January 13th..

Matt has been blogging about this date being important because "orginators get paid on the 13th of the month and thus will ahve increased funding capacity to orginate more loans" I gather that this will allow lenders to lower rates but this past week most of the lenders we are signed up with are all reporting staffing issues, backlogs etc. This is why i have seen reprices for the worse towards the end of the week.

My question is I don't really undersatnd what Matt meant with "orginators getting paid on the 13th"? Who are the orginators - are you talking about lenders??

I hope rates come down this week as I have to lock a few loans in the will close the following week. I hope I can get War room access this week because I want to show my CEO what I am talking about in hopes he pays for the subcription service.

Have a good weekend everyone and if anyone can chime in about the above that would be great if you have a feeling how rates might go this week and also about the 13th of this month.

It is not the orginators getting paid...it is the lenders pooling together the loans that investors have purchased and getting then off of there own funding lines so then they have more on there funding lines again.

Rates are not going to drop over night...but we should see a steady decline with the Fed purchasing the MBS now. 

Hope this helped a little.

Thanks for the post, Jill...this helps those that aren't able to chat in the War Room...

Originators is a generic term meaning anyone that originates mortgage loans.  Any institution that delivers loans in to delivery pools for FNMA, FHLMC and GNMA are called originators.  This confuses some loan officers since they are commonly referred to as originators.  The 13th of this month is the final settlement date for loan pools with a January delivery.  Two things begin to happen after the 13th.  Originators will be paid for their deliverd January pools allowing them to refund their warehouse lines of credit.  This is very important to originators who do not have access to depositors like banks do.  Most non-banking institutions are out of money right now to fund additional mortgage loans.  The second thing that happens is originators can now book new forward commitments with the GSE's.  Now that they can increase their pledged loan deliveries to the GSE's they won't need to price as high to place loans in February and March deliveries.

A couple of things about the war room.  First, send an email to mbslive@gmail.com and ask about subscription options and a demo.  Second, be prepared to become addicted.  Once you see this in real time it will blow your mind!  Lastly, prepare to become highly educated to the inner workings of the mortgage industry.  The information you will learn there will put you miles ahead of your competition.  Hope to see you there next week!

Not only miles ahead of your competition but also your lenders, account executives and news financial experts.  It's really sad once your realize how ignorant the people are that you've been taking advice from all these years for when to lock and float.

and as we all saw the week of 1/13 - the coupon rollover didnt lower rates. In fact we are up quite a bit for the week. This is an indicator as to just how decoupled things are from normal reality. We will see what happens soon enough

Looks like we could see a little more YSP shortly!!