Go bust vs. resurgence for IMBs
For independent mortgage bankers who survive the ongoing culling, the new normal unfolding looks much brighter, industry experts say.
For independent mortgage bankers who survive the ongoing culling, the new normal unfolding looks much brighter, industry experts say.
President Joe Biden Thursday called on banking regulators to use their existing authority to toughen capital and liquidity rules for midsize banks, saying that the Trump-era regulatory revisions called for by S. 2155 contributed to the failures of Silicon Valley Bank and Signature Bank.Bloomberg News WASHINGTON — President Joe Biden asked regulators to reinstate rules … [Read more…]
Fixed-Rate Mortgages Pose Problem for First Republic Bank The Real Deal
Mortgage rates may drop despite Fed rate increase syracuse.com
Another Boring (But Resilient) Day After the past few weeks, boring trading days aren’t necessarily unwelcome. Their only real downside is that there’s not much to say about them. Bonds are waiting for three things: more banking drama (or the progressive absence thereof), economic reports that flesh out the inflation picture, evidence that banking drama has actually had a measurable impact on the economy. Only one of those things happens quickly, so it’s not too much of a surprise to see boring trading days with generally sideways momentum. Econ Data / Events Pending Home Sales +0.8 vs -2.3 f’cast, +8.1 prev Market Movement Recap 09:51 AM Roughly unchanged overnight. Some early weakness, but mostly bouncing back–especially MBS. 5.0 coupons are actually 3 ticks (.09) higher on the day while 10yr yields are 2bps weaker/higher. 12:10 PM Bonds rallied during SVB testimonies. 10yr down 2bps at 3.553. MBS up an eighth of a point. 01:19 PM modest losses after 7yr Treasury auction. 10s and MBS both unchanged on the day. 03:07 PM MBS back near strongest levels with 5.0s up more than an eighth of a point. 10yr is roughly unchanged at 3.57%
From left, Federal Reserve Vice Chairman for Supervision Michael Barr, FDIC Chairman Martin Gruenberg, and Under Secretary for Domestic Finance at the Treasury Department Nellie Liang during a House Financial Services Committee hearing Wednesday.Anna Rose Layden/Bloomberg WASHINGTON — Federal regulators fielded intense questions from both sides of the aisle on the oversight of Silicon Valley … [Read more…]
Mortgage rates expected to rise amid economic volatility: Realtor.com Fox Business
Bonds Buyers Back Off as Banks Bounce Bank health continues to dominate the news cycle with investors buying bonds when things look shaky and selling when days go by without new drama. In addition to the ticking clock, reassuring headlines can also take a toll on bonds. That happened overnight as First Citizens bank assumed over $100 bln in deposits and loans from SVB. A rally in EU equities (led by banks) added to the risk-on sentiment. Domestic hours saw bonds drift sideways to slightly weaker with MBS losing more than 5/8ths and 10yr yields up 16.5bps at 3.535. Econ Data / Events No significant econ data Market Movement Recap 08:53 AM Weaker overnight, with 10yr yields up 12.8 bps to 3.5 and MBS down half a point. 01:00 PM 10yr near weakest levels, up 14bps at 3.511. MBS still down half a point. 02:43 PM Modest additional weakness with MBS down 5/8ths of a point on the day and 10yr yields up 16.2bps at 3.534.
Bond yields began rising at 2am this morning when news broke regarding the acquisition of Silicon Valley Bank (SVB). First Citizens bank will acquire nearly $130bn in deposits and loans. In addition, there was no new drama in the European banking sector overnight. Stocks and bonds are doing what they do when the bank contagion outlook improves. There are no major economic events on tap today. In fact, the entire week is fairly calm when it comes to the econ calendar. PCE inflation on Friday is the only potential exception, but that report has been nowhere near on the the level of CPI, which came out 2 weeks ago.
First Citizens Bank bought the deposits and loans of failed Silicon Valley Bank in a deal announced Sunday by the Federal Deposit Insurance Corporation, or FDIC. Â