Explaining The MBS Settlement Process
Tuesday, March 9th, 2010pPosted To: a href=”/mortgage_rates/blog/”MBS Commentary/a/p10yr Notes progressively improved into the PM , ending 5 ticks better on the day with a yield of 3.70. MBS fought off much of the AM weakness in tsy#39;s, and rallied just as well into the PM, reaching 101-15 at 4pm. But then we ended 4 ticks down on the day at 101-01! WHAT?!?!? So you#39;re tellin#39; me MBS effectively erased all gains from the past two days?! Not exactly… I#39;ll let AQ explain… ——————————————– If you haven#39;t read the following description of the agency MBS settlement process…please don#39;t skip over it as it may save you from having to change your pants when next month#39;s settlement rolls around. If you have read it…go over it one more time just to make sure the underlying logic is clear. The March FN 4.5 MBS coupon has…(a href=”http://www.mortgagenewsdaily.com/mortgage_rates/blog/139367.aspx”read more/a)pdiv style=”background-color:#D4EDC9;border:1px solid #BDD4B3;padding:3px 5px 3px 6px; color:#000000;font-family:arial,sans-serif;font-size:12px;”strongForward this article via email:/strongnbsp;nbsp;a href=”http://www.mortgagenewsdaily.com/channels/139367/3/forward.aspx” style=”color:#3333CC;”Send a copy of this story/a to someone you know that may want to read it./div/pimg src=”http://www.mortgagenewsdaily.com/aggbug.aspx?PostID=139367″ width=”1″ height=”1″
Commercial and Multifamily Mortgages Outperforming Overall Bank Holdings
Tuesday, March 9th, 2010pPosted To: a href=”/news/”MND NewsWire/a/pCommercial and multifamily mortgages continue to have the lowest rates of charge-offs of any loan types at banks and thrifts and perform better than the overall loan portfolios at those institutions according to the Mortgage Bankers Association (MBA). In response to what it referred to as a great deal of discussion and conjecture about those loans in recent months, MBA updated an earlier quot; DataNote quot; analysis of commercial and multifamily mortgage data from the 4th quarter of 2008 with data from the same period in 2009. The report states that 56 percent of the assets held by banks and thrifts at the end of 2009 consisted of loans and leases, a category that includes 1-4 family mortgages, home equity loans, credit cards and other consumer loans, commercial mortgages, multifamily mortgages…(a href=”http://www.mortgagenewsdaily.com/03092010_mba_commercial_mortgages.asp”read more/a)pdiv style=”background-color:#D4EDC9;border:1px solid #BDD4B3;padding:3px 5px 3px 6px; color:#000000;font-family:arial,sans-serif;font-size:12px;”strongForward this article via email:/strongnbsp;nbsp;a href=”http://www.mortgagenewsdaily.com/channels/139298/3/forward.aspx” style=”color:#3333CC;”Send a copy of this story/a to someone you know that may want to read it./div/pimg src=”http://www.mortgagenewsdaily.com/aggbug.aspx?PostID=139298″ width=”1″ height=”1″
HUD Enforcing Job Creation Requirements for State and Local Governments
Tuesday, March 9th, 2010pPosted To: a href=”/news/”MND NewsWire/a/pThe Department of Housing and Urban Development (HUD) has released the results of the first stage of its increased oversight and enforcement of job creation requirements under Section 3 of the Housing and Urban Development Act of 1968. In a press release on Monday HUD said that more than 3,100 state and local government agencies that receive HUD funds have responded to its campaign to expand hiring and contracting opportunities for low-income persons and three out of four of HUD-funded state and local agencies had submitted their annual reports. HUD said that this was the largest response since HUD made such reporting mandatory. Under Section 3, state and local governments that receive