Prices Hit All-Time Highs Again; Rates Move Up; Regulatory and UW Changes; Private-Label MBS

Mortgage rates moved higher today, bringing them back into the range that’s dominated the second half of the month. That means the average lender is fairly close to the highest rates in more than 2 years, officially seen on December 15th. There hasn’t been much movement since then, which is not uncommon during the winter holiday season. As for the contract rates, themselves, 4.375% remains the most prevalent conventional 30yr fixed quote for top tier scenarios. Several lenders still up at 4.5% and a few are down at 4.25%. Barring the unforeseen, lenders will have little incentive to make meaningful adjustments to rates between now and the end of the year, thus decreasing the risk and reward associated with a “lock vs float” decision. Today’s Best-Execution Rates 30YR FIXED – 4.375-4.5% FHA
Prices Hit All-Time Highs Again; Rates Move Up; Regulatory and UW Changes; Private-Label MBS
Prices Hit All-Time Highs Again; Rates Move Up; Regulatory and UW Changes; Private-Label MBS

MBS RECAP: Slowest Full Day of The Year

Posted To: MBS Commentary

As far as full business days go (those that aren't "early close"), today was by far and away the slowest day of the year for bond markets. In fact, it may be the slowest day of the year, period, by the time the final volume tallies are in. This has at least two implications. First, it means that today's market movement is less consequential than a day with exceptionally high volume. In other words, no big decisions were made today. Traders are in maintenance mode–just trying to keep things in the prevailing post-Fed range. Second, it means–for lack of a more elegant way to put it–" whoever shows up, wins ." That might sound a bit trite, but it applies well to these super-low-activity trading days. A closer look at the day's main instances of movement and volume…(read more)

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


MBS RECAP: Slowest Full Day of The Year
MBS RECAP: Slowest Full Day of The Year

Mortgage Rates Erase Last Week's Modest Gains

Posted To: Mortgage Rate Watch

Mortgage rates moved higher today, bringing them back into the range that’s dominated the second half of the month. That means the average lender is fairly close to the highest rates in more than 2 years, officially seen on December 15th. There hasn’t been much movement since then, which is not uncommon during the winter holiday season. As for the contract rates, themselves, 4.375% remains the most prevalent conventional 30yr fixed quote for top tier scenarios. Several lenders still up at 4.5% and a few are down at 4.25%. Barring the unforeseen, lenders will have little incentive to make meaningful adjustments to rates between now and the end of the year, thus decreasing the risk and reward associated with a “lock vs float” decision. Today’s Best-Execution Rates 30YR FIXED – 4.375-4.5% FHA…(read more)

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


Mortgage Rates Erase Last Week's Modest Gains
Mortgage Rates Erase Last Week's Modest Gains

Reviving Private-Label MBS: a Heavy but Necessary Lift

Posted To: MND NewsWire

While securitization of auto loans is about 16 percent higher than it was in 2001 and agency mortgage-backed securities (MBS) are up over 50 percent, the issuance of private-label securities (PLS) , which collapsed in the housing crisis, has not rebounded. They are down by more than 70 percent since 2001 and 95 percent since they peaked in 2005. In a paper written for the Urban Institute’s Housing Finance Policy Center, Senior Fellow Jim Parrott discusses why, when capital is flowing through virtually every other secondary market channel, is it avoiding this one and what might be done about it. Parrott says right now the PLS economics just don’t work . Issuers can’t match the yield of government backed issues relative to the risks and they can’t compete with portfolio lenders because banks…(read more)

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


Reviving Private-Label MBS: a Heavy but Necessary Lift
Reviving Private-Label MBS: a Heavy but Necessary Lift

