MLO Jobs; Pricing, Servicing, Processing, VOE Tools; Non-Agency and Jumbo Updates; LO Comp

Posted To: Pipeline Press

Real estate agents will tell you that offering above asking price is only the first step, with many buyers also waiving contingencies, skipping inspections, or providing free lease-backs to sellers, along with offers for the seller to remain in the home for a period of time after closing, rent-free. When something becomes too expensive, consumers begin talking about price elasticity and substitution. Rent instead of own. Kerosene instead of whale oil. Cod instead of halibut. Tea instead of coffee. When lumber becomes too expensive, there are substitutes like stone/masonry, steel, or… bamboo . Hey, don’t knock it: the 2,264 giant pandas left in the world can’t be wrong! Do mortgage loan originators (MLOs) ever become too expensive? They’re the drivers of a lender’s…(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: Settling Into Sideways Pattern (Again)

Posted To: MBS Commentary

The spring of 2021 has been marked by a sideways consolidation that alternates between being "a sure thing" and "surely about to end. By mid April, bonds had rallied enough that the pattern looked more like a bullish reversal. By mid May, however, yields looked like they were on their way to new highs for the year. In both instances, bonds settled back down and gravitated toward the same central levels. Those larger-scale moves are also seen playing out on smaller scales with last week's rally and rebound serving as the most recent example. For now, we're trading in slightly stronger territory vs the mid-point of this consolidation pattern and still waiting for whatever it is that will ultimately motivate a breakout. As far as this week's breakout prospects are concerned…(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

Mortgage Application Volume Hits 15-Month Low

Posted To: MND NewsWire

The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of mortgage loan application volume, fell again during the week ended May 28. It was the 15 th time the index has retreated in the 21 weeks since the year began. The Index decreased 4.0 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 5 percent compared with the previous week. The Refinance Index dropped 5 percent from the previous week and was 6 percent higher than the same week in 2020 which was a holiday week. The refinance share of mortgage activity decreased to 61.3 percent of total applications from 61.4 percent the previous week. The seasonally adjusted Purchase Index declined by 3 percent. It was down 5 percent before adjustment and 2 percent lower…(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

Construction Spending Increased Slightly in April, Led by Residential Sector

Posted To: MND NewsWire

Construction spending inched up in April, but the increase was tempered by a decline in publicly funded projects. The U.S. Census Bureau put the rate of seasonally adjusted annual spending during the month at $1.524 trillion, up 0.2 percent from the $1.521 trillion rate in March and 9.8 percent above spending in April 2020. On a non-adjusted basis, total spending for the month was $123.483 billion compared to $118.037 billion in March. For the year-to-date (YTD) spending has reached $452.292 billion, a 5.8 percent increase from the $427.317 billion spent during the first four months of last year. Total spending in the private sector was at an annual rate of $1.181 trillion compared to $1.175 trillion in March, an uptick of 0.4 percent. Spending in April 2020 was at a rate of $1.037 trillion…(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

April's Home Prices Grew by 13% and Broke More Records

Posted To: MND NewsWire

CoreLogic says that April saw further acceleration in the growth of housing prices. The company, which reported an 11.3 percent annual increase in housing prices in March now says that appreciation grew to 13 percent in April. It was the third consecutive month of double digit gains and the highest rate of annual appreciation since February 2006 . The increase from March to April was 2.1 percent. The company, in its monthly report on its Housing Price Index (HPI) says, “Sparse inventory and high demand continues to place upward pressure on home prices, creating challenges across generations as buyer preferences shift. Younger Millennials continue to enter the market in droves while older Millennials look to upgrade and upsize their homes.” A recent CoreLogic consumer survey found that 64 percent…(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

Ops, Sales Jobs; Securitization, HELOC, Verification, Tech Review, Sales Products; Events and Webinars

Posted To: Pipeline Press

June, already. Plans to return to the office? The Mortgage Bankers Association, for example, is gearing up for a July 12 return. And you can bet it’s watching the machinations of the Agencies. Huh? Rumors of Freddie raising its gfees? Rumors of the 7 percent being ratcheted down to 6.5 percent or 6 percent over time, or lenders being asked to buy back non-owner or 2nd homes that exceed the caps? Rumors of tweaking the seasoning language? Heck, what do I know? It is always best to ask your Agency rep, and not listen to the rumor mill. But capital markets staffs around the nation continue to keep their eyes and ears open about the FHFA retiring COVID loan flexibilities, the CFPB and delays in QM mandatory compliance dates/GSE QM delivery deadlines, the merits, or lack thereof, of the FHFA’s…(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 Threaten to Run The Range

Posted To: MBS Commentary

The new, holiday-shortened week begins with a good amount of weakness versus Friday's latest levels. Nonetheless, yields are right in the middle of their recent range (1.55-1.70% in 10yr terms). It was the 1.55% that serves as resistance last Wednesday. The risk is that a simple in-range correction could take us back to test the 1.70% ceiling. While these sorts of technical ebbs and flows have been fairly consistent since mid-March, they're by no means a guarantee of the path ahead. The nature of the post-covid domestic economy–something that we're only in the early stages of discovering this summer–will soon play an important enough role to warrant more scrutiny. We'll only really know for sure when we see markets clearly reacting to big-ticket economic data. With that in…(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

Highest Inflation in Decades, But Housing Has a Bigger Problem

Posted To: Mortgage Rate Watch

Inflation is bad for interest rates and it’s at the highest levels in decades. But the housing market has a far bigger problem. Actually, it’s not hard for a problem to become bigger than rates right now considering we’re still at levels that would have been record lows at any other time before covid. Moreover, rising rates (within reason) might help to tap the breaks on what has been an unprecedented disparity between supply and demand. That brings us to the big problem: supply–or rather, the lack thereof. Lamenting the lack of housing inventory is a common refrain, but it’s never been more relevant. The ill effects are increasingly visible as various home sales metrics have failed to advance for several months now. This week’s update on New Home Sales provided the most recent example, falling…(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 RECAP: Decent Gains Despite Hotter Inflation Data

Posted To: MBS Commentary

Decent Gains Despite Hotter Inflation Data While there was nothing especially memorable about today's trading action itself, the fact that 10yr yields ended 2.5bps lower despite a core PCE reading of 3.1% is surely worth remembering. It stands as evidence that the bond market is indeed prepared to accept the transitory inflation narrative. As such, markets are more free to react to key economic inputs such as next week's jobs report. Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm Core PCE prices (y/y) 3.1 vs 2.9 f'cast, 1.9 prev Consumer Sentiment 82.9 vs 82.9 Inflation Expectations 1yr = unchanged 5yr = down 0.1% Market Movement Recap 08:50 AM Extremely calm and flat overnight as yields traded an "inside day" versus yesterday's already narrow trading range. Mixed…(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

Non-Government Loans See Jump in Forbearances

Posted To: MND NewsWire

The forbearance numbers increased again over the past week although Black Knight, in its weekly report, said these mid- to late-month upticks are becoming common . The number of mortgages in active plans rose by 16,000 or 0.73 percent. The number of Fannie Mae and Freddie Mac loans in forbearance declined by 1,000 but that was offset by an increase of 2,000 among loans serviced for FHA and the VA and a 15,000 loan rise (2.5 percent) in forbearances among portfolio-held and privately securitized mortgages. As of May 25, there were a total of 2.195 million mortgage loans remaining in forbearance plans, 4.1 percent of all first mortgages being serviced . There were 682,000 GSE loans, 887,000 VA and FHA loans and 625,000 loans serviced for bank portfolio or private label security investors. Black…(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