Mortgage and Finance

Mortgage News Daily

Posted To: MND NewsWire

The Consumer Financial Protection Bureau (CFPB) is proposing changes to its Know Before You Owe Mortgage Disclosure Act, usually referred to in the industry as TRID. CFPB said the changes are intended to formalize guidance about the rule and provide greater clarity and certainty. The Bureau is invited written comments on the changes until October 18. The TRID rule took effect on October 3, 2015 after several delays. The rule and associated disclosure forms were designed to provide borrowers with clear and consistent information about the mortgage loans they are receiving and limits changes that can be made to the original loan estimate. Proposed changes include: Tolerances for the total of payments: Prior to the implementation of TRID the total of payments disclosure was determined using the...(read more)

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7/29/2016 10:44:25 AM

Posted To: Pipeline Press

"Buy land - they're not making any more of it." And the reverse is happening in Louisiana. Say what you want about global warming, or inappropriate levy building, the fact is that the state is watching a football field-sized piece of land disappear under water every hour. Per the Smithsonian Magazine Louisiana is losing 75 square kilometers of coastal terrain every year. And in California this article points out a mining company is "stealing a beach. The International Monetary Fund and US regulators have given Deutsche Bank heat for risks posed by its 42 trillion euro derivatives portfolio, which among other factors contributed to it failing Federal Reserve stress tests. Analysts wonder if Deutsche Bank would do well to abandon its US businesses, but it has little else generating...(read more)

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7/29/2016 8:28:41 AM

Posted To: MND NewsWire

Homeownership rates, which have been declining since the end of the housing boom, hit an a ll-time low in the second quarter of 2016 . The rate at the end of the period was 62.9 percent on a non-seasonally adjusted basis compared to 63.5 percent in the first quarter and 63.4 percent in the second quarter of 2015. This information was contained in the Residential Vacancies and Homeownership report for the second quarter issued by the U.S. Census Bureau. There is some seasonality to homeownership rates and the seasonally adjusted rate for the quarter was 63.1 percent compared to 63.5 percent the first quarter and 63.6 percent a year earlier. It was also the lowest seasonally adjusted rate on record. The Census Bureau only began collecting data on homeownership in 1995 . The unadjusted rate peaked...(read more)

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7/29/2016 7:28:14 AM

Posted To: MBS Commentary

With 10yr yields up only 2.2bps to begin the day and MBS down only 2 ticks, it's interesting to note that initial reaction to the overnight policy announcement from the Bank of Japan was actually a bigger market mover than Wednesday's FOMC Announcement. The catch is that bond markets were able to stop the bleeding and find some support as the domestic session approached. Thus the recent range was never even remotely close to being threatened. As I write, Advance GDP (the first look at Q2, and thus more surprise potential) has just now come out at +1.2 vs a forecast for +2.6 . Logically, bonds have improved quickly on that news, bringing Treasuries and MBS back to 'unchanged' levels. It now falls Chicago PMI at 9:45am to inspire bond markets. Beyond that, the most relevant fact...(read more)

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7/29/2016 6:39:00 AM

Posted To: MND NewsWire

Cash sales continued to account for a significant portion of all home sales in April. CoreLogic said on Wednesday that 31.6 percent of home sales that month were all cash , down 1.6 percentage points from March and 2.8 points from the previous April. For the first four months of this year cash sales made up fractionally more than a third of home sales, the lowest start for any year since 2008. Cash sales peaked in January 2011 when they accounted for 46.6 percent of all home sales . At that point, 24 percent of home sales were from lender-owned inventories (REO) and a majority of those sales were cash. Cash continues to dominate in the REO market, constituting 56.7 percent of those transactions in April 2016, but the REO share of sales has fallen to only 5.7 percent of the overall total. Resales...(read more)

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7/28/2016 2:59:19 PM

Posted To: MBS Commentary

In the bigger picture, today was all about confirming and consolidating yesterday's gains. Trading levels held inside narrow ranges for both MBS and Treasuries, and neither were flustered when stocks swooped back up toward yesterday's highs. MBS did a better job of being "less flustered" today--i.e. Fannie 3.0s gained 3/32nds in price while 10yr Treasuries lost 2/32nds--for a few reasons. First, there's the corporate bond calendar. Issuance was by no means active. In fact, there was only one announcement. But the company in question was Apple--well known for their big corporate bond offerings. Here's a refresher on how corporate bonds impact other rates if you need it. The takeaway is that Treasuries are more affected than MBS. MBS also tend to reap marginal benefits...(read more)

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7/28/2016 2:57:56 PM

Posted To: Mortgage Rate Watch

Mortgage rates fell at the quickest pace in more than a month today as lenders priced-in the market improvements seen after yesterday's Fed Announcement. Even though quite a few lenders offered improvements yesterday afternoon, the so-called "reprices" were conservative compared to improvements implied by trading levels in mortgage-backed-securities (the bonds that most directly affect mortgage rates). This lag effect between markets and rate sheets has been a fixture in the post-Brexit mortgage rate environment, and it has frequently resulted in today's rate sheets reflecting yesterday's market movement. The only catch is that today's market movement can't backtrack too far in the other direction. Simply put, lenders were prepared to offer lower rates yesterday, but needed confirmation that...(read more)