funding from HUD in excess of $200,000 for activities involving housing construction, demolition, rehabilitation…(a href=”http://www.mortgagenewsdaily.com/03092010_hud_jobs.asp”read more/a)pdiv style=”background-color:#D4EDC9;border:1px solid #BDD4B3;padding:3px 5px 3px 6px; color:#000000;font-family:arial,sans-serif;font-size:12px;”strongForward this article via email:/strongnbsp;nbsp;a href=”http://www.mortgagenewsdaily.com/channels/139223/3/forward.aspx” style=”color:#3333CC;”Send a copy of this story/a to someone you know that may want to read it./div/pimg src=”http://www.mortgagenewsdaily.com/aggbug.aspx?PostID=139223″ width=”1″ height=”1″
MBS AFTERNOON: Potential Reprices For The Better
Tuesday, March 9th, 2010pPosted To: a href=”/mortgage_rates/blog/”MBS Commentary/a/pMBS Off To The Races with 4.5#39;s up 8 ticks to 101-15! 10yr up 5 ticks on the day dropping yield to 3.70 (through post auction resistance) Reprices for the better = highly likely From the Ninja: Mortgages are still on hold as todayrsquo;s 3yr note auction held few surprises-everyone loves the shorter end of the curve; donrsquo;t you? $40 billion notes maturing in 2013 is quite commonplace and the sheer size of the issue is no longer an emotional and or logistical challenge to anyone directly (or indirectly, on the bid) involved. No real change to the way we do and or perceive business here in MBS secondary trading land. The market is better into lower and or range-bound rates, like today, and not as excited should the treasury market break out to the upside to prices (and lower interest…(a href=”http://www.mortgagenewsdaily.com/mortgage_rates/blog/139341.aspx”read more/a)pdiv style=”background-color:#D4EDC9;border:1px solid #BDD4B3;padding:3px 5px 3px 6px; color:#000000;font-family:arial,sans-serif;font-size:12px;”strongForward this article via email:/strongnbsp;nbsp;a href=”http://www.mortgagenewsdaily.com/channels/139341/3/forward.aspx” style=”color:#3333CC;”Send a copy of this story/a to someone you know that may want to read it./div/pimg src=”http://www.mortgagenewsdaily.com/aggbug.aspx?PostID=139341″ width=”1″ height=”1″
Risk Weighted Returns; Warehouse Lending Credit Manager Needed; Subprime Analysts Lost; Bank News
Tuesday, March 9th, 2010pPosted To: a href=”/garrett_watts/”The Garrett Watts Report/a/pWe commented last week how a lot of people didnrsquo;t know what HSBC stood for… If you go back to when they bought a bank in Buffalo, New York to established themselves in the U.S. The joke was that HSBC stood for quot;Holy ____, Buffalo#39;s Cold.rdquo; City National Bank (Los Angeles) was in the news for paying off all its TARP money last week, but the real story is how they became L.A.rsquo;s prestige bank in the first place. Frank Sinatrarsquo;s son was kidnapped on a Friday in 1963, and the singer called up Bank of America, Security Pacific and a few other big banks asking for $240,000 to pay the ransom money. The big banks told him to come in Monday morning and fill out a loan application. When he called City National, Chairman Bram Goldsmith told him ldquo;Come down to the…(a href=”http://www.mortgagenewsdaily.com/garrett_watts/139010.aspx”read more/a)pdiv style=”background-color:#D4EDC9;border:1px solid #BDD4B3;padding:3px 5px 3px 6px; color:#000000;font-family:arial,sans-serif;font-size:12px;”strongForward this article via email:/strongnbsp;nbsp;a href=”http://www.mortgagenewsdaily.com/channels/139010/3/forward.aspx” style=”color:#3333CC;”Send a copy of this story/a to someone you know that may want to read it./div/pimg src=”http://www.mortgagenewsdaily.com/aggbug.aspx?PostID=139010″ width=”1″ height=”1″
MBS LUNCH: 3 Year Note Auction Results And Reaction
