Mortgage rates are still coping with the after-effects of last week's surprise implementation of a new fee on refinances. The fee in question is technically an LLPA (Loan-Leve-Price-Adjustment). LLPAs are a normal part of the mortgage pricing process and they help lenders account for different risk factors (credit score, equity, occupancy, etc.). The new refi LLPA is a bit different in that it's in a sub-category known as an "adverse market fee." This is the agencies' way of collecting extra money to compensate for extra risks--hopefully transitory ones. None of the above would have been a big deal for the mortgage industry had the new fee been rolled out like every other fee: with plenty of advanced notice and in logical, palatable amount. As it stands, it more than doubled the average fee

August 20, 2020 Download our Mobile App: Download our Mobile App: 30 Yr. Fixed 6.28% -0.01%   6.11% 7.26% 15 Yr. Fixed 5.65% +0.05%   5.54% 6.59% 30 Yr. Jumbo 6.25% +0.00%   6.25% 7.45% Compare Mortgage Rates from Local Lenders for Aug 20, 2020 Mortgage Rates Still Battling Hangover From Last Week's Drama Wed, Aug 19, 2020 3:43PM Mortgage rates are still coping with the after-effects of last week's surprise implementation of a new fee on refinances. The fee in question is technically an LLPA (Loan-Leve-Price-Adjustment). LLPAs are a normal part of the mortgage pricing process and they help lenders account for different risk factors (credit score, equity, occupancy, etc.). The new refi LLPA is a bit different in that it's in a sub-category known as an "adverse market fee." This is the agencies' way of collecting extra money to compensate for extra risks--hopefully transitory ones. None of the above would have been a big... (read more) Mortgage News Daily Rate Change Points 30 Yr. Fixed 6.28% -0.01 0.00 15 Yr. Fixed 5.65% +0.05 0.00 30 Yr. FHA 5.94% -0.01 0.00 30 Yr. Jumbo 6.25% 0.00 0.00 7/6 SOFR ARM 5.62% +0.03 0.00 30 Yr. VA 5.95% -0.02 0.00 Updates Daily - Last Update: 9/8 Freddie Mac Rate Change Points 30 Yr. Fixed 6.50% -0.06 0.00 15 Yr. Fixed 5.60% -0.09 0.00 Updates Weekly - Last Update: 9/4 Mortgage Bankers Assoc. 30 Yr. Fixed 6.64% -0.05 0.59 15 Yr. Fixed 5.84% -0.19 0.84 30 Yr. Jumbo 6.58% -0.09 0.39 Updates Weekly - Last Update: 9/3 UMBS 30YR 5.5 101.22 -0.06   97.47 101.61 UMBS 30YR 6.0 102.47 -0.07   99.66 102.50 10 YR Treasury 4.065 +0.026   3.621 4.780 MBS Live Recap: MBS Underperforming Treasuries, But Broader Trends Are Decent Thu, Aug 20, 2020 4:49PM MBS Underperforming Treasuries, But Broader Trends Are Decent The mortgage market continues coping with the combination of last week's LLPA news and a generally high level of supply.  One hurts bond prices relative to Treasuries.  The other hurts mortgage rates relative to bonds.   ... (read more) MBS Price Change UMBS 5.0 99.68 -0.10 UMBS 5.5 101.22 -0.06 UMBS 6.0 102.46 -0.08 GNMA 5.0 100.00 -0.07 GNMA 5.5 101.18 -0.01 GNMA 6.0 102.12 -0.06 Pricing as of: 9/9 6:47AM EST US Treasury Yield Change 2 YR Treasury 3.504 +0.016 5 YR Treasury 3.581 +0.019 7 YR Treasury 3.789 +0.021 10 YR Treasury 4.066 +0.026 30 YR Treasury 4.723 +0.033 Pricing as of: 9/9 6:47AM EST Other News CFPB Wants Your Comments on New Kind of QM Wed, Aug 19, 2020 9:58AM The Consumer Financial Protection Bureau (CFPB) is proposing a new category of qualified mortgage (QM) which it says is intended to "encourage innovation and help ensure access to responsible, affordable in the mortgage credit market." (we assume they meant "affordable credit in the mortgage market.") The category, "seasoned qualified mortgages" involves, as... (read more) Share of Purchase Loans now Catching up With Refis Wed, Aug 19, 2020 11:48AM Refinance loans continued to dominate mortgage originations in July, but the gap with purchase loans is closing. Ellie Mae's Origination Insight Report for the month showed refinances with a 54 percent share, down from 58 percent in June. Purchasing increased to 46 percent from 42 percent. The rate on closed 30-year fixed rate mortgages declined from an aver... (read more) Purchase Apps Still Rising Despite Rate Increases Wed, Aug 19, 2020 8:27AM Mortgage rates rose during the week ending August 14 and, while purchase applications sustained some of their momentum, a slowdown in refinancing pulled overall volume down. The Mortgage Bankers Association said its Market Composite Index, a measure of that volume, decreased 3.3 percent on a seasonally adjusted basis from one week earlier and was 4.0 percent... (read more) Ops Jobs; Leads, Tech Tools; CFPB, LO Comp, G-Rate Legal Ruling in the News Thu, Aug 20, 2020 9:06AM In these times that lenders describe as busy, profitable, and overheated, capital markets personnel are focused on margin & capacity management, staff burnout, servicing values, and warehouse capacity. With lenders upping their first lien forecasts for 2020, warehouse lines are being increased as are broker/dealer trading limits. Overtime is an issue, an... (read more) Latest Video Study shows corporations hold nearly $390 billion dollars in corporate bond... Kimco Realty CEO discusses retail reopening July leading economic indicators are up 1.4% versus 1.1% expected Small businesses with fewer than 500 employees closing twice as fast as lar... 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