Mortgage and Finance

Mortgage News Daily

Posted To: MND NewsWire

A Texas mortgage servicer has run badly afoul of the Consumer Financial Protection Bureau (CFPB) for repeated violations of servicing rules . Residential Credit Solutions has agreed to pay $1.5 million in restitution to its victims and a $100,000 civil money penalty under a consent agreement announced on Thursday. CFPB has a laundry list of complaints against the company which bills itself as specializing in servicing delinquent and "credit sensitive" mortgages loans. Since 2009 approximately 75,000 borrowers have had loans transferred from other servicers to the company which has about $95 million in assets. This enforcement action covers Residential Credit Solutions' illegal practices prior to the January 2014 effective date of the CFPB's new mortgage servicing rules. CFPB said the company...(read more)

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7/31/2015 11:06:47 AM

Posted To: MBS Commentary

Today's market mover came out of left field, and in a big way. The Employment Cost Index is typically a non-event, having only moved markets noticeably one other time in the past few years. But it completely rocked them today. Chalk that up to the fact that it was the lowest quarterly wage growth in the history of the report , rising only 0.2% vs a median forecast of 0.6%. That means Q2 wages grew at only 1/3rd the pace expected! (Incidentally, Q1's pace was +0.7). After a flat overnight session, Treasury yields rocketed lower, and MBS jumped up more than a quarter point. Additionally, the discussion on the yield curve in this morning's commentary is timely as there were immediate implications for the curve. Reason being: the severe lack of wage growth suggests severe issues for...(read more)

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7/31/2015 10:28:09 AM

Posted To: Pipeline Press

A rare blue moon (two full moons appearing in the same calendar month) will be visible in the sky today for the first time in three years. We won't see the next one until early 2018 - and imagine how residential lending, market share rankings, and compensation may change between now and then. How'd you like to have a job where your pay is determined by Congress? And your family and co-workers pick up the newspaper in the driveway and see " Lawmakers Move to Halt Fannie, Freddie Pay Raises ?" Yes, the House has gone on summer vacation but not before the House panel bill advanced with broad bipartisan support and many experts think that Senate passage is likely. A few weeks ago the regulator of Fannie Mae and Freddie Mac (FHFA) awarded the companies' chief executives multimillion-dollar pay increases...(read more)

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7/31/2015 8:20:34 AM

Posted To: MBS Commentary

Yesterday's recap mentioned a 'farewell' to low short term rates despite longer term rates 'faring well.' This is a reference to the major changes that have been taking place with the yield curve in July. But just what the heck is the yield curve? If you're familiar with the yield curve, thinking about it is fairly second nature, but it takes some time spent thinking about it before that happens. If it's second nature for you, feel free to skip to the chart. If it's not second nature, don't worry, it's not that bad . I find the easiest way to think of the yield curve is to forget the curve part. Forget thinking about it as a line on a chart. After all, if you do that, you'll be left with this same, boring, fairly meaningless chart that always pops...(read more)

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7/31/2015 5:33:23 AM

Posted To: MBS Commentary

As of mid-July bond markets seem to have put their foot down with respect to the relationship between long and short term rates. With the economic recovery and global growth outlook still open to debate--not to mention with global QE efforts ongoing--it makes sense for longer term rates to maintain a reasonable level of sponsorship. This is in line with the cries we often here for the economy being unable to sustain much of a run higher in rates. Such a run would seemingly be in contradiction to the Fed's stated intention of raising rates, but trading levels continue to show us how both can live in harmony. Let's not forget that earlier this year, 2yr yields and 10yr yields were as close together as 120bps. Today they're only 153bps apart after being closer to 180bps earlier this...(read more)

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7/30/2015 2:51:42 PM

Posted To: Mortgage Rate Watch

Mortgage rates were very close to unchanged despite market volatility surrounding the release of today's GDP figures. GDP can occasionally cause a significant response in mortgage rates, and that's especially true of the "advance" release. That's due to the fact that the "advance" release is the first look at GDP for any given quarter. Subsequent releases merely revise the previous quarter's result. Moreover, the Commerce Department implements revisions once a year that greatly affect past GDP reports. So not only are we getting the first look at last quarter's GDP, but also a potentially significant revision to GDP numbers over the past 2+ years. Today's revisions painted a generally weaker picture of economic growth since 2012. But the most recent quarter showed slightly stronger inflation...(read more)

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7/30/2015 1:08:00 PM

Posted To: MND NewsWire

Well Fargo Bank announced today that it will immediately begin winding down its marketing services and desk rental agreements with real estate firms, builders, and some other referral sources. Franklin Codel, executive vice president for mortgage production said the company was exploring a number of new options for enhancing and strengthening those relationships over the long term. A press release issued by the company said that the withdrawal decision was made as a result of increasing uncertainty surrounding regulatory oversight of these types of arrangements "and as part of Wells Fargo's ongoing efforts to simplify the process that customers experience as they weigh all of their choices when shopping for a mortgage." The decision is presumed to arise out of a series of enforcement decisions...(read more)