Tuesday, March 9th, 2010pPosted To: a href=”/mortgage_rates/blog/”MBS Commentary/a/pImmediately following the 3yr Treasury Note auction, treasuries weakened while MBS held steady. Since then, MBS have lost a few ticks, but the 4.5 remains positive on the day, up 1 tick at 101-07. The 10yr note is also up a tick leaving the yield just under 3.72. The 10yr#39;s post auction selling turned the corner very much in line with yesterday#39;s high yields suggesting a shift of guidance to tomorrow#39;s auction. . MBS is building a case for support just over 101-06, but as volume remains fairly light, again, the emphasis is even more squarely on tomorrow#39;s auction than it already was. Until/Unless 101-06 breaks down in a significant way, the chances of reprices for the worse remain limited to quot;knee-jerk only,quot; but we#39;re not seeing justification for that. In 10yr…(a href=”http://www.mortgagenewsdaily.com/mortgage_rates/blog/139312.aspx”read more/a)pdiv style=”background-color:#D4EDC9;border:1px solid #BDD4B3;padding:3px 5px 3px 6px; color:#000000;font-family:arial,sans-serif;font-size:12px;”strongForward this article via email:/strongnbsp;nbsp;a href=”http://www.mortgagenewsdaily.com/channels/139312/3/forward.aspx” style=”color:#3333CC;”Send a copy of this story/a to someone you know that may want to read it./div/pimg src=”http://www.mortgagenewsdaily.com/aggbug.aspx?PostID=139312″ width=”1″ height=”1″
MBS MORNING: Fed President Reminds About Labor Market Weakness
Tuesday, March 9th, 2010pPosted To: a href=”/mortgage_rates/blog/”MBS Commentary/a/pI am kinda bummed no one laughed at my Kathy Ireland reference in MBS OPEN . Her dress was so tight you could see her liver processing the booze (that#39;s a rumor). I suppose I could have poked fun at Sarah Jessica Parker#39;s quot;Queen of the Nilequot; get-up. Ugh. You guys are killing me. Is this one of those quot;you had to be therequot; jokes? I know I am setting myself up to be mocked because I watched the Oscars…but come on, there is humor in everything we do. (Like I said, I lost control of the remote. Other men: don#39;t pretend you didn#39;t watch. You know what I am talking about here!) Ok I am done pretending I am Perez Hilton. HAHA back to the markets. Chicago Fed President Charles Evans, a middle of the road on inflation non-FOMC voter, shared prepared remarks with…(a href=”http://www.mortgagenewsdaily.com/mortgage_rates/blog/139273.aspx”read more/a)pdiv style=”background-color:#D4EDC9;border:1px solid #BDD4B3;padding:3px 5px 3px 6px; color:#000000;font-family:arial,sans-serif;font-size:12px;”strongForward this article via email:/strongnbsp;nbsp;a href=”http://www.mortgagenewsdaily.com/channels/139273/3/forward.aspx” style=”color:#3333CC;”Send a copy of this story/a to someone you know that may want to read it./div/pimg src=”http://www.mortgagenewsdaily.com/aggbug.aspx?PostID=139273″ width=”1″ height=”1″
Empty Econ Calendar Helps Mortgage Rates Hold Steady. Auctions Biggest Reprice Threat
Tuesday, March 9th, 2010pPosted To: a href=”/consumer_rates/”Mortgage Rate Watch/a/pAfter last weekrsquo;s rates roller coaster ride that forced multiple reprices for the better and the worse, yesterday was quite boring. Mortgage rates held steady as prices of mortgage backed securities never moved too far in either direction. With very little price volatility, lenders left rate sheets unchanged on the day near the best rates of 2010. There are no major economic reports scheduled for release today. With no economic data hitting the news wires this morning, todayrsquo;s trading action, like yesterday, has been slow. AQ recapped some events that happened overnight which have affected the flow of money in markets today. HERE it is if you are interested. The only event on the calendar with the ability to