ALLIED EQUITY A Diversified Mortgage Company
400 North Mountain Ave., Suite 223, Upland, CA 91786
Phone  909-932-9226 Fax  909-803-9840

Mortgage Related News

MBS Day Ahead: Lender Pricing Will Continue to Defy MBS Logic in Some (Many?) Cases

Posted To: MBS Commentary

I devoted years of my life championing the cause of educating mortgage originators on the realities of MBS price movement. The most compelling call to action came during the meltdown where MBS told a story that wasn't being told by Treasuries. Everything changed after the Fed stepped in with a giant syringe full of bond volatility's favorite sedative: QE. The final straw was QE3 which specifically targeted MBS buying in September 2012. At the time, and ever since, I declared that to be proof positive that the Fed "gets it" with respect to mortgage performance vs benchmark rates and that it was proof positive that they wouldn't let spreads slide away into oblivion ever again. The end of 2012 was the last time I would need to go into much detail to explain MBS vs Treasuries...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Broker, Credit Products; IRS/Tax Transcript, Jumbo, MISMO, RON Changes

Posted To: Pipeline Press

While in captivity it is important to have good communication . (Early anecdotal chatter indicates that the remote workforce has signs of improved productivity!) In the Northwest, Banner Bank’s mortgage group celebrated working from home with a short YouTube video of everyone’s home office (one is in the garage – bumper to bumper every day!) Thank you to Kris van Beever who sent along these cybersecurity tips for working from home to keep communication safe. Communicating with politicians in this crisis is critical. “Rob, do politicians understand that one year’s worth of forbearance would basically put every lender who services loans out of business?” I dunno. At this point the MBA, state, and industry organizations are working overtime on making sure they...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Refinances Dominated Freddie Mac Volume in February

Posted To: MND NewsWire

Freddie Mac reported this week that its total mortgage portfolio increased at an annualized rate of 5.5 percent in February , up from a 4.3 percent gain in January. The portfolio balance at the end of the period was $2.350 trillion compared to $2.339 trillion at the end of January and $2.190 trillion a year earlier. The growth rate for the year to date is 4.9 percent. Purchases and Issuances totaled $46.054 billion and Sales were ($1.041) billion. The January numbers were $47.606 billion and ($.253) billion respectively. Single-family refinance loan purchase and guarantee volume was $23.800 billion in February compared to $25.800 billion in January and representing a 59 percent share of total single-family mortgage portfolio purchases and issuances compared to 57 percent the previous month...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Who Broke The Mortgage Market And When Will It Be Fixed?

Posted To: MBS Commentary

I will do my best to speak to both consumer and mortgage industry people on this topic. It affects everyone. With that in mind, the following is a list of questions that loan originators have been asking. Consumers might not be familiar with all the terms, but the rest of this article will speak to everyone. Why are so many non-QM lenders raising rates or disallowing new apps? Why can't I do cash-out non-QM or Jumbo right now? Or Non-Owner, high LTV, low FICO? Why are my FHA/VA rates suddenly terrible? Why am I suddenly seeing MASSIVE hits for certain FICO/LTV combinations? Why am I suddenly hearing more than I've heard since 2008 about lenders potentially being in trouble? Why are lenders changing rates MASSIVELY from day to day? Why are different lenders so far apart from one another...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

CFPB Empowers Fannie/Freddie to Overcome Lockdown Woes

Posted To: MND NewsWire

Flexibility seems to be the keyword as government agencies try to adjust to a lot of new realities. The Federal Housing Finance agency has already empowered the GSEs (Fannie Mae and Freddie Mac) to be flexible about obtaining appraisals, verifying borrower credit factors, and working with distressed borrowers. Now the Consumer Financial Protection Bureau (CFPB) says it is "providing needed flexibility to enable financial companies to work with customers in need as they respond to the COVID-19 pandemic." "As consumers seek temporary relief from lenders, the pandemic is impacting the operations of financial companies that are eager to help their customers during this unprecedented time," said CFPB Director Kathleen L. Kraninger. "Our actions today are temporary and targeted to support consumers...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Builders Already Feeling Pandemic Pinch

