2020 isn’t over yet… we still have December. Tiger King, global pandemic, a U.S. president who says that the election isn’t over, fires and floods, and now minks rising from graves in Denmark. Fortunately talk of a fast release for the GSEs seems to be diminishing. No one saw the combination of all of this coming at us, and although no one has a crystal ball when it comes to rates and dates in the future, the consensus is that the world economies are following the virus around the world. Consumer spending and housing drive the lion’s share of the U.S. economy, and if you’re out of a job you’re probably trying not to spend much money. Likewise, even if borrowing costs are near 0 percent, a company won’t have a need for borrowing if they’re not expanding. While all of this is happening on a global basis, lenders are dealing with nitty-gritty details while wrapping up (for many) a record-breaking month and year.

Can an AMC refuse to transfer an appraisal to a new lender?

This was a recent question from a reader, and I turned to Matthew Simmons at AXIS AMC for an answer. “The role of the AMC is to manage the ordering process in compliance with Appraiser Independence Regulations (A.I.R) for the Lender (i.e., the Intended User) when an order is placed. Once the order is completed and delivered to the original Lender (again, the Intended User), the role of the AMC is complete.

 

“Should the original Lender (Intended User) not wish to complete the transaction for the borrower, or the borrower decides to changed Lenders, then the decision on what to do with the previously completed reports is between the original Lender and the new Lender. At which point a couple things can happen. 1) Lender A (Original Intended User) releases the report to the new Lender B with a transfer letter that states something along the lines of “We (Lender A) release this report for the use with your new company (Lender B)”. At this point the new Lender (Lender B) must accept the report in its current state and fund in the original Lender’s name.

“Or 2) If the new Lender will NOT accept a transferred report because the new Lender B NEEDS the report to reflect their name as the Intended User, then a new report will need to be completed for the new Lender with a new inspection (effective date). The reason a new inspection is required is because the appraiser cannot take their old report and change who the Intended User was when they originally inspected. That appraisal does not ‘belong’ to the appraiser. The effective date of an appraisal is a literal “snapshot in time”.  Thus a new effective date is required for a new Lender name.

“Lastly, 3) It’s likely that if the report was completed recently and you were to use the same AMC (and that AMC is on the NEW Lender’s approved list of AMC’s) they might be able to get the original appraiser to complete a new report for you quickly and even potentially at a discount. Many appraisers, however, treat any such request as a completely new assignment (with all the insipient liability) and, as such, may require a full fee.”

Matthew’s note finished with, “In summary, an AMC is quite literally barred from asking the appraiser to change the name of the intended user from lender A to Lender B even with a transfer letter. It becomes a new assignment for a new Intended User which requires a new effective date with its own scope of work.” Thank you, Matthew!

 

Processing: reducing friction

Efficient processing can make or break a company. A recent STRATMOR workshop found that processing is currently the #1 bottleneck in operations. And every ops manager person says that bringing new processors up to speed remotely is difficult. (Underwriting and closing closely follow.) How are lenders managing capacity constraints, one of the biggest “pain points” for lenders? A recent STRATMOR poll indicated that overtime, shifting staff from other parts of the company, or adjusting the workflow process are popular solutions.

Joey McDuffee, VP of Sales and Marketing at Blue Sage, weight in on cutting closing times. “Rob, companies still have challenges creating a unified, real-time experience across the board for loan officers, borrowers, and back office operations staff because the systems they use are so dissimilar. Tying all of these together seamlessly is a major opportunity to reduce cycle times. The key is leveraging modern technology and access to a variety of data sources to create a holistic experience that includes workflow orchestration and automating processes between the borrower, the lender, and key third-party data services. That level of instantaneous transparency between the borrower, loan officer, and underwriter allows lenders to approve loans faster than they ever have before. We’ve seen clients shrink app-to-close turnaround times to 14 days simply by creating that simplified, data-driven experience for all involved with the origination process.”

Paul Anselmo, CEO of Evolve Mortgage Services, wrote in, “Rob, a huge shortage of underwriters in an industry experiencing historic levels of business is causing massive logjams. One strategy that can help mortgage bankers better handle the tsunami of activity is to bifurcate the loan production process so underwriters have fewer tasks on their plate. By breaking down the process into multiple functions, underwriters are freed up to underwrite more files per day. Using a good bifurcation platform enables lenders to be as much as four-to-five times more profitable.” (Find out how Evolve uses bifurcation to help lenders scale up their underwriting at www.evolvemortgageservices.com.)

And Nate Johnson, mortgage business head for SLK Global Solutions, sent, “Rob, the biggest production bottlenecks we see are in pre-underwriting and loan setup. We have found that the loan quality is the main driver to cut closing times by reducing the number of times an underwriter touches a file. Improving loan quality can be done through smart process reengineering and by automating communications, such as automated communication to both borrowers for updated paystubs and processors to identify deficiencies prior to underwriting. For one of our clients, we were able to slash the number of touches from nearly six to just two.” (Read more about how SLK helps lenders reduce production costs here.)

LIBOR & ARMs

The slope of the yield curve (for example, the difference between 3-month and 30-year securities) changes every day. Treasury curve is opening up slightly steeper, 2/30s .49 and 10s/2s .19. Not exactly a reason for ARMS traders to get excited about upcoming supply from mortgage bankers but the higher we go and the steeper we get… you all know the drill. The benefits for MBS investors in purchasing ARMS are a lower duration profile, higher interest rate payments and greater yield as the underlying mortgage resets down the road. I remember the days when ARM production was as high as 40% of origination pipelines, excluding bank lenders it’s single digits percentage wise best case these days.

It is widely expected that LIBOR will be discontinued or deemed unsuitable for use by the end of 2021. (And we’re already fast approaching the end of 2020!) Banks and other financial institutions should be implementing plans to transition to replacement rates. Decisions regarding an appropriate replacement rate should take into account impacts on the financial condition of the institution, impacts on borrowers, and operational challenges associated with different replacement rates.

Fannie’s trading desk reminded clients that Dec. 1 will be the last issue date for MBS pools with LIBOR ARMs (loans can be delivered into MBS with Dec. 1 issue dates until Dec. 24.). Dec. 31 will be the last day Fannie Mae will purchase LIBOR ARMs on a whole loan basis.

Finastra launched a LIBOR Transition calculator that enables market participants to calculate their own Alternative Reference Rates (ARR) or Risk-Free Rates (RFR) and interest accruals. Fusion LIBOR Transition Calculator enables market participants to calculate their own ARR / RFR based rates and interest accruals. This calculator will help these global financial titans quickly implement a solution and make up for lost time. Finastra provides loan pricing and valuation software to more than 80 of the world’s biggest financial firms.

