jumbo: Market Snapshot June 17th - 06/17/11 04:43 AM
Treasuries and mortgages opened a little soft early this morning but by 9:00 mortgage prices crawled higher by .06 bp. The main event this week continues to be the Greece situation with the threat of defaults of its debt that if it occurred it may spread to other troubled EU countries. Economic data also has been in play with manufacturing sliding on the NY Fed index and the Philly Fed business index while the housing markets still in depression showed a little improvement in May starts and permits. 
 
The Greek debt saga continues but overnight some apparent progress to getting Greece more money … (0 comments)

jumbo: Market Snapshot June 15th - 06/15/11 05:36 AM
Treasuries and mortgage markets were pounded yesterday, the 10 yr and mortgage rates jumped 11 basis points in rates. Yesterday the equity markets rallied on news from China that its industrial production increased more than expected and a better May retail sales than thought. It appears a one and off trade based on what we have so far this morning. 
 
At 8:30 May consumer price index was up 0.2% overall but the core (ex food and energy) was up 0.3%, higher than expected. Yr/yr CPI overall +3.6% and yr/yr core +1.5%. Some concern that inflation is getting into the system but … (2 comments)

jumbo: Market Snapshot June 14th - 06/15/11 03:58 AM
The stock markets in Europe stronger, here this morning in pre-market trading the DJIA up 100 points at 8:45. The 10 yr note -21/32 at 3.06% and mortgage prices -13/32 (.41 bp) at 9:00. The markets were ripe for a change technically; the bond market overbought while the stock market oversold; always difficult to call it but we have mentioned it for the last few days. The equity market rally started in China when its industrial production was stronger than most were expecting.
 
In Europe markets were once again encouraged that the Greece debt problem may about to be completed; it has been back and forth … (0 comments)

jumbo: June 13: Miscellaneous letters on topics ranging from DTI to Freddie's Relief program; NMLS Call Report deadline approaching - 06/13/11 07:40 AM
June 13: Miscellaneous letters on topics ranging from DTI to Freddie's Relief program; NMLS Call Report deadline approaching
 
 
 
"The evening news is where they begin with 'Good Evening,' and then proceed
to tell you why it isn't." So I won't say "Good morning." As Wells Fargo
Security's newsletter noted at the end of last week, "Now that the era of
stimulus is coming to an end, decision makers must come to grips with the
economy that we have-not the one some commentators dream up. First, the
housing sector continues to work through its issues, which means sustained
subpar … (0 comments)

jumbo: Market Snapshot June 13th - 06/13/11 06:03 AM
ADVICE:  For loans being locked for 15 - 30 days, we suggest...(more)
Treasuries and mortgage markets opened weaker this morning with the US stock indexes looking slightly better after falling 172 points on Friday. The bellwether 10 yr still hanging close to 3.00%, unable to sustain under 3.00% for any length of time. There are no economic reports today but the momentum will pick up through the rest of the week after very little last week. 
 
On the global picture, still no consensus in Europe over how to deal with Greece's debt problems. It seems one day they have have … (0 comments)

jumbo: Market Snapshot June 10th - 06/10/11 04:46 AM
The bond and mortgage markets started a little better this morning after a bout of selling yesterday as the equity market bounced off very oversold technicals; the bond market equally extended----overbought as we note two days ago. This morning in early activity the stock indexes were weaker. Yesterday's minor price declines and the improvement in equity markets were not n any way fed by a change in the over-riding fundaments of an economy weakening, energy prices and commodity prices increasing.
 
This morning, in a week with hardly any economic data, May import prices were expected down 0.7% but increased 0.2%; … (0 comments)

jumbo: Jun. 9, 2011: REIT's gaining in prominence; analyzing mortgage pools in the future; HUD's 2011 limits - 06/10/11 04:44 AM
Jun. 9, 2011: REIT's gaining in prominence; analyzing mortgage pools in the future; HUD's 2011 limitsRob Chrisman
"I used to be indecisive. Now I'm not so sure." But one thing that I am sure of is transparency. Sterne Agee released prepayment information, important to investors and originators alike. "Primary rates continued to their recent descent in May but lower rates alone were not enough to incent borrowers to refinance. Prepayment speeds for Conventional pools fell...Fannie collateral is now prepaying faster than Freddie." Now, I am no expert, but that last sentence was interesting. Why is Fannie faster than Freddie? I will … (0 comments)

