LO Jobs; Broker, Credit, Compliance Products; Coronavirus Continues to Drive Markets

Posted To: Pipeline Press

We’re almost at the end of February already. Mortgage bankers are funding loans, throwing axes, working overtime, learning about skydiving, all kinds of things! In a little over a week (March 8) many states will change their clocks, “springing forward” and once again people will wonder, after “losing” an hour, why the United States keeps this system. Yes, the days are “getting longer.” I know that is just a saying, as every day has the same number of hours; Anchorage is adding five minutes of daylight every day while Miami is adding two minutes of daylight every day. Speaking of adding, according to “The State of the Originations Industry” from Altisource, more than two-thirds of mortgage origination professionals plan on adding programs…(read more)

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Source: Mortgage News Daily

MBS RECAP: 4 Year Prophecy Fulfilled; Now What?

Posted To: MBS Commentary

10yr yields were as low as 1.24% and ended the day at 1.27% after a decent amount of volatility. MBS gained almost a quarter point, but mortgage lenders did not generally improve rate sheets by that much (and some not at all). Back in the day (but not too far…), it was hard not to notice that the bond market had a habit of hitting long-term low yields on years that ended in 3 and 8. This began in 1993 and worked out perfectly until 2008. It was the topic of a small amount of inconsequential debate in 2013 as yields were still really low, but had technically bottomed out in 2012. The prophecy was then forgetting in 2018 because, clearly, it wasn't anywhere close to happening at that point. Enter 2020 and the rapid rush to new all-time low yields. Consider that in the context of 2012 and…(read more)

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Source: Mortgage News Daily

Home Sales Crushed Expectations And Are Now Near a 2 Year High

Posted To: MND NewsWire

Pending home sales bounced back last month after an unexpectedly dismal performance ended the prior year. The National Association of Realtors ® said its Pending Home Sales Index (PHSI), which had dropped 4.9 percent to 103.2 in December, posted a 5.2 percent increase last month to a reading of 108.8. This is 5.7 percent higher than the Index in January 2019. The PHSI is a forward-looking index based on contracts for existing home purchases. It is generally expected to predict existing home sales over the next several months. Pending sales rose in three of the four regions compared to December with a small dip in the West. All four regions bettered their year-earlier readings. An improvement in the PHSI was anticipated, although the results were at the top of the forecast range of 1.0 to…(read more)

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Source: Mortgage News Daily

MBS Day Ahead: Don't Expect Mortgage Rates to be Thrilled

Posted To: MBS Commentary

Good morning. 10yr yields are in the 1.2's. All-time lows. We follow MBS and the 10yr Treasury yield (and other rates, when relevant) here. The focus is on the 10yr for THESE REASONS . Today will be "interesting" then, because mortgage rates aren't going to do what the 10yr is suggesting. I've broken this down before in excruciating detail HERE . <—- That's the definitive link on this topic, but I'm going to break it down in different, mostly smaller words. When you get a mortgage, a lender writes a check on your behalf in exchange for you agreeing to pay them back over time. Why would the lender do that? Because they're counting on you paying back more than you borrowed. That's simple right? If they loaned you $250k to buy a house, and you make at…(read more)

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Source: Mortgage News Daily

LO Jobs; Pooling, Non-QM, Appraisal Products; CFPB, Audit, Exams, and Compliance News

Posted To: Pipeline Press

I was telling my cat Myrtle that U.S. lenders are continuing to bask in the glow of a great 2019 and a start to 2020 (with March and April now looking very good, given rates), but that one of the big worries is about branches and referral partners being picked off, either through acquisitions or by competitors. She seemed disinterested. But she is particularly seemingly interested in is what regulators and Agencies, from the CFPB and HUD through to state “mini-CFPBs,” are doing. For example, just this week we saw a plethora of acronyms in one sentence: The Federal Housing Finance Agency (FHFA, overseer of FNMA and FHLMC) issued a request for input (RFI) related to non-bank membership into the Federal Home Loan Bank System (FHLB). Bank or non-bank, we lend in a very regulated world…(read more)

