refinance: 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)

refinance: 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)

refinance: 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)

refinance: 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)

refinance: Mortgage News 05-25-2011 - 05/25/11 06:11 AM
Goldman Sachs Buying Up Jumbo Mortgage Product. More Lenders Chasing Non-Agency Deals; Appraisal Feedback by: Rob Chrisman Pssst... Goldman Sachs is in buying jumbo mortgages. "Goldman has been stockpiling jumbo mortgages at a rate that far exceeds the buying activity of Bank of America, Barclays, Credit Suisse, RBS and other banks that are trying to revive their once-active conduit businesses." ABAlertGoldmanJumbos. I know that Goldman isn't in business for their health, and I am no "industry insider" but if I was I'd be wondering who picked these mortgages for Goldman to buy. Is Goldman going to short the deal? Is the … (0 comments)

refinance: May 24, 2011: Google wades farther into mortgage pool; general industry comments & trends and NAR & CAR statements on lending - 05/24/11 05:42 AM
May 24, 2011: Google wades farther into mortgage pool; general industry comments & trends and NAR & CAR statements on lendingRob Chrisman
We can bicker over underwriting guidelines, disclosure documents, or turn times, but the flooding and tornado disasters that have befallen many states take precedence. Our thoughts go out to those affected by natural events. The events that have unfolded there are certainly more important than the rumors surrounding Sarah Palin's possible purchase of a $1.7 million, 8,000 square foot home in Scottsdale, Arizona. SISA deal?"I am the owner of a mid-sized mortgage bank, and have been for many, many … (0 comments)

refinance: Market Snapshot May 24 - 05/24/11 03:37 AM
Some slippage early this morning; the bond and mortgage markets trading slightly weaker after another attempt to break 3.10% on the 10 yr note yesterday. Yesterday the 10 yr made another attempt to push below its resistance, just couldn't make it although it did decline 2 basis points with mortgage rates unchanged on the session. Yesterday the bond market had support from continued uncertainty about Europe's debt problems in the "infamous five" countries facing potential defaults. The weaker stock market yesterday also kept safety moves into treasuries alive. 
 
This morning the US stock market key indexes were pointing to a better open at 9:30 after … (0 comments)

refinance: May 23, 2011: Simplified disclosure forms under fire; Appraisal system under fire; European debt under fire; does anyone have an extinguisher? - 05/23/11 05:37 AM
May 23, 2011: Simplified disclosure forms under fire; Appraisal system under fire; European debt under fire; does anyone have an extinguisher?Rob Chrisman
I don't know if this quite falls under the "No good deed goes unpunished" category, but the proposed simplified combined GFE and TIL form is coming under pressure already." Industry groups say the revisions may lead to limits on innovation and variety in lending, while consumer advocates are resisting changes that might limit borrowers' right to sue to stop a foreclosure." http://www.sfgate.com/cgi-bin/article.cgi?f/g/a/2011/05/17/bloomberg1376-LLAZ4C0D9L3501-7HVONI9G31QAQU8Q400CA3U53S.DTL.The latest Dodd Frank turmoil is over appraisers. Under the Act, lenders are now required to pay "customary … (0 comments)

refinance: Market Snapshot May 23 - 05/23/11 05:36 AM
ADVICE:  For loans being locked for 15 - 30 days, we suggest...(more)
Treasuries have been bid from the get go in Asia as continued problems in the euro zone peripheries have sparked a flight to safety bid. On Saturday, S&P downgraded Italy's credit outlook to negative. Spanish citizens went to the polls over the weekend and dealt a devastating blow to Prime Minister Jose Luis Rodriguez's Socialist party as it witnessed its worst defeat in more than 30 years amid its plan for austerity. Manufacturing readings from China and the euro zone showed manufacturing slowed from previous readings. All of these … (0 comments)

refinance: Mortgage News 05-20-2011 - 05/20/11 06:23 AM
May 20, 2011: SEC looks at rating agencies, and how do they evaluate banks? LOS comments; BofA sheds BlackRock stakeRob Chrisman
It is easy for originators to focus on daily rate sheets, mostly determined by what the MBS market is doing. But sometimes it helps to be reminded that on the investor side, fixed-income money managers have other alternatives to buy such as Treasury securities, corporate debt, foreign debt, and so forth. And, just like MBS yields, these markets are also prone to "herd mentality moves" and market psychology. Municipal debt ("muni bonds") rates have been dropping significantly over the last … (0 comments)

refinance: Market Snapshot May 20th - 05/20/11 04:48 AM
Yesterday's shocking surprise on the May Philly Fed business index turned what was likely to be a run to slightly higher rates around on a dime. The index was expected to increase from 18.5 in April to 20 in May' as released the index plunged to 3.9 and the new orders component fell substantially, from 18.8 to 5.4. Until that hit at 10:00 the bond and mortgage markets were not looking good; the 10 yr note yield had spiked from 3.11% on Tuesday to 3.25% at 9:59 yesterday and mortgage prices had declined 24/32 (.75 bp) with the 30 yr rate … (0 comments)

refinance: May 19, 2011: Voting on disclosure forms; implications of upstart correspondent programs; Do you like your LOS? - 05/20/11 03:45 AM
May 19, 2011: Voting on disclosure forms; implications of upstart correspondent programs; Do you like your LOS?Rob Chrisman
"Rob, I continue to hear rumors about rumors of large established correspondent investors possibly questioning their practice of buying closed loans from smaller lenders who are also buying loans through newly established correspondent channels. Is this true, and will it impact the market for us little guys?" As an answer, let me say that I have heard similar "rumors about rumors" but I have seen nothing definite come out of any of the Big 4 investors. That being said, it is well known … (0 comments)

refinance: Market Snapshot - 05/20/11 03:44 AM
Read all of this; 10:00 data has had an impact.
 