Posted To: MND NewsWire

New home building, which only recently and belatedly caught fire, is already feeling the effect of the COVID-19 virus response. The National Association of Home Builder (NAHB) recently did a quick on-line survey of its members and 81 percent said they had noticed a slowdown in buyer traffic. The survey was conducted between March 18 and March 23. It was a small sample, 308 responses, but more than half came from single-family builders and more than two-thirds were from company owners or CEOs. The survey listed seven possible impacts of the coronavirus and asked if each has so far had a major, minor, or no adverse effect on respondents' businesses. Forty-six percent of builders cited a major downturn in buyer traffic and 35 percent said there was a minor reduction. Other adverse impacts were...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Digital, Compliance, Servicing; Commercial and State Bond Products Next to be Impacted?

Posted To: Pipeline Press

While in captivity it is important to keep busy . Every day people ask me where I think rates will be next week. Here you go: my forecast ! After you check out that graph, it brought to mind that Kris W. sent, “ For the third time this week I’m buying enough booze for the next two weeks .” Seeing large lenders in the mainstream press can drive one to drink, the latest example being Quicken Loans and a possible cash crunch . ( Any servicer who has to advance payments they don’t receive will be hit. As a reminder, the top servicers include Wells Fargo, JPMorgan Chase, Nationstar, Bank of America, NewRez, QLMS, PennyMac, and Freedom.) “Being hit” brings to mind the secondary markets right now. “Hey, the price you’re showing me isn’t what the...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Mortgage Rates Are Amazing and Terrible

Posted To: Mortgage Rate Watch

Depending on what you're looking at, when you look, and where you look, mortgage rates could either be amazing or terrible. Large, upstanding, secure, solvent, excellent lenders are as much as a full percentage point apart from one another on the same loan quote. That essentially NEVER happens in the mortgage market--not with all of those qualifiers anyway. This is a symptom of the "mess" that coronavirus has made of the financial market. For those that want to pretend there's some unique mortgage-specific issue that makes things more difficult for the mortgage market versus other sectors, look around you. To whatever extent it's been "inconvenient" for the average 401k to lose more than 20% of its value in 3-4 weeks, the mortgage market has faced "inconveniences" on a similar scale. Compared...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Annual Home Price Gains Up 5.2% in January

Posted To: MND NewsWire

The pace of annual price increases ticked slightly higher in January according to Federal Housing Finance Agency (FHFA) House Price Index (HPI). The index, which had marked a 5.1 percent year-over-year gain, in December, rose by 5.2 percent in January. The monthly increase was down significantly, however. While the original December increase of 0.6 percent was revised to 0.7 percent, the December to January appreciation was only 0.3 percent. Compared to December, prices declined in two of the nine census divisions. Prices ticked down 0.2 percent in the Mountain division and 0.1 percent in the West North Central. The highest increase, 0.7 percent, was in the South Atlantic followed by the Pacific division at 0.5 percent. Price appreciation was positive on an annual basis in all regions, led...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

MBS Day Ahead: Visualizing The Drama And The Comeback in Mortgages

Posted To: MBS Commentary

It's no secret that volatility has been a big deal in the bond market (and most other markets) recently. But there's no comparing the drama seen in Treasuries to the utter chaos in mortgage bonds. Well actually, there is. We can certainly COMPARE the two, but when we do, it's easy to see just how different they've been. We did this yesterday with a chart of MBS yield spreads vs 10yr yields. That's meaningful for some market watchers, and it tells a story if you understand what you're looking at, but we can make things even more simple with today's chart. It's much simpler. The 10yr yield is plotted normally. The MBS prices are inverted (i.e. the higher prices are at the bottom of the y-axis and vice versa). This allows us to observe the typical correlation in...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Broker, eClosing Products; Locking, Documentation, Product Changes; PennyMac Halts Bulk AOT

Posted To: Pipeline Press

While in captivity it is important to have a hobby . “Dad, why is my sister named Paris?” “Well, uh, that’s because we were in Paris when she was conceived.” “Okay, that makes sense. Thanks!” “No problem, Quarantine.” Prince Charles, Jackson Browne test positive? Yup. People are adapting. Local strip club shuts down? Time for the workers to adapt and start a food delivery service . (Warning: Rated PG.) . Those “in the know” are talking about MBS REIT hedge fund liquidation reminiscent of 2008 . Investors are evaluating risk and adapting. They don’t need to entirely cut out a program to lower risk, right? Investors can lower the maximum LTV, raise minimum FICOs, eliminate non-owner loans or refis, lower maximum DTIs, change...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Mortgage Apps Rocked by COVID; Hard Hit Areas Paint Gloomy Picture

