MBS RECAP: 1/27/2012
By:
Matthew Graham
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MBS Live: MBS RECAP
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Afternoon Market Updates
A recap of MBS Market Updates provided by MND Analysts and streamed live to the MBS Live Dashboard.
2:28PM :
ALERT:
MBS Hit Day's Highs, Underperforming TSYs in Low Volume
The day, and week for that matter, are effectively over. The little volume that's left is exerting a greater degree of influence over the price action than it otherwise might. With little to trade on, and little reason to oppose the momentum, bond-bulls have gained control, dragging 10yr yields down into the 1.8's on a combination of Italy/Spain ratings news, concern that a Greek debt deal won't be reached over the weekend, and tradeflow-related selling (mini-snowball of shorts getting stopped out, lowering yields and thus stopping out more shorts).
Fannie 3.5's made it as high as 103-25 (all time highs 103-29 for reference), which is essentially as high as they got this morning, albeit briefly, but they do seem to be bouncing lower from those levels. Still, if the gains hold and despite the low volume, it's not inconceivable that we'd see a lender or two reprice for the better. However, current price levels combined with several other factors wouldn't lead us to think that many lenders would get involved with this on a Friday afternoon.
Fannie 3.5's made it as high as 103-25 (all time highs 103-29 for reference), which is essentially as high as they got this morning, albeit briefly, but they do seem to be bouncing lower from those levels. Still, if the gains hold and despite the low volume, it's not inconceivable that we'd see a lender or two reprice for the better. However, current price levels combined with several other factors wouldn't lead us to think that many lenders would get involved with this on a Friday afternoon.
Featured Market Discussion
A recap of the featured comments from the Live Discussion on the MBS Live Dashboard.
Jason Sheaffer : "bryce - wells does about 1 in 3 reno loans but they are not easy to work with."
Bryce Schetselaar : "I have a 203k purchase that I am working on...anybody have an lender recommendations? Good experiences?"
Ross Miller : "yes, just called, asked for him, told him what I needed and he cut me a letter. I am sure he billed the association, but what do I care."
Edgar : "scott-you might want to pull public records on the case to prove the amount is below their limit coverage. Depending on where you are/the county you might be able to get them online for a small fee. I was told if I to get the filing which shows the amount and then I would be good to go. The letter option for the insurance company didn't work (they said they would cover up to a certain amount only)."
Ross Miller : "Scott, doing the same situation now with NYCB and I sent in a letter from the attorney that the suit fit the rules. I expect a ctc later today or monday."
Edgar : "The person suing in the deal I was working on did not state an amount in court papers and that was the reason why the lender declined it."
Edgar : "no experience with Flagstar but I had a slip and fall issue a 4-6 months back with another lender and it was a no go. Every other lender I called said no. However I was told if the plaintiff was suing for a specific amount, and the amount was under their insurance max I would have been fine. So if there is a specific amount, the coverage on the insurance is more than enough to cover it I would guess you should be fine."
Scott Valins : "anyone have success getting a condo deal through Flagstar with slip and fall lawsuit?"
Matthew Graham : "RTRS- U.S. HOUSING SECRETARY DONOVAN SAYS TO ANNOUNCE MORE HOUSING RELIEF PLANS LATER ON FRIDAY, GIVES NO DETAILS ON PLANS "