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Robert Jubran
Mortgage Banker, FirstBank Mortgage
on Fri Dec 9 2016, 4:55 PM
Rates going up...how far and how fast is the question
Matthew Graham
Chief Operating Officer, Mortgage News Daily / MBS Live
on Fri Dec 2 2016, 8:19 AM
Again, we're not projecting anything. We're covering what Freddie said. Sometimes we even have a behind-the-scenes chuckle at the logic in some of these pieces. So again, to be clear, I agree the logic behind Freddie's "crushed" assessment is indeed faulty. If this was an op-ed piece, I'm sure Jann or I would have mentioned that. All it takes is the MBA applications chart from the link I posted to see that there simply isn't as much refi activity to be crushed as there was in 2013. Anyway, unless you see "OP-ED" in the headline, and especially if you see a hyphen followed by a company's name, the views expressed in the article are exclusively those of the company in question and have nothing to do with how we feel.
Matthew Graham
Chief Operating Officer, Mortgage News Daily / MBS Live
on Thu Dec 1 2016, 8:54 AM
John, "crushed" is Freddie's term. Not ours. We happen to agree with you. It's not an op-ed piece. If it was, we'd probably point out that the MBA refi index was MUCH higher before the 2013 taper tantrum, any has comparatively less room to fall this time around. Then again, I already pointed that out last week: http://housingnewsletters.com/mgraham/5838abb436cb281fc82b7af8 . Specifically: "The upside to this, from a loan originator's standpoint, is that refi demand doesn't stand to lose as much ground as it did during the 2013 taper tantrum." Steve, you too bro. Check the title of the story, guys. It says "-Freddie Mac" right up there! That tends to mean "here's some stuff Freddie Mac said." Jann did a good job reporting on Freddie's stance. They think the sky is falling. Us, not quite so much.
on Thu Dec 1 2016, 3:56 AM
Mortgage rates have increased over .50% in response to the Trump election results. The Bond Markets had already discounted the expected .25% point December rate hike, two weeks prior. If employment and wages do increase early in the Trump administration, then increased interest rates will be used as a tool to slow down inflation. But until bond traders actually see actual wage increases, causing real inflation, then mortgage rates will continue to oscillate in a narrow trading range. However, if Trump is able to stimulate corporate earnings via deregulation, stock prices will continue to increase, as more money flows from the bond market, into the stock market, resulting in higher mortgage rates, that will more than be offset by increased wages. The bottom line is, the mortgage rate bias is currently in the upward direction, no different than the last two years, that actually resulted in lower mortgage rates. Moreover, if the author really knows in advance how and when mortgage rates will move in the future, she would have retired years ago with a mansion and a yacht.
on Wed Nov 30 2016, 2:09 PM
In regards to this comment: "I love it when the press sneers at making money." The press is not sneering because Mr. Mnuchin made money, they are sneering at the WAY he made it. While making large sums of money is not an inherently bad thing (that's the dream, right?), when a person profits off of hundreds of thousands of people based on abhorrent lending practices of a company, THAT is well worth the sneer.
Ted Rood
Senior Loan Officer , MB Financial Bank
on Fri Nov 25 2016, 5:27 PM
It's no wonder there's a declining number of appraisers, with their average age in the upper 50's. New appraisers must have a 4 year degree and apprentice for 1000 hours. Wonder how NAR would react if the same guidelines applied to Realtors?
Larry Gray
Senior Mortgage Banker, Mason-McDuffie Mortgage Corporation
on Thu Nov 17 2016, 3:05 PM
Overall, it seems new housing construction continues to be a boon to the economy and builders are responding to many family's American dream of owning their own home. It is important for the would be new home owner to be cautious, however. News investigations around the country have found many unhappy new home buyers. Apparently, there seems to be more shoddy workmanship than ever before. DR Horton, one of the largest builders, has set aside more than $45,000,000 to cover any problems in workmanship in some of the houses they built. They are by no means the only builder that has some homes with significant problems in construction. It is imperative that the potential new home buyer hire their own qualified home inspector for a thorough inspection of the new home before purchasing. Also, they should have an attorney look over all contracts regarding the home. If they do get a home with serious problems they will not want legal obstacles in the way of getting corrections made by the builder.
Ted Rood
Senior Loan Officer , MB Financial Bank
on Tue Nov 15 2016, 7:56 PM
I've seen two sell offs approaching this severity since 2000: July 2004, and Temper, er, Taper Tantrum of 2013. We've surpassed 2013's losses already, we'll see how we end up compared with 2004. As MG sagely noted, it can take years for rates to recover. Treasury yields didn't match June 2004's until December 2008, and it took huge Fed bond purchases to accomplish that.
on Fri Nov 4 2016, 7:57 PM
I would be very happy if Realtors gave out 3 or more names and let the borrower choose for themselves. Too many realtors are getting paid under the table for their referrals or they are being wined and dined on a regular basis by their favorite lenders. When is the CFPB going to go after the Respa violators, instead of looking at only the large companies. The unwillingness for the cfpb to follow up on numerous complaints make a mockery of respa for all of us.
