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"Rob, I attended a seminar
last week, and one of the speakers mentioned something called 'Freddith Mae'.
Ever heard of that?" Nope - either I'm out of touch & confused, or
someone else is and you should ask for your money back. But one thing I am
confused about, and it is probably only me, is what a "rule" is.
When I was growing up, a rule was a rule. Now, since the industry is subject
to the CFPB's rulings, we seem to have a rule announced, then time for public
comment, then a final rule, and a public comment period, and then amendments,
with public comments, and then changes to those. Look how many times Reg. Z
has been changed - maybe I am the one who is confused.
Private mortgage insurance
company Genworth Financial is seeking candidates for an Account Executive
position in Northern California. The person hired will be
expected to provide the highest level of internal and external customer
service, manage customer relationships and develop growth strategies for
assigned accounts, develop calling plans to cover all assigned accounts,
monitor branch volume and calling activity and take necessary actions to
achieve account volume goals, execute and lead implementation of Genworth
products and initiatives, identify and communicate new opportunities to
provide solutions to customer needs, etc. The ideal candidate will have 2+
years of experience in a regional or territorial sales role, have a college
degree or equivalent industry/sales experience, great presentation and
communication skills, and have the ability to work flexible hours with
occasional overnight travel. Candidates should contact Jen Phillips at jen.phillips@genworth.com and
for more information on the company visit Genworth.
A Private Equity firm is
looking to acquire residential mortgage banking company.
All geographic locations will be considered, although Western
U.S.-based banker is preferred. Fannie, Freddie (seller/servicer) and
Ginnie Mae approvals are highly desirable but will also consider
candidates based on factors such as size, product mix, channel
diversity, etc. Principals only, and direct communication
with Seller required, and the buyer will execute appropriate NDA(s).
Please email mortgageacquisition@gmail.com for
more information and interest.
The big news for today comes
from HUD and the FHA, which has announced it will need a $1.7 billion bailout
from the Treasury to cover projected losses in its reverse mortgage programs
(currently at $5 billion). Plenty of industry observers
have been predicting this day. Federal Housing Administration Commissioner
Carole Galante told Congress in a letter that her agency will withdraw the
money from the Treasury before the fiscal year ends today, although
Congressional approval is not required. The FHA suffered big losses when many
reverse mortgage borrowers took large payments up-front and later ran into
financial problems, often due to falling home values during the financial
crisis. As we have all heard, the FHA is required by law to maintain reserves
equal to 2% of the total amount of home mortgages it insures. The 2% capital
reserve ratio is aimed at covering projected losses over the next 30 years in
the agency's Mutual Mortgage Insurance Fund.
Galante said her agency needs
more money from the Treasury now because higher interest rates have
discouraged borrowers and reduced loan volume for the FHA in recent months.
Of course, we're seeing that with the entire industry - and few can say that
they did not see the market (especially refis) tailing off as time went on.
About a year ago we had warnings about the FHA's finances when an independent
audit showed an estimated $16 billion in losses. But the agency's finances
have since improved due to changes the FHA has made, including insurance
premium increases and changes to the reverse mortgage program. Improvements
in the housing market have also helped boost the agency's finances. And
Republicans have complained that the FHA contributed to the housing meltdown
by providing loans to many unqualified borrowers who ended up defaulting.
They have called for ending the FHA's backing of reverse mortgages and for
limiting the agency's role in the housing market. In fact, House Financial
Services Committee Chairman Jeb Hensarling, R-Texas, is pushing a housing
finance overhaul bill that includes a provision that would limit the FHA to
insuring loans only for first-time and lower-income borrowers.
With all the transition going
on in the industry, especially with loan officers, here is an interesting
question I received last week. "What is the law regarding paying loan
officers on deals they sourced and originated but the LO leaves to another
company prior to funding. Is the LO still legally due their
commissions?" I am not sure that there is "a law," and from
what I understand it will depend on the agreement that the LO signed with the
company. But this does lead to a related topic...
Here is a different note: "When
a LO or a company joins a platform and later leaves that company, should the
LO be able to have access to their data if the data is self-generated and not
company supplied? I believe that it's an industry standard that when an
originator terminates from their company (banker, broker, bank) that they
should be entitled to all regulatory compliant data, meaning, all client
lists for marketing purposes. Some believe otherwise, but only if you are a
top producer. I do believe it's an industry standard that originators have
'Point Central' downloaded on their laptops and retain 'all' client data when
moving from company to company. The Point files are essentially their
entire business careers wrapped into one hard drive. Is a company entitled to
this data for a self-generating originator?"
