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MBS MID-DAY: Bond Markets Rallying. Wait... What?5/21/2013 10:10 AM

Posted To: MBS Commentary

MBS Live : MBS Morning Market Summary Like a jilted lover learning how to trust again, MBS were tentative at first, and Treasuries hesitated at 1.97 as they descended from morning weakness, but both have rallied directionally since then. The possibility and/or hope is that the highest yields and lowest prices this morning, constituted some sort of final push to the furthest reaches of the pre-FOMC range. Big volume came into Treasuries 7 minutes before Fed's Bullard's speech in Frankfurt. Either the clocks in Germany are running 7 minutes fast or dealers saw inventory getting lighter after the Fed's buying operation in 7-10yr maturities. Supply/Demand imbalances can often have an effect on Treasuries during and after the Fed's scheduled Treasury buying from 10:15-11:00am. Whatever the case...(read more)

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Freddie's Non-Usage Fees; LO Comp, Land Sales, and Reg. E Tidbits - It's a Compliance World5/21/2013 9:13 AM

Posted To: Pipeline Press

If you're like me and rest your weary eyes each night by reading the Fair Housing Act of 1968, then you don't need to be told that the act " prohibits discrimination in the sale, rental, or financing of dwellings and in other housing-related activities on the basis of race, color, religion, sex, disability, familial status, or national origin" . It would also come as no surprise to you that the good people over at HUD are chartered with the authority and responsibility for interpreting and enforcing the Fair Housing Act, with the power to make rules for implementation. The Act does not specify a standard for proving a discriminatory effect ( disparate impact ) violation. Notwithstanding this statutory omission, HUD and the eleven federal appellate courts that have ruled on this issue agree...(read more)

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The Day Ahead: Recent Volatility Might be Logical5/21/2013 4:12 AM

Posted To: MBS Commentary

There continues to be little to do or say about the first two days of the week. For the most part, they merely serve as a sort of cruel waiting game (or torture rack) ahead of Wednesday's FOMC events. Those events include the Bernanke testimony to the Joint Economic Committee in the morning and of course the hotly anticipated FOMC Minutes at 2pm in the afternoon. In fact, ever since the Employment report on 5/3 set a negative trend adrift, there hasn't been one singular big-ticket event on the calendar that to inform or change the drift. The biggest swings have been tradeflow related, and we now find ourselves surprisingly in line with the original post-NFP trends from earlier in the month: Even the bigger picture trend has returned to it's mid-point. In fact, seeking out such a central zone...(read more)

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MBS RECAP: Another Hopeful Morning Dashed by Defensive Reality5/20/2013 2:44 PM

Posted To: MBS Commentary

MBS Live : MBS Afternoon Market Summary Bond markets got in this morning and quickly began undoing some of the damage done by the overnight trading session. Treasuries and MBS both opened flat to slightly stronger and made further gains in the first few hours. This was soon revealed to be the same old set-up we've seen play out frequently since May 3rd. It usually ends with things starting to get slippery after 10am and drifting sideways-to-weaker in the afternoon. Today was no exception. 10yr yields ran into a floor that had been paved over on Friday after the Consumer Sentiment data. Before that, it had been a ceiling, providing a good bounce before the Friday afternoon drift took over. After bouncing there today, it was all over for 10's and MBS alike. The former moved quickly from 1.92...(read more)

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Mortgage Rates Near 2013 Highs to Start Week5/20/2013 1:56 PM

Posted To: Mortgage Rate Watch

Mortgage rates continued May's nearly constant trend higher to begin the week, though the pace of increases is slower compared to that seen on Friday. Even so, it brings rates dangerously close to their highest levels of 2013 (which are also the highest levels in 1 year). Best-execution for Conventional, 30yr Fixed Loans is in transit between 3.625% and 3.75%. Best-ex is also more subjective from borrower's points of view at the moment due to the fact that the most efficient rate on most rate sheets is 3.625% yet it might leave some borrowers bringing more to the table in terms of closing costs than they'd otherwise like. In other words, we're now getting into rate territory where 3.625% won't necessarily be a "no point" quote for the best qualified borrowers (but as always, this can vary greatly...(read more)

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MBA Highlights Opportunity For Private Capital Risk-Sharing With GSEs5/20/2013 12:53 PM

Posted To: MND NewsWire

Maintaining that the conservatorships of Fannie Mae and Freddie Mac (the GSEs) have caused government involvement in the mortgage market to balloon to unhealthy proportions , the Mortgage Bankers Association (MBA) Monday released the second in a planned series of five concept papers offering its solutions. Today's paper on risk sharing follows Key Steps on the Road to GSE Reform, which suggests that the Federal Housing Finance Agency (FHFA) direct the GSEs to modify the Freddie Mac PC to mirror the exact structure of the Fannie Mae MBS so that these securities would be considered fungible for TBA delivery. In Up-Front Risk Sharing: Ensuring Private Capital Delivers for Consumers MBA says a situation exists today where the government is crowding out private capital and blocking real competition...(read more)

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Fannie Forecast Serves up Feast for Housing Recovery Bulls5/20/2013 11:31 AM

Posted To: MND NewsWire

Fannie Mae's economic and strategic research team today called the housing recovery "undeterred" after it contributed 0.3 percentages points to economic growth in the first quarter. Doug Duncan, Orawin T. Velz, and Brian Hughes-Cromwick said this was the eighth consecutive quarter that housing has added to growth and the company's Economic Summary for May said recent housing indicators point to continued recovery. The annualized rate of housing starts in March was over one million units for the first time since 2008 , driven solely by a surge in multi-family building which more than offset a decline in single-family construction. Multi-family housing starts are now back to the levels of the early 2000s, benefitting the report says from a continuing decline in homeownership which fell again...(read more)

