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Mortgage News Daily News Feed
Posted To: MBS CommentaryI'm not sure why anyone is writing article headlines that reference the approaching Fed announcement. Does the Fed even matter right now? Or perhaps a better question would be: does the Fed matter enough to be the focal point in headlines? No, not really. It's getting the play time for two reasons though. First , it's a force of habit. No event has as much market moving potential over time. So it's hard to mentally adjust to new realities--let alone trust that they'll continue to hold true. More importantly , there's not much else going on today. There is no meaningful domestic data. And the meaningful events from the overnight session have come and gone. Incidentally, those resulted in a record low close for German Bund yields (0.354). That European market momentum...(read more)
Posted To: Pipeline PressDon't forget that last Friday Ocwen Financial reached a settlement with a California regulator that will allow it to continue operating in the state. As part of a consent order with the California Department of Business Oversight, Ocwen must pay $2.5 million in penalties and agree to pay for a third-party auditor that will ensure that the firm complies with regulators' requests for information. That is good news for Ocwen although the company continues to have its detractors. The industry continues to dissect the CFPB's RESPA actions against Wells Fargo and Chase , and there were rumors that retail management involved in the kickback situation have been let go. (Supposedly the LOs were terminated quite some time ago. I received this note from Brian S. Levy with Katten & Temple, LLP: "Rob...(read more)
Posted To: MND NewsWireThe law of physics prevailed last week and mortgage applications, riding high for the previous two weeks, returned to earth. The Mortgage Bankers Association (MBA) said its Market Composite Index, a measure of loan applications volume, was 3.2 percent lower during the week ended January 23 than it had been a week earlier. On an unadjusted basis the index was down 12 percent . It was another week in which seasonally adjusted numbers were tweaked to account for a holiday, in this case Martin Luther King Day, but the data was still an abrupt departure from the two full weeks that kicked off 2015. During the week ended January 16 the seasonally adjusted index rose 14.2 percent on top of an increase of 46.7 percent the week before. The unadjusted indices had been up even more dramatically, with...(read more)
Posted To: MBS CommentaryWith all the recent focus on Europe, and with no major surprises hanging in the balance for domestic monetary policy, it's easy to forget about the Fed. After completing new asset purchases in late 2014, the Fed was effectively out of interesting arrows to fire. There was widespread interest in whether or not the Fed would remove the "considerable time" in its December statement. They ended up dropping it and keeping it at the same time, in a very weirdly-worded sort of way (here's the detailed recap from that day ). The point is that "considerable time" is still there, but in reference to the last time they said it, effectively letting the audience think whatever they wanted to think anyway. This time, however, the Fed will essentially be forced to drop that verbiage...(read more)
Posted To: MBS CommentaryAfter briefly breaking above the 1.84% inflection point amid last week's ECB-related volatility, 10yr Treasury yields have been religiously leaning on it as a supportive ceiling. In fact, they were leaning on that ceiling well before the breakout too--as early as Jan 16. The foil on the other side of the trading range has been 1.75-1.76% which got it's third major bounce today as well, and second bounce in the past two days counting Monday's overnight session. When the domestic interest rate benchmark bounces off key resistance levels and key supportive levels in the same day, and for two days in a row , we can safely conclude that bond markets are trading a range and waiting for the next major input. Such "inputs" can be big events or simply an eventual overflow of pent...(read more)