Mortgage News - Mike McCatty

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MORTGAGE NEWS

Keep current with what's happening in the mortgage market place. Below are links to news articles that pertain to the mortgage industry.

Mortgage News Daily
MBS RECAP: Settling Into Holiday Weekend Drift	5/24/2012 2:09 PM
Posted To: MBS Commentary MBS Live : MBS Afternoon Market Summary This morning, we suggested that markets are relatively out of trading ideas until the next big-ticket items start hitting and thus, might use whatever opportunities arise to make course corrections within a broader range (read more about the SNEAKY TRICK if you missed it this morning). We also noted that there are different ways to determine what that "broader range" might be. Now with today's trading mostly in the books, not only are we getting ongoing confirmation of these "course corrections within a broader range" but there's an emerging visual representation of this in 10yr yields (which, as you may know, we prefer to MBS as far as assessing trends in interest rates despite the fact that this is an MBS site, especially when bigger potential shifts...(read more) Forward this article via email: Send a copy of this story to someone you know that may want to read it.
Mortgage Rates Higher Today, Still Bouncing Around All-Time Lows	5/24/2012 12:02 PM
Posted To: Mortgage Rate Watch Mortgage Rates continue to experience minor volatility near all-time lows, bouncing moderately higher today after moving lower yesterday. The move didn't take rates any higher than Tuesday's rather abrupt short-term highs, and despite the fact that rates have moved in opposite directions every day this week, the actual rates quoted should have remained the same for most scenarios while the variations would be limited to borrowing costs. That means that when we reference "higher rates," the Best-Execution Rate for Conventional 30yr Fixed Loans remains at 3.75%, but closing costs would be higher for that rate today vs yesterday (or the amount of lender credit would be lower, depending on your scenario). (Read More: What is A Best-Execution Mortgage Rate? ) Markets were generally calmer today...(read more) Forward this article via email: Send a copy of this story to someone you know that may want to read it.
RMBS Investigators Announce Website, Coordination Team	5/24/2012 11:39 AM
Posted To: MND NewsWire The Residential Mortgage-Backed Securities (RMBS) Working Group unveiled a new website on Thursday to enable "whistleblowers" to report mortgage-backed securities (MBS) related misconduct. The group also announced the creation of a new team to coordinate various securities-related investigations around the country. The Working Group is part of the Financial Fraud Enforcement Task Force ( FFETF ) created in January to address fraud leading to the financial crisis. The group is led by five co-chairs representing the civil and criminal divisions of the Department of Justice, the Securities and Exchange Commission, and two attorneys general from New York and Colorado. According to a press release, the working group and its members are focused on investigating potential false or misleading statements...(read more) Forward this article via email: Send a copy of this story to someone you know that may want to read it.
MBA Hikes 2012 Origination Forecast by $200 Billion	5/24/2012 10:55 AM
Posted To: MND NewsWire The Mortgage Bankers Association ( MBA ) is projecting that mortgage originations in 2012 will be $200 billion higher than was originally anticipated. Almost all of the increase will be coming from a boom in refinancing, but none of the additional originations are pegged to the Home Affordable Refinance Program (HARP 2.0.) MBA said it now expects that the industry will do $1.28 trillion in business in 2012, up from $1.26 trillion in 2011. The new number is an upward revision of $188 billion from the number MBA put out in April, driven by an increase in the pace of refinance applications and originations. Refinancing is now expected to generate $870 billion during the year, virtually the same amount as in 2011. At the same time, MBA revised its estimate of purchase loan origination downward...(read more) Forward this article via email: Send a copy of this story to someone you know that may want to read it.
Understanding Your Operation is Critical to Profits; Recent Lender/Investor Updates	5/24/2012 9:41 AM
Posted To: Pipeline Press (There aren't many folks in the world who, on their death bed, would exclaim, "I wish I had another day of work!" With that in mind, I am biking around in the high country in Southern Utah, camping with no internet, and Brad Nease with Carrington is pinch hitting for a portion of today's commentary - brought to you through the wonders of modern technology. Thank you Brad! And there are still some lender updates, and a little humor at the end.) Let's talk revenue. Are you the CEO, President, CFO, or head of Secondary? If I were to walk into your company, right now, and ask: What is your company making (in basis points)? What is your gross or top end number? What is your net or bottom line number? Do you know? Would you be able to go directly to an excel spreadsheet and point to your GOS (?);...(read more) Forward this article via email: Send a copy of this story to someone you know that may want to read it.
