Afternoon Market Updates
A recap of MBS Market Updates provided by MND Analysts and streamed live to the MBS Live Dashboard
MBS Hit Lows of the Day. Negative Reprice Risk Slightly Increased
One of those "early warning" alerts that may or may not materialize... A "heads up" if you will...
Fannie 3.5's are grinding against their lows of the day for no particular reason other than the normal sorts of gyrations that can be seen at the 3pm Treasury close. That brings them to 103-12 at the moment whereas 103-13 had been the supportive line for today. Treasuries haven't made any especially alarming moves although 10's moved up from 1.97 to 1.98+ fairly quickly in the few minutes before and after 3pm.
Bring 6 ticks down from the highs of the day, and having held the lows of the day for several minutes now, risk factors are starting to increase that a few of the early-to-act type lenders could be considering a small reprice for the worse. Losses aren't at the point where this is necessarily a sure thing, but continued time here or continued losses would make that more likely. A solid bounce back to 103-14 higher in the next few minutes would make that less likely.
Featured Market Discussion
Ira Selwin : "Chase has increased the minimum credit score to 740 on Agency loans with LTVs greater than 80%.
Exclusions: There is no change to the minimum credit score for:
• Agency Loans with LTVs less than or equal to 80%
• Chase Serviced Fannie Mae DU Refi PlusTM and Freddie Mac LP Open Access,
• FHA and VA
Ira Selwin : "Yes Blaie - memo was released late yesterday"
Blair : "Anyone hear of a Chase retail requirement released recently requiring a 740 or better for LTV's over 80%?"
Roger Moore : "REPRICE: 3:18 PM - NYCB Worse"
Matt Hodges : "1158 over 80k"
Matt Hodges : "under 80k"
Matt Hodges : "1004"
Curt Sandfort : "pac nw"
Matt Hodges : "what region?"
Curt Sandfort : "what is VA residual income for family of 5?"
Matt Hodges : "grandfather MIP and allow CC to be rolled in on a streamline"
Gaius Rossini : "just trying to figure out what else they can cut to make things easier"
Gaius Rossini : "is there anything else the FHA charges besides the UFmip?"
Victor Burek : "i also used training pro..very pleased"
Chip Harris : "I used them as well, Chris. Inexpensive and good"
Andrew Russell : "she is awesome"
Andrew Russell : "Email her Christopher"
Andrew Russell : "email@example.com"
Christopher Max : "NMLS quick question. I am on the FDIC side of things but want to get licensed just in case to keep options open. Any recommendations for good study prep?"
MMNJ : "very true MG. Exaggerated selloff = just as exaggerated sweetener"
Matthew Graham : "Fed buyback just wrapped up = cause for the increased flashing lights and mini-spike to top of the range in 10's"
Matthew Graham : "negative convexity more of an issue for price leaders"
Matthew Graham : "makes sense right Dave? When it looks like markets are threatening to shift away from 3.0 coupon viability, those rates should see the biggest swings."