MBS Live: MBS RECAP
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FNMA 3.5
102-06 : +0-09
FNMA 4.0
104-10 : +0-07
FNMA 4.5
105-24 : +0-04
FNMA 5.0
107-14 : +0-03
GNMA 3.5
103-32 : +0-10
GNMA 4.0
106-17 : -0-04
GNMA 4.5
108-23 : +0-05
GNMA 5.0
110-02 : +0-03
FHLMC 3.5
101-32 : +0-09
FHLMC 4.0
104-04 : +0-07
FHLMC 4.5
105-09 : +0-04
FHLMC 5.0
106-25 : +0-01
Pricing as of 4:00 PM EST
Afternoon Market Updates
A recap of MBS Market Updates provided by MND Analysts and streamed live to the MBS Live Dashboard.
1:21PM  :  Fed Long on Transparency. Will Post Pre-FOMC Dealer Surveys
(Reuters) - The Federal Reserve Bank of New York said on Friday it would begin publishing on its website the regular survey it distributes to a selection of bond dealers before every Federal Open Market Committee meeting.

The New York Fed uses its primary dealer surveys, sent to the 21 banks and securities firms authorized to deal directly with the Treasury and the Federal Reserve to help implement monetary policy, to garner feedback from market participants that the FOMC can use in its policy deliberations.

The latest survey contains 14 questions about dealers' expectations for Fed policy in the future and their responses to the Fed's recent moves and communication methods. (Reporting by Emily Flitter; Editing by Chizu Nomiyama)
12:58PM  :  GMAC to Stop Some Mortgage Loans in Massachusetts
(Reuters) - GMAC Mortgage, the mortgage origination and servicing operation of Ally Financial Inc, said it will stop purchasing new mortgage loans in Massachusetts that are originated by correspondent lenders and wholesale brokers.

The move comes a day after the Massachusetts attorney general filed a lawsuit against five large U.S. banks -- Bank of America, JPMorgan Chase & Co, Citigroup, Wells Fargo & Co and GMAC -- accusing them of deceptive foreclosure practices, such as using robo-signers and false documents.

"GMAC Mortgage has taken this action because recent developments have led mortgage lending in Massachusetts to no longer be viable," the company said in a statement.

GMAC said it will honor all commitments made with such lenders as of Dec. 5, 2011 and will continue to service its existing customers and honor its contractual obligations as a servicer.
11:43AM  :  ALERT: Bonds Surging Now. Talk of Congress Rejecting Increased IMF Role
The Fed buyback at 11am got things kicked off in a friendly direction, but tepidly so. Then the rumor mill started churning and a few more bond-friendly tidbits popped out. First and foremost (and not really a rumor any more) is increasing attention paid to an earlier article from "The Hill" saying that conservative lawmakers will try to prevent the US from increasing it's participation in the IMF in order to facilitate a Euro-Zone bailout. The article is from this morning, but for some reason has come to the forefront only recently?

There were also unverified rumors of a potential downgrade of Spain, but we haven't heard anything else since closer to 11am.

