Home Loans and Mortgages on Bad Credit by Mortgages MAX

Posted To: MBS Commentary
Well well well, look where we sit. 10s rose from 3.60 to 3.80 in seven sessions. Took a short breather. Then fell from 3.80 to 3.60 in four days. Chop chop chop . On the week, the 3.625% coupon bearing 10 year Treasury note was +1-09. That's +41/32 from 98-24 all the way up to 100-01. Yields fell 14 basis point from 3.76% to 3.62%. Looking at a longer timeline….notice the cluster of weekly moving averages and rapidly narrowing trend channel. This pattern is called an ascending triangle or continuation pattern. It illustrates how trader positions are accumulating at higher and higher levels. If this chart was price, it would be very bullish. Meaning we would soon expect a breakout to the upside in the near future. Since the chart below is yield, we have to call it very bearish, at least…(read more)
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Original post by Adam Quinones

Posted To: MND NewsWire
If I was selling loans at the moment and I wanted to reduce secondary marketing ' leakage ', I would take special note of the changes, updates, and guidance's offered by Fannie Mae's QC department in Lender Letter 2010-03 below. THE LOAN QUALITY INITIATIVE! (aka loan repurchase world!) The only thing I might add before you read on is FNs loan purchasing systems/work flow are tedious and usually time consuming. Historically, many issues related to compliance with Fannie Mae selling policies are not detected until after loans are delinquent or through the foreclosure process. Loan repurchase requests to lenders have increased in the past three years, highlighting the need for an improved approach for working with lenders to deliver loans that meet Fannie Mae’s underwriting…(read more)
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Original post by Adam Quinones

Posted To: MBS Commentary
Although "rate sheet influential" MBS coupons are off intra day price highs, we are seeing reprices for the better. If you're floating in the short term, wait a bit longer as you should pick up between .125 and .375 bps after rates are republished. The FN 4.0 is +0-09 at 98-12 yielding 4.157% and the FN 4.5 is +0-09 at 101-07 yielding 4.369%. The secondary market current coupon is 4.295%. The current coupon yield is 69.3 bps higher than the 10 year TSY note yield and 61.2 bps over the 10 yr swap rate….(read more)
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Original post by Adam Quinones