|This email was sent to you by:|
Harry Chriest |
Mortgage News Daily
Email alerts, such as this one, are a free service
provided by Mortgage News Daily. If you would like to receive an alert when important news breaks
please register to join our community
Negative Reprice Risk Approaches, but Backing Off Now
Posted to: Micro News
Friday, June 27, 2014 11:44 AM
This is one of those reprice alerts that probably won't result in any negative reprices depending on the next move in MBS (and the 'next move' is already playing out in the time it takes to type this). A few minutes ago, there were a few lenders looking at an eighth point of weakness since their first rate sheet of the day, assuming they used the morning's highs as a reference price. Those highs weren't even in until 9:47am, so earlier lenders were looking at even less of a loss.
Beyond that, prices already look to be putting their foot down for at least an attempt at a bounce. Unless we slip below 102-27 in Fannie 3.5s, we're not likely to see any reprices.
By way of caveat: keep in mind we can only comment on reprice risk as it relates to MBS Prices. There are 1 or 2 lenders out there who sometimes reprice without justification from price movements. This probably isn't one of those times, but it can never be completely ruled out.
More from MND:
If you would like to opt-out of receiving email forwards from this person please click here to remove your email address.