jumbo: Jun. 8, 2011: Lots of agency news & organizational changes; Oregon & MERS; Texas's TAMP goes belly up - 06/10/11 04:42 AM
Jun. 8, 2011: Lots of agency news & organizational changes; Oregon & MERS; Texas's TAMP goes belly upRob Chrisman
Fun with numbers...In the 2010 Census, for you reverse mortgage lenders, seven states had a median age of 40 or older: Maine (42.7), Vermont (41.5), West Virginia (41.3), New Hampshire (41.1), Florida (40.7), Pennsylvania (40.1) and Connecticut (40.0). Maine overtook West Virginia and Florida as the state with the highest median age in 2010. For you first home purchase specialists, the states with the lowest median age (excluding the District of Columbia) remained the same as they were in 2000: Utah (29.2), … (0 comments)

jumbo: Market Snapshot June 8th - 06/10/11 04:40 AM
Stocks fell in Europe for a sixth day, U.S. index futures declined and the yen strengthened as concern deepened the global recovery may slow. Copper led commodities lower, while oil dropped as OPEC meets. The US stock indexes traded weaker all morning into the open with the DJIA lower; a close lower today will be the first time since 2009 the DJIA fell six days in succession. The bond and mortgage markets benefiting as the economic outlook weakens. 
Treasuries and mortgage markets started better, still better but have slid back from levels at 8:30; at 9:30 the DJIA opened flat after … (0 comments)

jumbo: Jun. 3, 2011: E-signatures for FHA? Maybe. Employment data push rates back down; One week to go for QRM comments - 'nuff said - 06/03/11 07:53 AM
Jun. 3, 2011: E-signatures for FHA? Maybe. Employment data push rates back down; One week to go for QRM comments - 'nuff saidRob Chrisman
Here we are on June 3rd, which means we have 7 days left to comment on the Qualified Residential Mortgage (QRM) provisions. If you thought that the industry had forgotten, no way. Lobbying efforts have continued. In recent news, a letter signed by 163 congressmen urges federal regulators to loosen the definition of a "qualified residential mortgage," allowing single-family loans with low down payments and private mortgage insurance to be exempt from pending risk retention rules. In … (0 comments)

jumbo: Market Snapshot June 3rd - 06/03/11 07:52 AM
May non-farm jobs were up just 54K, non-farm private jobs +83K; the unemployment rate increased to 9.1% frm 9.0% in April. April and March non-farm jobs were revised down by an additional 39K. Manufacturing down 5K, government jobs -29K mostly at the state level. The U-6 jobless rate 15.8%; those underemployed and those that have stopped looking. Jobless duration 27 weeks or more 6.2 mil up frm 5.839 mil in April. Going into the report the estimates were +150K non-farm jobs, +175K private jobs, 8.9% unemployment rate; estimates were all over the place but those were the general consensus.
 
The … (0 comments)

jumbo: Jun. 1, 2011: Mortgage jobs in the west; Ginnie issuance continues strong; investor underwriting & program changes; gotta like these rates - 06/01/11 06:57 AM
Jun. 1, 2011: Mortgage jobs in the west; Ginnie issuance continues strong; investor underwriting & program changes; gotta like these ratesRob Chrisman
The north Atlantic hurricane season begins today and lasts through Nov. 30. Per the U.S. Census Bureau nearly 37 million people in the US live in areas most threatened by Atlantic hurricanes: the coastal portion of states stretching from North Carolina to Texas. (Approximately 12%) of the nation's population live in these areas.) This compares to 14 million who lived in that hurricane path in 1960, a 163% increase.Can anyone out there lend Ginnie Mae a hand in the … (0 comments)

jumbo: Market Snapshot June 1st - 06/01/11 04:43 AM
A huge eye opener early this morning. At 8:15 ADP May private jobs report hit hard; the consensus estimate was for an increase of 175K jobs, the reality hit like a brick----job growth according to ADP was up just 38K. The extremely weak report has the boys and girls in the back rooms busily revising the BLS report on Friday. Small businesses (1 to 49 employees) added 27K, medium businesses (50 to 499) added 30K, large businesses (more than 499) cut 19K. The goods producing sector lost 10K while service producing added 48K. In the aftermath of the report the 10 yr note … (0 comments)