Stocks are near their lows of the session and 10yr yields are down into the 2.07's, and may be showing some reluctance to the idea of going any lower. Volume spiked at 2.065 as yields bounced higher. MBS similarly bounced lower at 102-02, but the overall shift from the tentative stance following NFP has been enough to shift reprice risk to the positive side. A few of the early lenders have already repriced as this was being written. More may follow if current levels are held or improved upon.
Featured Market Discussion
A recap of the featured comments from the Live Discussion on the MBS Live Dashboard.
MMNJ  :  "I get more good info here on our industry than I probably received cumulatively in any newsletter / publication.....ever"
MMNJ  :  "i love this site"
Bryan LaFlamme  :  "REPRICE: 3:40 PM - Pinnacle Better"
Matthew Graham  :  ""Any given MBS coupon tends to contain loans that are .25% to .625% higher than the coupon itself. So for instance, that means if you’re seeing 4.25%- 4.625% as a range of rates where most 30yr Fixed loans are closing, you could be reasonably sure that most origination would be taking place in 4.0 coupons once those loans were securitized in the secondary market. You might even notice a big gap between 4.25% and 4.125% start to become smaller when the next lower MBS coupon (in this case 3.5’s) s"
Matthew Graham  :  ""There is a lot more that goes into this decision than simply observing which MBS coupons are priced close to PAR (100-00). Some of these factors are easy for you to observe while others will require you to rely on our expertise. The most important factor origination volume on the secondary market. If almost all 30yr Fixed TBA MBS originations are occurring in one coupon, then that’s clearly a good place to start. This is some of the information you’ll have to rely on us to report to you. But t"
Matthew Graham  :  "you may not know, behind the "learn" tab at the top, there's useful knowledge on topics such as these. if you don't see an article that answers your question, simply contact us with the question and we'll write the article quickly. http://mbslive.mortgagenewsdaily.com/knowledgebase/articles/24373-how-do-i-know-which-coupon-to-look-at-"
Brett Bly  :  "so quick question...if I generally do low 4% rates (and do no cost refi's) should I be more concerned with the 3.5 pricing or the 4 pricing and why?"
Jeff Statz  :  "http://www.mortgagenewsdaily.com/mortgage_rates/blog/238220.aspx <
Rob Clark  :  "REPRICE: 3:24 PM - Provident Funding Better"
Michael Stark  :  "Wells Retail Better"
Bert Swyers  :  "REPRICE: 3:01 PM - USBank Better"
Bert Swyers  :  "REPRICE: 3:01 PM - PHH Better"
Bryan LaFlamme  :  "REPRICE: 2:58 PM - Icon Wholesale Better"
Jason York  :  "REPRICE: 2:57 PM - BB&T Better"
Bromi Krock  :  "MG we are repricing for the better."
Michael Owens  :  "REPRICE: 2:24 PM - Fifth Third Mortgage Better"
Matthew Graham  :  "REPRICE: 2:23 PM - Plaza Better"
Steven Bote  :  "REPRICE: 2:16 PM - GMAC Better"
Michael Tadros  :  "REPRICE: 1:59 PM - Interbank Better"
Tom Bartlett  :  "REPRICE: 1:59 PM - Stearns Lending Better"
Jason Oelrich  :  "REPRICE: 1:58 PM - Met-Life Better"
Reid Waltzer  :  "REPRICE: 1:56 PM - Wells Fargo Better"
Ira Selwin  :  "REPRICE: 1:56 PM - Chase Better"
Ira Selwin  :  "REPRICE: 1:40 PM - Franklin American Better"
Victor Burek  :  "REPRICE: 1:14 PM - Flagstar Better"
Victor Burek  :  "REPRICE: 1:00 PM - Nexbank Better"
Rob Ellis  :  "@KC - I've reviewed a few, not UGIC's though, I'll check them out; appreciate the input"
Ken Crute  :  "@ rob, have you looked at UGIC's split MI, they are by far the cheapest (at least in VA) OR a LPMI option? "
Frank Ceizyk  :  "not aware of any CUs going higher than 80%--"
Frank Ceizyk  :  "que pasa guys"
Brent Borcherding  :  "FRank Ciezyk around...he's VERY well versed in the AZ market."
Rob Ellis  :  "@Ken - Normally would, two things they have plans to pay down loan soon to remove MI (and they actually will have the $ to do so), the other reason is they have an offer through USAA where USAA is fronting the cost for split MI so mine is twice the cost. An 80/10 makes them happier (and I get the first:))"
Ethan Brizzi  :  "REPRICE: 12:30 PM - Sierra Pacific Better"
Ken Crute  :  "Rob, why would you try a Financed MI option? "
Rob Ellis  :  "Anyone now of a Fed CU doing 90% CLTVs, numerous in state CUs doing these (just none in AZ)?"
Ira Selwin  :  "REPRICE: 11:49 AM - Franklin American Better"
Matthew Graham  :  "definitely high-range pivot at 101-30"
Raul Lopez  :  "New range developing at around 101-31?"
Aaron Buyside Meyer  :  "I gained 10 bps in the cash window from 8:30 pricing"
Chip Harris  :  "REPRICE: 11:39 AM - Interbank Better"
MMNJ  :  "REPRICE: 11:37 AM - Provident Funding Better"
Matthew Graham  :  "unverified rumors of potential Spain downgrade"
Matthew Graham  :  "rumors congress won't increase IMF participation"
Mike Drews  :  "+04 feels like a facemelter right now"