MBS MID-DAY: Leaking Weaker In Lackluster Volume	5/24/2012 9:27 AM
Posted To: MBS Commentary MBS Live : MBS Morning Market Summary There's not really much to today's weakness. It's moderate, it's steady, and it began yesterday. After hitting the strongest recent levels yesterday morning, MBS and Treasuries have been grinding slowly and steadily weaker. Speaking of "slowly," MBS have been fairly quiet today and yesterday, while Treasuries have been moving along at healthy clip. In both sides of the market, the movement is consistent with our assertion that there's not much to do apart from RANGE-TRADE ahead of more significant events in the coming weeks. That's a fairly high probability phenomenon unless we get a major piece of news to nudge prices/yields out of said ranges. Even then, the actual boundaries of the ranges are somewhat open to interpretation, but certainly 1.80 stands...(read more) Forward this article via email: Send a copy of this story to someone you know that may want to read it.
OIG Recaps October-April Oversight of FHFA	5/24/2012 8:06 AM
Posted To: MND NewsWire In its third semi-annual report to Congress the Federal Housing Finance Agency's (FHFA) Office of the Inspector General (OIG) recapped its activities during the six month period ending April 30. OIG is charged with promoting transparency in FHFA's program administration and oversight of the operations of the two government sponsored enterprises (GSEs) which are in government conservatorship Fannie Mae and Freddie Mac as well as the third GSE, the Federal Home Loan Banking System (FHLBanks). OIG is also charged with preventing and detecting fraud, waste and abuse in the operation of the GSEs as well as FHFA itself. In addition to enumerating the various reports it had issued on both FHFA and GSE activities and the recommendations resulting from them, Thursday's report contained a special section...(read more) Forward this article via email: Send a copy of this story to someone you know that may want to read it.
The Day Ahead: Moderate Data and Treasury Auction Planning a Sneaky Trick	5/24/2012 5:52 AM
Posted To: MBS Commentary With very limited data and an early close on Friday, today will serve as the last trading day of the week in many regards. For starters, it's the last of the Treasury coupon auctions, this time 7yr Notes at 1pm . Yesterday's 5yr auction was almost completely uneventful though, though we're cognizant of fact that markets' interest had perked up a bit about European headlines after the morning shocker that Eurozone officials told members to make contingency plans for a Greek Eurozone exit. So a fuller reaction could have been muted by impending or anticipated events, but we still wonder how much markets even care about the 7yr issuance, and indeed how much they care about the ongoing demonstration of that which is already known--US Treasuries are in high demand as a safe-haven. Data too, fell...(read more) Forward this article via email: Send a copy of this story to someone you know that may want to read it.
Freddie Mac: Data Starting to Paint Picture of 2012	5/23/2012 2:16 PM
Posted To: MND NewsWire Freddie Mac said that first quarter 2011 economic data that has begun to emerge from various sources are, even though some is preliminary, beginning to create an impression of what the year may hold. Data on economic growth indicates that the quarter had slower growth than the one that preceded it but was still up from three of the previous four quarters. The slower growth primarily reflected less inventory accumulation and a dip in residential construction. According to the corporation's Economic and Housing Market Outlook for May, personal consumption grew at a 15.3 percent annual basis and residential fixed investment added 0.4 to the quarter's 2.2 percent economic growth. This factor, which primarily reflects new housing construction and home remodeling, has been up for four straight quarters...(read more) Forward this article via email: Send a copy of this story to someone you know that may want to read it.
MBS RECAP: Early Gains on Europe, Late Weakness on Stocks	5/23/2012 2:08 PM
Posted To: MBS Commentary MBS Live : MBS Afternoon Market Summary Once again bond markets came into the session at better levels achieved during overnight trading. In fact, things were looking up ever since ex-Greek PM Papademos noted that a Greek Euro-zone exit was a real risk. Everything since then has been a continuation on that same theme, culminating in the Euro hitting multi-year lows and bringing 10yr yields down 1.71% mid-day. MBS hit 104-19 at their highs (Fannie 3.5's) but fell to the 104-10 pivot point by 4pm. 10yr yields rose to test their 1.75% pivot point into the stock market close. Trough to peak, S&P's put in a massive 23 point gain. MBS Pricing Snapshot Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live. FNMA 3.5 104-11 : +0-02 FNMA...(read more) Forward this article via email: Send a copy of this story to someone you know that may want to read it.