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7/28/2016 1:56:00 PM

Posted To: Pipeline Press

I don’t know how it is that we only have two business days left in July – time flies. For me this month has included Honolulu, Denver, Sacramento, San Francisco, and now Austin for several days – pretty nifty places. The mood out there among residential lenders? It has improved nicely as 2016 has progressed although there are grave concerns about the servicing market – see below. But lenders are licking their chops knowing that about half of securitized agency mortgages have interest rates higher than 4 percent, according to Inside Mortgage Finance. Loan officers know that not all of these loans can be refinanced as some borrowers may not have enough equity in their homes, can’t qualify credit-wise, or the high cost charged by lenders to cover skyrocketing compliance...(read more)

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7/28/2016 7:44:31 AM

Posted To: MBS Commentary

One tricky thing about technical analysis (things like moving averages and other mathematical formulas applied to charts in order to get them to cough up more information about where they might be going) is that the relevance of any given technical can vary greatly depending on the circumstances. For instance, if bonds have are in a sideways trend for a few weeks, and had been trending directionally in the few weeks before that, the current sideways trend will result in many technicals suggesting that momentum is heading in the opposite direction from the trend seen in the first 2 weeks. Put more simply, Imagine it's July 28th and that bonds have been in a sideways range between 1.52 and 1.62 for the last 2 weeks. Then imagine they'd risen from 1.32 to 1.52 in the 2 weeks before that...(read more)

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7/28/2016 7:06:40 AM

Posted To: MBS Commentary

Dovish vs Hawkish : This refers to how accommodative the Fed's policy stance might be. Have you ever seen a hawk stare down its prey? That's how a hawkish Fed looks at inflation (i.e. "I'm really close to swooping in and killing that!"). Doves, on the other hand--well... I don't know what doves do, but I know they're not hawkish! When it came to today's FOMC announcement, the Fed had a chance to send a clear signal on their rate hike intentions (if they had any). While they did dial up the hawkishness just a bit, they stopped short of the sort of overt telegraph seen in last October's meeting (when they said "in considering whether it will be appropriate to raise [rates] at its next meeting"). As such, markets (led by word-parsing computer programs...(read more)

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7/27/2016 2:49:13 PM

Reuters Business News

Reuters: Business News

(Reuters) - Wall Street rose on Friday, with the S&P 500 index hitting a record intraday high for the seventh time this month as gains in technology heavyweights Alphabet and Amazon more than made up for losses in energy shares.

7/29/2016 1:07:05 PM

WASHINGTON (Reuters) - U.S. economic growth unexpectedly remained tepid in the second quarter as inventories fell for the first time in nearly five years and business investment weakened further, offsetting robust consumer spending.

7/29/2016 1:03:38 PM

LONDON/BRUSSELS (Reuters) - The board of brewer SABMiller will recommend its shareholders approve a sweetened takeover offer by Anheuser-Busch InBev , the company said on Friday, capping a week of high drama about the fate of the consumer industry's biggest-ever merger.

7/29/2016 11:33:23 AM

(Reuters) - A Delaware judge on Friday ruled that Sumner Redstone's lawyers must defend in a trial his move to oust five directors from Viacom Inc's board and suggested that he wants to get a better picture of the 93-year-old media mogul’s mental capacity.

7/29/2016 1:09:41 PM

HOUSTON (Reuters) - Chevron Corp posted its worst quarterly loss since 2001 on Friday and Exxon Mobil Corp reported a 59 percent slide in profit, as the long crude price rout and tumbling refining income inflicted pain across the energy sector.

7/29/2016 1:05:19 PM

(Reuters) - Google parent Alphabet Inc and e-commerce giant Amazon.com Inc capped a blockbuster June quarter for the five biggest U.S. tech companies as their dominance in key markets helped them defy the "law of large numbers".

7/29/2016 8:58:46 AM

WASHINGTON (Reuters) - U.S. auto safety regulators said on Friday they were extending oversight of Fiat Chrysler Automobiles NV for an additional year, requiring the Italian-American automaker to submit to monthly meetings and early disclosures of potential vehicle issues.

7/29/2016 1:14:59 PM

CAMBRIDGE, Mass. (Reuters) - The Federal Reserve could raise interest rates up to two times before year end, a top Fed official said on Friday as he downplayed data that showed the U.S. economy grew far less than expected in the last quarter.

7/29/2016 10:35:47 AM

(Reuters) - Volkswagen AG and the California Air Resources Board will begin testing hardware and software that could help the German automaker avoid buying back as many as 475,000 diesel cars sold in the United States with improperly designed pollution controls, the head of the board told Reuters.

7/29/2016 11:41:54 AM

(Reuters) - Allegiant Air said its pilots represented by the Teamsters union ratified a new five-year contract, ending labor issues at the Las Vegas-based budget carrier at a time the U.S. airline industry is grappling with a shortage of pilots.

7/29/2016 12:40:34 PM