Jumbo, 2nd Lien, MERS QC Audit Products; U.S. Economy Motoring Onward

Posted To: Pipeline Press

Plenty of people tell me that I should “head down to Clown Town.” I never know quite how to take that. But now we have Zoom Towns ,” and thank you to Carol K. for sending this along. And I am planning on living in one since… it’s my lucky day! I just received an email which I cut and pasted stating, “I am Barrister Charles Anthony, I am contacting you to assist retrieve his huge deposit Mr. Alexander left in the bank before its get confiscated by the bank. Get back to me for more details.” I will be sure to reach out. No more staggering out of bed at 4AM! No more people reminding me when the quotation mark goes outside the period instead of inside the period! Speaking of grammar, why is there a silent “c” in indict, or a silent “b”…(read more)

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Source: Mortgage News Daily

MBA Says Credit Supply Lowest in Six Years

Posted To: MND NewsWire

The Mortgage Bankers Association’s (MBA’s) Mortgage Credit Availability Index (MCAI) continued to drop in August, an indication that lending standards are tightening. The index fell by 4.7 percent to 120.9 in August. In January, before interest rates started an unprecedented decline and servicers were instructed to grant forbearances to existing borrowers, the MCAI was at 181.9. It was benchmarked to 100 in March 2012. Each of the four component indices moved lower. The Conventional MCAI decreased 8.7 percent, while the Government MCAI decreased by 1.4 percent. Of the component indices of the Conventional MCAI, the Jumbo MCAI decreased by 8.9 percent, and the Conforming MCAI fell by 8.6 percent. “Mortgage credit supply fell to its lowest level since March 2014, driven by a reduction in supply…(read more)

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Source: Mortgage News Daily

MBS Day Ahead: Do Bonds Care About The Dollar?

Posted To: MBS Commentary

Central banks are engaging in unprecedented levels of stimulus and transparency. The US is one of the worst offenders, spending at a record pace while facing a drastic revenue shortfall. Budget and trade deficits are ballooning. The Fed's framework shift raises questions about "too much inflation," even if such a thing is not an immediate threat. Long story short: if the US was a person, it would be on limited hours at work, deep in debt, pulling out all the stops, printing its own money, but confident about a better future. All of the above has reopened a conversation about the impact of the dollar. Back in 2009-2012, I didn't hesitate to make fun of the old guard who lamented the weakening dollar as evidence of "something bad." My opinion isn't nearly as strong…(read more)

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Source: Mortgage News Daily

Ops Jobs; QC, Marketing, VOE Tools; Primer on Credit Availability

Posted To: Pipeline Press

I don’t know exactly when it happened, but somewhere along the line my dog learned the noise the cheese grater makes when I pull it out of the drawer. (Taking out the vegetable peeler doesn’t elicit quite the same response.) It appears that anyone working in their company’s portfolio retention department for refinancing their servicing book quickly develops the same innate sense of knowing whether a loan is do-able or not. (No, they’re certainly not dogs!) Part of that decision is based on pricing, and we were reminded of that in August with the FHFA’s directing Freddie and Fannie to implement a .5 fee. It is delayed, but not forgotten , and is already showing up on rate sheets for longer locks.) Lenders are in the manufacturing business (profit=revenues-expenses…(read more)

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Source: Mortgage News Daily

Consumers More Upbeat on Buying and Selling Despite Lower Price Expectations

Posted To: MND NewsWire

Fannie Mae says its Home Purchase Sentiment Index (HPSI) which, before a slight setback in July, had been rebounding strongly from its April COVID-19 related plunge, got back on track last month. The August index, based on responses to six questions in the National Housing Survey (NHS), increased 3.3 points to a 77.5 reading. Five of the six components rose from their July level with consumers reporting a more optimistic view of both homebuying and home-selling conditions, but a slightly more pessimistic view of expected home price growth. The Index remains down 16.3 points year-over-year. “The HPSI rose modestly in August, recovering the ground it lost in July,” said Doug Duncan, Senior Vice President and Chief Economist. “The HPSI’s recovery was driven by near-record low mortgage rates that…(read more)

