banner image not found

Our Latest News

Highest Rates in a Week After Surprisingly Strong Economic Reports

  • Posted To: Mortgage Rate Watch

    Mortgage rates moved higher again today, bringing the average lender to the worst levels since last Thursday. There are a few exceptions to that due to recent regulatory changes. Specifically, many lenders made improvements to loans for 2nd homes and investment properties. That's the short version. If you need to background, here's the long version . The average loan scenario was unaffected by the regulatory changes and thus was free to react to the day's bond market weakness. Bonds responded immediately to a pair of economic reports that came in much stronger than expected this morning. In general, stronger data pushes bond prices lower and yields (aka "rates") higher. The culprits in this case were the Retail Sales data for August and the Philadelphia Fed's Manufacturing Outlook Survey from...(read more)

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



    Thu, 16 Sep 2021 20:20:21 GMT

MBS RECAP: Uneventful Afternoon After Strong Data Sends Yields Higher

  • Posted To: MBS Commentary

    Uneventful Afternoon After Strong Data Sends Yields Higher Today's key development was the duo of much stronger economic reports at 8:30am (Philly Fed and Retail Sales). Indeed, this accounted for the only interesting moments of the day. 5 minutes later, both MBS and Treasuries weakened to levels that persisted through the 3pm CME close. Bottom line: quick adjustment due to the data and then a sideways grind that reinforced the broader sideways-to-slightly-weaker range. Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm Retail Sales 0.7 vs -0.8 f'cast, -1.1 prev Jobless Claims 332k vs 330k f'cast Philly Fed Index 30.7 vs 18.8 f'cast Market Movement Recap 08:35 AM flat in Asia, then inconsequentially higher in yield during European hours, but losing ground quickly after significantly...(read more)

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



    Thu, 16 Sep 2021 19:54:54 GMT

Refis and Purchasing Split Originations in July

  • Posted To: MND NewsWire

    Refinancing and home purchases had a nearly even share of mortgage originations in July. ICE Mortgage Technology said that 50 percent of closed loans during the month were purchase mortgages while 49 percent were for refinancing. Refinancing, however, continued to dominate the conventional market at 54 percent of those loans. The share among FHA loans was 22 percent and refis accounted for 32 percent of VA loans. The time to close a loan improved slightly from June to July. It took an average of 48 days on average, one day less than in June. The time to close a refinance dipped from 48 to 47 days and purchase loans took 48 days compared to 51 the previous month. The average note rate during the month was 3.25 percent, 3 basis points higher than in June. Over the 12 months ended in July the...(read more)

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



    Thu, 16 Sep 2021 15:02:48 GMT

AE Jobs; Lock Desk, VOE, Sales, Reporting Tools; More Conf. Conv. Changes; Remote Events Today

  • Posted To: Pipeline Press

    I’m getting old. I can remember the lyrics from a Steppenwolf song that I haven’t heard in 20 years but I don’t remember what I had for lunch yesterday. I do know, however, that today is a trip to Atlanta for a presentation with attorney Mitch Kider, and I glanced at the topics at NAMMBA Connect 2021 . See how many of these, a subset of the sessions, apply to what your company is doing. Reinventing the consumer experience, using diversity as a competitive advantage, connecting with staff, consumers, and creating loyalty, what diverse candidates are looking for in their employers, how to gain more Realtor business, breaking into the builder market, niche products (203K and Non-QM lending) time management strategies, building a business to compete in a tough purchase environment...(read more)

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



    Thu, 16 Sep 2021 15:01:34 GMT

MBS Day Ahead: Starting on The Back Foot After Stronger Retail Sales

  • Posted To: MBS Commentary

    Bonds are starting the day on the back foot as Retail Sales rose 0.7% despite a median forecast of -0.8. The Philly Fed numbers also surged past 18.8 forecasts to the tune of 30.7--decisive victories for economic data on both fronts. Bonds are reacting logically with a move to the weakest levels of the day, but it's pretty orderly so far. Ideally, it should be challenging for selling pressure to get too excessive as traders keep powder dry for next week's Fed. From a technical standpoint, this weakness adds emphasis to yesterday's conclusion. Simply put, bonds attempted to break the prevailing consolidation range with Tuesday's move lower in yields. Wednesday then pushed back in the other direction, thus implying the breakout was not "confirmed." Now today's early...(read more)