Here’s a summary of the transition from LIBOR in U.S. securitizations.

Bloomberg is building a credit adjustment that banks can layer on top of the Secured Overnight Financing Rate that “reflects the marginal cost of funding for the banks,” says Umesh Gajria, global head of index-linked products. “We’re working closely with several clients in the market, continuing to solicit feedback and continuing to refine the index, so we will be coming out with more information on that shortly,” Gajria says.

Earlier this month the Federal Reserve, FDIC, and OCC issued a statement to clarify certain elements of the transition away from LIBOR and reiterate that they are not endorsing a specific replacement rate for LIBOR with respect to lending activities, and that the use of the Secured Overnight Financing Rate (SOFR) is voluntary. The agencies further reiterated that banks should institute fallback contract language that provides for a robust fallback rate.

And deals keep being generated with adjustable rate indices.

Earlier this year Freddie Mac priced a new $850 million offering of Structured Pass-Through K Certificates (K-F77 Certificates), which includes a class of floating rate bonds indexed to the Secured Overnight Financing Rate (SOFR). The K-F77 Certificates are backed by floating-rate multifamily mortgages with 7-year terms, which are currently LIBOR-based. Freddie Mac will provide a basis risk guarantee on Class AS that covers any floating interest rate basis risk if the value of SOFR exceeds the value of LIBOR. Pricing for the deal is as follows. Class AL has principal of $536.618 million, a weighted average life of 6.59 years, a coupon indexed to 1-month LIBOR plus 70 bps and an even $100.00 price. Class AS has principal of $250.000 million, a weighted average life of 6.59 years, a coupon indexed to 1-month average SOFR plus 90 bps and a $100.00 price.

 

And Freddie Mac priced a similar new offering of Structured Pass-Through K Certificates. This $853 million K-F78 transaction also included a class of floating rate bonds indexed to SOFR. The K-F78 Certificates are expected to settle on or about April 16 and are backed by floating-rate multifamily mortgages with 10-year terms, which are currently LIBOR-based. Like K-F77, K-F78 includes one class (Class AL) of senior bonds indexed to LIBOR and another class (Class AS) of senior bonds indexed to SOFR. As with K-F77, Freddie Mac will provide a basis risk guarantee on Class AS that covers any floating interest rate basis risk if the value of SOFR exceeds the value of LIBOR. Pricing for the deal is as follows. Class AL has principal of $697.7 million, a weighted average life of 9.54 years, a coupon of 1-month LIBOR plus 80 bps, and a $100.00 price. Class AS has principal of $155.5 million, a weighted average life of 9.54 years, a coupon indexed to the 30-day SOFR average plus 100 bps, and a $100.00 price.

In late September, Freddie priced another K Certificates deal, which is known for featuring a wide range of investor options with stable cash flows and structured credit enhancement. This new $968 million offering of K-F85 Certificates includes a class of floating rate bonds indexed to the Secured Overnight Financing Rate (SOFR). The other class of senior bonds is indexed to LIBOR, and Freddie Mac will provide a basis risk guarantee on Class AS that covers any floating interest rate basis risk if the value of SOFR exceeds the value of LIBOR. The K-F85 Certificates are backed by floating-rate multifamily mortgages with 10-year terms, which are currently LIBOR-based, and are expected to settle on or about September 30, 2020. Class AL has $518.694 million of principal, a weighted average life of 9.38 years, a coupon of 1-month LIBOR plus 30 bps, and a $100.00-dollar price. Class AS has $450.000 million of principal, a weighted average life of 9.38 years, a coupon of the 30-day SOFR average plus 33 bps, and an even $100.00-dollar price.

Freddie Mac also priced a new $828 million offering of Structured Pass-Through K Certificates (K-F81 Certificates), which includes a class of floating rate bonds indexed to the Secured Overnight Financing Rate (SOFR). K-F81 includes one class (Class AL) of senior bonds indexed to LIBOR and another class (Class AS) of senior bonds indexed to SOFR. Freddie Mac will provide a basis risk guarantee on Class AS that covers any floating interest rate basis risk if the value of SOFR exceeds the value of LIBOR. The K-F81 Certificates are backed by floating-rate multifamily mortgages with 7-year terms, which are currently LIBOR-based. Class AL has a principal of $378.375 million, a weighted average life of 6.45 years, a coupon of 1-month LIBOR + 36 bps, and a $100.00 price. Class AL has a principal of $450.000 million, a weighted average life of 6.45 years, a coupon of 30-day SOFR average + 40 bps, and an even $100.00 price. The K-F81 Certificates settled in July.

Freddie Mac announced that it priced its $1.1 billion STACR 2020-DNA4 offering, which saw an increased planned size of the bond issuance due to investor demand, the third upsized STACR offering since March. STACR (Structured Agency Credit Risk) is part of Freddie Mac’s flagship credit risk transfer program. STACR REMIC 2020-DNA4 is Freddie Mac’s fourth securities transaction of the year covering single-family loans with low loan-to-value ratios between 61 percent and 80 percent. The loans were securitized between January 1, 2020 and March 31, 2020 and originated on or after January 1, 2015. Pricing for STACR REMIC 2020-DNA4 is as follows: M-1 class: one-month LIBOR plus a spread of 150 bps. M-2 class: one-month LIBOR plus a spread of 375 bps. B-1 class: one-month LIBOR plus a spread of 600 bps. B-2 class: one-month LIBOR plus a spread of 1000 bps. STACR REMIC 2020-DNA4 is scheduled to close August 25 along with its ACIS counterpart. Since 2013, Freddie Mac has transferred a portion of credit risk on approximately $1.7 trillion in unpaid principal balance on single-family mortgages.

Black Friday: Only in America do people trample others for cheap goods just hours after being thankful for what they already have.

Visit www.robchrisman.com for more information on our industry partners, access archived commentaries, or to subscribe to the Daily Mortgage News and Commentary. If you’re interested, visit my periodic blog at the STRATMOR Group web site. The current blog is, “Time to Call the Landlord?”.

qoɹ

(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes visit LenderNews. This newsletter is designed for sophisticated mortgage professionals only. There are no paid endorsements by me. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.robchrisman.com. Copyright 2020 Chrisman LLC. All rights reserved. Occasional paid job & product listings do appear. This report or any portion hereof may not be reprinted, sold, or redistributed without the written consent of Rob Chrisman.)

