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Mortgage and Finance


Mortgage News Daily

Posted To: MBS Commentary

Several events helped get investors back in a riskier mood to begin the new week. Overnight reports of the "status quo" candidate polling better in the French election helped the momentum get underway. During domestic hours, economic data was weaker overall, but generally ignored in favor of political headlines. Specifically, President Trump said he had big news on infrastructure spending to share at tomorrow's much-anticipated "address before the joint session of Congress" (in other words, don't call it a "state of the union" address). Dallas Fed President Kaplan added to the momentum when he offered his thoughts on the Fed's next rate hike . While he didn't come right out and say "March," he may as well have. Bonds were under steady...(read more)

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2/27/2017 4:34:27 PM

Posted To: Mortgage Rate Watch

Mortgage rates moved slightly higher after a strong run to the lowest levels of the year as of last Friday. In general, financial markets moved toward safer investments (like bonds) heading into the weekend. When demand for bonds increases, rates move lower. As the new week got underway, market participants warmed back up to the notion of risk, thus undoing some of the positivity from late last week. Investors are curious to hear what President Trump has to say at his "address of the joint session" tomorrow night , especially after today's promise that there would be big announcements on infrastructure spending. Markets have been eager to get more clarity on fiscal programs. If the details are well-received, we could continue to see more momentum toward risk, and rates could continue to move...(read more)

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2/27/2017 3:47:00 PM

Posted To: MND NewsWire

The Truth-in-Lending/RESPA (TRID) rules implemented in late 2015 have placed increased pressure on the accurate forecasting of estimation of non-mortgage related costs for the loan estimates that must be provided to borrowers. Dom Lalisse, CoreLogic's Director of Product Management, says this is especially problematic for property tax amounts. He likens the current methods to the days, pre-standardization of credit scores and credit reports, when the determination of credit worthiness was more art than science and relied on "specialized knowledge and personal interpretation of financial information." Writing in the February edition of CoreLogic's MarketPulse, Lalisse works to make a case for a change in the system. He says with the increased scrutiny around the preparation of the TRID Loan...(read more)

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2/27/2017 9:36:12 AM

Posted To: MND NewsWire

Tight inventories are again being blamed for a downturn in home sales, this time January's ones. The National Association of Realtor's® (NAR's) Pending Home Sale Index (PHSI) declined by 2.8 percent from December, reaching the lowest level in a year. The PHSI is a forward-looking indicator based on signed contracts for home purchases. Those contracts are generally expected to turn into completed sales in about 60 days. The January PHSI dipped to 106.4 from an upwardly revised 109.5 in December. The December index had originally been reported at 109.0. The index remains 0.4 percent higher than it was in January 2016, but is at the lowest level since then. This index is beginning to exhibit the same kind of volatility that has marked new home sales in recent months. The index gained 1.6 percent...(read more)

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2/27/2017 9:24:50 AM

Posted To: Pipeline Press

If you’re a lender in only one state, just think about the state and federal regulations you must deal with, not to mention the investor or agency rules. If you’re a nationwide lender, you can grapple with 49 other rules and regulations. If you service loans, throw on some more. What if you’re a worldwide bank? Citigroup will place a global regulatory affairs team " in Washington, D.C., to help the bank "assess the impact of existing and proposed regulations on our franchise, clients and customers," according to an internal memo. It is always good for residential loan originators to know the rental situation in their area. If rental rates, or house prices, are going up 5% a year and incomes are only going up 2% a year, well, that is a problem. Until recently, the combination...(read more)

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2/27/2017 9:03:04 AM

Posted To: MBS Commentary

The past 5 business days of bond market rallies brought yields right to the lower edge of 2017's range . We had been tracking these movements in terms of a "consolidation range" (i.e. converging lines connecting higher lows and lower highs) but the most recent strength makes a case for a horizontal lows. Up until Friday, 2017's two major lows were 2.305 and 2.325 in that (ascending) order. Friday brought us as low as 2.309. It also brought short-term momentum metrics into "ov e rbought" territory. While that's never a guarantee of a bounce, it does mean that bonds are more "ready" to bounce--especially in the presence of the proper motivation. Motivation this week could be easy to find, depending on the outcome of the various economic reports and the...(read more)

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2/27/2017 7:31:49 AM

Posted To: MBS Commentary

"For no apparent reason" is a bit of an overstatement. There are several plausible reasons that bonds could be rallying as well as they are at the moment-- not the least of which being the extent to which they sold off at the end of 2016. The rationale for the 2016 sell-off was somewhat tenuous, given its size. MBS Live has been steadfast in saying that we were not seeing a 1:1 ratio of justification and market movement. Reason being: the justification in this case was the " growth and inflation " potential associated with the new administration combined with the fact that any major bounce in yields right now might make it look like a decades-long bullish trend was coming to an end. Even traders who didn't believe in that narrative were best-served by pushing rates higher...(read more)