Robert Jubran
Mortgage Banker, FirstBank Mortgage
on Mon Oct 24 2016, 11:24 AM
Great News!
Larry Gray
Senior Mortgage Banker, Mason-McDuffie Mortgage Corporation
on Thu Oct 13 2016, 6:08 PM
I understand what Ted Rood is saying here and therefor I understand what Matthew is attempting to explain in what the best execution of rate would be. Obviously a refinance loan with a total of $2500 in lending, escrow, & miscellaneous fees at a rate of 3.5%, and at $20 a month more than the same loan @ 3.375% with points and fees adding up to $4500 would be the better execution rate (i.e. $2000/20 tells us it would be 100 months to recoup the cost). If the cost difference were only $1000 for the better rate, 50 months might seem reasonable to recoup the cost for the additional savings. We all have an opinion on determining "best execution" but are pretty close in determining that.
Matthew Graham
Chief Operating Officer, Mortgage News Daily / MBS Live
on Tue Oct 11 2016, 4:19 PM
Yes, we've been talking about the floor/ceiling pivot point around 1.70 quite a bit over on the MBS Commentary channel, though I've recently started seeing it as somewhat of a moving target (i.e. a slightly sloped inflection point as seen in the 2nd chart below). http://www.mortgagenewsdaily.com/mortgage_rates/blog/666463.aspx
Matthew Graham
Chief Operating Officer, Mortgage News Daily / MBS Live
on Fri Oct 7 2016, 3:09 PM
Indeed, October can be a crazy month for bond markets, and usually "bad crazy." 6 out of the last 8 octobers have seen rates rise (2013 and 2014 were the exceptions). The current example looks to be siding with the majority.
Larry Gray
Senior Mortgage Banker, Mason-McDuffie Mortgage Corporation
on Wed Oct 5 2016, 3:28 PM
Doesn't stuff seem to happen during many "Octobers" wherein rates start climbing or is just my imagination running away with me? I was saying to lock Friday and again Monday morning and normally clients listen to me and choose to lock...but if not I do not lock. Hopefully floating will still work to get back to their maximum acceptable rate before we lose some refinance loans entirely!
on Wed Sep 28 2016, 4:06 PM
Also, the link to Mortgagee Letter 2016-06 is incorrect and is pointing to the Single Family Housing Supplemental Documents Archive.
on Wed Sep 28 2016, 3:49 PM
Ditech's USDA announcement should have read " The Guarantee Fee is reducing from 2.75% to 1% and ANNUAL Fee is reducing from 0.5% to 0.35%.
Larry Gray
Senior Mortgage Banker, Mason-McDuffie Mortgage Corporation
on Tue Sep 13 2016, 2:36 PM
Now you have me thinking what is it that Florida, Michigan, Texas, Ohio and California have in common that they lead all the States in foreclosures? Florida and California being at the front of the pack makes sense...there were previous runs on buying per speculation. In record numbers people were buying what they really could not afford...figuring they would flip them soon enough or at least in the notion housing prices could become even more unaffordable! Texas, Michigan, and Ohio had their share of speculation but were all particularly hit in hard economic times, I believe.
Larry Gray
Senior Mortgage Banker, Mason-McDuffie Mortgage Corporation
on Mon Sep 12 2016, 12:31 PM
It seems we have survived higher rates by at least half a point at various times in the past several years...but not too high, of course! The challenge when prices get to where they are in my community is more and more potential buyers cannot afford to buy here, and you reach a point where prices are out of their reach. Compound that with rising rates and at some point prices have to fall. At least it generally works that way. I am sure some investors have stopped buying in our area as the prices generally do not suggest high enough in rent to recoup the cost, at least for single family homes and condos.
on Sun Sep 11 2016, 11:18 AM
Probably a lot of short selling of the 10 year treasury in the cash market on Friday. Maybe the shorts will cover on Monday and rates will come back down. Just a guess.
Ted Rood
Senior Loan Officer , MB Financial Bank
on Sat Sep 10 2016, 12:02 AM
I'm guessing there are dramatically more than 6 in your audience here, MG, and if "sucks" is best verb to describe today's action (which it well may be), then the 3 offended readers will just have to cope with their dismay.
Ted Rood
Senior Loan Officer , MB Financial Bank
on Thu Aug 25 2016, 2:45 PM
The critical question unanswered here is whether there will be LLPA caps on these products. It's great to have reduced documentation requirements, but if the pricing hits total 400 bps, it's going to be difficult to help many folks. Has the potential to be great, but the devil is in the details. One "inadvertent" effect may be making it harder for Congress to wind down the GSEs, but not like that idea was getting much traction regardless.
Matthew Graham
Chief Operating Officer, Mortgage News Daily / MBS Live
on Wed Aug 17 2016, 3:26 PM
Thanks Jannette!
 

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