While some companies state any
and all data/information obtained "on their clock" is theirs and
not the LO's, many lender's view is that the originator has the relationship
with their customers and to that end, all contact information (the
"database") is theirs to keep/take. One seasoned veteran told me
that the "big guys" are more protective of data which was added or
changed during an LO's tenure at the particular institution, even if it was
the adding of customer contacts or prospects.
And Kurt Reisig, the CEO of
American Pacific Mortgage Corp. in California, writes, "Questions like
these really point to the overall culture of the company. While all
companies should look at how they define this so as not to break any
regulations regarding the handling of consumer data, any prudent LO should
look carefully at their employment agreements and/or branch operations
agreements before joining a firm. Unfortunately for many producers, we
have observed over the years that client data for any purposes is often
retained by the employer, sometimes rather sneakily. In recent years, the
proliferation of 'retail' by banks, call center operators and larger mortgage
banks who covet data ownership over originator rights has left many a loan
officer fighting for her client data. Legally, all that matters is the
agreement. Philosophically the company 'attitude' is nearly as
important. A little due diligence goes a long way - the best way to
find out how a company acts is to ask around."
And a follow up question dealt
with ownership and freedom. "If a branch joins a larger banking
platform/branch, and later terminates, how does this 'divorce' get separated?
For example, one would hope that if the smaller branch has been in business
for many years and joins a larger banking platform and later leaves, they
would be able to leave in a civilized, well-thought out manner. But I have
seen examples of the larger banking company 'cutting the head off the snake,'
occupying the lease for 30 days (which is standard compliant method of
leasing) only to tarnish the names of the branch managers, and offering great
terms for LOs electing to remain. Is this legitimate? It seems like it is,
but only if the branch managers didn't pay attention to their contracts,
especially the solicitation or non-solicitation of their own people.
Contracts need to be taken seriously. If any branch is looking to join a
banker, they had better think twice before signing their 'best china'
away."
Once again, Mr. Reisig from APM
writes, "This gets to the core of a company culture and one that can be
answered by due diligence on agreements and past business practices. Recently,
since the market shift, we have also seen a spike in the aforementioned
practice by some large operators. Whether they are desperate for
production or simply have a 'fatal attraction' complex, it is
categorically and ethically wrong for them to pursue the 'assets' of any
branch or originator that chooses to leave. That said, it does happen and
the best defense is a fair contract. Additionally, the best course is to
conduct oneself with utmost integrity and adherence to the contract.
Companies have a right to an open pipeline in a branch and a right to assure
that operations are wrapped up in a way that leaves the company without an
operational loss as the separation is completed. We counsel those who join us
to adhere to their contracts and take the high road at every juncture,
basically asking people who join us to treat their former employer in the
same way we would hope to be treated in those occasions an originator leaves
our company. In a nutshell what I tell producers is to conduct as much
due diligence as possible on a firm they join....at least as many hours as it
takes to originate and close a loan...which is a lot!" Thank you Kurt!
The focus continues to be on
the government shutdown. For example, Guild Mortgage alerted its
clients, "In anticipation of a possible federal government shutdown it
is advised that you complete the following to the extent possible prior to
October 1: execute 4506T IRS transcript requests; run CAIVR's and LDP/GSA
searches; complete SSI validations; request FHA and VA case numbers;
etc."
CNN tells the public about the
impact of a government shutdown here.
And on Friday Dave Stevens,
president of the MBA, wrote, "As Congress continues to negotiate
legislation to fund the federal government in FY2014, federal agencies are
preparing for the possibility of a government shutdown when the current
continuing resolution expires at midnight on Monday, September 30, 2013. If
the House and Senate are unable to resolve their differences by the midnight
deadline, there will be a shutdown that will furlough certain federal
employees and cause a significant curtailment of operations at several
federal agencies. It is difficult to quantify all of the impacts of a
government shutdown. However, lenders processing loans that need tax
transcripts, social security number verification, or FHA loans, should
anticipate delays and reduced functionality from HUD, IRS, and the Social
Security Administration. A shutdown lasting a few days would slightly
inconvenience lenders in processing loans; however a longer delay would have
more serious impacts. Purchase loan volume could shrink and impede the
recovery of the housing market. Additionally, long-term furloughs may disrupt
time-sensitive mortgage transaction deals by interfering with borrower lock
agreements and causing interest rate disparities from the time of closing to
the time the loan is securitized. MBA has prepared a detailed analysis of how we
expect many government agencies and other entities integral to real estate
finance may be affected by a shutdown. MBA will keep you informed in the days
ahead during this fluid situation. Please don't hesitate to contact me with
any questions."
