Questions? Call LeaderOne Financial at 800-270-3416.
We are always available to help make sense of the market.
Mortgage News Daily News Feed
Posted To: MND NewsWireIn addition to its usual recap of economic and housing indicators and future projections this week's edition of Freddie Mac's Insights and Outlook sought to put any potential risk of its the new 97 percent mortgages in context. The mortgages, a program Freddie Mac calls Home Possible Advantage, were rolled out last spring and a similar program was introduced by Fannie Mae the previous autumn. The new mortgages have safeguards to limit the credit risks associated with the low down payments including solid FICO scores and require private mortgage insurance. A key element of the program is the elimination of layered risks; a combination of multiple risky features has been found to magnify the total risk of a loan. It was layered risk that presented a significant vulnerability to loss in loans...(read more)
Posted To: Mortgage Rate WatchMortgage rates were almost flat again today . Most lenders were just a hair higher in costs vs yesterday. The most prevalent conventional 30yr fixed quote remains 4.0% for top tier scenarios, but 3.875% is still available. In general, the bond markets that drive mortgage rates are remaining nimble until they have a better sense of what the Fed will do in the policy meeting 2 weeks from now. As we frequently discuss, the Fed Funds Rate doesn't dictate 30yr mortgage rates, but the two tend to correlate over time. Moreover, the initial lift-off from record low rates will be a big deal for financial markets in general. It would be hard for mortgage rates not to get caught up in the volatility--most likely in a bad way. In other words, the sooner the Fed officially hikes OR the sooner the economic...(read more)
Posted To: MBS CommentaryAnother swing and another miss for today's economic data. It had an opportunity to kick start what stands a good chance to be a fairly big move in multiple markets. At the heart of that potential volatility is the Fed--particularly last week's comments from Vice Chair Fischer which highlighted the current 2-week time frame as having some bearing on whether or not the Fed hikes rates in September. NFP weeks are clearly big data weeks, and a September Fed rate hike would clearly be a big event. Connecting the dots, it's reasonable to assume any major commentary from data will be taken as a cue for the Fed to hike or hold off. In other words, if the employment data were to come in much stronger than expected, markets would brace (more than they already have) for a Fed rate hike. If...(read more)
Posted To: MBS CommentaryBy coming in at 190k vs a median forecast of 201k, today's ADP Employment data essentially abstained from strong comment on Friday's NFP. Because of the strategic importance of Friday's NFP, today's ADP therefore abstains from strong comment on Fed rate hike prospects as well. The result is a market that continues to grind into an ever-narrower consolidation. This is a classic technical 'triangle' that tends to result in greater momentum behind the the breakout. Both MBS and Treasuries began the day near yesterday's best levels , and both promptly moved to yesterday's weakest levels after the ADP data. Factory Orders were also much weaker than expected at 10am, especially when the transportation sector was excluded (-0.6 vs +0.6 last month). Even then, bonds...(read more)
Posted To: Pipeline PressWells Fargo Funding's clients received a note yesterday that is of use to the entire industry involving a scam impacting the mortgage settlement process . "On January 22 the Federal Bureau of Investigation issued a Public Service Announcement - Alert Number I-012215-PSA titled "Business Email Compromise" (BEC). The purpose of the PSA was to alert potential victims of sophisticated scams targeting businesses working with businesses that regularly perform wire transfer payments. The Secret Service has confirmed that this scheme is now hitting the mortgage settlement process. A request for a wire transfer from the compromised account is made to a second employee within the company who is normally responsible for processing these requests. In some instances, a request for a wire transfer from the...(read more)