Mortgage and Finance

Mortgage News Daily

Posted To: MBS Commentary

European traders were month-end sellers, pushing rates higher overnight US bond markets battled back during the domestic session Treasuries were green at the 3pm close and MBS are still green, barely Not much impact from economic data, although data was generally supportive of longer-term themes (slowing economy) Bond markets had a completely inoffensive month-end session with Treasuries and MBS ending up essentially unchanged versus yesterday's excellent (relative) closing levels. When compared against 3 weeks ago, current levels leave a bit to be desired , but compared to where it looked like we were heading at the beginning of this week, we'll take it! 10yr yields have moved right back to the upper edge of their previous range (1.84%) and managed to trade below there late this afternoon...(read more)

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4/29/2016 2:41:18 PM

Posted To: Mortgage Rate Watch

Mortgage rates moved just slightly lower in most cases, to end the week at the best levels since April 19th. Mor importantly, the past 3 days of improvements go a long way toward defeating a worriesome trend toward higher rates that began in early April. With the recent gains, the average conventional 30yr fixed rate is back down to 3.625% on top tier scenarios after having briefly moved up to 3.75%. That said, keep in mind that rate sheet offerings have varied more widely than normal from lender to lender due to recent market volatility. Mortgage rates are primarily determined by trading levels in bond markets. A lot of bond market participants are required to be holding a certain mix of bonds at the end of the month. As such, the beginning and end of any given month marks a time of increased...(read more)

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4/29/2016 2:16:00 PM

Posted To: MND NewsWire

Does a financial boost from mom and dad make it more likely a young person will buy a home? It depends. And that might change. Those statements are more or less the bottom line from a working paper prepared by three University of Southern California professors, Dowell Myers, Gary Painter, and Julie Zissimopoulos that is part of a larger study on parental financial transfers to adult children. The three based their work on two data sets, Panel Study of Income Dynamics (PSID) and the Health and Retirement Survey (HRS), that provide information on parental financial transfers, adult children's transitions into homeownership, and a variety of child and parent demographic, social, and financial characteristics. The working paper is profiled by Myers and Fannie Mae's Patrick Simmons on the FM Commentary...(read more)

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4/29/2016 9:29:11 AM

Posted To: MND NewsWire

The Consumer Financial Protection Agency (CFPB) just opened the door to possible changes and refinements in its Know Before You Owe rule. The agency, in a letter addressed trade groups representing principal mortgage origination stakeholders such as the American Bankers Association, Mortgage Bankers Association and credit union trade groups and their members said it has begun drafting a Notice of Proposed Rulemaking (NPRM) on the rule, and hope to open it for comment in late July. CFPB acknowledged the implementation of the rule, which contains the Truth-in-Lending Disclosures (TRID) requirement has posed many operational challenges, particularly because of the "diversity of participants, from small to large financial institutions, mortgage brokers, real estate brokers, and title companies...(read more)

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4/29/2016 9:26:31 AM

Posted To: Pipeline Press

“They” say plenty of things about time flying as you grow older. (“Life is like a toilet paper role – the closer you get to the end the faster it goes” comes to mind.) HMDA changes are a couple years out – so why are companies worried about them now? Because time flies. In my discussions with compliance & QC folks around the nation, the HMDA concern revolves not around borrower issues – most of the data is already being collected by lenders – but around the statistical testing, increased regulatory concerns, the increase in potential extreme penalties, and the increase in FTEs required in auditing every file. See an explanation below. The residential lending biz was thrown a bone yesterday when the CFPB issued a letter in response to the industry...(read more)

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4/29/2016 8:37:50 AM

Posted To: MBS Commentary

Bonds right on the edge of confirming positive shift We need to hold ground today in order to confirm Even then, we have to wonder about the "month-end" effect Data could have an impact, but it depends on size of beat/miss The Fed is looking for inflation and not finding too much of it based on Wednesday's FOMC Announcement. The Fed's statement helped bond markets recover quite a bit of recent weakness as the text removed the previous reference to inflation showing signs of picking up. Markets are clearly skeptical as to whether or not the Fed can pull off its stated goal of hiking twice in 2016. The bond rally on Wednesday, and modest extension yesterday, brought yields right to a critical crossroads in terms trading levels and technical indicators. 10yr yields are right...(read more)

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4/29/2016 6:31:37 AM

Posted To: MBS Commentary

Bonds traded either side of unchanged early in the day Little, if any response to GDP Bigger move seen after the end of the auction cycle Not a huge rally, but enough to re-enter previous range Bond market reaction to Treasury auctions has been sporadic at best for several years now. They're just not the market movers they used to be. But occasionally, the overall start and stop of an entire week's auction cycle does something to change the tone and shift the balance of buying and selling. Long-time MBS Live member Jeff Anderson coined the term "PSR" long ago, which stands for the proverbial "post-supply rally" that we hope to see after the last auction of any given auction week. Today was that day for the current week and indeed the broader tone brightened immediately...(read more)