jumbo: HUD Addresses Upcoming Reduction in Loan Limits; Foreclosure Moratoriums Back; Repurchase Requests Down - 05/31/11 07:13 AM
HUD Addresses Upcoming Reduction in Loan Limits; Foreclosure Moratoriums Back; Repurchase Requests Down
by Rob Chrisman
Anyone lending in "higher loan amount areas" should read the latest from HUD on the probable/possible changes that will take place on October 1. "Barring Congressional action, Federal Housing Administration (FHA) loan limits will revert back to loan limitsdetermined under the Housing and Economic Recovery Act (HERA) for loans insured by FHA on or after October 1, 2011. As a result, FHA loan limits would likely decline in 669 of the 3,334 counties or county equivalents that are eligible for FHA insurance." FHALoanAmounts
I guess … (0 comments)

jumbo: Market Snapshot May 31st - 05/31/11 07:12 AM
Not a good start this morning in the bond and mortgage markets. This is employment week when most attention is directed to working the estimates all week; current thoughts are for jobs to increase 185K with non-farm private jobs +220K and unemployment unchanged at 9.0%. The forecasts likely to be moving all week; on tomorrow we get a look at what ADP estimates, presently it is expected to show an increase of 170K private jobs. 
 
The 10 yr note yield is finding momentary resistance at its 200 day moving average. Over the weekend news from Europe that a deal may be in … (0 comments)

jumbo: May 27, 2011: More on hedge cost; jumbo buyers; single-point contact for servicers; mortgage fraud & lawsuits from top to bottom continues to dominate the press - 05/27/11 07:23 AM
May 27, 2011: More on hedge cost; jumbo buyers; single-point contact for servicers; mortgage fraud & lawsuits from top to bottom continues to dominate the pressRob Chrisman
I saw a poor old lady fall over today on the ice!! At least I presume she was poor - she only had $1.20 in her purse.That is probably not enough to invest in the hundreds of billions, or trillions, that might be up for sale if Fannie & Freddie begin liquidating their portfolios. Not only that, but there are 15 F&F-related bills in the House, little interest in the Senate about doing anything … (0 comments)

jumbo: Market Snapshot May 27th - 05/27/11 06:17 AM
Yesterday's strong rally in the bond and mortgage markets may have been a little too much too rapidly. This morning treasuries and mortgages are lower in price; at 9:00 the 10 yr note -8/32 at 3.09% +3 bp and mortgage prices -5/32 (.15 bp). The 10 yr note playing with its 200 day moving average at 3.08% closed yesterday at 3.06%; the 4.0 June 30 yr FNMA coupon broke its 200 day average nicely but as long as the 10 isn't holding neither will the mortgage market. 
 
This morning the dollar is weaker therefore the stock market is starting better, as … (0 comments)

jumbo: May 26, 2011: Quicken expands, Sidus contracts; Rural Housing primer; OCC weighs in on regulation; insider chatter on the CFPB - 05/26/11 07:31 AM
May 26, 2011: Quicken expands, Sidus contracts; Rural Housing primer; OCC weighs in on regulation; insider chatter on the CFPBRob Chrisman
Sorry the commentary is a little late this morning. My neighbor pounded on my wall at 2:30 AM this morning. Can you believe that...2:30AM?! Luckily for him I was still up playing my bagpipes. Playing my pipes and, of course, thinking about the latest joint venture between Bank of America, JPMorgan Chase, and Wells Fargo. Look out PayPal - they have clearXchange. It is yet another company name with strange capital and non-capital letters. Seriously, it allows their banking customers … (0 comments)

jumbo: Market Snapshot May 26th - 05/26/11 07:29 AM
Prior to 8:30 this morning the bond and mortgage markets were slightly weaker; at 8:30 the bond market found some support when weekly jobless claims and Q1 GDP revision were released. Weekly jobless claims were expected to have declined 5K to 9K to 400K, claims increased 10K to 424K and last week's claims were revised slightly higher from 409K to 414K. Continuing claims however continued to decline, 3.69 mil frm 3.736 mil last week as more are losing their unemployment. Q1 GDP on the advance report last month was +1.8%, the preliminary report this morning was widely expected to be revised to +2.0% to … (1 comments)

jumbo: Mortgage Market Snapshot 05-25-2011 - 05/25/11 06:25 AM
Rate markets started slightly weaker this morning, the bellwether 10 yr note still unable to crack 3.10% closing yesterday at 3.11% and at 8:45 this morning at 3.13%. Mortgage prices also a little weaker, -4/32 (.12 bp) at 8:45. Asian stock markets were lower on soft earnings, Europe's stock markets trading weaker and US stock indexes looking soft into the 9:30 open. Crude lower to start the day while gold a little higher. At 8:30 April durable goods orders were a lot weaker than thought; orders expected down 2.0% fell 3.6% after increasing 4.4% in March, the decline in April the … (0 comments)