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Mortgage and Finance


Mortgage News Daily

Posted To: MBS Commentary

It was an interesting day for bond markets, mainly because there was such an immense amount of news that SEEMED like it should matter. The deluge of headlines failed to produce any meaningful reaction. And we're talking about top-shelf market movers like Yellen's congressional testimony, Mario Draghi defending ECB policy to Germany, and a fairly big beat in this morning's Durable Goods data. Instead it was one silly little headline regarding an OPEC agreement to control production. Really?! Yes... I wouldn't have believed it if I didn't see it for myself. In fact, I looked for other explanations, but there really aren't any great ones. Sure, it came at a time of day well-known for increased bond market volatility and opportunistic trading, and it hit at the same time...(read more)

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9/28/2016 3:33:17 PM

Posted To: Mortgage Rate Watch

Mortgage Rates finally took a break from their recent winning streak today. While there are a few lenders whose rates are just a hair lower than yesterday's, most are slightly higher. Moreover, bond market weakness in the afternoon prompted several other lenders to issue mid-day reprices to even higher rates. Of course, all of the aforementioned movement is exceptionally small in the bigger picture, but it does fit the bill of being the first push back against 6 solid days of improvement. That's the sort of thing that could be taken as a sign to lock if you've been waiting for an opportunity. On an outright basis, rates remain close to all-time lows with the average lender quoting 3.375% on top tier, conventional 30yr fixed scenarios. There are still a few lenders at 3.5% but they're a small...(read more)

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9/28/2016 2:57:00 PM

Posted To: MND NewsWire

The all-cash share of residential sales dipped below 30 percent in June, the first time this has happened since 2007. CoreLogic said on Tuesday that cash accounted for 29.3 percent of home sales during the month, a decrease of 2.5 percentage points since June of last year. On a monthly basis those sales were 0.9 percentage points lower than in June. Cash sales, which prior to the housing crisis averaged about 25 percent per month, peaked in January 2011 at 46.6 percent. At the current rate of decline CoreLogic estimates cash sales should return to "normal" levels by mid-2018. Sales of lender-owned real estate (REO) had the largest all-cash share at 56.2 percent however, as those sales now represent only 4.9 percent of all transactions, their all-cash transactions have little impact on the overall...(read more)

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9/28/2016 8:32:14 AM

Posted To: MND NewsWire

To understand the top-line story in the Urban Institute's (UI's) latest Chartbook released on Monday one has to go back to another UI paper published more than a year ago. In the article the UI's Housing Policy Center's director, Laurie Goodman, and fellow researchers claimed that the share of first-time homebuyers was in reality much higher than other research, notably that of the National Association of Realtors® (NAR) had asserted. NAR has consistently said that these homebuyers typically represent 40 percent of buyers in a healthy market and has reported the share as remaining below this mark since mid-2010. Indeed, for several years NAR has put the share at 30-32 percent and continued to do so in its latest existing home sales report released last week. Goodman and her team contended...(read more)

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9/28/2016 8:29:16 AM

Posted To: Pipeline Press

What do attorneys and judges think of compliance? Here's a nice write up , but it is important that incentives match your company's compliance goals, and vice versa, that you verify what your employees report, and that you train your employees on company policy. If only it were that simple, right? In legal news, Royal Bank of Scotland Group Plc will pay $1.1 billion , without admitting fault, to resolve claims that it sold toxic mortgage-backed securities to credit unions that later failed, the U.S. National Credit Union Administration (NCUA) said. The resolution comes as RBS prepares to settle a number of U.S. cases where it is accused of mis-selling mortgage-backed bonds and brings the U.S. regulator's recoveries against various banks to $4.3 billion over their sales of such securities before...(read more)

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9/28/2016 7:30:13 AM

Posted To: MBS Commentary

I talk a lot about " trends "--a word that's easy enough to understand in a general sense, but more esoteric when we try to understand it in specific terms. Let's demystify it a bit. In a general sense, a trend simply refers to " direction ." Far more accurate would be to say "persistence of directional movement." If yields are persistently moving in an upward direction, we could translate that as "uptrend in rates." But how do we identify trends? Wouldn't you know it! There are multiple ways! The simplest is to draw a line connecting the highs and lows on any given chart of your favorite bond market security. The more "touches" along that line, the more relevant the trend is. Even if the charted security is bouncing on an implied...(read more)

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9/28/2016 7:21:03 AM

Posted To: MND NewsWire

The Mortgage Bankers Association (MBA) reported hardly a ripple in the mortgage market during the week ended September 23. Its Market Composite Index, a measure of mortgage loan application volume, dipped 0.7 percent on a seasonally adjusted basis from one week earlier and decreased 1 percent when seasonally adjusted compared to the week ended September 16. The volume of refinance applications measured by MBA's Refinance Index eased by 2 percent and refinancing as a share of all activity decreased to 62.7 percent from 63.1 percent the previous week. The seasonally adjusted Purchase Index increased 1 percent week-over-week while the unadjusted Purchase Index was unchanged. The unadjusted index was 10 percent higher than the same week one year ago. Refi Index vs 30yr Fixed Purchase Index vs 30yr...(read more)