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Delinquencies to Decrease Slightly, Price Appreciation Sustainable -FICO Survey5/20/2013 10:49 AM

Posted To: MND NewsWire

Most risk professionals who participated in a recent survey believe the status quo is going to prevail when it comes to loan delinquencies over the next six months. In survey conducted in the first quarter by FICO and the Professional Risk Managers Association (PRMIA) the respondents, 58.5 of whom said their main area of responsibility was mortgages, were asked to predict the path of delinquencies for seven categories of loans. A plurality expect delinquency rates to stay the same for most loan types and few expect to see further increases. While 45.2 percent of respondents felt mortgage delinquency rates would remain fairly constant over the next six month, 38.5 percent do expect further declines compared to 31.3 percent in the previous survey conducted in the fourth quarter of 2012. Less...(read more)

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MBS MID-DAY: Morning Gains Give Way to Mid-Day Rout (again)5/20/2013 10:36 AM

Posted To: MBS Commentary

MBS Live : MBS Morning Market Summary Please note the timestamp on the pricing snapshot below, and that it's about an hour and 15 minutes old. The snapshot will continue to be generated between 11:00-11:10am while the MID-DAY Commentary time may vary depending on market volatility. Lately, MBS have had an unfortunate tendency to reverse course after making gains (or at least holding ground) in the first two hours of the day. When this occurs, our resources are fully allocated to reprice alerts for the MBS Live community . One of those is already reflected in this recap, but there were two additional instances at 11:33am and 12:12pm. Those operational details tell about as much of the story as there is to tell for bond markets this morning. There hasn't been any data, headlines, or events to...(read more)

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Texas and Reverse Mortgages; More on Possible Ginnie Changes; Upcoming Training5/20/2013 7:32 AM

Posted To: Pipeline Press

Here in Austin, at the Texas Mortgage Banker Association's yearly conference, the talk is not so much about the Millennial generation but about how the Texas House of Representatives approved legislation, already approve by Texas' Senate, which would allow reverse mortgage lending in Texas . But before it can become a law, the legislation will go to voters in Texas on November 5th for approval. This potential law would amend the Texas Constitution to authorize the "Reverse Mortgage for Purchase" program in Texas and would enhance consumer disclosure requirements for all reverse mortgage loans in Texas. Oh, and by the way, Texas is the only state that doesn't allow the reverse mortgage for purchase program for homeowners. Redwood Trust doesn't securitize reverse mortgages, but did issue another...(read more)

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Reuters Business News
Reuters: Business News
Dow, S&P end at records on Fed officials' reassurance5/21/2013 4:44 PM
NEW YORK (Reuters) - Stocks rose on Tuesday, with the Dow and the S&P 500 closing at new all-time highs as Federal Reserve officials' comments eased some concerns that the central bank could start reducing its stimulus program.
Dimon keeps JPMorgan chairman title after bruising battle5/21/2013 4:43 PM
TAMPA, Florida (Reuters) - Jamie Dimon, JPMorgan Chase & Co's outspoken chairman and chief executive, won a vote of confidence on Tuesday as shareholders recommended that he keep his chairman title, giving him a greater margin of approval than last year.
Exclusive: Bob Lutz, Chinese in bid to buy Fisker Automotive - sources5/21/2013 4:40 PM
DETROIT (Reuters) - A boutique carmaker led by former General Motors Co executive Bob Lutz and China's largest auto parts supplier made an offer this month to buy cash-strapped "green" car company Fisker Automotive, people familiar with the matter said.
Apple CEO makes no apology for company's tax strategy5/21/2013 4:31 PM
WASHINGTON (Reuters) - Apple Inc Chief Executive Tim Cook made no apology on Tuesday for the iPad maker saving billions of dollars in U.S. taxes through Irish subsidiaries and told lawmakers that his company backs corporate tax reform, even though it may end up paying more.
Ireland rejects blame for Apple's low tax rate5/21/2013 4:10 PM
CORK/DUBLIN (Reuters) - Ireland said on Tuesday it was not to blame for Apple Inc's low global tax payments and had no special rate deal with the company after the U.S. Senate said it paid little or no tax on tens of billions of dollars in profits stashed in Irish subsidiaries.
Sprint raises Clearwire offer, not enough for some5/21/2013 3:23 PM
(Reuters) - Sprint Nextel Corp raised its buyout offer for wireless service provider Clearwire Corp to $3.40 per share on Tuesday under pressure from activist shareholders, but the new bid failed to impress several big investors.
Is Sony un-Japanese enough to entertain change?5/21/2013 3:12 PM
TOKYO (Reuters) - Few foreign activist investors have made much headway in forcing change in Japan, where a conservative corporate culture favors long-standing ties with banks, business partners and workers rather than shareholders seeking value.
Fed officials dampen talk of imminent bond buying cutback5/21/2013 2:43 PM
NEW YORK/FRANKFURT (Reuters) - Two senior Federal Reserve officials on Tuesday played down the chances that the U.S. central bank would signal a readiness to reduce its bond buying at its meeting next month, dampening speculation the Fed's ultra-easy monetary policy might end soon.
Disney-owned ESPN cutting hundreds of jobs: source5/21/2013 2:36 PM
(Reuters) - ESPN, the sports channel that is Walt Disney Co's most profitable unit, is cutting 300 to 400 jobs across the company and closing a small Denver office, a person with knowledge of the cuts said.
EU leaders look to end Apple-style tax avoidance schemes5/21/2013 2:18 PM
BRUSSELS/PARIS (Reuters) - Growing concern in European capitals about aggressive tax avoidance by high-profile corporations such as Amazon, Google and Apple looks set to steal the agenda of a European Union summit in Brussels on Wednesday.