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2/24/2017 4:33:02 PM

Posted To: Mortgage Rate Watch

Mortgage rates moved lower for 3rd straight day (and the 5th time in the past 6 days). That makes this the best winning streak of the year and it brings rates to the lowest levels of the year (matching February 8th and a few days in early January). From here, you'd have to go back to mid-November 2016 to see appreciably lower rates. All that having been said, the range over that time has been fairly narrow--4.125%-4.375% for top tier conventional 30yr fixed rate quotes. Naturally, today's average lender is at 4.125% although some of the more aggressive lenders are indeed down to 4.0%. No matter the rate quoted, the important point is that today's rates are noticeably lower than yesterday's. Even if the NOTE rate is the same, the upfront costs should be lower (thus making for a lower EFFECTIVE...(read more)

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2/24/2017 3:26:00 PM

Posted To: MND NewsWire

Sales of newly constructed homes, had a strong start in 2016 but flattened out toward the end of the year and ended with a dismal December. Now 2017 has also started on a positive note. The Census Bureau and the Department of Housing and Urban Development reported sales were up in January by 3.7 percent from the previous month to a seasonally adjusted annual rate of 555,000 units. Sales in December, originally estimated at 536,000 unites were revised down to 535,000. The January sales were 5.5 percent higher than sales a year earlier of 526,000. On a non-seasonally adjusted basis there were 41,000 homes sold during the month compared to 38,000 in December. Analysts had however expected a much stronger recovery from the 10.4 percent nosedive sales took in December. Econoday reported those they...(read more)

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2/24/2017 9:53:56 AM

Posted To: Pipeline Press

Boss: "Working hard here, Jimmy?" Jimmy: "Yep, ever since I heard you coming down the stairs!" Mortgage banks are working hard, but banks and other financial institutions have the inside track when it comes to offering other products – more a few paragraphs down. While we’re talking about working, here’s a column from the Sunday New York Times’ Adam Bryant on how to hire the right person from his interviews with CEOs. Changing business models for financial institutions There is no law barring financial institutions from branching out into offering other services, and in fact many use this tool as a way to expand and recruit . SoFi, for example, notes that nearly 30% of its clients take advantage of other product the finance company offers. Lenders such as California...(read more)

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2/24/2017 9:21:57 AM

Reuters Business News


Reuters: Business News

WASHINGTON (Reuters) - Major U.S. corporations are going to war in Washington over a Republican 'border adjustment' tax proposal meant to boost exports over imports, with lawmakers in Congress coming under pressure from some of the nation's biggest employers.

2/28/2017 5:19:26 AM

WASHINGTON (Reuters) - President Donald Trump said he believes the extra $54 billion dollars he has proposed spending on the U.S. military will be offset by a stronger economy as well as cuts in other areas.

2/28/2017 5:28:58 AM

(Reuters) - Target Corp reported a steeper-than-expected decline in fourth-quarter same-store sales and said it expected sales to continue to fall this fiscal year, sending its shares tumbling 12 percent in premarket trading on Tuesday.

2/28/2017 6:01:54 AM

SEOUL (Reuters) - South Korean prosecutors said on Tuesday they will charge Samsung Group [SARG.UL] chief Jay Y. Lee with bribery and embezzlement as the top conglomerate announced the dismantling of its corporate strategy office, the latest developments in a scandal that has rocked the country for months.

2/28/2017 3:40:03 AM

LONDON (Reuters) - World stocks hovered just off all-time highs and were on course for a fourth straight month of gains on Tuesday, as investors awaited a speech by U.S. President Donald Trump for signals on infrastructure spending and tax cuts.

2/28/2017 4:24:33 AM

LONDON (Reuters) - Global investors trimmed their equities exposure in February, with many arguing that markets had become too complacent about risks stemming from Europe's election calendar after a recent blistering stock market rally.

2/28/2017 6:05:34 AM

KUALA LUMPUR (Reuters) - Saudi oil giant Aramco will buy an equity stake in Malaysian firm Petronas' major refining and petrochemical project, the companies said on Tuesday, pumping in $7 billion in its biggest downstream investment outside the kingdom.

2/28/2017 4:19:59 AM

DETROIT (Reuters) - Japan's Takata Corp removed a major obstacle to its potential sale or restructuring, pleading guilty on Monday in a U.S. federal court to a felony charge as part of a $1 billion settlement that included compensation funds for automakers and victims of its faulty airbag inflators.

2/28/2017 4:49:10 AM

FRANKFURT (Reuters) - SAP Chief Executive Bill McDermott's total pay last year jumped to 15.6 million euros ($16.5 million), overtaking that of Daimler CEO Dieter Zetsche, Germany's best-paid company executive in 2015.

2/28/2017 6:01:01 AM

BEIJING (Reuters) - China's Commerce Ministry said on Tuesday it was "seriously concerned" by what it said was Europe's increasing protectionism in the steel industry after regulators slapped anti-dumping duties on certain types of plate steel imports from the world's top producer.

2/28/2017 5:20:22 AM