Mortgage Rates Reclaim Some Of Yesterday's Losses	5/23/2012 12:58 PM
Posted To: Mortgage Rate Watch Mortgage Rates improved today , gaining back a good portion of yesterday's losses as European markets continued keeping pressure on domestic stock prices and interest rates. The biggest move for markets came on the news that Euro-zone officials agreed that member countries should be working on contingency plans for a Greek Euro-zone exit. Although the news was batted around as credible and untrue alternately, markets didn't seem to care. The Euro hit a multi-year low and 10yr yields fell to their lowest levels in nearly a week. Yesterday we noted that, despite rising rates, the recent weakness till fit within the scope of a 'leveling off' but that if rates continued rising today that could start to change. Thankfully, today's improvements keep us well within the original 'leveling off' theme...(read more) Forward this article via email: Send a copy of this story to someone you know that may want to read it.
Fed Consumer Video Spotlights Independent Foreclosure Reviews	5/23/2012 10:44 AM
Posted To: MND NewsWire The Federal Reserve has posted a video for homeowners informing them of their right to an independent review of their foreclosure files if they believe they were harmed by their servicer. The nearly four minute long video is available in English, Spanish and has an accompanying hard-copy transcript. The narrator, the Fed's Anna Alvarez Boyd, lays out the eligibility requirements for the program, the deadline for which has recently been extended to July 31, 2012, and the procedures for requesting a review. Boyd also advises viewers to beware of persons trying to use the program to defraud them. Notably missing from the video is any information on why a homeowner might want to request a review. There is no mention of possible compensation, merely that the requestor will eventually receive a letter...(read more) Forward this article via email: Send a copy of this story to someone you know that may want to read it.
April New Home Sales Bounce Back after March Drop	5/23/2012 10:01 AM
Posted To: MND NewsWire Sales of new single-family houses in April 2012 were at a seasonally adjusted annual rate of 343,000 , according to estimates released jointly today by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 3.3 percent above the March rate of 332,000 and is 9.9 percent above the April 2011 estimate of 312,000. The March rate had originally been estimated at 328,000 so this revision somewhat moderates to -5.9 percent the sharp 7.1 percent decline which had been the focus of the March report. On a non-seasonally adjusted basis there were an estimated 33,000 homes sold during the month, up from 32,000 in March. This was the highest number of estimated monthly sales since April 2010 when there were 41,000 sales. Sales one year earlier, April 2011, totaled 30,000. At...(read more) Forward this article via email: Send a copy of this story to someone you know that may want to read it.
MBS MID-DAY: Bond Markets Benefit From European Sell-Off	5/23/2012 9:38 AM
Posted To: MBS Commentary MBS Live : MBS Morning Market Summary While it may have mostly run it's course by now, the morning has been dominated by big moves in several of the markets from which domestic Treasuries often take cues. MBS have been able to share some of that spotlight, but Treasuries are certainly the star of the show. German Bunds, global equities, US Treasuries, and the Euro itself have all been waltzing lower this morning without any regard to domestic economic data at 10am. The chart below shows the strong connection between Bunds and Treasuries as well as the strong correlation with the Euro and Stocks (represented here by S&P futures). With the 5yr Auction the next event of note at 1pm, there's not much left for this morning but to keep an ear out for further EU Summit headlines. Incidentally...(read more) Forward this article via email: Send a copy of this story to someone you know that may want to read it.
FHFA Index Shows Modest Home Price Increases	5/23/2012 9:16 AM
Posted To: MND NewsWire Another survey is reporting that U.S. home prices have managed a recent slight rebound. The Federal Home Finance Agency's (FHFA) is reporting that home prices nationwide as measured by its seasonally adjusted Home Price Index (HPI) increased a modest 0.6 percent in the first quarter of this year compared to the fourth quarter of 2011. Most of the increase came in March, the last month of the quarter when the index rose 1.8 percent from February. The HPI showed an even more modest increase from the first quarter of 2011 of 0.5 percent, however this was the first annual increase shown in a first quarter since 2007. "Consistent with other housing market indicators, the FHFA HPI showed stronger house prices in the first quarter, most notably in March ," said FHFA Principal Economist Andrew Leventis...(read more) Forward this article via email: Send a copy of this story to someone you know that may want to read it.