move mortgage rates is the first of three treasury auctions for the week…(a href=”http://www.mortgagenewsdaily.com/consumer_rates/139229.aspx”read more/a)pdiv style=”background-color:#D4EDC9;border:1px solid #BDD4B3;padding:3px 5px 3px 6px; color:#000000;font-family:arial,sans-serif;font-size:12px;”strongForward this article via email:/strongnbsp;nbsp;a href=”http://www.mortgagenewsdaily.com/channels/139229/3/forward.aspx” style=”color:#3333CC;”Send a copy of this story/a to someone you know that may want to read it./div/pimg src=”http://www.mortgagenewsdaily.com/aggbug.aspx?PostID=139229″ width=”1″ height=”1″
Second Mortgages in the Spotlight; Reverse Repurchase Primer; My Opinion on Mortgage Rates After the Fed; Provident Cuts Interest Only
Tuesday, March 9th, 2010pPosted To: a href=”/channels/pipelinepress/default.aspx”Pipeline Press/a/pOften I start the commentary off saying something witty, but I couldn#39;t think of anything clever so I thought I#39;d suggest you take a look at this video about, of all things, seat belts. It is making the rounds, and with good reason. The Federal Reserve has a little more than ten business days to complete their well-publicized purchase of agency mortgage-backed securities (MBS). Last week it bought $10 billion, breaking their 3-week streak of $11 billion. Only fixed-rate agency MBS securities guaranteed by Fannie Mae, Freddie Mac and Ginnie Mae are/were eligible assets for the program. Everyone knows that the end of the program is imminent. I am going to go out on a limb here, which is rare for me, and suggest that the consultants, market gurus, bloggers, paid services, etc., who firmly…(a href=”http://www.mortgagenewsdaily.com/channels/pipelinepress/03092010-repo-lendamerica-rates.aspx”read more/a)pdiv style=”background-color:#D4EDC9;border:1px solid #BDD4B3;padding:3px 5px 3px 6px; color:#000000;font-family:arial,sans-serif;font-size:12px;”strongForward this article via email:/strongnbsp;nbsp;a href=”http://www.mortgagenewsdaily.com/channels/139214/3/forward.aspx” style=”color:#3333CC;”Send a copy of this story/a to someone you know that may want to read it./div/pimg src=”http://www.mortgagenewsdaily.com/aggbug.aspx?PostID=139214″ width=”1″ height=”1″
MBS OPEN: Flight to Quality in Light Trading Volume
Tuesday, March 9th, 2010pPosted To: a href=”/mortgage_rates/blog/”MBS Commentary/a/pGood Morning. Happy Standardized Test Tuesday! My nephew has Maryland School Assessment tests today, we were pre-gaming this morning. I remember those days pretty well…mostly because they were so incredibly boring and slow. Also because the test#39;s time slots subtracted from favored subjects such as recess and P.E. What I should really be saying is HAPPY FLIGHT TO QUALITY TUESDAY!!! While you were sleeping, a senior director at Fitch Ratings by the name of Paul Rawkins told folks at a conference in London that Portugal#39;s quot;pedestrian approach is a concern for usquot;. Notice I didn#39;t mention anything about Greece??? Yeh. Thats because more than one EU country is facing some sort of ratings downgrade. Whether or not these concerns are truly legitimate or a target of trader…(a href=”http://www.mortgagenewsdaily.com/mortgage_rates/blog/139231.aspx”read more/a)pdiv style=”background-color:#D4EDC9;border:1px solid #BDD4B3;padding:3px 5px 3px 6px; color:#000000;font-family:arial,sans-serif;font-size:12px;”strongForward this article via email:/strongnbsp;nbsp;a href=”http://www.mortgagenewsdaily.com/channels/139231/3/forward.aspx” style=”color:#3333CC;”Send a copy of this story/a to someone you know that may want to read it./div/pimg src=”http://www.mortgagenewsdaily.com/aggbug.aspx?PostID=139231″ width=”1″ height=”1″
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