MBS MID-DAY: Slightly Stronger vs Friday, but Sideways Overall
By:
Matthew Graham
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MBS Live: MBS Morning Market Summary
The week has begun in the same sideways fashion that dominated the entirety of last week. 10yr yields continue to orbit around 2.615, moving more than half a bp away from that (higher than 2.62 or lower than 2.61) on extremely limited occasions and by extremely limited amounts (the absolute range is 2.607 to 2.625 so far today). Movement in MBS has been a bit more spirited as the relatively lower liquidity in the market makes MBS easier to push around, but so far this has merely meant that MBS started relatively stronger than Treasuries and have fallen back to a more even level of performance. That made for bigger swings in the meantime, however, with Fannie 3.5s hitting 102-05 at the highs and 101-28 at the lows. The trip to the lows is the most recent move, and negative reprice risk has increased slightly, prompting an alert to go out on MBS Live (will be reflected in the end-of-day recap).
MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.
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Morning Reprice Alerts and Updates
Below is a recap of instant Reprice Alerts and updates issued via email and text alert to MBS Live subscribers this morning.
9:08AM :
Bond Markets Stronger Overnight; Still Moving Inside Narrow Range
Treasuries began the overnight session in slightly better shape during Asian hours. At the European hand-off equities slumped and bond improved just a bit more. All told, the move has been moderate and volumes have been as light as we'd expected from a relatively paralyzed market.
10yr yields have now returned to 2.614, which is one of their lower-middle pivot points from last week. The broader range is 2.58 to 2.663.
For their part, MBS are pushing the upper limits of their recent range with Fannie 3.5s up 9 ticks to 102-03. It's worth noting, however, that tomorrow will be the last day to trade October deliveries and November is trading roughly 10 ticks lower at the moment (meaning that by the time we account for the MBS settlement cycle, they too have been easily inside recent ranges so far this AM.
Consumer Credit is the only piece of Economic data out today, but this isn't likely to slake much of the thirst for relevant insight to economic conditions. That's the heavy lifting that only the payrolls report could have done, and to a lesser extent, several of the week's other reports that won't be reporting unless the shutdown ends.
10yr yields have now returned to 2.614, which is one of their lower-middle pivot points from last week. The broader range is 2.58 to 2.663.
For their part, MBS are pushing the upper limits of their recent range with Fannie 3.5s up 9 ticks to 102-03. It's worth noting, however, that tomorrow will be the last day to trade October deliveries and November is trading roughly 10 ticks lower at the moment (meaning that by the time we account for the MBS settlement cycle, they too have been easily inside recent ranges so far this AM.
Consumer Credit is the only piece of Economic data out today, but this isn't likely to slake much of the thirst for relevant insight to economic conditions. That's the heavy lifting that only the payrolls report could have done, and to a lesser extent, several of the week's other reports that won't be reporting unless the shutdown ends.
Live Chat Featured Comments
A recap of the featured comments from the MBS Live Dashboard's Live Chat feature, utilized by hundreds of industry professionals each day.
Jason Anker : "DO, DU & LP at 97, and 95 = all NO"
John Rodgers : "DO is a mess right now"
Jason Anker : "credit history is clean, i've never seen something this clean get a refer and I live min down purchase loans."
Jason Anker : "anyone having DU issues today? Running a 95% purchase, 23/33, 685 fico and it's Refer"
John McClellan : "our company is waiving them on certain products...must show returns and either debit or credit to IRS and must match."
Matt Hodges : "jason is correct; everyone of our lenders will require one, if not two years of 1040s"
Joe Ridings : "yes that would be smart. get the tax returns regardless of findings"
Jason York : "I think anyone that is closing a loan without transcripts is rquiring copies of the returns as well"
Joe Ridings : "what happens when W2 borrower has unreimbursed job expenses we dont know about and then are no longer qualified.... yikes"
Christopher Stevens : "wonder what % of these loans closing w/out transcripts will be sent back for repurchase once these banks start pulling transcripts and they don't match up."
Christopher Stevens : "all loan types including Agency, Non-Agency, FHA and VA"
Christopher Stevens : "Bulletin #SA13-26"
Christopher Stevens : "Just got the Chase announcement that they will not require transcripts to close a loan "
Christopher Stevens : "I think I heard my head Processor say something like 10 days (down from 15 a few weeks ago)"
Jason Anker : "Chris what was their turn in your area prior to shut down?"
Christopher Stevens : "BBT, Franklin, USBank and Wells all allow closing w/out transcripts on CONV/FHA/VA. Chase has not yet issued guidance(al least Correspondent side)"
Jason Anker : "have not seen anythign form chase yet, their 4506 overlay is still intact"
Andrew Russell : "are you seeing exceptions, for the 4506? Specifically Chase?"
Victor Burek : "from plaza, The following programs require IRS transcripts, and are not eligible to close or be purchased until the transcripts are received in the file:
• Fannie Mae Retained with more than four financed properties (investment and second homes only)
• Elite Jumbo Program
"
Matthew Graham : "I think most are, but a few aren't. Depends on loan type as well."
Jason Anker : "at this point is everyone closing loans without 4506 and SSA or are we stuck in the mud"
Victor Burek : "they still aren't talking"
Andrew Russell : "whats the latest on the govie shutdown?"
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