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4/28/2016 3:17:18 PM

Posted To: Mortgage Rate Watch

Mortgage rates continued lower for a second straight day, ultimately making it back to levels not seen since last Tuesday. Today's improvements are partly an extension of yesterday's reaction to the Fed Announcement, but also acknowledge the end of this week's Treasury auction process. This often involves a slight artificial pressure toward higher yields beginning on Tuesday with the pressure being released after the week's last auction on Thursday afternoon. Mortgage rates aren't directly linked to Treasury yields, but they do tend to move in the same direction by roughly similar amounts each day. Case in point, at the highest recent levels, 10yr yields were up to 1.94% and are back to 1.83% currently. That's roughly the same round trip experienced by mortgage rates with several lenders moving...(read more)

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4/28/2016 2:50:00 PM

Posted To: MND NewsWire

Home sales may be rising, but homeownership in the United States is heading down once again. After gains in the second half of 2015, the homeownership rate fell to just 63.6 percent , seasonally adjusted, in the first quarter of this year, according to the U.S. Census Bureau. Homeownership hit a high of 69.4 percent in 2004, during one of the biggest housing booms in history. That was also when mortgage lending was arguably at its loosest level in history. The homeownership rate is now just one-tenth of 1 basis point higher than its all-time low in the second quarter of 2015. Economists continue to point to a recovering job market as fuel for growth in the housing market, but for young Americans, just having a job does not translate to homeownership. High levels of student loan debt, tight...(read more)

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4/28/2016 10:24:21 AM

Posted To: MND NewsWire

Home prices rose 0.7 percent from January to February according to Black Knight Financial Services. The company's Home Price Index (HPI) was at $245,000 a 5.3 percent increase from February 2015. The company said that there is still strong upward monthly price movement in several states and metro areas. Washington led with 1.8 percent appreciation over January followed by Colorado at 1.7 percent. The remainder of the top five were Oregon, California with monthly gains of 1.3 percent and Hawaii at 1.2 percent. The strongest metro areas were San Jose with a 2.4 percent increase, and Seattle, up 2.1 percent. Three states saw prices fall during the month, Connecticut, down 0.4 percent and Rhode Island, and New Jersey each falling 0.2 percent. The three together also accounted for seven of the 10...(read more)

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4/28/2016 8:39:17 AM

Reuters Business News

Reuters: Business News

OMAHA, Neb. (Reuters) - Warren Buffett said on Saturday that Berkshire Hathaway Inc is poised to do well no matter who wins the White House in November, and the billionaire investor defended the performance and tactics of the conglomerate's several large investments.

4/30/2016 4:15:36 PM

NEW YORK (Reuters) - Coming off a barrage of flimsy company earnings reports that included Apple's first revenue drop in 13 years, investors will turn to April jobs data for signs of budding resilience or further weakening in the second quarter.

4/30/2016 9:19:10 AM

SAN FRANCISCO (Reuters) - Apple Inc on Friday ended its worst week on the stock market since 2013 as worries festered about a slowdown in iPhone sales and after influential shareholder Carl Icahn revealed he sold his entire stake.

4/29/2016 2:15:52 PM

SAN FRANCISCO (Reuters) - A Facebook Inc shareholder filed a proposed class action lawsuit on Friday in a bid to stop the company's plan to issue new Class C stock, calling the move an unfair deal to entrench Chief Executive Mark Zuckerberg as controlling shareholder.

4/29/2016 7:29:53 PM

FRANKFURT (Reuters) - Germany's finance minister Wolfgang Schaeuble has criticized the executive board of scandal-ridden carmaker Volkswagen for not waiving bonuses despite bringing the company to the brink of collapse.

4/30/2016 7:51:36 AM

FRANKFURT (Reuters) - Daimler has hired auditor Deloitte Touche Tohmatsu to help with an internal investigation into its diesel-engine emissions technology requested by the U.S. Department of Justice, the luxury car maker said.

4/30/2016 3:45:10 AM

(Reuters) - United Continental Holdings Inc said in a proxy statement Friday that it cut the pay of one of its top officers in connection with an internal probe that resulted in its chief executive's resignation last year.

4/29/2016 8:33:34 PM

HOUSTON (Reuters) - Exxon Mobil Corp and Chevron Corpon Friday reported their most dismal quarterly results in more than a decade on low oil prices and an oversupplied fuel market that hurt what had been lucrative refining margins.

4/29/2016 12:04:52 PM

PARIS (Reuters) - Air France-KLM's board is to appoint Jean-Marc Janaillac as the Franco-Dutch airline group's next chief executive on Tuesday to replace Alexandre de Juniac, a source close to the matter said on Saturday.

4/30/2016 7:08:39 AM

WASHINGTON (Reuters) - U.S. inflation barely rose in March as consumer spending remained tepid, making it less likely that the Federal Reserve will be able to follow through on its projected two interest rate increases this year.

4/29/2016 10:25:20 AM