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7/30/2015 12:10:33 PM

Posted To: MND NewsWire

Finding an affordable place to rent within a reasonable distance of employment is becoming increasingly difficult according to Freddie Mac executive David Leopold. Leopold, writing in the company's Executive Perspectives blog says that there is no state in the U.S. where a full-time minimum wage worker can afford the market-rate rent for a one or two bedroom apartment. More than one of every four renters must pay over half their family income to pay for housing and utilities. Since the recession ended new jobs have been heavily concentrated in low-wage industries while the growth of affordable housing has failed to meet the growing demand. Leopold cites a recent Joint Center for Housing Studies (Harvard University) that found that even families with incomes at high at $75,000 can be burdened...(read more)

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7/30/2015 9:37:23 AM

Posted To: MBS Commentary

Bond markets came into the domestic session in slightly weaker territory owing largely to losses that occurred right at the start of the overnight session. 10yr yields were dragged up to 2.322 as Asian markets had their first chance to react to yesterday's FOMC Announcement in a meaningful way. Weakness remained intact despite a nice rally in German Bunds. Following the big GDP announcement, domestic bond markets were weaker for a few split seconds, but quickly began improving as investors sorted out the complex implications of 3 years worth of GDP revisions. Long story short, the past 3 years were actually a bit weaker than initially reported--a fact that's benefited mostly the longer end of the yield curve. That means that 10 and 30yr yields are in positive territory , while the shorter...(read more)

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7/30/2015 9:34:55 AM

Posted To: MND NewsWire

The rich get richer? When it comes to equity that appears to be the case according to information released by RealtyTrac on Thursday. The company's U.S. Home Equity & Underwater Report shows an increase in the number of "equity-rich" properties, those with at least 50 percent equity rose by over a million between the second quarters of 2014 and 2015. At the end of the most recent period there were an estimated 10.9 million properties considered equity rich, approximately 19.6 percent of all properties with a mortgages , compared to 9.9 million or 18.9 percent at the end of Q2 2014. The latest number is lower than both of the previous quarters; there were 11.1 million such properties 19.8 percent) at the end of the first quarter and 11.3 million or 20.3 percent in Q4 2014. Daren Blomquist...(read more)

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7/30/2015 9:05:43 AM

Reuters Business News

Reuters: Business News

(Reuters) - Weak oil prices shriveled quarterly profit at Exxon Mobil Corp and Chevron Corp on Friday, compelling both companies to rethink operations and plan for what many expect to be a sustained period of cheap crude.

7/31/2015 5:03:37 PM

(Reuters) - Yahoo Inc said on Friday it agreed to buy fashion start-up Polyvore to help drive traffic and strengthen its mobile and social offerings.

7/31/2015 4:25:58 PM

LAHAINA, Hawaii (Reuters) - Talks on a Pacific Rim free-trade pact faced a fast-approaching deadline on Friday as trading partners aimed to wrap up a deal within hours, with New Zealand digging in over trade in dairy products and ministers tussling over monopoly periods for next-generation drugs.

7/31/2015 4:23:18 PM

WASHINGTON (Reuters) - The cybersecurity issues that led Fiat Chrysler Automobiles NV to recall 1.4 million vehicles this month could pose a problem for cars and trucks from other automakers, the top U.S. auto safety regulator said on Friday.

7/31/2015 4:10:31 PM

NEW YORK (Reuters) - Unless next week's payrolls report is an outlier, investors should expect a continuation of the directionless market that has kept the S&P 500 trading in place for most of the year.

7/31/2015 4:07:18 PM

NEW YORK (Reuters) - Bank of America is likely to hold a shareholder vote this year to determine whether Chief Executive Brian Moynihan should be allowed to retain his title of chairman of the bank's board, a person familiar with the matter said on Friday.

7/31/2015 3:25:39 PM

(Reuters) - Uber Technologies Inc has closed a new round of funding that values the online taxi-hailing company at nearly $51 billion, the Wall Street Journal reported, citing people familiar with the matter.

7/31/2015 2:54:04 PM

(Reuters) - Wall Street ended on a sour note on Friday as a drop in energy stocks eclipsed wage data that supported expectations that the U.S. Federal Reserve might hold off on an interest rate.

7/31/2015 2:39:14 PM

NEW YORK (Reuters) - Shareholders in the AdvisorShares Peritus High Yield ETF who sold in late 2014 are probably not the last to pay up for liquidity risk, a growing hazard for some fixed-income investors bracing for the first Federal Reserve interest rate hike in nearly a decade.

7/31/2015 2:17:16 PM

NEW YORK (Reuters) - As traders, market pundits and economists jaw over whether the Federal Reserve this year will lift its benchmark lending rate for the first time in almost a decade, several corners of the U.S. bond market are not waiting around.

7/31/2015 1:32:53 PM
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