MBS RECAP: 3/6/2012
By:
Matthew Graham
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MBS Live: MBS RECAP
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| Pricing as of 4:04 PM EST | ||||||||||||||
Afternoon Market Updates
A recap of MBS Market Updates provided by MND Analysts and streamed live to the MBS Live Dashboard.
3:22PM :
ALERT:
MBS, Treasuries, Eerily Stable All Day Long
Although we could conceive of a lender or two coming out with a "stability reprice," we'd note that stability is really all we have today. Fannie 3.5's haven't moved outside a 3 tick range since 9am, which is about as narrow as things tend to get.
Over that same time, 10yr yields haven't moved outside 1.93's to 1.95's, and spent most of the day in the 1.94's. Meanwhile, stocks are seeing their worst day of losses since early December, erasing most of the S&P gains since February's NFP report.
Although we're not expecting many reprices, it's possible we'd see a lender or two release a small "stability reprice," but there's not much to work with considering Fannie 3.5's are actually at the exact same price as they were during our first alert this morning.
Over that same time, 10yr yields haven't moved outside 1.93's to 1.95's, and spent most of the day in the 1.94's. Meanwhile, stocks are seeing their worst day of losses since early December, erasing most of the S&P gains since February's NFP report.
Although we're not expecting many reprices, it's possible we'd see a lender or two release a small "stability reprice," but there's not much to work with considering Fannie 3.5's are actually at the exact same price as they were during our first alert this morning.
2:30PM :
HUD Mortgage Letter 12-4: FHA MIP Changes
Subject:
Single Family Mortgage Insurance: Annual and Up-Front Mortgage Insurance Premium – Changes
Purpose:
This Mortgagee Letter (ML) announces changes to the FHA Single Family Annual Mortgage Insurance Premium (Annual MIP) and UpFront Mortgage Insurance Premium (UFMIP). Changes are applicable to all Single Family (SF) Forward Mortgage programs except those noted in the section below titled, “Exceptions to Announced Premium Changes”. Current Annual MIP and UFMIP remain unchanged for those excepted programs and products at this time.
This Mortgagee Letter (ML) announces changes to the FHA Single Family Annual Mortgage Insurance Premium (Annual MIP) and UpFront Mortgage Insurance Premium (UFMIP). Changes are applicable to all Single Family (SF) Forward Mortgage programs except those noted in the section below titled, “Exceptions to Announced Premium Changes”. Current Annual MIP and UFMIP remain unchanged for those excepted programs and products at this time.
Featured Market Discussion
A recap of the featured comments from the Live Discussion on the MBS Live Dashboard.
Victor Burek : "6/11"
B-C : "June 11th 2012"
Bobby Kurpinsky : "anyone know when the .01 and .55 fha streamline goes into effect? case #'s issued after april 1st?"
Gaius Rossini : "june 11th is good for the 625+ guys"
B-C : "WOW so reduced MIP is not until June 11 2012"
Jeff Statz : "look at the streamline annual MIP"
Matthew Graham : "THANK YOU GAIUS"
Gaius Rossini : "http://portal.hud.gov/hudportal/documents/huddoc?id=12-04ml.pdf"
Matt Hodges : "methinks they doth deny too much"
Matthew Graham : ""Senior Greek Finance Minister Tells CNBC That the Private Sector Deal on Debt Will Finish on Time .""
Matthew Graham : "not seeing much of a volume uptick, and we've already gotten 2 denials from Greece so far today on the PSI delays, but CNBC is adding another in the "breaking news banner" on their home page:"
Raul Lopez : "ohhhhh....."
B-C : "if we were up 9 after initial pricing then yes"
B-C : "no Raul we were up 9 when pricing 1st came out"
Raul Lopez : "We are up 9 tics. Is that no reason for reprices for the better?"
Matt Hodges : "we are down a tic from pricing (roughly)"
Matt Hodges : "why would we see reprices, Raul?"
Raul Lopez : "Where are the reprices?"
Daniel Kramer : "i thought the main idea behind relaxing the income ratio procision, was to help the self-employed persons, who pay on time, but cant quialfy with DTI"
Andy Pada : "At DK and DP, I don't think that is the case. We have DU Refi loan approvals that were originally Alt-A"
Daniel Kramer : "so, wouldnt that mean they would come up on the search tool and/or when DU is ran, it would come back as DU Refi plus eligbile. I have had a few that came up as DU owned, but not erligble,.when i researched why, it was becuase the orignal loan wasnt sold to Fannie, but to another investor, who then sold it tof fannie later"
Brent Borcherding : "That would be a nice change to HARP...if originally pooled as ineligible due to SISA...if they can income qualify now they are eligible. I mean you just need a 69% back end."
Matt Sullivan : "does SIVA fall into that same bucket...had a borrower just call me saying he did stated income but verifed his assets"
Ken Crute : "those sisa loans were probably not pooled as HARP eligible "
Daniel Kramer : "what about if someone had to do it SISA 4-5 years ago, but can do it full docs now?"
Dirk Postupack : "they dont until u/w checks on the original loan and how it was done......my wife and i did a SISA loan and we cannot refi through this program.....ran into this sityuation on several loans....."
Michael Gannon : "I would think many companies did a good amount of volume with streamlines and this would hurt most compare ratios....maybe an unintended consequence"
Matthew Graham : "My best guess based on the fact sheet is that it's retroactive. Just a guess based on the wording though"
Matthew Graham : "I don't know Michael. All anyone has officially is what's in the fact sheet."
Michael Gannon : "is it only new streamlines that will not factor into compare ratio or are they pulling the old ones out as well?"