Another DOJ/FHA Settlement; Risk Sharing Heating Up; Vendor Announcement Mania

Posted To: Pipeline Press

Flying to Boston for the MBA’s conference? Here’s a view you won’t see. But probably a more important question is, “Is your cyber secure?” The FFIEC just published some frequently asked questions about cybersecurity worth a read for anyone who has a computer. Another week, another settlement with the DOJ over FHA loans. First American Mortgage Trust , which does business as NXTLoan.com, and CEO Barry Polack, will pay $1.025 million to settle charges brought by the Department of Justice , which accused the mortgage lender of submitting false claims on mortgages insured by the Federal …read more

MBS Day Ahead: Draghi Obsessed With Emulating Childhood Hero

Posted To: MBS Commentary

The Fed is the ECB President Mario Draghi's childhood hero (with 'childhood' being a metaphorical term for the infancy of the ECB's response to the 2008 financial crisis). Time and again , we've seen various forms of emulation. The Fed led the charge when it came to unprecedented stimulus efforts after the financial crisis, and it took the ECB years of growing pains and conflict before it was finally able to piece together its own semblance of Fed QE. Like the Fed, there are voices within the ECB that vehemently oppose(d) quantitative easing. And like the …read more

MBS RECAP: One Last Day To Blame ECB For Consolidation

Posted To: MBS Commentary

Bond markets spent yet another day consolidating inside their recent range. In terms of 10yr yields that means rates have fallen from last Friday's highs, but have also been careful to avoid breaking below the important technical floor of 1.73%. Bond markets (and markets in general) tend to consolidate for two key reasons. Either they simply need a few days to make adjustments in trading positions following a streak of higher momentum, or there's an actual reason for indecision. In the current case, the only great candidate we have for an actual reason would be tomorrow …read more

Mortgage Rates Flat Ahead of Potential Volatility

Posted To: Mortgage Rate Watch

Mortgage Rates were steady to slightly lower today, which keeps them fairly close to 4-month highs. 3.625% continues to be the most prevalently-quoted conventional 30yr fixed rate for top tier scenarios, but some of the more aggressive lenders are still at 3.5%. After rising sharply in the first half of the month, rates have leveled-off this week. This could be happening for several reasons . On the most basic level, rates (or any financial instrument for that matter) tend to take periodic breaks during broader directional trends. In other words, if rates are rising consistently, …read more

REO Sales Hit 9-Year Low; All-Cash Follows

Posted To: MND NewsWire

This month CoreLogic has combined their cash sales and distressed sales data into a single report rather than the two they have issued each month since early in the housing crisis. The data released on Wednesday covers July. Distressed sales accounted for 7.2 percent of all sales nationally during the month. Sales of lender owned real estate (REO) accounted for 4.3 percent of total sales and short sales 2.9 percent. It was the lowest share garnered by REO since July 2007 and the overall distressed share was the lowest since that September. At its peak in …read more

Bank M&A; USDA Rural and Disaster Updates; Freddie’s Single Security Proposal

Posted To: Pipeline Press

The management teams at residential lenders across the nation have begun forecasting for 2017. Of course no one wants to tell their boss that they expect a 20% decline in volume, as some are estimating volume to be next year versus this year, so in some areas, and for some companies, grabbing residential market share will be the name of the game. Banc of California , owner of Banc Home Loans , was in the press yesterday , and not for the right reason. A Seeking Alpha contributor wrote a post on the stock claiming ties …read more

Housing Data Mixed; Starts Lag Year-Ago Numbers

Posted To: MND NewsWire

Permits for construction of residential housing improved in September after several dismal months, but housing starts retreated from both August and year-ago numbers. The U.S. Census Bureau and the Department of Housing and Urban Development said permits increased by 6.3 percent from September to a seasonally adjusted annual rate of 1, 225,000. This was well above the expectations of analysts polled by Econoday . Those ranged from 1.150 to 1.182 million with a consensus of 1.165 million. The September permitting number is 8.5 percent higher than that for September 2015. August permits were revised upward from …read more

MBS Day Ahead: No Reason to Expect The Plan to Change

Posted To: MBS Commentary

After worldwide rates hit all-time lows on the heels of Brexit, they consolidated in a narrow, sideways pattern until someone came up with the next plan. That plan began to take shape in early September after some market participants interpreted European Central Bank (ECB) President Mario Draghi as dropping hints about tapering ECB asset purchases–something that would have an analogous effect to the taper tantrum of 2013. On the following chart, looking at the underlying candlesticks, you can see the noticeable increase in volatility at the beginning of September. Yields immediately moved to test the long …read more

MBS RECAP: Bond Recovery Continues, But Context is Important

Posted To: MBS Commentary

If you've been following along with updates on MBS Live , today's recap will be old hat. Long story short, bonds have been selling off in October and they've recently begun to level off ahead of Thursday's European Central Bank announcement. The end. Even though we had what looked like a nice intraday rally in bonds today, if we look at it in the context of the bigger picture, it merely brings yields right back in line with the long-term inflection point that we've been examining for more than a week (the white line in the …read more

Mortgage Rates Inch Lower

Posted To: Mortgage Rate Watch

Mortgage Rates moved slightly lower today, depending on the lender. During the morning hours, rates were roughly unchanged and thus remained in line with the highest levels in more than 4 months. As the day progressed, bond markets improved, resulting in fairly widespread ‘positive reprices’ (meaning that certain lenders issued new rate sheets with modest improvements). After the reprices, the average lender was quoting slightly lower upfront costs for the same note rates seen yesterday. 3.625% is currently the most prevalent conventional 30yr fixed quote on top tier scenarios. Despite the intraday improvements, rate/bond markets …read more