Yesterday's market trading in treasuries was a shot across the bow for interest rates; this morning more selling and we can say the end of the recent decline in rates is likely over. We have warned for a few days the decline in rates was becoming difficult to sustain. Tuesday the 10 yr note did take out its technical resistance at 3.14%, the level that had pushed back any attempts to move lower for two weeks. Yesterday there was no follow-through and yields jumped, in our view the increase … (3 comments)

refinance: May 18, 2011: Why haven't you moved your checking account? News on Flagstar, Quicken's comp case, Impac's earnings; interesting NAR stats - 05/18/11 07:50 AM
May 18, 2011: Why haven't you moved your checking account? News on Flagstar, Quicken's comp case, Impac's earnings; interesting NAR statsRob Chrisman
A hockey coach once said, "Last year we couldn¹t win at home and we were losing on the road. My failure as a coach was that I couldn¹t think of anyplace else to play." Where else are people going to bank? Before the financial crisis, the banking industry was too concentrated and clubby. Now, many argue that it is even more so, especially since not only are many banks going out of business, but Chase, Citi, BofA, and Wells … (0 comments)

refinance: market Snapshot - 05/18/11 05:56 AM
ADVICE:  For loans being locked for 15 - 30 days, we suggest...(more)
Treasuries and mortgages tried early to hold slight price gains but by 9:00 the 10 yr was a little lower in price and mortgages -3/32 (.09 bp) frm yesterday's close. Stock indexes early were a little better with crude oil and gold higher. Crude being pushed higher this morning on a huge fire in Canada's oil fields where most have been evacuated. No economic releases today except the weekly MBA mortgage applications at 7:00 this morning.
 
Technically, yesterday the 10 yr note broke its two week resistance at … (0 comments)

refinance: Mortgage Market Snapshot 05-17-2011 - 05/17/11 06:01 AM
At 8:30 April housing starts were worse than expected, down 10.6% to 523K units annualized with forecasts up 2.8%; March starts were revised higher, up 12.9%. April single family starts -5.1%. April building permits expected down 0.7% fell 4.0%. We don't have a lot to add to the report in that it continues to slide, as long as housing does not show any recovery there is little anyone should expect in the way of economic improvement. We are amazed, and even somewhat shocked that there is very little outward attention to the crisis in Washington; possibly because there is not much … (1 comments)

refinance: 05-17-2011 Mortgage News - 05/17/11 05:51 AM
May 17, 2011: Quicken comp issue still in courts; amazing list of Fannie & Freddie pending bills; why the rally in high balance agency pricing?Rob Chrisman
Sometimes you think things are one way, and they turn out to be different. (Just ask Maria Shriver, who found out about Arnold Schwarzenegger and a longtime female member of their household staff had a child together more than a decade ago.) The compensation issue involving Quicken Loans is in the news again as “the U.S. Supreme Court asked the Obama administration for its views Monday on a case that examines when mortgage lenders can … (0 comments)

refinance: May 16, 2011: AE jobs; NAR opines on QRM; banks continue to buy agency mortgages; reader input on REO sales/lending - 05/16/11 10:04 AM
May 16, 2011: AE jobs; NAR opines on QRM; banks continue to buy agency mortgages; reader input on REO sales/lendingRob Chrisman
Seen on a doc drawer's bulletin board: "I don't mind coming to work. But it is the 8 hour wait until going home that is killing me."Here is some news of interest to start the week: there is a push to simplify the disclosure paperwork given to borrowers when obtaining a mortgage. Huh? What? The CFPB might actually combine mortgage forms, or make them simpler? http://www.consumerfinance.gov/knowbeforeyouowe/But things have become more complicated in Montana, where the state adopted revisions to the … (0 comments)

refinance: May 13, 2011: Appraisal guarantees on buybacks? Discover buys Home Loan Center; Ellie Mae results; rating agency ruling - 05/13/11 08:23 AM
May 13, 2011: Appraisal guarantees on buybacks? Discover buys Home Loan Center; Ellie Mae results; rating agency rulingRob Chrisman
We have 18 months until the presidential election, and already things are heating up. The financial community is closing following Donald Trump's campaign, with the slogan is rumored to be: "We Shall Overcomb!" And if he runs and wins, there will be hell toupée.Wake me up when this is over. Legislators have introduced a proposal to eliminate two companies (Fannie & Freddie) who have a government guarantee, and replace them with five private companies who will also have a government guarantee? What … (0 comments)

refinance: Market Snapshot - 05/13/11 05:30 AM
Prior to 8:30 the interest rate markets were unchanged, at 8:30 April consumer price index was up 0.4% in line with forecasts, excluding food and energy +0.2% also about n line. Yr/yr overall CPI +3.2% up frm +2.7% in March, excluding food and energy +1.3% up frm +1.2% in March. The yr/yr CPI the highest in 3.5 years, mostly on oil and gasoline price increases. Inflation at the wholesale and intermediate levels is climbing but so far price increases have not yet filtered down to consumers, although the core did increase from March to April.
 
Treasury auctions are over now … (0 comments)