Posted To: MND NewsWire

The volume of mortgage applications plummeted last week as households, rattled by COVID-19 fears, self-isolated in their homes and businesses were shuttered in the hardest hit states or scurried to shift operations to their employees' homes. In the midst of it all, mortgage rates also rose significantly. The Mortgage Bankers Association said its Market Composite Index, a measure of mortgage loan application volume, decreased 29.4 percent on a seasonally adjusted basis during the week ended March 20 and was down 29 percent before adjustment. Refinancing volume, which had risen an aggregate of more than 100 percent in the weeks ended February 28 and March 6, fell for the second straight week, losing 34 percent last week alone. As an indication of how frenetic recent business has been, however...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Mortgage Market is Still a Mess, But a Hopeful One

Posted To: Mortgage Rate Watch

There is a LOT of misinformation flying around out there about the mortgage market, the Fed, and the various impacts on rates from the government's coronavirus response. If you're in the market for big-picture overviews of all the relevant considerations with links to excruciating levels of technical detail, check out this compendium of the Fed's current mortgage bond buying efforts . If you're just here to find out what the heck is going on with mortgage rates, read on. Rates are legitimately all over the place in a way we haven't seen, ever. I'm including a significant amount of personal experience analyzing the financial crisis and more than a careless amount of research into historically similar levels of volatility as seen in April 1987. March 2020 wins, period. The sudden, unexpected...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

DEFINITIVE FED MBS BUYING FAQ (And Other Resources to Consider Before Asking Your Questions)

Posted To: MBS Commentary

This page is now your official resource for the week when it comes to ANY AND ALL questions pertaining to what the Fed is doing in the mortgage market and what the impact is. Expect it to be updated each week only inasmuch as the Fed's bond buying schedule is updated. There are other useful links below, so at least SKIM what's available before asking about these topics in chat. I'm HAPPY to answer questions that aren't already addressed in here. On a final introductory note, I can't emphasize this enough: those who take the time to actually read the commentary and analysis I put out will be MILES ahead of the competition when it comes to understanding what's going on. This is a once-in-a-lifetime market situation and the value of educating yourself (no matter how tedious...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

New Home Sales Remain Near Post Crash Highs

Posted To: MND NewsWire

Sales of newly constructed home jumped to a 13-year high of 764,000 annualized units in January , a number that was revised even higher today to 800,000. Given that increase, it was expected that there would be a bit of a pullback in February. Sales in February did decline by 4.4 percent according to Tuesday morning's report from the U.S. Census Bureau and the Department of Housing and Urban Development. Even so, they came in higher than the most optimist forecast. Homes sold at a seasonally adjusted annual rate of 765,000 units during the month, an increase of 14.3 percent year-over- year. The range of forecasts from analysts polled by Econoday was 690,000 to 764,000 units with a consensus of 743,000. On a non-adjusted basis there were 68,000 new homes sold during the month compared to 61...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Master List of Mortgage Market's COVID-19 Changes And Appraisal Tables

Posted To: MBS Commentary

Hit the comment section if we're missing anything and we'll get it updated to keep this as an up-to-date list of COVID-related changes to underwriting guidelines, forbearances, etc. The changes come at the direction of FHFA and are thus substantially similar for both agencies. To keep things simple, we're listing one bullet point for both agencies. Click on the agency link to see specific details directly from the agency. Underwriting Guideline Changes ( Fannie | Freddie ) VERIFICATION OF EMPLOYMENT (VOE) can be complete via email, paystub, or bank statement APPRAISALS may be "desktop appraisals" or "exterior only" if there is sufficient property info available. Lenders encouraged to accept appraisal waivers (PIW's) DETAILED FAQ Help For Homeowners and Servicers ( Fannie | Freddie ) Homeowners...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Sales, Digital, Processing Products; FAM, QLMS, Mr. Cooper Changes; Appraisal and VVOE Clarity