 

Left over pumpkin pie for breakfast today? Have you begun your company’s Holiday Cookbook yet? (Help corporate culture by sending an email, ad a recipe, send it on to someone else working from home, keep it going.) Remember when “flexible” working arrangements made the news? For example, flexible work arrangements (think gig employment, independent contractors, and freelancers… and robots?) accounted for 94 percent of the net employment growth in the United States from 2005 to 2015. How the government regulates the treatment of these people will have broad reaching effects across the entire economy. Jared Kushner and Ivanka Trump know a little something about employment, and homes. They are expanding their “cottage” by the Trump National Golf Club in Bedminster. In the plans are four new pickleball courts, a relocated heliport, and a spa and yoga complex, the New York Times reported. I am sure that the rumors are false of one of them telling the other, “Stop complaining about your life. There are literally people living in Illinois.”

Employment

As the nation honored its heroes on Veterans Day, Caliber Home Loans took the opportunity to surprise one veteran-owned small business with an impactful gesture of support. Watch this Nov. 11 segment of  “Today with Hoda & Jenna” to learn about Sam Floyd, a Marine Corp. veteran who owns his own coffee roasting business. “Floyd’s heartfelt reaction to Caliber’s pledge will make you smile since it will truly have an impact on his life and the cause Floyd supports. Caliber cares. Be part of a team that makes the dream of home ownership a reality. Join a company that supports its employees and the communities in which they work and live. Come to Caliber. Visit our website today to view open opportunities. To be immediately considered for Operations or Sales positions, email Jonathan Stanley or Brian Miller respectively.”

CU Direct is looking for a Vice President of Mortgage Implementations. CU Direct delivers enterprise lending solutions and technology to over 1,100 financial institutions and 15,000 auto dealers nationwide. CU Direct launched Origence, a completely differentiated Enterprise Origination Platform that includes an LOS, POS, analytics, CRM and artificial intelligence components. This new platform has seen rapid market adoption and need for a new senior leader to manage mortgage implementations. This role is to manage multiple teams and more than 30 complex implementations at mortgage banks, credit unions, and community banks annually, and the VP is the key strategic leader who drives the Implementation strategy for CU Direct’s mortgage solutions. The ideal candidate has 10+ years with mortgage LOS implementations, successful client implementations, and leadership at credit unions, banks and/or mortgage industry, as well as leadership skills to manage multiple teams, priority management, and client relationship management in complex situations. Exceptional leadership with mortgage implementations, characterized by driving efficiency and a high performance with the ability to lead multiple projects. Please email your confidential resume to Chrisman LLC’s Anjelica Nixt for forwarding.

TCF Bank, a $48B premier Midwest bank, is on a growth journey and is searching for an SVP, Senior Director of Mortgage Operations. This is a significant leadership opportunity to oversee and lead day-to-day mortgage operations and related loan support teams for Retail, Consumer Direct, and Home Equity origination channels. If you are embody an entrepreneurial spirit and have an innovative eye to making the loan origination process easier for customers, team members, and want to be supported by significant digital and technology investments, please click here to learn more or apply.

On the flip side, but not in the mortgage industry although this definitely impacts the pool of available borrowers, Disney announced layoffs totaling 32,000. Anyone can post a resume for free at www.LenderNews.com.

Demographics: who’s locking?

The 2020 Census will provide an official count of the U.S. population (roughly 330 million, led by CA, TX, FL, and NY), but annual estimates offer an ongoing look at population trends between decennial counts, and the latest city and town population estimates show three-fourths of the nation’s incorporated places have fewer than 5,000 people. About 63 percent of the nation’s population lives in incorporated places, and in addition to 76 percent of the approximately 19,500 incorporated places having fewer than 5,000 people, almost 42 percent had fewer than 500 people. Conversely, only 4.0 percent (780) of all cities had a population of 50,000 or more in 2019, yet nearly 39 percent of the U.S. population (127.8 million) live in those cities.

MLOs might want to check out one of Bankrate’s recent surveys which addressed, “Who is refinancing and who isn’t.” It tells us that 27% of current mortgage holders surveyed don’t know their current rate. (That isn’t surprising; You and I only know our because we’re in the biz, right?) Greg McBride, Bankrate chief financial analyst, tells us, “Roughly 8 in 10 homeowners with a mortgage have not refinanced and more than 1-in-4 doesn’t even know what rate they’re paying.” The nationwide survey showed that 17% of mortgage borrowers say they have refinanced this year, an additional 27% have considered refinancing but haven’t done so, and 52% have not considered refinancing. This means that despite the ongoing record low mortgage rates, 80% of mortgage borrowers have not refinanced. To be sure, some of these homeowners aren’t eligible for refinancing or have other compelling reasons not to refinance.

Homeowners cited numerous reasons for not refinancing, but lack of enough savings to cover the costs of the refi was the biggest stated hindrance. The new FHFA refinance fee set for loans purchased by the Agencies is set to begin Dec. 1 won’t help many of those refinancing.

Homeowners cited a number of reasons for choosing not to refinance, including that it wouldn’t save me enough money (33%), closing costs and fees that are too high (23%), too much paperwork and hassle (22 %), plans to move or pay off the loan soon (14%), low credit score (10%) and unemployment or reduced income that would prevent qualifying (6%). Households with annual income below $50,000 were more likely to cite a low credit score (32%) as a reason for not refinancing.

While it’s true that the fee will make refinancing more expensive overall, many homeowners still stand to see significant savings even after it comes into effect, because that 0.5% is being added to interest rates that are otherwise historically low.

In “the old days,” usually you’d go through school, meet someone special, start a career, marry, then either buy a home and/or have children. This has all been impacted by COVID. For example, there are 2.2 million weddings performed annually in the U.S. every year, and due to cancellations and statewide lockdowns early on we saw that the $54.4 billion wedding business was in a tailspin and couples are forced to make impossible choices around their special day. Earlier this year, according to surveys from Wedding Report, it’s estimated 6.5 percent of couples are cancelling their weddings, 28 percent tried to move the dates back to the back half of 2020 or further, 22.5 percent are pushing it back to 2021, and 43 percent were not doing anything at that time. The average cost of a wedding in 2020 was estimated at $24,675, so the 5 to 15 percent rebooking fees can be a serious blow.

