Archive for February, 2010

MBS WEEKLY: Bearish Bond Technicals Battle Mixed Econ Outlook

Friday, February 26th, 2010

Posted To: MBS CommentaryWell well well, look where we sit. 10s rose from 3.60 to 3.80 in seven sessions. Took a short breather. Then fell from 3.80 to 3.60 in four days. Chop chop chop . On the week, the 3.625% coupon bearing 10 year Treasury note was +1-09. That's ...

Fannie Mae to Clean Up Purchase Process. And Jumpstart the Non-Agency Market at Same Time?

Friday, February 26th, 2010

Posted To: MND NewsWireIf I was selling loans at the moment and I wanted to reduce secondary marketing ' leakage ', I would take special note of the changes, updates, and guidance's offered by Fannie Mae's QC department in Lender Letter 2010-03 below. THE LOAN QUALITY INITIATIVE! (aka loan repurchase ...

MBS AFTERNOON: Reprices for the Better Reported

Friday, February 26th, 2010

Posted To: MBS CommentaryAlthough "rate sheet influential" MBS coupons are off intra day price highs, we are seeing reprices for the better. If you're floating in the short term, wait a bit longer as you should pick up between .125 and .375 bps after rates are republished. The FN 4.0 ...

MBS LUNCH: Rally On! Enjoy The Ride

Friday, February 26th, 2010

Posted To: MBS CommentaryAT A GLANCE No Further Data Left Today No Further Trading Days Left This Month (traditional month end lift for bonds) Stocks Unable To Break Previous Highs Ongoing Lack Of Super-Bullish Data MBS and Tsy's Both Taking The Opportunity To Test Resistance 4.5's are up 11 ticks ...

Freddie Mac to Eliminate Interest Only Option. Lender Overlays Loom

Friday, February 26th, 2010

Posted To: MND NewsWireFreddie Mac is taking another step in the direction of historically responsible lending habits. The Enterprise today announced it would no longer offer interest only loans as of Sept. 2010. Lenders will undoubtedly enforce this guideline change well in advance of the deadline. HERE is the release: ...

FHFA: GSEs Focused on Core Businesses and Responsible Lending

Friday, February 26th, 2010

Posted To: MND NewsWireThe central goal of the Federal Housing Finance Agency (FHFA) in managing its conservatorship of Freddie Mac and Fannie Mae is and conserving the assets of the corporations by minimizing their credit losses from delinquent mortgages. This goal and others were outlined in a letter earlier this ...

Reverse Mortgages Get Special Attention from Federal Investigators

Friday, February 26th, 2010

Posted To: Voice of HousingThe Financial Crimes Enforcement Network (FinCEN), an arm of the Treasury which generally tracks drug money and terrorist funding has now apparently added Home Equity Conversion Mortgage (HECM) fraud to their efforts. In a recent Miami Herald article titled, “ Crooks Misusing Foreign Trade ,” James ...

MBS MORNING: Existing Home Sales Falls Short Of Expectations

Friday, February 26th, 2010

Posted To: MBS CommentaryAT A GLANCE MBS up 4 ticks on the day at 101-03 (tough resistance at 101-04) 10yr Tsy up a tick with mid to high 3.62 yield (tough resistance at 3.62) Existing Home Sales at 5.05 mln vs. consensus of 5.5 mln Chicago PMI at 62.6 vs ...

Lenders Preparing for Fed’s Exit; Foreclosure Ban in Process?; FDIC Banking Profiles and CRA Requirements; More GFE

Friday, February 26th, 2010

Posted To: Pipeline Press"Talk is cheap, because supply always exceeds demand". For the week that just ended for the Fed, their MBS purchases totaled $17.6 billion, and they sold $6.6 billion, netting out that magical $11 billion weekly total. They are right on target to end this in about a ...

MBS OPEN: Limited Reaction To Upward Revision In GDP

Friday, February 26th, 2010

Posted To: MBS CommentaryAT A GLANCE (you like it when we do this?) GDP headline Slightly Better than expected at 5.9 vs 5.7, but tamer than expected inflation, and consumer spending. Those Internals, plus more news out of Greece, and the data yet to come on the day is helping ...