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Source: Mortgage News Daily

New Home Sales Hit Highest Levels Since 2007

Posted To: MND NewsWire

New home sales had ended 2019 in a much stronger fashion than they had started the year. December sales were at an annual rate of 708,000 (a revision from the initial estimate of 694,000) and running more than 23 percent above sales a year earlier. With Wednesday’s sales report from the U.S. Census Bureau and the Department of Housing and Urban Development it appears that at least this bull market is extending its run into 2020. New home sales during January were at a seasonally adjusted annual rate of 764,000 units, a 7.9 percent increase over December’s revised number and 18.6 percent above the January 2019 estimate of 644,000 units. The increase was largely national in scope with big gains in the Midwest and West. Sales were much higher than anticipated. Analysts polled by Econoday had expected…(read more)

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Source: Mortgage News Daily

MBS Day Ahead: Past Examples of Trips to All-Time Yield Lows

Posted To: MBS Commentary

2012 was almost all about the European systemic crisis, although doubts remained about the US economic lift-off as well. All of the above played out against the background of a generally supportive Federal Reserve. In the summertime, QE was in one of its off cycles and traders increasingly began to expect QE3. Europe was terrified that Greece had set a precedent for Spain, and the latter quickly came into focus at the end of May. By July, the Spanish situation had come to a head, and Italian spreads were coming along for the ride. Basically, the EU was worried that Greece began a domino effect that threatened the collapse of the union. Credit spreads reached their apex in late July and global financial markets were heavily hiding in US Treasuries. EU credit spread spikes line up perfectly with…(read more)

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Source: Mortgage News Daily

Sales, Language, Broker Tools; GSE Reform Continues; Two 2020 Fed Cuts?

Posted To: Pipeline Press

Remember the concerns of chaos prior to the UK leaving the European Union? Despite Brexit, the average London house prices increased 2.3% in 2019, the highest since 2017. In the rest of England, home prices were up 2.2% y/y. In this country, lenders’ pipelines are swamped as a surge in coronavirus cases outside China (highly transmittable, but fortunately not too virulent) has accelerated investors’ flight to havens, sending the 10-year US Treasury yield to 1.31% and the 30-year yield to 1.80%, both record lows. Mortgage prices have lagged, as they always do, and many lenders are extending out rate lock periods to deal with the influx of volume. Capital markets crews are keeping an eye on the future of the Agencies. Per Treasury Secretary Steven Mnuchin, the Treasury Department expects…(read more)

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Source: Mortgage News Daily

Mortgage Applications Calm Before The Storm?

Posted To: MND NewsWire

There was a new round of interest rate cuts during the week ended February 21, but consumers largely ignored the additional potential for refinancing. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of mortgage volume, increased by 1.5 percent from the previous week on an unadjusted basis, but was down 7 percent on an unadjusted basis. The increase in the adjusted index may have, in part, been because of an adjustment to account for the Presidents’ Day Holiday which shortened the week. The refinance share of mortgage activity fell to 60.8 percent of all applications from 63.2 percent the previous week. The Refinance Index dropped 7 percent although it remained 156 percent higher than during the same week in 2019. Purchase mortgage applications did increase…(read more)

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Source: Mortgage News Daily

Mortgage Rates Are Low, But They're Not Falling as Fast as The 10yr

Posted To: Mortgage Rate Watch

Mortgage rates have been putting on a rather frustrating and exciting show in the month of February. On the one hand, they’re at their lowest levels since 2012 and are off to their strongest start of any year on record. On the other hand, they’re not nearly as low as you’d expect them to be based on movement elsewhere in the interest rate world. In fact, even on a day like today where the mighty 10yr Treasury yield (something that a lot of people mistakenly view as the basis for mortgage rates) precipitously fell to new all-time lows, many mortgage lenders were offering the same rates as yesterday. More than a few were offering HIGHER rates. What’s up with that?! It’s certainly true that the 10yr yield sets the tone for mortgage rates better than any other mainstream rate. Treasuries set the…(read more)

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Source: Mortgage News Daily