But we do have some news this
week! Today we'll have the Chicago PMI, tomorrow an ISM Manufacturing Index
number, Thursday is the usual Jobless Claims, and on Friday are the
unemployment numbers. For now, rates are pretty quiet with the 10-yr sitting
around 2.60%.
The American Medical
Association weighs in on ObamaCARE!
The American Medical
Association has weighed in on Obama's new health care package. The Allergists
were in favor of scratching it, but the Dermatologists advised not to make
any rash moves. The Gastroenterologists had sort of a gut feeling about it,
but the Neurologists thought the Administration had a lot of nerve.
Meanwhile, Obstetricians felt certain everyone was laboring under a
misconception, while the Ophthalmologists considered the idea shortsighted.
Pathologists yelled, "Over my dead body!" while the Pediatricians
said, "Oh, grow up!" The Psychiatrists thought the whole idea was
madness, while the Radiologists could see right through it. Surgeons decided
to wash their hands of the whole thing and the Internists claimed it would
indeed be a bitter pill to swallow. The Plastic Surgeons opined that this
proposal would "put a whole new face on the matter". The
Podiatrists thought it was a step forward, but the Urologists were pissed off
at the whole idea. Anesthesiologists thought the whole idea was a gas, and
those lofty Cardiologists didn't have the heart to say no. In the end, the
Proctologists won out, leaving the entire decision up to the a****es in
Washington.
If you're interested, visit my
twice-a-month blog at the STRATMOR Group web site located at www.stratmorgroup.com. The current blog is,
"Reverse Mortgages: Companies Need to Know What is Changing". If
you have both the time and inclination, make a comment on what I have
written, or on other comments so that folks can learn what's going on out
there from the other readers.
Rob (Check out http://www.mortgagenewsdaily.com/channels/pipelinepress/default.aspx or www.TheBasisPoint.com/category/daily-basis. For archived commentaries or to subscribe, go to www.robchrisman.com. Copyright 2013 Chrisman LLC. All rights reserved. Occasional paid job listings do appear. This report or any portion hereof may not be reprinted, sold or redistributed without the written consent of Rob Chrisman.)
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Global Home Finance Inc is saving Texas One Home Owner At a Time. We offer Conventional, FHA, VA, Jumbo, and USDA Rural Development products to help refinance or purchase a home. Visit us online: http://globalhomefinance.com
Monday, September 30, 2013
Mortgage Jobs and Oppurtunities
http://globalhomefinance.com
Friday, September 27, 2013
Don't Ignore The BSA
http://globalhomefinance.com
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All the McDonalds and Burger
King workers in California are rejoicing: the minimum wage is heading to
$10/hour. This, coupled with the tax increases voted in last year, is making
it a more interesting economic situation in the state of fruits and nuts: HowMuchIsMyBigMac?. I
only use Mickey D's as an example of a minimum wage job - but in some states
it is not! With the oil boom in the Dakotas, BusinessWeek reports that anyone
going to work at McDonalds receives a $300 signing bonus. "It's not
uncommon for signing bonuses to proliferate during boom times. In the late
1990s Burger King offered managers a $5,000 signing bonus in a variety of
cities to try to poach them from other fast food chains, according to a 1998
New York Times report...At Williston Sate College in Williston, North Dakota,
students are dropping out, lured by the possibility of making $100,000
working on oil rigs, driving trucks or maintaining oil wells...The boom isn't
only boosting the salaries of workers directly involved in the oil industry.
With thousands of men moving to Williston to cash in on the boom, they're
attending more strip clubs and strippers in the area have seen their salaries
soar...strippers claimed they could make $2,000 to $3,000 in tips in Williston."
(Rumors of the CFPB sending in teams of examiners are unfounded.) God Bless
America.
Although
she is blind, Justice never sleeps, and any company's management who
thinks it can skirt the Bank Secrecy Act might be in for a rude awakening.
