage News Daily

Mortgage Applications Soar to Best Levels in Over a Decade

Posted To: MND NewsWire

Mortgage application activity exploded out of the starting gate during the first full week of 2020 . The Mortgage Bankers Association’s (MBA) said its Weekly Mortgage Applications Survey for the week ending January 10, 2020 showed increases in every category, dramatic ones in most, as rates set new recent lows. The Market Composite Index, a measure of mortgage loan application volume, increased 30.2 percent on a seasonally adjusted basis from the week ended January 3, a period that was still in holiday mode. The previous week’s results included an adjustment for the New Year’s Day holiday. On an unadjusted basis, the Index was up by 67 percent compared with the previous week. The Refinance Index gained 43 percent from the previous week and was 109 percent higher than the same week one year…(read more)

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Source: Mortgage News Daily

MBS Day Ahead: Yes, MBS Have Definitely Been Outperforming Treasuries In General

Posted To: MBS Commentary

More often than not during the past few months, a quick glance at the MBS Live dashboard reveals that MBS are making better gains than Treasuries. Is this the way it always is? Is something new and different happening? Why hasn't it been as noticeable in the past? First off, this is definitely not the way it always is. Here's a medium term look at the gap between the computed MBS yield (not an objective number, as it relies on an equation that has to guess how rates will move in the future and how borrowers will respond in terms of refi demand) and 10yr Treasury yields. Clearly, the relative performance ebbs and flows, and we're just more able to notice this instance of outperformance for a few reasons. First off, the past month has been some of the strongest outperformance in recent…(read more)

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Source: Mortgage News Daily

Marketing, Pricing, Sales Tools; FHA, VA, and Ginnie Changes

Posted To: Pipeline Press

There are some clever people out there creating abbreviations and acronyms. Megxit? Yes: Prince Harry and Meghan Markle exiting from certain royal duties. Remember when talking about the economic woes of PIGS (Portugal, Italy, Greece, and Spain) was all the rage? Here’s a new acronym to tuck away that has nothing to do with mortgages: FANG. Analysts are wondering if the FANG stocks (Facebook, Amazon, Netflix and Google parent Alphabet) will continue to lead the stock market in 2020. And there are some clever people, and computers, analyzing demographics. Every LO should know that owning a median-priced, three-bedroom home is more affordable than renting a three-bedroom property in 455, or 53%, of the 855 U.S. counties. Lender Services and Products Imagine receiving your borrower’s…(read more)

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Source: Mortgage News Daily