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



    Thu, 16 Sep 2021 13:08:56 GMT

Mortgage Rates Start Stronger But Moved Higher During The Day

  • Posted To: Mortgage Rate Watch

    Mortgage rates began the day with promise. Actually, it was the underlying bond market (which largely dictates mortgage rates) was sending promising signals by apparently building on the bigger improvements seen on Tuesday. This is exactly what mortgage lenders needed in order to feel comfortable setting rates at even lower levels. Unfortunately , not long after the day began, bonds started losing ground. For more than a few lenders, the intraday losses were enough to prompt mid-day reprices (meaning that the initially-offered mortgage rates were replaced by slightly weaker terms. A mid-day reprice may or may not be a big deal depending on your perspective. In most cases, the "note rate" for your mortgage quote will remain the same and only the upfront costs will change. In even less threatening...(read more)

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



    Wed, 15 Sep 2021 20:28:00 GMT

MBS RECAP: Sideways Vibes Won't Give Up Just Yet

  • Posted To: MBS Commentary

    Sideways Vibes Won't Give Up Just Yet Bonds made a move yesterday with yields breaking below the lower boundary of the prevailing consolidation range. This type of breakout is a positive sign, generally, but it requires confirmation from the following day of trading (i.e. today). Earlier today, it looked like confirmation was in the cards, but things went south heading into the close of the European session. Yields jumped modestly higher, breaking above the 1.30% technical level in 10s, even if not by much. This suggests short-covering was a driver of yesterday's rally and that sideways vibes remain in the slightly bigger picture. Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm Core CPI (y/y) 4.0 vs 4.2 f'cast, 4.3 prev Market Movement Recap 08:18 AM Flat to slightly stronger...(read more)

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



    Wed, 15 Sep 2021 20:08:00 GMT

Foreclosure Rate Lowest in Over Two Decades

  • Posted To: MND NewsWire

    Today there are 400,000 homeowners in their final month of forbearance and another 1.2 million still in the program as it winds down, thus, it is probably way too early to conclude that the nation has a ducked a pandemic foreclosure bullet, However, the CoreLogic report on June's loan performance suggests we might just pull it off. The company says the U.S. foreclosure rate in June was the lowest in over two decades. Not a surprise as the national moratorium on bank repossessions was in force until the end of July. However, other metrics in the report indicate that homeowners may emerge from the pandemic financially damaged but with homeownership largely intact. In June, 4.4 percent of all mortgages in the U.S. were in some stage of delinquency (30 days or more past due, including those in...(read more)

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



    Wed, 15 Sep 2021 14:51:31 GMT

AE, MLO Jobs; Jumbo, Non-QM, Retention, LOS Products; FHFA's Welcomed Policy Pause on Restrictions

  • Posted To: Pipeline Press

    How ‘bout some random Q&A for Hump Day? Did you know that almost 2,400 of your co-workers are already registered for the National MBA conference next month in San Diego? A company is working to bring back the wooly mammoth ? (What could possibly go wrong with messing with Mother Nature?) Do you have a cloffice ? What are you waiting for? For takeout sushi fans, have you ever wondered about the purpose behind that fake green plastic “grass” in your sushi box? At $18/hour starting wage, how many workers is Amazon trying to hire? How often do you compliment your co-workers or staff? Not often enough . Lastly, there was some Q&A in the audio version of today’s commentary, available here . It has an interview with me about the FHFA shift yesterday, and is sponsored...(read more)

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



    Wed, 15 Sep 2021 14:25:50 GMT

FHFA Suspends Second Home, Investment Loan Limits

  • Posted To: MND NewsWire

    The Federal Housing Finance Agency (FHFA) and the U.S. Department of the Treasury announced late Tuesday that they were suspending some of the provisions that had been added to the Preferred Stock Purchase Agreements (PSPAs) on last January. The PSPA is the legal agreement between Treasury and Fannie Mae and Freddie Mac governing the terms of the line of credit given to the GSEs in 2008 when they were put into conservatorship. FHFA acting director Sandra L. Thompson said, "This suspension will provide FHFA time to review the extent to which these requirements are redundant or inconsistent with existing FHFA standards, policies, and directives that mandate sustainable lending standards." The January 14 amendments were said to bring the amount of capital the companies are permitted to retain...(read more)