Yesterday's commentary discussed the huge penalty TD Bank is facing. I was
also reminded of a closed NJ bank hit with BSA penalties. The Saddle
River Valley Bank, of Saddle River, New Jersey, opened for business on
June 1, 2006 and lasted for six years. A year prior to closing it was
issued a C&D by the OCC for its deficient BSA/AML program...the bank
late-filed more than 190 SARs on over $1.5 billion in transactions...and were
presented with a $8.2 million combined fine which will wipe out most of the
remaining assets of the bank, which were reported at $10 million as of
June 30, 2013. Details on the announcements and links to the Orders and
Civil Complaint have been added to the BankersOnline page.
"Rob, if everyone's
residential volume is down 50%, and the Fed keeps buying its daily billions,
won't that impact the supply & demand teeter totter?" You
bet it will! The last reputable research piece I saw from Wall Street
calculated that it made no sense for any investor to "short the
basis", meaning selling agency MBS and buying Treasury securities -
especially the current coupons that the Fed is buying. Fed purchases hit a
high of 55% of gross issuance in September and Q4 it will only go up if/when
production continues to stagnate. Given the usual purchase tail-off that
occurs in the last quarter, the estimates were Fed purchases, as a total
percentage of gross volume, being Oct 62%, Nov 67%, and Dec 69%. The smartest
guys in the room are paying very close attention to how & what supply
hits the market, and what the Fed is buying.
Nationstar Mortgage, which
has seen its share of criticism in purchasing turn times (apparently due to
growing pains) is being cited by investment banking sources as the winning
bidder on a $41 billion package of legacy mortgage servicing rights
offered up by Wells Fargo recently. (Here is a piece on the background.) It's no
secret that Nationstar has been an active bidder on MSRs the past two years,
absorbing some huge packages of product, including much from Bank of America.
But servicing is not only sold in bulk - it is also sold in flow packages, a
little every month. For example, Phoenix Capital sent out a "pleased to
present the following $70-105 million/month conventional and government flow
servicing offering for your consideration. Seller is a well-positioned
independent mortgage banker, with a uniquely strong history of operations
dating to the early 1970s. Seller is interested in entering into a
forward commitment to sell and transfer their relevant production on a
monthly basis." I am not going to list the attributes or details, but if
you're interested contact Stephen Fleming at sfleming@phnxcap.com.
While we're talking about
selling, so how exactly does the U.S. Treasury sell its preferred stock
holdings of companies purchased under T.A.R.P.? Typically, by way of
modified Dutch auctions to (a) "qualified institutional buyers",
(b) certain domestic institutional "accredited investors", or (c)
certain directors and executive officers of the respective issuers of the
Capital Purchase Program Securities. Basically, don't expect to see a 'Buy It
Now' button for them on your eBay home page. Recently the Treasury opened
auctions to liquidate the holdings of six more banks purchased under TARP by
way of CPP: Centrue Financial Corporation (Ottawa, IL); DeSoto County Bank
(Horn Lake, MS); First Banks, Inc. (Clayton, MO); RCB Financial Corporation
(Rome, GA); Reliance Bancshares, Inc. (Frontenac, MO), and Severn Bancorp,
Inc. (Annapolis, MD). The auctions commenced at 9AM EDT, September 12 and
closed at 6PM on September 17. During the auction period, potential bidders
for the Capital Purchase Program (CPP) Securities were able to place bids on
the offered stock (in increments of whole shares or per $1,000 aggregate
principal amount, as applicable) at any price per share or per $1,000
aggregate principal amount, as applicable, and in increments of $0.01 at or
above the minimum prices set forth in the applicable bidder letter agreement
provided to the potential bidders. Investors may bid on individual or
multiple CPP Securities. (If you care about the results, here you go: BigMoney.)
My bet is that it won't happen,
or, if it does, it will be resolved quickly. In between now and then, the
possible shut down will give politicians plenty of opportunities for
posturing, grandstanding, and blathering. An actual shutdown would
probably move rates lower since it would have a negative impact on GDP,
probably reducing fourth quarter Gross Domestic Product about 1.4% since
folks like park rangers and tour guides won't be spending as much money -
businesses may hold off on investment and households delay spending.
"What we have is a political and not economic maelstrom," said
Bernard Baumohl, chief global economist at Economic Outlook Group LLC in
Princeton, New Jersey. (Sorry for the delay in sending the commentary out
today - I had to find out what "maelstrom" means.)
Let's move to some investor,
agency, and vendor updates - and yes, the potential
shutdown is starting to be a concern.