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9/28/2016 6:39:26 AM

Posted To: MBS Commentary

Glory was limited, in general, today. Most of it went to Treasuries as opposed to MBS. Put in plainer terms, 10yr yields fell 2-3bps on the day while MBS were generally unchanged. In thinking about what's up with that, we should keep the following bullet points in mind: It's the week of month/quarter-end. This doesn't necessarily favor Treasuries, but it CAN favor just about any market sector depending upon how money managers are forced to adjust portfolios to match certain indices. Read more about month-end buying HERE if you're curious. Much of the positivity was driven by European trading. MBS are one more degree removed from the global bond market effect. Treasuries logically get more benefit from gains in European bond markets. MBS are coming off one of their best streaks...(read more)

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9/27/2016 2:31:34 PM

Posted To: Mortgage Rate Watch

Mortgage Rates maintained their recent winning streak today, falling for the 5th straight day. The average lender is now offering the best rates in nearly 2 months. You'd have to go back early August or late July (depending on the lender) to see a better combination of rate and upfront cost. This brings up a caveat that has been important in the past few months. The outright range of rate movement has been exceptionally small! We talk about "rates" moving every day, but that's just convenient shorthand for "the combination of NOTE RATE and UPFRONT LENDER COSTS." Those upfront costs are sometimes referred to as "points," but that isn't a universal definition. Regardless of the label, this refers to whatever costs the lender is charging (or paying) at closing. These usually include things like...(read more)

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9/27/2016 1:52:00 PM

Posted To: MND NewsWire

Fannie Mae has announced the implementation of a new version of its automated underwriting system . The company said Version 10.0 of Desktop Underwriter (DU) "provides more simplicity and certainty to lenders through the use of trended credit data for enhanced credit risk assessment and new automated underwriting capabilities to serve borrowers with no traditional credit and for borrowers with multiple financed properties." The company introduced the concept of trended credit data with enhancements to DU in October 2015. It said the new version of the software will promote "the first widespread use in the mortgage industry, and will benefit both consumers and lenders." DU 10.0 will assist in using trended credit in risk assessment, allowing underwriters to take into account the monthly payment...(read more)

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9/27/2016 8:38:19 AM

Reuters Business News


Reuters: Business News

ALGIERS (Reuters) - OPEC agreed on Wednesday modest oil output cuts in the first such deal since 2008, with the group's leader Saudi Arabia softening its stance on arch-rival Iran amid mounting pressure from low oil prices.

9/28/2016 10:19:16 PM

HONG KONG (Reuters) - Oil prices extended gains in Asia on Thursday, boosting stock markets, after OPEC members agreed to curb output in a surprise deal, though investors were wary of chasing markets higher as the U.S. presidential election nears.

9/28/2016 8:27:22 PM

(Reuters) - Embattled Wells Fargo & Co plans to eliminate sales goals for its retail banking business sooner than planned, according to prepared remarks its chief executive officer will deliver at a congressional hearing on Thursday.

9/28/2016 5:19:45 PM

ST. LOUIS (Reuters) - Investors may be expecting a U.S. interest rate increase in December, but Federal Reserve policymakers remain divided over whether the economy is mired in a rut, strong enough to withstand an immediate hike or hovering somewhere in between.

9/28/2016 7:01:50 PM

(Reuters) - Billionaire investor Carl Icahn cut his stake in rig provider Transocean Ltd by more than two-thirds "for tax planning purposes."

9/28/2016 4:36:44 PM

SEOUL (Reuters) - Samsung Electronics Co Ltd said on Thursday it expects to have recovered more than 80 percent of recalled Galaxy Note 7 smartphones sold in South Korea by Oct. 1, when the firm plans to resume sales of the device in its home market.

9/28/2016 8:17:04 PM

(Reuters) - Apple Inc and Deloitte LLP announced a partnership on Wednesday in which the consultant will open a new practice to help corporate clients work with Apple products, the tech firm's latest attempt to boost enterprise sales as its key product, the iPhone, shows signs of maturation.

9/28/2016 3:02:15 PM

NEW YORK (Reuters) - Maurice "Hank" Greenberg, the 91-year-old former chairman of former American International Group Inc , said at his fraud trial that he never would have considered doing a transaction that failed to pass muster with the insurer’s lawyers and accountants.

9/28/2016 4:54:38 PM

NEW YORK (Reuters) - Citigroup Inc on Wednesday became the last of the big U.S. banks to agree to allow customers to send instant payments by mobile phone over an industry network that is competing with upstart Venmo.

9/28/2016 3:51:07 PM

SEOUL (Reuters) - A South Korean court rejected a request by prosecutors for a warrant to arrest Lotte Group Chairman Shin Dong-bin in the latest twist in a wide-ranging corruption probe that has convulsed the country's fifth-largest family-run conglomerate.

9/28/2016 10:28:28 PM