Bank M&A; FHA & VA Updates; Re/Max Rolls Out New Mortgage Company

Posted To: Pipeline Press

It is well documented that “women spend more time wondering what men are thinking than men spend thinking.” Lemon Drops move over! (For those of you who don’t know, the Lemon Drops are an informal group of mortgage gals that meet up at conferences to network.) Women in the real estate financing sector have a new opportunity to connect with others in their field and to access and exchange information about the industry. The Mortgage Bankers Association (MBA) announced the launch of mPower , a professional networking platform that aims to create “a strong, diverse network …read more

MBS Day Ahead: Trend Remains Unfriendly, But MBS Outperform

Posted To: MBS Commentary

Last week provided some hope for bond markets due to a relatively strong move off the recent highs. 10yr yields recovered from the previous week's 1.80% closing level to 1.73% a week later. Granted, that's not a huge move, nor is it a great outright level relative to the past 4 months, but it was a step in the right direction . Unfortunately, such steps are often seen during longer-term uptrends. We would have liked to have seen a solid break below the 1.73% pivot point (a “pivot” because it recently acted as a firm “ceiling” …read more

Mortgage Rates Stuck at Highs For Now

Posted To: Mortgage Rate Watch

Mortgage Rates were unchanged in many cases today, with a handful of lenders inconsequentially better or worse versus yesterday’s latest offerings. Despite moving lower on 4 out of the past 6 days, rates were never able to put meaningful distance between themselves and the highest levels in more than 4 months. The slow progress was partly a market phenomenon and partly due to lender strategy. Mortgage rates are driven by bond markets–specifically, mortgage-backed-securities (MBS). Bond markets were hesitant to rush back toward lower rates after topping out in mid-October because traders continued to wait for …read more

FHFA, Case-Shiller Agree: Price Appreciation Staying Strong

Posted To: MND NewsWire

Price gains accelerated in August, rising more year-over-year than they did in July according to data released today by both the Federal Housing Finance Agency (FHFA) and S&P CoreLogic Case-Shiller. The Case-Shiller U.S. National Home Price Index, which covers all nine U.S. census divisions, rose 5.3 percent compared to August 2015. In July the annual gain was 5.0 percent, revised from an original estimate of 5.2 percent. Before seasonal adjustment the National Index posted a month-over-month gain of 0.5 percent (the increase from July to August was 0.7 percent) and an 0.6 percent increase after seasonal …read more

Fannie and Freddie Updates From The Conference; Trends in HELOCs & eClosings

Posted To: Pipeline Press

The annual mortgage conference is in full swing, and I am sure that reports of “ 10 vendors for every 1 residential lender ” are exaggerated. Well, maybe not. That aside, for tens of thousands of years, homo sapiens involved in residential lending have used acronyms. What would we do without the ability to abbreviate something? Throw in regulatory reform and its alphabet soup of acronyms and terms, and our heads are swimming. Occasionally I am asked about a list of acronyms of frequently used terms. Here’s the latest: Financial Services Glossary . And plural acronyms …read more

MBS Day Ahead: What do Recent Moves Tell us About Market’s Focus?

Posted To: MBS Commentary

At the risk of repeating a common refrain, rates have been rising gradually since July and in a more volatile way since early September. I've chalked up a fair amount of that volatility to anxiety over the potential European tapering, and I continue to see the early December European Central Bank announcement as the biggest flashpoint for bond markets in the near-term future. That said, it's not the only flashpoint. With what can only be described as 'entirely too many' soundbytes from Fed speakers talking about the need to hike rates, against the backdrop of utter …read more

MBS RECAP: Straightforward Sell-Off, Even if From an Unexpected Source

Posted To: MBS Commentary

Bond markets ended the day in moderately weaker territory today, despite starting out in the Green. What happened? Today was refreshingly straightforward when it comes to attributing market movement to overt, logical sources. Today's source was the Markit Manufacturing PMI . If you're wondering exactly what that is, you're not alone. First of all, a PMI (or Purchasing Managers Index) is one of the best economic metrics for a broad categories such as “manufacturing” or “everything besides manufacturing.” The Institute for Supply Management (ISM) puts out both versions of PMI, and they're the first runners up …read more

Mortgage Rates Unable to Keep Winning Streak Alive

Posted To: Mortgage Rate Watch

Mortgage Rates bounced slightly higher for the first time in more than a week today, thus remaining in limbo near the highest levels in more than 4 months. On a positive note, recent movements have been small, with no change to the prevailing note rates of 3.5-3.625% on top tier conventional 30yr fixed scenarios. That means the deterioration is seen in the form of modestly higher upfront costs (or lower lender credit, depending the structure of the quote). In other words, markets haven’t moved enough for rates to rise a full 0.125%. Because mortgage rates …read more

Fannie and Freddie Lowering Underwriting Barriers

Posted To: MND NewsWire

Fannie Mae and Freddie Mac each announced what appear to be essentially identical changes in their loan underwriting programs – Fannie calls its new offering “Day 1 Certainty” while Freddie was less poetic, referring simply to new capabilities added to its Loan Advisor Suite. Fannie Mae President and Chief Executive Officer, Tim Mayopoulos, described Day 1 Certainty today as a way to give lenders “freedom from representations and warranties and greater speed and simplicity when delivering loans to Fannie Mae.” He said this will help transform the way lenders do business by moving a paper-based process …read more

Mid-Sized Bank Earnings; Conforming News; Genworth Financial Finds An Overseas Buyer

Posted To: Pipeline Press

Are you wearing an Apple watch to that important business meeting? Maybe you shouldn’t , unless you don’t mind people listening in . How much does it cost to defend yourself against a Department of Justice lawsuit? I’m sure Moody’s Corp. rating agency has thought about the cost of a civil suit, as it is about to pay for it . You can bet that Fitch is watching closely; S&P settled last year for $1.5 billion. Gee, inflating ratings to gain business from lenders & banks? The question is, has that model been fixed by those …read more