"HomeBridge would
like to remind brokers that in the event of a government shutdown on October
1, 2013 the processing of IRS transcripts will most likely be delayed.
Brokers are advised to order tax transcripts ASAP to avoid any potential loan
closing issues."
Mountain West Financial sent
out, "In anticipation of a possible US government shutdown, MWF is
taking this opportunity to suggest that all broker and corporate departments
complete the following immediately: insure as many loans close as possible,
including the wiring of funds, run CAIVR's and order VA and FHA case numbers,
complete SSI Validations and LDP/GSA searches, order/execute 4506T (for IRS
transcripts), order any pending W2 searches, remit upfront MIP payments
(Internal)."
Fannie Mae is
building up interest in its risk-sharing securities. Will it be the model of
the future? "Fannie Mae...will offer better terms than in Freddie Mac's
initial deal as the U.S.-backed mortgage companies seek to expand investor
participation in the market....Fannie Mae officials are visiting investors
across the country, with stops in Boston and Cincinnati this week, as it
attempts to sell $675 million of the debt at lower yields than Freddie Mac
got in its $500 million offering in July. Under Fannie Mae's terms, bondholders
won't suffer losses until delinquencies are higher. The entire story by Jody
Shenn can be found here.
As a reminder, The Agencies have
announced that they are extending the expiration dates for the Streamline
Modification program, HAMP, and the Second-Lien Modification program.
HAMP and the Streamline Modification program have been extended to include
modifications with Trial Period Plan effective dates on or before March 1,
2016 and December 1, 2015, respectively (the March 1st deadline
applies to 2MP as well). All HAMP modifications must have a
Modification Effective date of September 1, 2016 or before. In the
meantime, for mortgages that meet all other eligibility criteria outlined in
the selling guide to be eligible for HAMP, all proposed modifications must
submitted through the Treasury Net Present Value model on or after January 1,
2014 and receive a positive test result.
The HAMP "Pay for
Success" incentive will be retired effective April 1, 2014 in order to
accommodate the tiered incentive increase for modifications with this safe
effective date.
In order for servicers to have
sufficient time to process their foreclosures, both Freddie and Fannie have
extended the state foreclosure timelines by 30 days for properties in Nevada,
New Mexico, and Washington. This is effective for foreclosure sales
completed on or after September 1, 2013.
Fannie Mae's
updates to the Loan Delivery Test Environment are now in effect. The
changes give users access to the test environment using Loan Delivery
production credentials, new DU test data, and new Appraisal Document File
Identifier test data.
Version 9.1 of DU will not
apply the additional maximum DTI and minimum representative FICO score
requirements to HARP case files that have an increased principal and interest
payment; however, a message will be issued for all DU Refi Plus files stating
that the lender must indicate whether the loan is considered a higher-priced
mortgage loan as defined by Regulation Z and apply the relevant DTI and FICO
requirements as necessary.
Fannie has updated the
reporting requirements for repurchased loans subject to a HAMP permanent loan
modification or HAMP Trial Period Plan such that the responsible party must
now cancel the related record accessible through the online HAMP Reporting
Tool. As a general reminder to servicers, Fannie is not legally
responsible for any losses incurred due to repurchase action and has the
right to recover all previously paid incentives in connection with the
cancellation of HAMP permanent mortgage loan modification records.
Last week PHH received a
letter from activist investor Orange Capital late last week in which
the latter issued four recommendations, the first being financing MSRs
through a captive vehicle, the second repurchasing $150 million worth of
shares, the third spinning out the fleet business, and the fourth tender for
the 2017 converts. Keefe, Bruyette & Woods' assessment is that
financing prime MSRs would be the most difficult of these recommendations on
which to act, considering that there have been no transactions of any major
scale in the prime market. Furthermore, if the MSR piece of the plan
were unsuccessful, the rest would be difficult to implement as well, as there
would not be enough capital to buy back shares, and a tax-efficient spin of
the fleet management business would run the risk of not generating enough
cash. An outright sale could also prompt a large tax bill, and at the
end of the day, bidding on the coverts might limit further dilution as the
shares move up but would not add any economic value. To read the full
report, see KBW.
US Bank is now
allowing occupant co-signors for all products provided that they occupy the
subject property as either a primary residence or second home, are the spouse
or domestic partner of another borrower who will be in the title, and meet
all other Agency requirements.