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



    Wed, 15 Sep 2021 14:19:13 GMT

Purchase Applications Spring Back to April Level

  • Posted To: MND NewsWire

    The traditional end of summer was accompanied by a tiny boost in the volume of mortgage applications. The Mortgage Bankers Association said its seasonally adjusted Market Composite Index, a measure of mortgage loan application volume, increased 0.3 percent during the week ended September 10 on a seasonally adjusted basis from one week earlier. The index included an additional adjustment to account for the shortened week following the Labor Day weekend. The Index dropped 10 percent on an unadjusted basis. The seasonally adjusted Purchase Index rose 9 percent although it was 5 percent lower than the previous week on an unadjusted basis and was 12 percent behind the same week one year ago. The gain in purchase applications was offset by the third consecutive decline in the Refinance Index. It...(read more)

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



    Wed, 15 Sep 2021 14:17:31 GMT

MBS Day Ahead: Bonds Trying to Confirm Range Breakout

  • Posted To: MBS Commentary

    Yesterday's most notable accomplishment for the bond market was the breakout of the prevailing consolidation range (aka "pennant," to use a technical term). We might have hesitated to read anything into this had it not been for elevated volume and the fact that it was data-driven (Consumer Price Index). We still might hesitate to read too much into it considering next week's Fed announcement stands the best chance of setting the tone in the medium term, but for now, it's fair to consider whether we're seeing evidence that bonds can maintain more of a sideways range as opposed to the previous "sideways-to-slightly-weaker" momentum. Bonds are under a bit of pressure to start the day. After hitting 1.260% lows early in the domestic session, 10yr yields are up...(read more)

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



    Wed, 15 Sep 2021 13:57:40 GMT

2021's Big Bad Mortgage Fee Hikes Have Been Removed! (Sort Of...)

  • Posted To: MBS Commentary

    Earlier this year, the FHFA and Treasury amended Treasury's preferred stock repurchase agreements (PSPAs) to put limits on Fannie Mae and Freddie Mac (collectively, the GSEs). These limits resulted in widespread fee increases for several categories of mortgages with investment properties and 2nd homes taking the heaviest damage. Here's a quick list of our previous coverage: Initial coverage : Fannie Warns Lenders on Investment Properties and 2nd Homes Big Hit to Second Home and Investment Mortgages Criticism : UI Urges Abandoning New Fannie/Freddie Amendments Fallout: Calabria is Out at FHFA Much of the sense of urgency behind the initial changes came as a consequence of the changing of the administrative guard. Previous FHFA Director Calabria was intent on leaving a legacy as "the...(read more)

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



    Tue, 14 Sep 2021 23:04:24 GMT

MBS RECAP: Bonds Rally After CPI Gives Fed The Week Off

  • Posted To: MBS Commentary

    Bonds Rally After CPI Gives Fed The Week Off Today's Consumer Price Index (CPI) was one of the only big ticket economic reports left before next week's Fed announcement, and perhaps the only one that could have meaningfully impacted the Fed's decision-making process. By coming in tamer than expected (and with several notable sectors such as used autos being down 1.5%), today's result effectively tells the Fed it can take next week off. Had today's report been significantly stronger than expected, markets may have panicked for fear that the Fed could announce some measure of reduction in its rate-friendly policies. Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm Core CPI (y/y) 4.0 vs 4.2 f'cast, 4.3 prev Market Movement Recap 08:41 AM Slightly weaker overnight with...(read more)

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



    Tue, 14 Sep 2021 20:13:01 GMT

Mortgage Rates Falling Back in Line With Best Recent Levels

  • Posted To: Mortgage Rate Watch

    Mortgage rates started the day modestly lower , but many lenders ended up offering mid-day improvements in response to market conditions. When it comes to rates, the bond market sets the tone. Bonds can move for a variety of reasons, but economic data is one of the quintessential inputs. If the incoming data suggests a hotter economy or higher inflation, rates tend to rise . The opposite is also true (weaker data = lower rates) as was the case today. The Bureau of Labor Statistics released the Consumer Price Index for the month of August today. This is one of the more widely-followed inflation reports. As such, rates improved when the report suggested inflation decelerated by more than expected. Rates didn't drop too much, but they're nonetheless back in line with their lower recent levels...(read more)