Black Knight HPI Nudges 2006 Peak

Posted To: MND NewsWire

Black Knight Financial Services wrapped up the October series of national home price reports with its Home Price Index (HPI). It contained numbers nearly identical to those issued earlier in the day for the S&P CoreLogic Case Shiller National Index. Black Knight, which publicly releases numbers on a non-seasonally adjusted basis, says October home prices were up 0.2 percent from September, the same as Case-Shiller’s non-seasonally adjusted estimate of change. Prices were up 5.6 percent for the year ended in October compared to a September 2015 to September 2016 gain of 5.4 percent. It was the highest year-over-year increase for Black Knight’s HPI thus far in 2016 and the 54th consecutive month of annual home price appreciation. This put the HPI at $266,000, only 0.04 percent below the peak…(read more)

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


Black Knight HPI Nudges 2006 Peak
Black Knight HPI Nudges 2006 Peak

Should Fed take it easy with rate hikes?

[View:http://video.cnbc.com/gallery/?video=3000578582&__source=mnd|news|video|&par=mnd]

Alan MacEachin, Navy Federal Credit Union chief economist, discusses what he thinks the Fed needs to do next, after raising rates in December.

…(read more)

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


Should Fed take it easy with rate hikes?
Should Fed take it easy with rate hikes?

Consumer confidence at 113.7 in Dec.

[View:http://video.cnbc.com/gallery/?video=3000579263&__source=mnd|news|video|&par=mnd]

CNBC's Rick Santelli reports the latest read on consumer confidence in December.

…(read more)

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


Consumer confidence at 113.7 in Dec.
Consumer confidence at 113.7 in Dec.

Home Prices Set Second Consecutive All-Time High

Posted To: MND NewsWire

Price gains in October once again accelerated on an annual basis. The S&P CoreLogic Case-Shiller National Index, which covers all nine U.S. census divisions, was up 5.6 percent compared to October 2015. It was the largest increase year-to-date in 2016. The September-to-September increase was 5.4 percent (revised from the originally reported 5.5 percent). The Index was up 0.2 percent from September on a non-seasonally adjusted basis and 0.9 percent adjusted. The 10-City Composite Index rose 4.3 percent compared to the previous October, and the 20-City Composite was up 5.1 percent. Both of indices’ year-over-year gains were .01 percentage points larger than in September. On a monthly basis, the 10-City was unchanged and the 20-City was up 0.1 point on a non-adjusted basis while each rose…(read more)

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


Home Prices Set Second Consecutive All-Time High
Home Prices Set Second Consecutive All-Time High

Fiscal policy good recipe for strong US dollar: Pro

[View:http://video.cnbc.com/gallery/?video=3000579236&__source=mnd|news|video|&par=mnd]

Lindsey Piegza, Stifel fixed income economist, and Marc Chandler, Brown Brothers Harriman, weigh in on the dollar, rally and economy. We are going to have to see policies trickle down into the economy, says Piegza. And Chandler sees politics as the dominant theme in Europe.

…(read more)

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


Fiscal policy good recipe for strong US dollar: Pro
Fiscal policy good recipe for strong US dollar: Pro

CFPB/HMDA/Reg. Z Changes; Big Bank/Lender Underwriting Changes; Upcoming Events

Posted To: Pipeline Press

How has it been ten years since James Brown passed away? And now George Michael. (I guess no matter how much money you have, or how famous you are…) To keep things in perspective, the yield on the 10-year, 10 years ago, was 4.76%. And 30-year mortgage rates were 6.125%. And yes, people were still buying homes, refinancing, and lenders and their employees were making money and helping borrowers. IT staffs around the country are now focused on HMDA , and the changes to be implemented in terms of an increased data file size – better make sure a) all those fields are correct, and b) they don’t show discriminatory lending practices! Last week the CFPB announced annual adjustments to two asset-size exemption thresholds. First, the CFPB has made no change to the asset-size exemption threshold under…(read more)

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


CFPB/HMDA/Reg. Z Changes; Big Bank/Lender Underwriting Changes; Upcoming Events
CFPB/HMDA/Reg. Z Changes; Big Bank/Lender Underwriting Changes; Upcoming Events