Posted To: Pipeline Press

While in captivity it is important to have discipline . Independent mortgage banks exercised discipline and had a great 4 th quarter, profit-wise , but that was so… “then.” (Costs were $7,500 per loan.) Looking at the present, many are beginning to ask an ugly question: “Does the worldwide economic harm, spiraling out of control, outweigh the potential casualties of the coronavirus?” Fortunately the Federal Reserve and Agencies are providing support, but given that non-QM and jumbo loan production is reeling, and the servicing market, especially for Ginnie Mae loans, was dealt a blow yesterday, can government-backed FHA/VA lending be far behind ? How much pain can small or mid-sized independent mortgage bankers absorb, given EPOs, margin calls, renegotiations...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Housing Agencies Moving Quickly to Offer "Flexibilities" After Coronavirus

Posted To: MND NewsWire

Fannie Mae has issued a series of three lender letters dealing with changes in appraisals, originations, and servicing protocols in response to the COVID-19 national emergency. Fannie Mae indicates that similar letters will be forthcoming from Freddie Mac under guidance from the Federal Housing Finance Agency (FHFA). The letter regarding appraisals , ( LL-2020-04 ) allows the use of exterior only appraisals and Desktop appraisals where complete interior and exterior appraisals cannot be obtained due to virus fears. If a traditional appraisal is not obtained and there is insufficient information about the property for an appraiser to be able to complete an appraisal assignment with a desktop or exterior-only inspection appraisal, the loan will not be eligible for delivery to Fannie Mae. Where...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

MBA Asks Treasury, Fed to Intervene in Mortgage Market (More Than They Already Are)

Posted To: MND NewsWire

Over the weekend the Mortgage Bankers Association (MBA) sent letter to two federal financial officials asking for immediate action to counter potential negative impacts of the pandemic crisis on the mortgage sector. The letter, over the signature of MBA President and CEO Robert D. Broeksmit was sent to Treasury Secretary Steven T. Mnuchin and Federal Reserve Chairman Jerome H. Powell. MBA cites the financial market volatility that has arisen following the spread of the COVID-19 virus and the pending closing of businesses and institutions which will result in millions of households possibly unable to meet their debt obligations . Some of the most significant impacts, Broeksmit said, "are occurring with respect to the nation's system of housing finance." He acknowledged the actions already taken...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

MBS Week Ahead: Running Out of Superlatives to Describe Fed's Fury and MBS Volatility

Posted To: MBS Commentary

There was a time when several billion dollars a day of Fed MBS purchases was considered a lot. Then the Fed's coronavirus response happened. The Fed didn't like what it saw on Wednesday and Thursday. The already huge $5bln / day in MBS wasn't enough to prevent prices from tanking. So on Thursday, they decided to bring out bigger guns by announcing an extra $10bln in bond purchases. That easily made Thursday the biggest day ever ($15bln) . Despite the big guns, MBS simply doubled down on volatility and eventually ended up as the single most volatile day in the history of the secondary mortgage market. Part of the reason was a late day announcement from the Fed about the following day's plans. In addition to the $2.5 bln on the calendar, they would be adding another $32 bln! This...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Anti-fraud, Servicing Products; Borrower Satisfaction Survey; Virus-Driven Product Shifts

Posted To: Pipeline Press

While in captivity it is important to have a goal . And remember, “It's only quarantine if it comes from the quarantine region of France; otherwise, it's just sparkling isolation.” YouTube views of yoga classes have skyrocketed. Families are arguing over the dog, the hat, the canon, the shoe, or the iron. As millions of women around the nation remember how to do their own nails at home, and men are wondering about haircuts, the lending industry continues in turmoil. Some things have been cleared up, however: California and Ohio have ruled that finance sector (e.g., mortgage) workers are essential. And CEOs are forcing LOs to go through pipelines to make sure loans in process and locks are “real” and aren’t using up hedge costs in a volatile time . Lender Services...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