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



    Tue, 14 Sep 2021 19:17:00 GMT

AE, MLO, Client Service Jobs; MSR, Automation, App Integration, Warehouse, TPO Products; Forbearance Numbers Drop Again

  • Posted To: Pipeline Press

    When Miley Cyrus licks a hammer and dances around naked, it’s considered “art.” When I tried it, I got kicked out of Home Depot. Go figure. How is your company figuring it will react to the rumblings that mortgage lenders meet the definition of federal contractors ” as it relates to the Biden Administration’s executive order to require vaccinations from such businesses? Lenders are wondering, with their lender insuring approval, and endorsing FHA loans for insurance, and making VA loans with VA Automatic lending authority, if they fall into that bucket. It is best that you ask your legal counsel, but an informal poll that I have taken indicates that, given the provisions and applicable definitions in the Executive Order, it does not apply to lenders just because...(read more)

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



    Tue, 14 Sep 2021 14:41:34 GMT

MBS Day Ahead: Tamer Inflation Makes Next Week's Fed Less Scary

  • Posted To: MBS Commentary

    Today's Consumer Price Index (CPI) was one of the only big ticket economic reports left before next week's Fed announcement, and perhaps the only one that could have meaningfully impacted the Fed's decision-making process. Granted, that would have taken a shockingly big number, but by coming in tamer than expected, today's result removes any doubts. Stocks and bonds did what stocks and bonds normally do when they receive an update that affects the Fed's tapering outlook. The same sorts of trades can be seen after the jobs report 2 weeks ago, and Powell's Jackson Hole speech a week before that: In the bigger picture, today's CPI reading edifies the market's stance on longer-term inflation. The blue line below is "market-based inflation" (measured by...(read more)

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



    Tue, 14 Sep 2021 13:34:21 GMT

MBS RECAP: Quiet Summertime Monday Leaves Bonds Slightly Stronger

  • Posted To: MBS Commentary

    Quiet Summertime Monday Leaves Bonds Slightly Stronger Treasuries have experienced more of the volatility in the bond market than MBS recently. That makes sense given last week's auction cycle and the ongoing glut of corporate bond issuance. Volume and volatility were both minimal today as yields casually bumped the bottom of the consolidation range and coasted sideways for the rest of the day. There are a few chances to see some data-inspired market movement this week, but the "consolidation ahead of next week's Fed Announcement" seems to be the default game plan. Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm Market Movement Recap 09:11 AM Sideways to modestly stronger overnight in bonds, with a decent recovery in stocks. 10yr yield down 1bp at 1.333% and 2.0 UMBS up...(read more)

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



    Mon, 13 Sep 2021 20:20:46 GMT

Mortgage Rates Flat to Start The Week

  • Posted To: Mortgage Rate Watch

    Mortgage rates were fairly flat to start the new week. This leaves the average lender in the high 2% range for top tier conventional 30yr fixed scenarios (i.e. 20%+ equity, 740+ FICO, owner-occupied, single-family, detached homes). This is just a bit higher than the all-time lows seen at the beginning of the year when rates were in the mid-2% range. There's disagreement about where we go from here. The easy answer--and probably the more common one--is that rates will gradually move higher as we continue to distance ourselves from the worst days of the pandemic. But that answer actually implies its own counterpoint: a lot depends on covid! Specifically, if the delta-driven case count spike doesn't quietly subside, and more importantly, if cases accelerate into the fall months, rates could remain...(read more)

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



    Mon, 13 Sep 2021 19:44:00 GMT

Regional, MLO Jobs; Processing, Blockchain, O&E, Fix and Flip, Reverse Mortgage Products; Wholesalers and Appraisals

  • Posted To: Pipeline Press

    On HGTV, people can flip a whole house in a month. Meanwhile, I’ve been “getting ready to vacuum” for a week now. There isn’t a lot of mirth in residential lending, especially when it comes to discussing wealth trends. Don’t think that the housing market is helping to widen the gap between the haves and have nots? “Real estate investors purchased 67,943 U.S. homes in the second quarter of 2021, the highest quarterly figure on record . That’s up 15.1% from the prior quarter, and up 106.7% from the second quarter of 2020, when activity in the housing market was stalled due to pandemic restrictions.” And here’s a tip for lenders: make sure that you have decent cash-out refinance pricing & products. I am not a fan of using a house as a piggy...(read more)

