MSI Lending

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Visualizing the Behavior of Mortgage Rates from a Consumer's Perspective - 20 hours ago
Posted To: Mortgage Rate WatchA moderate recovery to what seemed like decently aggressive loan pricing over the past three days was wiped out in a matter of minutes today. While that sounds somewhat dramatic, in the big picture, the positive progress we've made since melting down (up) last week has yet to really warrant a celebration on the consumer level. Don't get me wrong, encouraging events have definitely played out in the secondary mortgage market and closing costs have indeed improved, but those uplifting improvements haven't produced much of a return to borrowers. They've been symbolic of a recovery rally but have yet to evolve into concrete reductions in monthly payments. To illustrate my point I decided to convert loan pricing data from my model, which includes rate quotes from the five major lenders, into a format...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.

New Home Sales Fall Unexpectedly In October. Median Prices Plummet - 1 day ago
Posted To: MND NewsWireThe U.S. Census Bureau and the Department of Housing and Urban Development have jointly released NEW RESIDENTIAL SALES for October 2010. The survey is primarily based on a sample of houses selected from building permits. Since a "sale" is defined as a deposit taken or sales agreement signed, this can occur prior to a permit being issued. Changes in sales price data reflect changes in the distribution of houses by region, size, etc., as well as changes in the prices of houses with identical characteristics. It takes four months to establish a trend of new home purchases. Despite the expectation that the absence of a Homebuyer Tax Credit would lead to slow sales, analysts expected home sales to rise to 310,000 in October, which would have constituted a marginal increase from Septembers rate of...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.

7-Year Note Auction Poor All Around. Bond Bleeding Stopped For Now - 1 day ago
Posted To: MBS CommentaryTreasury just auctioned $29 billion 7-year notes at a high yield of 2.253%. This was 1.1bps above the 1pm "When Issued" yield. The bid to cover ratio, a measure of auction demand, came in at a nine auction low, below average 2.63 bids submitted for every 1 accepted by Treasury. 40.2% of those bids were accepted at the high yield while 50% were awarded at or below the median yield of 2.186%. 5% were awarded at or below 2.10%. Primary dealers took down $14.3bn or 49.3% of the competitive bid. This is well above average for the street vs. recent 7-year note auctions. Dealers were also awarded an above average 28.4% of the supply they bid on. Remember we don't want dealers getting their hands on too much supply. Direct bidders added $2.5billion or 8.5% of total competitive tenders. Direct bidders...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.

Short Sellers Dominate Trading Flows. Delay QEII Cleansing Process - 1 day ago
Posted To: MBS CommentaryThe risk trade is on and volatility is rearing its ugly head in the bond market again. Stocks and commodities are stealing our bid, leaving fast money short sellers to beat up bonds while the Fed takes a QEII break just in time for $29 billion 7s at 1pm. I would love to place the blame on a lack of liquidity in the long end of the curve but flows are robust as is volume. That being said, desks are manned by the JV squad today with strict instructions to stay out of the market's way. That means if flows got going in one direction, the desk should not attempt to slow momentum because the desk would get run over. That is exactly what's happening right meow. Momentum got going in the wrong direction yesterday afternoon following the sloppy 5-year note auction and it extended into today. Black box...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.

Lender "Skin in the Game"; More on Freddie's Fee Increase; New Mortgagee Letters; Sponsored FHA Originators; Investor Bulletins - 1 day ago
Posted To: Pipeline PressIn what can be summed up as "One man's junk is another man's treasure," MBS investors seem pleased about Freddie Mac fee hike. Why? Higher fees from GSE's translate to tighter lending and therefore more early pay-off/prepayment protection in the higher LTV / lower FICO borrower sector . Fannie has not implemented changes yet, and they don't go into effect until March, but the updates continue to focus on borrowers with less-than-perfect credit profiles. These borrowers now face higher closing costs and mortgage rates. Gee - higher risk borrowers pay more for a loan? What a novel concept... What is slightly different here is Freddie's fee changes aren't just hitting the weakest borrowers - higher fees are impacting middle-tier borrowers too, and anyone with a 2 nd mortgage. For example, a borrower...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.

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