In 1968, the top 20 percent of U.S. households made 43 percent of all income, a figure that in 2018 stands at 52 percent. One reason the rich have stayed wealthy is that they’re increasingly marrying other rich people. In 1960, 0.4 percent of married couples both made the top 20 percent of income for someone their age. Naturally, the increase in this number may have something to do with women entering the workforce, but the percentage of wealthy people marrying other wealthy people is far above expectation: in 2018, 7.4 percent of couples were dual top earners in their demographic, though if couples married randomly it would be just 4 percent.

Right now, it’s hard to buy a new house that isn’t large in America. Homes under 1,400 square feet have historically represented about 16 percent of new housing stock, but since 1999 they’ve been just 8 percent of new construction. Homes sized between 1,800 square feet or less had been 40 percent of new homes, but now they’re merely 22 percent. Meanwhile, the 2,400 square foot and up segment had represented a third of the new market but now are about half. New entry-level and starter homes are simply not on the market anymore, mainly because costs associated with construction have surged, so it’s go big or no home.

In terms of careers, the U.S. Census Bureau released a graphic showing median earnings of women in certain occupations from the 2018 American Community Survey. The occupation table shows the percentage of women in select occupations and the earnings of full-time, year-round female workers in 2018. It compares earnings to those of men in the same occupations. Sniff around for yourself on the Census Bureau’s site. There is no reason comp shouldn’t be equal!

It seems homebuilders can finally be happy, or at least happy about budding momentum in the sector. The outlook has improved for both single-family and multifamily, as housing starts have been strong and beating expectations. Housing figures should not only contribute positively to Q4 GDP growth and offset some of the weakness in capital spending, but position housing as one of the bright spots in the 2020 economic outlook.

But economists love to look into the details, and why starts sometimes trail permits by a wide margin. Permits, which are less volatile and tend to lead starts by a month or two, rose to the highest in 12 years. The bulk of the gap between starts and permits is often found in apartment construction, though a relatively large proportion of homes are started the very same month a permit is issued. The gap between permits and starts can reflect concerns about overbuilding in some submarkets, soaring construction costs, and the lack of construction workers.

Even with high demand for apartments and economic-cycle low vacancy rates, the overhang in permits creates some upside risk to housing starts going forward. The industry is watching forbearance stats. Starts were beaten down when interest rates spiked toward the end of the year. The Fed’s pivot toward lower rates eventually engendered a rebound, after builders rid themselves of inventories and began to focus more on entry-level housing. The biggest hurdles for builders going forward are securing affordable well-located lots and construction workers, but it seems homebuilders are optimistic.

The Census Bureau Data can help older Americans afford housing. Assessors sometimes use Public Use Microdata Sample (PUMS) files to conduct a customized inquiry that met a given program’s eligibility criteria. PUMS files contain a small sample of individual records, with identifying information removed, from the ACS that show the population and housing characteristics of the people included on those forms. After analyzing the data, households are often found that were eligible for tax exemptions but are not enrolled in programs that can help them. Why wouldn’t an MLO want to help their client that way? Putting together an outreach plan based on the ACS data with the goal to increase enrollment would help many and increase the number of homeowners applying for the program.

Capital markets

Wednesday’s pre-holiday economic data dump pointed to a malaise in Q4. Initial jobless claims unexpectedly posted their first back-to-back advance since July, while Americans’ incomes and savings fell in October. Household spending was muted, likely due to an acceleration in virus cases and new restrictions. On the bright side, durable goods orders increased at a faster-than-expected pace last month, and October New Home Sales decreased but remained elevated beyond expectations. Q3 GDP remained unrevised at 33.1% in the second estimate. This week’s earlier than usual Primary Mortgage Market Survey from Freddie Mac for the week ending November 25 saw 15-year and 30-year fixed rates holding at their record lows of 2.28% and 2.72%, respectively. By the end of the day, Treasuries were basically unchanged and the UMBS30 basis closed wider, led by 1.5%.

Fed officials took a glass-half-empty view of the labor market, according to minutes from their November 4-5 meeting. Policy makers discussed announcing enhanced guidance for asset purchases “fairly soon,” though there was no agreement surrounding longer duration purchases before the December meeting. A few participants expressed concern that maintaining the current pace of agency MBS purchases could contribute to potential valuation pressures in housing markets. New York Fed President Williams stated negative rates by the Fed could be a possibility, which contradicts Chairman Powell’s statements that negative rates are not appropriate for the U.S.

There are no economic events today, which also explains the early close. Settlement close is at 1PM ET with SIFMA recommending a 2PM ET close for cash. It should be an uneventful day. Now that bond and equity markets are open again, we begin the day with Agency MBS prices better/up a few 32nds and the 10-year yielding .85 percent after closing Wednesday at 0.88%.

No joke for today, and instead two things.

First, a very cool optical illusion. Show it to the kids; they’re not going anywhere either.

The second is a public service message:

Stroke has a new indicator: the tongue.

S. T. R. STROKE IDENTIFICATION: RECOGNIZING A STROKE

Sometimes symptoms of a stroke are difficult to identify. Unfortunately, the lack of awareness spells disaster. The stroke victim may suffer severe brain damage when people nearby fail to recognize the symptoms of a stroke.

Now doctors say a bystander can recognize a stroke by asking three simple questions:

S * Ask the individual to SMILE.

T * Ask the person to TALK and SPEAK A SIMPLE SENTENCE (Coherently) (i.e. Chicken Soup)

R * Ask him or her to RAISE BOTH ARMS.

If he or she has trouble with ANY ONE of these tasks, call 911 immediately and describe the symptoms to the dispatcher.

There’s a new sign of a stroke: Stick out Your Tongue!

Ask the person to ‘stick’ out his tongue. If the tongue is “crooked,” if it goes to one side or the other that is also an indication of a stroke.

Visit www.robchrisman.com for more information on our industry partners, access archived commentaries, or to subscribe to the Daily Mortgage News and Commentary. If you’re interested, visit my periodic blog at the STRATMOR Group web site. The current blog is, “Time to Call the Landlord?”.

qoɹ

(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes visit LenderNews. This newsletter is designed for sophisticated mortgage professionals only. There are no paid endorsements by me. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.robchrisman.com. Copyright 2020 Chrisman LLC. All rights reserved. Occasional paid job & product listings do appear. This report or any portion hereof may not be reprinted, sold, or redistributed without the written consent of Rob Chrisman.)