With regards to trust vesting,
US Bank has clarified that properties previously or currently vested in a
trust may close in the trust so long as the property title is in the
borrower's name for at least 30 days prior to the date of the initial mortgage
application. The 30-day period is measured from the recording date of
title transfer.
As a reminder, US Bank will not
purchase refinance loans on properties that have been listed for sale by the
current owner within 90 days of making the loan application. Loan files
for such refinances must include a recently listed copy of the canceled
listing agreement in the underwriting file in order to be eligible for
purchase.
Effective immediately, Bank
of the Internet has updated the cap structure for its Portfolio ARM
products from 2/2/6 to 6/2/6.
United Guaranty will
updating its issued Commitments and Certificates for all loans insured on and
after November 1st to include additional loan transaction and
premium information, including borrower, property, mortgage, and underwriting
data. In terms of tracking data, the version number and date/time stamp will
be included in the footers.
Flipping over to the markets,
yes, rates have come down, and seem pretty content where they are now. (As if
they have their own personality, right?) The Fed is buying about $3 billion a
day, mostly 30-yr agency MBS filled with mortgages between 3.75%-4.625%. The
economic news has mixed, as it always is. Yesterday's weekly Jobless Claims
declined to 305K, far below the consensus of 330K, and very close to a
six-year low - no computer glitches this time. Second quarter GDP remained
unchanged at 2.5%.
Although the press is focused
on our government, as predicted, grappling with a possible shutdown of
non-essential components, we did have two pieces of data: August Personal
Income & Consumption (+.4% and +.3% respectively), and will have final
September Consumer Sentiment at 9:55AM EDT. In the early going MBS prices are
pretty much unchanged from Thursday's close, and the 10-yr is sitting around
2.63%.
Most of the time there is a
little humor here. Today, however, is a link to an incredible set of award-winning
action photos that make me feel even worse about sitting on my rump doing
nothing every day: InMyDreams. Yes, there
are other things besides QM and debt ceilings.
If you're interested, visit my
twice-a-month blog at the STRATMOR Group web site located at www.stratmorgroup.com. The current blog is,
"Reverse Mortgages: Companies Need to Know What is Changing". If
you have both the time and inclination, make a comment on what I have
written, or on other comments so that folks can learn what's going on out there
from the other readers.
Rob (Check out http://www.mortgagenewsdaily.com/channels/pipelinepress/default.aspx or www.TheBasisPoint.com/category/daily-basis. For archived commentaries or to subscribe, go to www.robchrisman.com. Copyright 2013 Chrisman LLC. All rights reserved. Occasional paid job listings do appear. This report or any portion hereof may not be reprinted, sold or redistributed without the written consent of Rob Chrisman.)
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Thursday, September 26, 2013
How a Government Shut Down Impact Lending
http://globalhomefinance.com
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Today's
Rate Volatility: NEUTRAL
What happened yesterday?
Mortgage backed
securities (MBS) gained +35 basis points from Tuesday's close which caused 30
year fixed rates to move slightly lower.Durable Goods Orders came in at 0.1% vs estimates that ranged from 0.0% to 0.2%. But the prior reading was revised downward to a dismal -8.2%. Still, it was an O.K. reading and close to expectations, the bond market was not materially impacted by this reading. New Home Sales 421K vs est of 420K, this was a 7.9% gain from the much weaker prior period. This was not enough of a beat to materially impact pricing but it is good news that sales are up during a period of increasing mortgage rates. 5YR Treasury Auction results: $35B at 1.436% with a bid-to-cover of 2.67 vs recent avg 2.7, fairly decent demand but not a block buster. Not a big factor in rates either. So, we had three events and none of them were enough of a variation to market expectations to influence bond prices. Yet, bond prices have steadily improved today...why? Answer: Its the showdown on the shut down. Treasury Secretary Jack Lew stated today that we would run out of cash a little later than originally thought (October 17th). This could give everyone more time to negotiate an extension to keep the government open. But the market is still betting that there will be a government shut down and that is why MBS pricing is rising (better rates for you) and Treasury yields are falling. Also, our friends overseas are helping to drive up our pricing (rates moving inversely...or lower - so that is good) as the European Central Bank (ECB) President Draghi has said they are ready to pump more cash into the banking system and are considering other stimulative measures. Bottom line, rates are improving but not due to U.S. economic forces.
What is on the agenda for today?
Don't miss out
on the mortgage industry's premiere insight and commentary. Subscribe to
RateAlert Executive today and get today's lock advice, complete market
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