Afternoon Market Updates
A recap of MBS Market Updates provided by MND Analysts and streamed live to the MBS Live Dashboard
Treasuries Weaker Into The 3pm Close, MBS Follow. Possible Reprices
This is one of those reprice alerts that will only apply to a very small sub-set of lenders who are characteristically the first to reprice for the worse on moves lower in MBS Prices. Even then, current price levels are just barely on the edge of risky territory for such lenders (MBS down 3 ticks on the day at 103-12).
The culprit looks to be the 3pm Treasury close. A low volume and somewhat illiquid environment have exacerbated the negativity to a small extent and 10yr yields are testing their AM highs just over 2%. If they bounce in the after hours trade (3pm-5pm), MBS may well go no lower, and reprices would be increasingly unlikely.
Bottom line, watch the 103-13 level in Fannie 3.5's. We'd guess that any of the "early crowd" that might reprice would do it between there and 103-10, with more lenders getting involved under 103-10. Not a panic situation at all... Just a heads up that you might see one or two.
HOPE NOW: Mortgage Servicers Completed 74K Loan Mods in First Month of 2012
HOPE NOW, the voluntary, private sector alliance of mortgage servicers, investors, mortgage insurers and non-profit counselors, released its January 2012 loan modification data, which shows that an estimated 74,000 homeowners received permanent, affordable loan modifications from mortgage servicers in the first month of the year.
The reported data for January shows that mortgage servicers completed approximately 56,000 proprietary loan modifications for homeowners and 17,992 Home Affordable Modification Program (HAMP) modifications (as reported by US Treasury Department).
Greece's Venizelos Tells Bondholders Swap Offer is Final
(Reuters) - Greek Finance Minister Evangelos Venizelos warned Athens' private creditors on Monday not to hold out but take the bond swap on which a second bailout of the debt-ridden country depends because it was the best deal they would get.
Venizelos told Reuters in an interview three days before the exchange offer expires, that the terms hammered out last month after months of tortuous negotiations were favourable and Greece would not hesitate to activate laws forcing losses on bond holders who did not willingly sign up.
"Whoever thinks that they will hold out and be paid in full, is mistaken," he said. "We are ready to activate CACs (collective action clause to enforce losses) if needed," he said.
Featured Market Discussion
Bryan LaFlamme : "Hodgey, I'm finding that a lot. DU has really tightened up on VA. I end up running every REFER through LP, and have had good success so far."
Matt Hodges : "tidbit - LP took a high dti (plenty of residual) on VA, when DU referred it"
Daniel Kramer : "you can get a waiver on this, sometimes, dpeendng on the amount of units in the project, or if they can show they have the money listed in another way"
Andrew Russell : "Fannie requires 10% in reserves, why would they want their exposure to still exist in that complex?"
Andrew Russell : "does Fannie Mae Homepath allow someone to purchase a condo where they have $0 in reserves for the budget?"
Ed S. : "Check around B-C. USBank says No Problem. PHH said No Way."
Matthew Graham : "RTRS- FED'S FISHER: OUTLOOK HARDLY "ROBUST"; CONSTRAINED BY FISCAL, REGULATORY MISFEASANCE AND POSSIBLE OUTSIDE SHOCKS "
Matthew Graham : "RTRS - FED'S FISHER: MARKETS SHOULD PREPARE FOR TIGHTER POLICY IF DATA CONTINUES TO GRADUALLY IMPROVE "
Matthew Graham : "RTRS - FED'S FISHER SAYS 'PERPLEXED' BY WALL STREET'S CONTINUED PREOCCUPATION WITH POSSIBLE QE3 "
MMNJ : "correct B-C"
B-C : "FHA question, if the FHA condo approval expired, a borrower doing a streamline is ok?"
Scott Valins : "yes"
Andrew Russell : "is 3.75% on FHA jumbo really what is being offered? "
MMNJ : "surprisingly, Freedom is looking strong on that"
Andrew Russell : "What is best execution these days for FHA jumbo, 3.75%?"
Scott Valins : "fannie doesn't differentiate between reg conforming and HB when it comes to S/E guidelines"
Scott Valins : "no"
Matt Hodges : "i rarely venture into Agency jumbo world - does Fannie overlay 2 years self employed?"
Matthew Graham : "From what I understand Jeff, it was pushed back one week from the original scheduled letter which would indeed make it Thursday"
Jeff Anderson : "GM, all. Was the HUD mortgagee letter pushed back all the way to this Thursday or was it pushed to sometime this week?"
Gus Floropoulos : "u need to proove 3 years continuance for dis inc....or a letter from his work stating his return and start date....most investors will require a paystub proving he.she's back to work"
Scott Valins : "hey guys when is disability income acceptable? I have a client who was recently in a car accident and is on disability with no timetable for returning to work. Any hope of using disability income if I can prove that it's indefinite and his job is safe?"