Second only to the excitement of the new phone book coming, the new conforming loan limit is $548,250 for 2021, up from $510,400 in 2020, and some investors reacted. (More below.) The limit will impact home buyers in a positive way. The spread of COVID-19 (based on 2 things, how dense the population is, and how dense the population is) has led to an entirely new home life for many, and a shift in demand and features in a home. Millennials and Generation Xers are extremely or very interested in certain amenities in a new home like high-speed fiber-to-the-home/broadband internet for remote work, online classes, and high-definition movie streaming, wireless connectivity in common areas like the outdoors, in clubhouses, or near pools, and built-in, ready-to-use smart devices, such as thermostats, cameras, light switches, and refrigerators that can be controlled through mobile apps. (Builders are wiring homes with Category 6A or fiber cables to support wired and wireless technology.) Home design is changing as well, perhaps due more to the pandemic than to demographics. When this whole virus thing is over… I still want some of you to stay away from me.

Employment & transitions

Home Point Financial has had 96% of its associates working from home since mid-March. While growing loan volume and building capacity have been focal points, the company’s top priority is the care and well-being of its associates and their families. With many people pulling double-duty (working remotely while supporting young virtual learners) Home Point committed to providing laptops, tablets, or Chromebooks to all associates with children (kindergarten through age 22) that are attending school virtually from home. If you want to be part of a team that makes your career, and your family, a priority, apply for an open position on Home Point’s careers page.

REMN WHOLESALE (REMN) offers the products you need, the pricing you want, and the service you expect! Already recognized nationally for its industry-leading turn times, REMN is now synonymous with providing highly competitive pricing through the launch and expansion of its Platinum Products which incorporates Conventional and Government loan options for Purchases and Refinances (accessible through Loansifter and Lender Price). Mortgage Brokers and emerging Bankers choose REMN WHOLESALE because of its perpetual commitment to quality and its customer-centric approach toward providing exceptional service, support, and consistency. Providing a full array of loan programs from Conventional to Government; Jumbo to High Balance; 203(k) to HELOC, and the recent return of Non-QM, REMN is now more READY than ever to earn your business. Are you a seasoned Account Executive with one eye and ear on exceptional new opportunities? REMN Wholesale continues to recruit “top tier” Account Executives nationwide. For immediate consideration, please send your resume to [email protected].

“Shamrock Home Loans is thankful. Thankful for its clients, referral partners and company partners who enable us to close loans more effectively and efficiently than our industry peers. But, most of all, we are grateful for our employees. Mortgage professionals are inquiring and joining Shamrock for the award-winning culture because they subscribe to our Core Purpose: Everyone Deserves to Live in a Home they Love. Our culture is not a marketing talking point. It is experienced in our operations when we onboard new LOs and branches, how we support new staff members who have questions and how we invest in the growth of every branch who joins us. Dean Harrington, founder of Shamrock Home Loans, touches upon the power of gratitude in our families, friends and as important, our coworkers. Watch our weekly video-cast the Morning Huddle. Join Shamrock, an award-winning lender. Sales Teams, LOs, and Branch Managers, aim for something greater by contacting [email protected].”

ServiceLink is expanding and welcomes Ryan Vogt, VP, National Sales Representative for both Origination and Default clients. ServiceLink is a respected leader providing tech-enabled services for all phases of the home lending lifecycle from origination through default. Starting in the mortgage industry in 2007, Ryan brings over 13 years of client-centered sales and default industry experience. He has been instrumental in developing marketing strategies and business opportunities with new and existing clients, ultimately, improving the client experience. Ryan holds a BA in Business from the University of Florida. He resides in Jacksonville, FL, with his wife Melissa and twin boys.

Union Home Mortgage announced that Victor Guerrero has been named Area Manager of the Pacific Southwest, responsible for the growth and management of new and existing UHM branches in CA, AZ, and NV.

Lender and broker products & services

“No matter how you process your Final Docs, your confidential information needs to be protected at all times. At DocProbe, our SOC-2 compliance accreditation is a testament to our commitment and proactive sense of duty to ensure a robust and secure environment for our clients’ final documents and information. Strict security measures follow each document from retrieval to processing to auditing and through final delivery.  From upload to storage, we designed our environment to secure and protect your data and documents to prevent data breaches or loss, and implemented rigorous standards of security, privacy, and integrity at every stage. With dozens of new lenders and investors joining DocProbe’s roster of clients just over the last few months, these security steps complement our robust, proprietary technology platform in guaranteeing the successful retrieval, processing, and delivery of millions of trailing documents a year. Email Nick Erlanger or visit us to learn more.”

“Would $180M in additional applications help? ‘In the first 4 months we took in $180M in applications and we have about 100 LOs. That is a significant impact to our business. My top performing LO attributes 25% of her business to Sales Boomerang alerts.’ (Katherine Campbell, Assurance Financial) Our clients are the smartest lenders in the industry. They are the smartest because they have automated their borrower retention strategy which multiplied their repeat and referral business. These lenders have also firmed up their LO retention and LO recruitment process by using the #1 borrower retention system as one of the leading reasons to stay or join the lender. If any of these three items is on your list for 2021 then click here and schedule a demo.”

Stearns Wholesale continues to simplify and enhance business processes to increase productivity and efficiency. This month, Stearns is releasing a pilot for Single Disclosure Packages, which will help streamline the current eSign and eConsent process for broker and lender disclosures out of SNAP. Sending Broker and Lender disclosures in one package, will also allow automatic compliance checks prior to registration. If you want to learn more about the benefits of the single disclosure package or partner with Stearns, click here to be contacted.

Conventional conforming news

Talk of ending the GSE (Government Sponsored Enterprise, e.g., Freddie & Fannie) conservatorships in the next two months may fade away, barring some controversial consent order move. The Structured Finance Association (SFA) reassured Treasury chief Steven Mnuchin, “SFA reiterates our support for the ultimate goal of releasing the GSEs from conservatorship and to increase the role of private capital in our nation’s housing finance system in a responsible manner… “a hastily thrown together exit from conservatorship based on the political calendar risks undoing the positive work that has been accomplished and is currently underway,” wrote SFA CEO Michael Bright.

The Housing and Economic Recovery Act (HERA) requires that the baseline conforming loan limits be adjusted each year for F&F to reflect the change in the average U.S. home price. Yesterday the FHFA published its third quarter 2020 FHFA House Price Index report, which includes estimates for the increase in the average U.S. home value over the last four quarters. Per the seasonally adjusted, expanded data FHFA HPI, house prices increased 7.42 percent, on average, between the third quarters of 2019 and 2020, thus the baseline maximum CLL will increase by the same percentage. For areas in which 115 percent of the local median home value exceeds the baseline number, the maximum loan limit will be higher. HERA establishes the maximum loan limit in those areas as a multiple of the area median home value while setting a “ceiling” on that limit of 150 percent of the baseline loan limit. The new ceiling loan limit for one-unit properties in most high-cost areas will be $822,375, or 150 percent of $548,250

Several investors and lenders reacted quickly to the new loan limits from Freddie and Fannie. Plaza Home Mortgage “is accepting the new loan limits for new conventional conforming and high balance commitments effective immediately. Loans locked under the new limits may be purchased prior to January 1, 2021.” PRMG “is pleased to begin allowing conventional loans with the increased standard and high balance limits to be submitted, locked and funded immediately.”