January Foreclosure Starts Fall to Survey Lows

Posted To: MND NewsWire

Loan performance overall continues to validate the perceived quality of recent loan vintages and delinquency metrics continue to test and break old records. Foreclosure starts were down 20 percent in January 2020 compared to a year earlier, just one of the further improvements noted in Black Knight's "first look" at January/February data. Starts numbered 32,300, which was 24.5 percent lower than in December. It was the lowest level of foreclosure starts since Black Knight began reporting it exactly 20 years earlier. The company notes that these numbers were gathered preceding any effects from the onset of the COVID-19 pandemic. The March data should shed more light on any economic impacts on housing. The number of loans with mortgages that were 30 days or more past due but not in foreclosure...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Pre-COVID Home Sales Numbers Will Remind us Of the Good Times

Posted To: MND NewsWire

Who knows what tomorrow will bring? At least for today we have some welcome good news from the National Association of Realtors® (NAR). Existing home sales, which declined slightly in January, enjoyed a spring-market explosion in February. NAR said sales of pre-owned single-family houses, town houses, condos, and cooperative apartments rose 6.5 percent compared to the previous month. Sales were at a seasonally adjusted annual rate of 5.77 million units compared to 5.46 million in January and were 7.2 percent higher than the 5.38 million rate in February 2019. It was the eighth straight month that sales were higher on a year-over-year basis. Single-family home sales, at a 5.17 million annualized rate, were up by 7.3 percent both from January and from February of 2019. Existing condominium...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Remote Ops, AE Jobs; CRM, , Bid Tape, Warehouse Products; Non-QM Sector Walloped - Why?

Posted To: Pipeline Press

Today, with the official start of Spring, and while the industry waits for the FHFA to answer concerns about appraisals, VVOEs, and other issues, there are other pressing questions. “Rob, does my wife quarantining on the 1st floor and me staying on the 2nd floor count as ‘social distancing’? Or ‘conscious uncoupling’?” You’ll have to ask Dear Abby that one. People adjust to the “corona-cation,” like having virtual Happy Hours with friends via Face Time. And here’s Ah-nold with some advice from his hot tub . Here’s what Tom Hanks has to say. Envoy’s CEO Ron Millard sent his employees a video on values we should remember: faith, confidence, and focus. Coronavirus aside, according to the United Nations World Population Prospects...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

The MOST Volatile Day For Mortgages

Posted To: Mortgage Rate Watch

Today was the most volatile day in the history of the mortgage market in many regards. There were days in the early 80's that saw rates move by similar amounts, but none of them saw the underlying market for mortgage bonds move back and forth by such gigantic amounts. What does this mean for you and your ability to buy or refi at the rates you may have heard about recently? That depends on the rates you've heard about recently! Many borrowers mistakenly believe the Fed's recent rate cuts mean that mortgage rates have fallen by an equal amount. In fact, many loan originators report getting calls about 0% rates. Unequivocally, there are no 0% mortgage rates! If you're not 100% sure about why that's the case, please read this article . If you're participating in a more realistic reality, you may...(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Joe Sanchez
Allied Equity
Ph: 909-932-9226Fax:909-803-9840
400 North Mountain Ave., Suite 223
Upland, CA 91786 US
CA DRE License # 01201910, NMLS: 359382, Company ID: 359090
www.alliedequity.com
Home Free Property Search MLS Apply Online (secured) VIP Home Finder Form Local Area Loan Application Process First Time Homebuyers Info Mortgage Reports EZ -DOC Self Employed Loans Pre-Quals for Realtor Referral Business Jumbo Loans 95% up to $1.5 Mil (NO MI available) Buyer Reports Local Schools Local Weather Interest Rates Seller Reports 90% JUMBO NO MI 95% LTV Mortgage with no MI Investor Reports Calculators Pre-Qualify Now Interest Only Mortgages Apply Online Jumbo Loans to $10million Bankruptcy / Foreclosure / Negative Credit Mortgage News Conventional Loans FHA Loans VA Loans HARP 2.0 Loans (No equity loans) Private Investors / Hard Money Property Search (Allied International Realty) Apartment Loans Commercial Loans Mortgage Glossary Preferred Partners About Me Contact Me 2020 NEW COUNTY LOAN LIMITS 10 QUESTIONS TO ASK YOUR AGENT Home Sales to Reflect Lower Interest Rates
LinkUAgent Partner
Powered by LinkURealty - Real Estate Web Design & Websites