MBS AFTERNOON: Highs of the Day as Stocks Go Flat
In the absence of market moving data, benchmark TSY prices have ticked to the highs of the day. Gains were sparked after a round of short covering received some added umpf from the stock lever (S&P made new 2009 high before selling off). Volume is average in futures pits... but we note added activity heading into expiration of the SEPT 10 yr futures contract.
As we advised earlier...mortgages have been taking their directional guidance from benchmark TSYs. That said as TSYs have made intraday highs, so have rate sheet influential MBS coupons. Many of you have already received reprices for the better...so dont get your hopes up about anymore love from lenders
PS...re:Citi
Effective: August 22, 2009
When the subject property is a primary residence, there is no restriction on the number of properties a borrower can own. If the subject property is a second home or investment property, typically the borrower may not have more than four (4) residential properties financed. However, under limited conditions we may consider transactions in which the borrower has 5-10 financed residential properties.
New lending parameters have been introduced for second homes and investment properties when the borrower has more than 4 financed residential properties, including the subject property.
• If the subject property is a second home or investment property, there are both additional underwriting, LTV and reserve requirements.
• Only permitted with agency conforming loans originated via Modified/Standard, CitiQuik, Agency Jumbo Full Doc, Streamlined Refinance, DU for Conforming Loans, and DU for Agency Jumbo Loans.
• This option is not available with any other process or program, including DU Refi Plus
• If the subject property is a primary residence, there are no additional reserve requirements for the other financed investment properties.