Pretty Rough stuff sports fans....take a look at what's happening in our mortgage capital markets....ewww!!!!
Rates dropped on Friday after the unemployment data came and the stock market worsened. A-paper FNMA/FHLMC loan prices improved nicely - one industry expert said that "agency product is the only thing with any liquidity" - and dozens of originators closed their lock desks or did not fund loans. What happened with large investors on Thursday, Friday, and Today? RFC changed their Jumbo A, Expanded Criteria, and Payment Option pricing adjustments. WAMU ceased doing any low-doc transactions whatsoever with FICO's less than 680 and LTV's greater than 65%. MortgageIT discontinued their No Ratio, No Doc, and SISA loans for several of their products. Greenpoint stopped taking locks entirely on their Alt-A Fixed and ARM products. Wells Fargo worsened their Jumbo prices by 1 point. Countrywide changed their guidelines and pricing adjustments for their Expanded and Jumbo product lines. Indymac closed their bulk (conduit) desk. Taylor Bean and CSFB are no longer doing 2nd mortgages. Taylor also scaled back their first lien, Alt-A Fixed, Hybrid ARM and Option ARM programs. Astoria Bank tightened their guidelines and engaged in a mid-day price change on their ARM's for the worse, in spite of a nice improvement in A-paper product. CitiMortgage changed their pricing adjustments for non-agency ARM loans, and also changed the pricing structure for SIVA, NINA, and several other types of loans. More news.... Option One: 185 account executives around the country. All Option One loans have to close by the 17th of this month and fund no later then August 31st. Missing these deadlines will result in your loans being denied or changed for the worse. If you have any loans in the pipeline now, please get them closed ASAP. NovaStar: Suspended fundings on Friday - expected to issue a statement tomorrow. Aegis: Stopped funding - expected to issue a statement soon. National City Mortgage: Suspended all second lien applications. This company has been one of the nation's leaders in home equity loans - big problem. Countrywide: Significantly cut back Reduced, Super Streamline, No Ratio, NINA doc types Wells Fargo: Announced elimination of Stated/Stated second liens today We have an incredibly light news week this week. That doesn't mean that volatility for mortgages rates will go away, since our market may take its direction from the stock market, unexpected news, or rumors of the next originator to take a tumble. Tomorrow's FOMC (Fed) meeting will be very important. Many think that the Fed will lower overnight Fed Funds to help stabilize the markets; others think that they will issue a statement saying that the Fed is "standing by" to provide liquidity
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