Don’t forget that the FHFA announced the extension (12/31) of several loan origination guidelines put in place to assist borrowers during the Covid-19 pandemic. Check out the information on alternative appraisal requirements on purchase and rate term refinance loans, alternative methods for documenting income and verifying employment before loan closing, and expanding the use of power of attorney to assist with loan closings.

The extensions are implemented in updates to Fannie Mae Lender Letters LL-2020-03, LL 2020-04, and Freddie Mac Guide Bulletin 2020-44.

Fannie Mae updated Lender Letter 2020-07 to clarify the requirement for reporting a delinquency status code for a Covid-19 payment deferral. In the month the Covid-19 payment deferral is completed, and the mortgage loan is reflected as current, the servicer is not required to report delinquency status information to Fannie Mae so long as no other delinquency status code is applicable.

Of course lenders and investors react to Agency changes. For example, due to the ongoing impact of COVID-19, Flagstar Bank is implementing temporary eligibility requirements for self-employed borrowers based on the announcements made by Fannie Mae and Freddie Mac and will remain in effect until further notice.

Interim appraisal guidance for Conventional transactions meeting Fannie Mae and Freddie Mac expressed tolerances are being implemented. The tolerances expressed in Memo 20030 will be accepted by Flagstar Bank as alternatives to the requirements listed in the Conventional Underwriting Guidelines. These temporary flexibilities are effective for all loans in process and remain in place for loans with applications dates on or before December 31, 2020 for which an appraisal has not already been obtained.

Disaster news

On November 12, with Amendment No. 10, FEMA granted Individual Assistance to 2 additional California counties, Mendocino, and Stanislaus, affected by wildfires.

Carrington Correspondent posted Announcement 20-0072: Updated FEMA Disaster Declaration for California. And posted Announcement 20-0071: Updated FEMA Disaster Declaration for Louisiana Hurricane Delta.

Flagstar posted Memo 20106 regarding Hurricane Delta requirements for satisfactory re-inspections in the affected counties.

loanDepot Wholesale is monitoring the impacts of Hurricane Delta and will provide updates as additional information becomes available. Refer to loanDepot Wholesale’s Disaster Center for more details.

This loanDepot weekly Announcement discusses Post-Close AVMs on VA IRRRLs and FHA Streamlines Government and a California Disaster Update.

Mortgage Solutions Financial posted Announcement 23-20C regarding FEMA Disaster Declaration for the State of Louisiana.

Arecibo County in Puerto Rico has been declared a major disaster area by FEMA. Sun West will require an interior and exterior inspection prior-to-funding or purchase of any loans with subject properties that are determined to be at risk. Refer to its Seller Guide for details.

Capital markets

If there’s one area of the economy the coronavirus has been able to not slow, it’s housing. Single family housing starts jump 6.4 percent in October to a 1.179-million-unit pace; the highest pace for single-family starts since April 2007 and slightly above the 70-year monthly average unit pace off 1.014 million. The National Association of Homebuilders’ index hit a record high in November as strong builder optimism was buoyed by robust sales and low inventory. With much of the new construction occurring in warmer climates, builder activity may remain a boost for the economy through the winter months which are historically plagued by weather related work stoppages. Existing homes are also enjoying vigorous demand as they jumped 4.3 percent in October to a 6.85-million-unit pace. Such strong demand has caused inventories to plummet 19.8 percent below their levels 12 months ago to a record low 2.5 months’ supply. This has also driven the average sale price to $348,700. Despite the low interest rates, home prices may soon begin to limit potential buyers seeking more space.

Yesterday also saw more positive housing data: the FHFA Housing Price Index rose 1.7% in September and the S&P Case-Shiller 20-City Home Price Index rose 6.6% year-over-year. The FHFA announced that the new conforming limit for 2021 would be $548,250 (+7.4%) compared with $510,400.

Looking at rates, MBS prices track 3-5-year Treasuries more than they do the 30-year bond due to their expected shelf-life, but longer-dated Treasuries pulled back during yesterday’s session, steepening the yield curve while the MBS basis ended mostly tighter amid over $8.4 billion in Fed support. Why? The Trump administration retreated from its refusal to formally begin President-elect Biden’s transition, which caused money to shift to a “risk on” stance.

If you’re out of work, you’re trying not to spend money. Today’s busy economic calendar is already underway with a slew of releases. The Weekly MBA Mortgage Index showed mortgage applications for the week ending November 20 increased 3.9 percent from one week earlier. We’ve also had Weekly Initial Claims (bad news, up 30k to 778k!), Q3 GDP, second estimate (33.1%, no change to the bounce), October Durable Orders (+1.3 percent, higher than expected), Durable Orders -ex transportation (+1.3%), a $80.3 billion trade deficit in October. The next batch of data later this morning includes October New Home Sales, October Personal Income and Spending, PCE Prices, Core PCE Prices, the Final Michigan Consumer Sentiment Survey, as well as the Primary Mortgage Market Survey from Freddie Mac following last week’s survey lows in the 15- and 30-year rates of 2.28% and 2.72%, respectively. The November 4/5 FOMC minutes will be released in the afternoon ahead of a regular close before the Thanksgiving holiday tomorrow. We begin today with Agency MBS prices unchanged from Tuesday’s close and the 10-year yielding .87 percent after closing yesterday at 0.88% after the initial salvo of data.

A turkey walks into a bar, the bartender asks, “What are you?”

The turkey replies, “I’m a wild turkey.”

The bartender chuckles and replies, “Hey, we have a drink named after you.”

The wild turkey, incredulous, asks, “You have a drink named Kevin?!”

(No commentary tomorrow, obviously, but back Friday. Happy Thanksgiving!)

Visit www.robchrisman.com for more information on our industry partners, access archived commentaries, or to subscribe to the Daily Mortgage News and Commentary. If you’re interested, visit my periodic blog at the STRATMOR Group web site. The current blog is, “Time to Call the Landlord?”.

qoɹ

(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes visit LenderNews. This newsletter is designed for sophisticated mortgage professionals only. There are no paid endorsements by me. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.robchrisman.com. Copyright 2020 Chrisman LLC. All rights reserved. Occasional paid job & product listings do appear. This report or any portion hereof may not be reprinted, sold, or redistributed without the written consent of Rob Chrisman.)

