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Warehouse, Non-QM Correspondent, Compliance, CRM, Processing Products; FOMC and Fed Funds Primer

Dang, is there any good news out there? Japanese ex-Prime Minister Abe was tragically assassinated. Rates stink, especially compare to 2020 and 2021, but are you really rooting for a recession to drive them back down? In Florida we have the rise of giant snails spewing parasites that invade the human brain. What happened to the days when my only worry was if the tide was going to reach my chair while enjoying an adult beverage? We have flooding in parts of the nation, wildfires in the West. The press seems consumed with house price appreciation slowing down, and is putting out sensationalist headlines predicting a crash. Everyone has an opinion. The demand is still strong: I can think of five people I know who are “waiting for the right time” to buy a house. Does “crash” mean instead of going up 20 percent a year we “only” go up 5 percent a year? I think we can all agree that double digit appreciation is unhealthy, even if you’ve recentl ....

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Coaching, Jumbo, Medical Professional Products; Investors Follow Conventional Conforming Limit Changes

Lenders are focused on December, and 2022, and along those lines the MBA’s Chief Economist Mike Fratantoni will be presenting a forecast today for next year. Of immediate concern are year-end closings: this is the day of the year when a 30-day rate lock doesn’t quite match its name, given the upcoming holidays. There’s no forecasting or estimating 2022’s conforming loan limits… they’re a sure thing! Fannie and Freddie officially set the level at $647,200 for 2022, per the Federal Housing Finance Agency. It’s a jump of nearly $100,000 from 2021 and a leapfrog over what some investors and MI companies have been marketing for nearly three months. The conforming loan limit will rise in all but four U.S. counties. For most of the U.S. the 2022 CLL for one ....

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Sales, Tech, VOE Tools; Freddie and Fannie Changes Continue; Omicron and Mortgage Rates

W.C. Fields said, “Money will not buy happiness, but it will let you be unhappy in nice places.” Unfortunately, many people have much less of it, and here’s a quiz to start the week. What are -68 percent, -66 percent, -60 percent, -40 percent, -13 percent, and -2 percent? They are all the stock performance since their initial public offering, or SPAC merger, of well-known companies in the residential mortgage business. And the numbers aren’t even the decline from their price highs, which would look much worse. In order of a hit taken: Home Point, loanDepot, Finance of America, United Wholesale, Rocket, and Guild. (Thank you to California’s Jeff B. for sending.) Every deal was different, but many analysts are questioning the franchise value of pure TPO (broker and ....

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