Starting May 1, FHFA will incorporate new credit fees into Fannie Mae and Freddie Mac’s price grids. The new fee matrices consist of three base grids by loan purpose for purchase, rate-term refinance, and cash-out refinance loans, recalibrated to new credit score and loan-to-value ratio categories, along with associated loan attributes for each. However, the … [Read more…]
With mortgage rates dropping and fee changes in the pipeline, now may be the time to buy that home CNBC
Do you know what âsplootingâ is? Hereâs a hint: 4-legged animals do it. (Hey, I donât make these things up.) Quite the word. Words are very interesting, and can incite a riot, help someone get through a loss, make up this Commentary, entertain. Every morning I share my Wordle results with a few friends, comparing who was able to find the 5-letter word of the day in the fewest tries. For the most part Wordle is quick, fun, and mildly entertaining, which is the exact opposite of financing a home as any borrower or loan originator will tell you. Originate? âOriginâ: source, inception, root means the point at which something begins its course or existence. Origin applies to the things or persons from which something is ultimately derived and often to the causes operating before the thing itself comes into being. âateâ is a suffix meaning âstate of quality ofâ and when added makes an adjective a verb. Originate, tolerate, stimulate, nominate, dislocate, penetrate, intimidateâ¦ there are thousands of words with -ate on the end. And as many of us are in, or head to, San Diego for the MBAâs conference, origination volumes, margins, and revenues will certainly be discussed, as will attempting to lessen the friction that each loan goes through during processing and closing. It is important to remember that weâve helped millions of families by originating their loans and save billions of dollars, and will continue to do so. (This weekâs podcast is sponsored by Richey May, a recognized leader in providing specialized advisory, audit, tax, technology, and other services in the mortgage industry and in banking. Todayâs has Part One of an interview with Keller Williams Scott Agnew on navigating through uncertain times and what the industry has learned since 2008.)
A bipartisan group of 16 Senators urged the Obama administration to remove barriers that have kept underwater homeowners stuck with inflated mortgage rates. In a letter to HUD secretary Shaun Donovan, Treasury secretary Tim Geithner, and FHFA director Edward DeMarco, the group spelled out the legislation needed to make such a program work. First, the… Read More »Senators Urge Passage of Underwater Refinance Program
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Here’s What’s Up With These Big Swings in MBS Prices Thursday ended up being a boring, uneventful trading day as far as the broader bond market was concerned. It wasn’t without interesting developments though. One of them directly impacts loan pricing going forward (at some point in the near future when lenders update their rates accordingly) due to revamped LLPAs. The other is more of an ongoing phenomenon: a lack of liquidity in MBS at various moments of any given day. Don’t confuse this with a lack of willing buyers. They’re out there. Rather, it’s about the way that market participants enter prices quotes and how that risks giving the wrong impression to those of us who are simply interested in tracking intraday rate sheet risks. Econ Data / Events Jobless Claims 190k vs 214k f’cast, 205k prev Philly Fed Biz Index -8.9 vs -11.0 f’cast, -13.7 prev Prices 24.5 vs 36.3 prev Jobs 10.9 vs -0.9 prev 6-mo outlook 4.9 vs -0.9 prev Market Movement Recap 08:48 AM Modestly weaker overnight, slight recovery early and back to worst levels after data. 10yr up 3.5bps at 3.41. MBS down a quarter point. 01:33 PM Slightly weaker vs AM levels. 10yr up 3.7bps at 3.41 and MBS down just under a quarter point. 03:10 PM Sideways grind of a day despite liquidity-driven volatility in MBS. Currently down just over an eighth. 10yr up 2.6bps at 3.399.
Mortgage and real estate trade groups say tweaks to loan level pricing adjustments (LLPAs) will hurt most borrowers in an already brutal market.