Remember when you drove to work every day? For non-mortgage kicks, here’s a site where you can take a virtual drive through dozens of cities around the world, setting the speed of the vehicle, street noise, and local radio station. (Just click on the city in the list on the right to see what that city is like.) I don’t live in a big city. In fact, “our town is so small, we don’t have a town drunk. We all take turns.” Janet Yellen is expected to take another turn at public service, this time as the first female treasury secretary. As you recall, President Trump declined to reappoint Yellen to the Fed chair after his election in 2016. During his campaign Trump said Yellen should be “ashamed” of her policy actions and accused her of keeping interest rates low in order to bolster President Barack Obama’s legacy. Recall that Donald Trump said of his own appointee, Chairman Powell, “No guts, no sense, no vision!” (When asked last year if she thought Trump “had a grasp” of macroeconomic policy, Yellen replied, “No I do not.”) Yellen is a fan of more federal spending from Congress to tackle the economic devastation caused by the virus. “There is a huge amount of suffering out there. The economy needs the spending.” What does Elizabeth Warren think? “Janet Yellen would be an outstanding choice for Treasury Secretary. She is smart, tough, and principled. As one of the most successful Fed Chairs ever, she has stood up to Wall Street banks, including holding Wells Fargo accountable for cheating working families.”

Employment

A company’s culture is about more than big gestures and spot bonuses when times are good. It’s often appreciated through the “little things” and how people are treated when times are tough. Home Point Financial has proven to be a top-flight workplace regardless of how you define culture. Home Point has reinvested more than $70 million into its associates through its “We Care” program since the onset of the pandemic. If you want to work at a company that offers competitive pay, prioritizes your safety and work-life balance, and has a leadership team that is committed to your long-term employment and professional growth, submit your resume via the Home Point careers page today!

Mortgage companies nationwide were recently asked to submit their information as part competition to win MPA’s Top Mortgage Workplace Award. Of the many eligible companies in the 500+ employee category, TMS was named among the Top 5 as a Top Mortgage Workplace! As TMS celebrates this award and look to build upon its success, TMS looks back over its core values and people that set TMS apart. Read the blog to find out why TMS scored over 85%.

Mann Mortgage, in scenic Northwestern Montana, just keeps winning awards for its workplace culture. Three weeks ago Mann was named the #12 Best Place To Work by Outside magazine, and today named a 2020 Top Mortgage Workplace by Mortgage Professionals America (MPA). The award recognizes companies in the industry that excel above all others by examining their culture, benefits, employee development, and more. “We’re honored to receive yet another award for our work environment this year,” said Jason Mann, CEO of Mann Mortgage. “I really can’t emphasize enough how incredible the Mann team is. Our employees have created an amazing atmosphere of support and teamwork. I’m so proud to be part of it.” Come join Mann’s award-winning team: there are openings for branch managers, loan officers, underwriters, mortgage loan processors, marketing, and operations careers across the country. Apply today here or send a confidential inquiry to Cassidy O’Sullivan.

Celebrity Financial Inc. is the ambitiously expanding parent company of multiple businesses across the mortgage, banking and fintech industries including Celebrity Home Loans. We are intent on reimagining the Digital Bank Space and led by a mission to educate and enable Financial Literacy for All, while providing exceptional, personalized customer service. We are seeking a forward-thinking Chief Technology Officer with requisite experience and vision to help us reach our full potential. Send inquiries to David Robnett.

“At Axia, we thrive on serving our borrowers well and getting loans closed on time. But we’re not all work. We do more than mortgages. Through our AxiaCares program, we make a difference by donating our time, talent, and financial resources to those in need. We recognize that many among us are experiencing a rough year, and we’ve allocated $94k to provide relief for those in our local communities. Axia also sponsors employee volunteer time, and in 2020, encouraged staff to support community generosity by sponsoring a Pay It Forward drive. We also take care of our own: Axia operates the Employee Needs Fund in which Axia matches employee-donated funds to ensure our team members are cared for when tragedy strikes. Do you want to be part of a team that puts priority on lifting up those in need? We’d love to have you. View Axia’s openings here.”

Flagstar Bank continues to grow at a record pace, which is why it is looking to add to mortgage ops team in the following positions: Processors, Team Leads, Senior Processors, Closers, Underwriters, Delegated Auditors and Managers. Flagstar Bank is committed to the health and well-being of their employees, and offers 100% remote opportunities on all positions, both now and into the future. Plus, right now, Flagstar is offering very competitive signing bonuses. Click here to learn more about all of the exciting opportunities that await you at a company that truly cares about its employees’ well-being.

Mortgage Assurance Inc, a close-knit boutique firm, has the rare opportunity to add a qualified underwriter to its team. Located in Dunwoody, GA, MAI leads to help independent brokers and banks to provide their customers with the best services in the Southeast. We also welcome those who would prefer to work remotely. The ideal candidate will have 4 years’ experience and currently holds a position in underwriting. If you want to be part of a team that has great employee retention and stability with many opportunities for growth, please email your resume directly to Miriam Hayes. These positions will fill quickly; if interested now or would like to hop on our waiting list, please email here. Don’t miss this great opportunity!

Norcom Mortgage continues to break sales records, with the best month in the company’s 31-year history. The east-coast based lender is licensed in over 30 states and has branches stretching from Maine to Florida and out to California. Part of Norcom’s success comes from its underwriting preparedness. Norcom takes pride in exceptional turn times and has expanded its underwriting team to meet increased demand. To learn more about Norcom’s extraordinary underwriting team, watch this video. If you’re an LO struggling with underwriting delays, contact Greg Radding today.

A publicly traded bank located in Colorado is looking for an experienced and growth-oriented manager to lead its sales team in the Kansas/Missouri market. The Bank is FNMA/FHLMC/GNMA approved and experiencing record growth. Candidate will be located the in Kansas City area and must have strong sales connections and focused on associate and market expansion. Please send resumes to Chrisman LLC’s Anjelica Nixt for consideration.