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Source: Mortgage News Daily

Mortgage Rates Staying Fairly Steady

Posted To: Mortgage Rate Watch

Mortgage rates haven’t moved much so far this week and they were surprisingly steady at the end of last week despite volatility in the underlying bond market. What does the bond market have to do with rates? Typically everything! But times are a bit different right now for a few reasons. The most pressing consideration for mortgage rates in recent weeks has been the introduction, delay, and impending reintroduction of a new fee that will apply to all conventional refinances. That fee effectively raises rates by 0.125-0.25%. The damage was even bigger at first due to the way it was implemented. As such, when the fee was delayed 2 weeks ago, it allowed lenders to improve mortgage rates regardless of bond market volatility. In the bigger picture , mortgage rates have already encountered quite…(read more)

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Source: Mortgage News Daily

MBS RECAP: It Could Have Been a Lot Worse

Posted To: MBS Commentary

It Could Have Been a Lot Worse Although the bond market definitely had its own reasons to weaken last Friday, stocks have been making big enough moves to complicate things. Simply put, we've had to wonder if bonds would be doing even worse if not for massive stock selling. Today, we got our answer. As a bond-bearish bonus, the 10yr auction was on the weak side as well. All that having been said, the damage could have been a lot worse. Econ Data / Events 20min of Fed 30yr UMBS Buying 10am, 1130am (M-F) and 1pm (T-Th) Market Movement Recap 08:20 AM Bonds were initially stronger overnight on news of a vaccine trial delay. Yields rose gradually, tracing a similar move higher in equities futures. 10yr yields moved into negative territory in the past hour, up 0.6bps a .687. UMBS are starting…(read more)

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Source: Mortgage News Daily

CRM, Marketing, Fraud Products; Mortgage Apps Move Higher; LO Jobs

Posted To: Pipeline Press

Tom Petty sang, “There’s somethin’ good comin,’ just over the hill, somethin’ good comin’, I know it will. And I’m in for the long run, wherever it goes, ridin’ the river, wherever it goes .” Lenders always walk a knife-edge between wanting good economic times for their customers, and having them qualify, but at the same time knowing that bad times helps keep rates low while hurting credit. In an interview with NPR, Federal Reserve Chairman Jerome Powell, while not an immunologist, said that wearing masks and maintaining social distancing to fight the spread of the coronavirus could deliver major benefits to the US economy . He noted the Fed will need to offer steady support even after the pandemic is over. “We think that the economy’s going to need low interest rates, which support…(read more)

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Source: Mortgage News Daily

Loan Originators Posted Record Profits in Q2

Posted To: MND NewsWire

While servicing income was down, independent mortgage banks (IMBs) and mortgage subsidiaries of chartered banks had a very profitable second quarter. They reported an average net gain of $4,548 on each loan they originated, up from a reported gain of $1,600 per loan in the first quarter of 2020, according to the Mortgage Bankers Association’s (MBA) newly released Quarterly Mortgage Bankers Performance Report. “Fueled by a surge in borrower demand and record-low mortgage rates, mortgage production profits in the second quarter reached the highest level since the inception of MBA’s report in 2008,” said Marina Walsh, MBA’s Vice President of Industry Analysis. “Production volume averaged over $1 billion per company, and there was an ideal combination of higher revenues and lower costs. Revenues…(read more)

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Source: Mortgage News Daily

Mortgage Volume Bounced Back With Last Week's Lower Rates

Posted To: MND NewsWire

The volume of mortgage applications reversed direction last week, pulling out a small gain after three straight weeks of declines. The Mortgage Bankers Association’s (MBA’s) Weekly Mortgage Applications Survey for the week ending September 4, was up 2.9 percent on a seasonally adjusted basis and 2.0 percent unadjusted compared to the previous week. The Refinancing Index, which had fallen a cumulative 18 percentage points over the previous three weeks, gained 3 percent and its share of mortgage activity rose to 63.1 percent from 62.5 percent of applications. The Refinancing Index was 60 percent higher than the same week in 2019, but that week had included the Labor Day holiday. The seasonally adjusted Purchase Index increased 3 percent from one week earlier and was 0.2 percent higher on an unadjusted…(read more)

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Source: Mortgage News Daily