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Mortgage and Finance


Mortgage News Daily

Posted To: Mortgage Rate Watch

Mortgage Rates were unchanged to slightly lower this morning following the much-anticipated Jackson Hole speech from Fed Chair Janet Yellen. Markets were looking for clues about upcoming rate hikes, but true to form, Yellen played things close to the vest. Underlying bond markets initially indicated higher rates due to Yellen's comment about the case for rate hikes having strengthened in recent months, but ultimately, this isn't anything markets didn't already know. As such, bonds swung back in the other direction, thus providing a drama-free backdrop for mortgage rates. Most lenders continue quoting conventional 30yr fixed rates in the 3.375-3.5% range on top tier scenarios. Rates themselves will not have changed day-over-day, but closing costs for any given rate can vary slightly. On average...(read more)

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8/26/2016 8:54:00 AM

Posted To: MND NewsWire

Among the charts and tests summarizing most of the housing finance news that emerged during July, the latest issue of the Urban Institute's (UI's) Housing Finance Chartbook contained a few unique visualizations. First, loans featuring coverage by private market insurers (PMI) surpassed the market share of loans insured by FHA for the first time in two years. This switch is apparently due to the April adjustment of PMI premiums, which dropped the cost for low risk borrowers and raised them for those with a higher credit risk profile. There has probably also been some impact on the distribution from some larger lenders who have focused on marketing the lower down payment opportunities offered through new GSE products. Whatever the reasons, the PMI industry's share of originations increased from...(read more)

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8/26/2016 7:08:42 AM

Posted To: Pipeline Press

“Rob, have you seen any place where I can see individual lender stats for VA loans?” Sure. Here it is . Knock yourself out. For you CFPB watchers, it has ordered First National Bank of Omaha to provide $108 per head, or $27.75 million, in relief to roughly 257,000 consumers harmed by illegal practices with credit card add-on products. See? Mortgages aren't the only industry in its crosshairs. BuckleySandler partners Andrew L. Sandler and Valerie Hletko led the team that advised First National Bank of Omaha in relation to the CFPB's most recent Order. (CFPB Press Release: http://bit.ly/2bK0h74 ). Yesterday a little uncertainty was removed from the conventional conforming arena. The Federal Housing Finance Agency (FHFA), which runs Freddie & Fannie for the U.S. Government, has...(read more)

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8/26/2016 7:05:04 AM

Posted To: MBS Commentary

All too many lookers on--myself included--have made far too much of today's Jackson Hole speech from Fed Chair Yellen (11am ET, we're led to believe). I'm here to make amends for that. It's not that Yellen's speech can't or won't matter. Indeed some of the craziest, most revelatory market movements have followed this weekend in Wyoming. Rather, this particular weekend cannot possibly be sufficiently revelatory to provoke extreme movement in the bigger picture. Past revelations have had to do with big picture shifts in Fed policy. I ask you: what big picture shift can we possibly have in an environment where inflation is absent and major foreign economies are still actively engaged in QE and other forms of rate repression? Sure, job creation is strong, but where is...(read more)

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8/26/2016 2:31:03 AM

Posted To: MBS Commentary

As we discussed this morning, sometimes markets will take a "lead-off" ahead of a big potential market mover if there's an underlying predisposition that traders have been 'hiding' (for lack of a better term). This has resulted in some surprisingly big moves ahead of things like NFP releases and Fed Announcements over the years. Even without such a big movement, we still usually see some signs of increased bet-making on the run up to the big event. But not this time. Bonds gave no clues about what they might be thinking ahead of Yellen's Jackson Hole speech tomorrow. That said, they did react in some small way to the stronger Durable Goods numbers. Before that, bonds were in just slightly stronger territory through the overnight session. When Durable Goods came out...(read more)

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8/25/2016 2:14:03 PM

Posted To: Mortgage Rate Watch

Mortgage Rates were unchanged , yet again, keeping alive an uncanny streak of lifelessness. That COULD change tomorrow after Fed Chair Yellen's speech at the Jackson Hole symposium, but please note the emphasized word. This is always the case when it comes to big potential market movers. They can be thought of as "reserving the right" to push rates quickly higher or lower, but they don't always exercise that right. At the moment, markets-- especially those for interest rates--have been so devoid of movement that investors are increasingly anxious about the eventual return of volatility. Yellen's speech tomorrow is simply the most obvious source of inspiration on the near-term calendar. If it doesn't do the trick, investors will move on to next week's busy slate of economic data. Either way...(read more)

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8/25/2016 1:22:00 PM

Posted To: MND NewsWire

While implementation is a ways down the road, both Fannie Mae and Freddie Mac (the GSEs) will offer new streamlined refinance options aimed at borrowers with high loan-to-value (LTV) ratios. The Federal Housing Finance Agency (FHFA), conservator of the GSEs, announced on Thursday that the new products will be available starting in October 2017 . In the meantime, in order to provide a bridge for borrowers with high loan-to-value (LTV) ratios, FHFA has extended the availability of Home Affordable Refinance ( HARP ) loans through September 30, 2017 rather than terminating the program at the end of this year. The FHFA announcement says the new GSE refinance offerings will provide much-needed liquidity for borrowers who are current on their mortgage but are unable to refinance through traditional...(read more)