Lender & broker services and products

Just unveiled: MBA Chief Economist Mike Fratantoni’s forecast for 2021’s lending market! 2020 has been a banner year for the mortgage industry, but where will the market trend in 2021? First presented in National MI’s session at Maxwell’s digital conference MAXOUT last week, this hot-off-the-press report predicts a record-breaking year for purchase-focused lenders, a sharp falloff in refi activity, and much more. A few key factors will affect everything from interest rates to macroeconomic trends. Want to arm yourself with the experienced economist’s predictions as we head into (more) unprecedented territory? Click here to read “MBA Chief Economist Mike Fratantoni’s 4 Key Predictions for 2021”!

FloifyE-Sign, one of the newest additions to the industry’s leading point-of-sale platforms, puts a powerful, mobile-optimized e-signature solution into the hands of lenders, centralizing the borrower’s entire mortgage experience within one web-based portal. FloifyE-Sign further streamlines the lending process and improves ROI by providing robust native functionality, including drag-and-drop signature fields, custom inputs, text areas, checkboxes, dropdowns, and radio buttons, as well as templated documents. Additionally, lenders can choose whether certain inputs are required to be signed and/or checked by borrowers prior to completing the e-signature process. Borrowers can also complete their loan application and upload, review, and electronically sign their documents from one secure, mobile-responsive interface. Discover how to maximize the power of your digital lending process with FloifyE-Sign – included with all Floify subscription plans at no additional cost.

Lenders have continuously pivoted to digital and fully remote closings. And as parts of the country prepare for a second lockdown, this may be the norm for the foreseeable future. However, that doesn’t mean customers have lowered their expectations for a seamless customer experience. Mortgage Professional America sat down with Total Expert Founder & CEO Joe Welu to discuss how lenders can keep customer engagement on the rise. “We can prepare originators [for another lockdown] by giving them the best platform possible, to stay connected, communicate and engage with customers, no matter where that customer is,” said Welu. Read more on delivering the best possible customer experience.

Want to recognize your real estate referral partners? Nominate them for a Diamond Vanguard award for Real Estate Agent of the Year, Community Builder or Diamond in the Rough. Awards are given for 3 recipients in each state. Learn more and make your nominations here. Limited sponsorships may also be available for the awards to further promote your company and the referral partner relationship with real estate agents. Special discount for Rob Chrisman Blog readers of 25% off by entering the discount code “Chrisman2020”. For more information email [email protected].

Capital markets: ‘cuz that’s where the capital is

Why should an MLO or borrower care about the yield curve? Well, the curve represents interest rates on Treasury debt for a range of maturities, showing the yield an investor expects to earn if they lend their money for a given period of time. The curve is a diagram of leading economic indicators, in that its changing shape occurs at different points in the economic cycle. It is typically upward sloping, reflecting higher long-term returns (e.g. 30-year bonds) than short-term returns (e.g. 10-year notes, or 3-month) since investors expect more compensation for lending their money for a longer period of time due to the greater risk.

The yield curve flattens or eventually inverts when the perception of long-term investors that interest rates will decline in the future causes shorter-term debt to be more attractive by comparison, which usually dovetails with the expectation of a decline in inflation and portends an economic downturn. It is important to pay attention to because the shape of the curve helps investors get a future sense of the course of interest rates. Since investors will generally prefer the lower risk of short-term maturity securities over long-term maturity securities, the price of short-term securities will be higher, and the corresponding yield lower. Typically, the more robust the economy, the steeper the slope. Lately, it has been increasing.

Looking at the general economy, recent economic data shows the U.S. economy continues to climb out of the recession, but at a significantly reduced pace compared to the record setting third quarter. The immediate increase in coronavirus cases and resulting social mitigation, however, may dampen some of the recent positive momentum in the short term even as the mid to long term outlook remains positive due to the vaccine test results. Retail sales rose in October, but the smallest increase since re-openings began in the spring… yet were up 5.7 percent over the prior twelve months. Leading economic indicators increased in October, but the report noted the potential near-term downside risks. Initial claims for unemployment surprisingly increased by 31k for the week ending November 14 and remain well above their peak following the 2008 financial crisis. There is still hope that lawmakers will be able to come together to pass another stimulus bill, however the size and timing of that measure remain uncertain. The FOMC meets again in mid-December and there no significant changes to monetary policy are expected.

Yesterday was quiet except for news leak that President-elect Joe Biden is planning to nominate former Federal Reserve Chair Janet Yellen to serve as his Treasury secretary. Her first challenge would be delivering economic relief to Americans from Capitol Hill, though it has been reported that President-elect Biden is not in favor of reducing the size of the fiscal stimulus proposal, making compromise with Senate Republicans unlikely. Besides that, a poor 5-year auction and additional coronavirus vaccine-related optimism helped shift greenbacks into stocks and out of bonds, causing fixed-income prices to drop and Treasury yields to move higher. In terms of economic releases, both the Flash Markit Manufacturing PMI and Services PMI for November increased from the final October reading.

Today’s busy economic calendar is already under way with the Philadelphia Fed nonmanufacturing indices (-20.0 to 5.3). We’ve also seen that the total number of loans now in forbearance increased 1 bp to 5.48% of servicers’ portfolio volume in the prior week as of November 15, per the MBA’s latest Forbearance and Call Volume Survey. According to MBA’s estimate, 2.7 million homeowners are in forbearance plans. Later this morning brings September house price indices from S&P/Case-Shiller and the FHFA, November consumer confidence, and the Richmond Fed manufacturing and services indices for November. There are also several Fed speakers scheduled (St. Louis’ Bullard, New York’s Williams, and Fed Vice Chair Clarida), as well as auction results on $56 billion of 7-year Treasury notes. Today sees a sizable $8.4 billion of Desk support, including over $7 billion in UMBS30s. We begin the day with Agency MBS prices are down/worse a few ticks and the 10-year yielding .87 after closing yesterday at 0.86% for no real reason.

This Thursday don’t fall for the ol’ pregnant turkey prank!

Visit www.robchrisman.com for more information on our industry partners, access archived commentaries, or to subscribe to the Daily Mortgage News and Commentary. If you’re interested, visit my periodic blog at the STRATMOR Group web site. The current blog is, “Time to Call the Landlord?”.

qoɹ

(Market data provided in partnership with MBS Live. For free job postings and to view candidate resumes visit LenderNews. This newsletter is designed for sophisticated mortgage professionals only. There are no paid endorsements by me. For up-to-date mortgage news visit Mortgage News Daily. For archived commentaries, or to subscribe, go to www.robchrisman.com. Copyright 2020 Chrisman LLC. All rights reserved. Occasional paid job & product listings do appear. This report or any portion hereof may not be reprinted, sold, or redistributed without the written consent of Rob Chrisman.)