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



    Mon, 13 Sep 2021 15:23:06 GMT

MBS Week Ahead: Stronger Start Despite Charts; Some Data This Week, But Fed Day Remains in Focus

  • Posted To: MBS Commentary

    There is a smattering of data in the week ahead with Tuesday's CPI and Thursday's Retail Sales reports being the headliners. Data is merely a "potential" market mover though. Next week's Fed announcement is an "almost certain" source of volatility, for better or worse. In addition, by this time next week, markets will have a better sense of whether covid numbers actually turned a corner last week or if it was merely a byproduct of the holiday weekend. That leaves this week as a sort of prologue to next week's main events, but data and corporate bond supply could still make things interesting. Technical patterns support the idea of bonds hunkering down ahead of a big decision. While moving averages can't do much to predict the future, yields find themselves...(read more)

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



    Mon, 13 Sep 2021 14:06:09 GMT

Rate Reckoning Draws Closer

  • Posted To: Mortgage Rate Watch

    Rates are dictated by the bond market and bonds are flashing a warning sign about volatility on the horizon. In other words, rates look like they're ready to make a bigger move in the near future, for better or worse. This isn't readily apparent at first glance--especially when it comes to mortgage rates (which are still very close to all-time lows). Even when we look at a rate benchmark like 10yr Treasury yields, it seems that volatility has died down recently. But the absence of volatility is actually the problem. Rates had been moving decisively higher early in the year as vaccines and fiscal stimulus fueled hopes of a quicker economic recovery. More recently, political gridlock and the delta-driven surge in covid cases took 10yr yields back in the other direction. Covid numbers are the...(read more)

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



    Fri, 10 Sep 2021 23:51:00 GMT

MBS RECAP: Bond Weakness Reinforces The Consolidation Pattern

  • Posted To: MBS Commentary

    Bond Weakness Reinforces The Consolidation Pattern Bonds were weaker overnight and the selling trend continued fairly steadily throughout the day. The only exception was a bigger yield spike that coincided with (but wasn't necessarily caused by) the EU close. It is worth noting, however, that yields topped out the moment after the EU closing bell and have been sideways in a narrow range since then. Jargon terms like "position squaring" and "illiquidity" certainly can't be ruled out here, but we can't really act upon such conclusions without seeing how bonds are trading on Monday morning. Econ Data / Events Fed MBS Buying 10am, 1130am, 1pm Core Producer Prices: (y/y) 6.7 vs 6.6 f'cast, 6.2 prev (m/m) 0.6 vs 0.5 f'cast, 1.0 prev Market Movement Recap 08...(read more)

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



    Fri, 10 Sep 2021 20:00:29 GMT

Lenders Continue to Expect Falling Profits, Refinancing Demand

  • Posted To: MND NewsWire

    With interest rates expected to rise and most homeowners who could benefit from refinancing having done so, mortgage bankers are not expecting the sometimes record profits of the last year or so to continue. Fannie Mae's third quarter Mortgage Lender Sentiment Survey (MLSS) found just short of a majority of respondents expecting their profit margins to decline over the next three months , although that has also been the primary sentiment for the past three quarters. The current survey found 46 percent of lenders expecting a decrease in profits, down from 69 percent in the prior survey. Thirty-eight percent believe their profits will be unchanged and 15 percent expect them to be higher. Those expecting slimmer margins cited increased competition and changing market conditions for their pessimism...(read more)

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



    Fri, 10 Sep 2021 19:25:52 GMT

Foreclosure Activity Rises in First Post-Moratorium Month

  • Posted To: MND NewsWire

    The other shoe didn't drop last month, but maybe the laces did start to unravel. ATTOM reports that, within a month after the government's pandemic-related moratorium lifted, foreclosure filings nationwide rose 27 percent and were 60 percent higher than in August 2020 when the moratorium was in full force . There were a total of 15,838 properties that received a foreclosure filing during the month, either a notice of default, scheduled auction, or bank repossession. "As expected, foreclosure activity increased as the government's foreclosure moratorium expired, but this doesn't mean we should expect to see a flood of distressed properties coming to market," said Rick Sharga, Executive Vice President at RealtyTrac, an ATTOM company. "We'll continue to see foreclosure activity increase over the...(read more)

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



    Fri, 10 Sep 2021 18:17:28 GMT