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8/25/2016 11:57:21 AM

Posted To: MND NewsWire

While the both the investor share of home sales and the share represented by distressed properties are setting post-crash lows, the share of cash sales remains elevated . CoreLogic reports that in May cash sales represented 30 percent of home sales. While this was down 1.7 percentage points from April and was 2.5 points lower than a year earlier, it remains 5 points higher than the average before the housing crisis. Cash transactions peaked at 46.6 percent of home sales in January 2011. CoreLogic estimates that, at the current rate of decline, it will return to a 25 percent share by mid-2018 . REO sales continue to have the largest cash share , 56.6 percent in May. However only 5.1 percent of home sales during the month were from lender inventories, down from about a quarter of sales when cash...(read more)

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8/25/2016 11:06:44 AM

Posted To: Pipeline Press

How’d you like to work for a company that was in the press nearly every day – rarely in a good way? How’d you like to work for a company whose future is uncertain, and anyone with a keyboard can comment on it? How’d you like to be thought of as a ward of the state, unable to save any money for a rainy day? How’d you like to work for a company whose history and good works seem to have been forgotten, and the employees can’t discuss the future? Welcome to Fannie Mae and Freddie Mac – and below there’s a lot of news with the Agencies. It’s not all fun and games – unlike the Chicago White Sox and Guaranteed Rate. Guaranteed Rate has signed a 13-year naming rights contract with the Sox: beginning November 1 the MLB stadium will be named...(read more)

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8/25/2016 7:08:50 AM

Posted To: MBS Commentary

Most likely, today will just be another day in the range-bound grind for bond markets leading up to tomorrow's Jackson Hole speech from Yellen. Although this particular instance of sideways movement is much more extreme than most past examples, it still fits the same mold of markets consolidating ahead of an ostensibly major event. In the past, we've seen similar consolidations that have been broken early. In other words, it will appear that bonds are trading in a narrow range because they're waiting to see how such and such major event turns out. Then bonds will break either higher or lower a day or two before the actual event, and without anything by way of overt motivation. If something like that is going to happen with this week's much-anticipated Jackson Hole festivities...(read more)

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8/25/2016 6:34:24 AM

Reuters Business News


Reuters: Business News

JACKSON HOLE, Wyo. (Reuters) - The case for a U.S. interest rate hike has strengthened in recent months because of improvements in the labor market and expectations for solid economic growth, Federal Reserve Chair Janet Yellen said on Friday.

8/26/2016 10:30:54 AM

WASHINGTON (Reuters) - U.S. economic growth was slightly more tepid than initially thought in the second quarter as businesses aggressively ran down inventories, offsetting a spurt in consumer spending.

8/26/2016 10:11:57 AM

(Reuters) - Wall Street reversed course to trade lower on Friday afternoon after hawkish comments from Federal Reserve Vice Chair Stanley Fischer raised the specter of a rate hike as soon as next month.

8/26/2016 11:04:12 AM

NEW YORK (Reuters) - A federal judge on Friday granted a request by Uber Technologies Inc and its chief executive Travis Kalanick to put a price-fixing lawsuit against them on hold, while they appeal his denial of their bid to compel arbitration.

8/26/2016 10:46:42 AM

WASHINGTON (Reuters) - Alphabet Inc's Google self-driving car project took a step closer to market with the hire of a top executive from Airbnb, the online vacation home rental marketplace.

8/26/2016 9:30:33 AM

BERLIN (Reuters) - Volkswagen , ramping up output after more than a week of disruptions, said it has avoided trimming the hours of most of the 28,000 workers affected by suppliers retaining parts.

8/26/2016 8:24:18 AM

(Reuters) - Herbalife Ltd's biggest critic, hedge fund manager Bill Ackman, said he had been approached to buy shares in the nutritional supplements maker from billionaire investor Carl Icahn.

8/26/2016 8:10:35 AM

DUBLIN (Reuters) - U.S. jobs data top economic readouts from around the world next week as global markets begin to return to business as usual following a typically quiet August with the calm broken on Friday by comments from Federal Reserve Chair Janet Yellen.

8/26/2016 9:54:51 AM

JACKSON HOLE, Wyo. (Reuters) - Schooled in economic thinking that confines monetary policy to the short run, central bankers gathering in Jackson Hole, Wyoming, are grappling with a singular change: whether they can take over as guardians of long-term growth with programs that may stay in place and influence markets for decades to come.

8/26/2016 6:29:30 AM

DETROIT (Reuters) - Mazda Motor Corp will recall 190,000 of its CX-7 sport utility vehicles from model years 2007 to 2012 in the United States because of an issue that may cause a loss of steering control, U.S. safety regulators said on Friday.

8/26/2016 6:52:18 AM