Grammar is important. What’s the difference between a kleptomaniac and a literalist? A literalist takes things literally. A kleptomaniac takes things, literally. How about the grammar of, “Rates ain’t going down any time soon.”? The global bond selloff continues as the day the Federal Reserve is expected to start downsizing its balance sheet draws nearer. On to QT (Quantitative Tightening?) The yield on the 10-year Treasury note is now above 2.6 percent, sending it back to ranges in which it traded in 2018 and 2019. For mortgage loan originators and lenders, rates are only one piece of the ugly landscape, and I received this. ““I have to take issue with your comments about LOs and higher rates. It's not just rates, it's the entire BS happening all at once. Rates I can handle, but what about inventory so no buyers? How about property values so high people can't buy? How about all the cash buyers and the investors buying u
“Rob, my capital markets gal eliminated our ability to lock overnight at yesterday’s rates. I think that she’s being unreasonable. Your thoughts?” No, she’s not. Overnight lock protection is one of the first things to go in a volatile rate environment, especially when developments in Ukraine, seven hours ahead of New York, contribute to our rate movement. Besides, who needs to lock loans at 3AM? It is tough enough to preserve pricing margins as it is. As packages of mortgage servicing rights continue to be sold by companies looking to raise cash, do you think it’s hard to make money doing mortgages these days? Try music. I was recently chatting with a musician in Nashville who told me that they earn .003 per stream on YouTube. There are varying deal structures, of course, but for someone just starting out this equates to $30 for 10,000 streams. Yikes. I hope that Bruce Willis, and his family, made some money as they’ve been selling off $
I think that we can all agree that in 2017 not a single interviewee got the answer correct to, “Where do you see yourself 5 years from now?” Heck, projections and forecasts in the first few months of 2020 didn’t foresee the drop in interest rates and rise in home values. But there some ways to influence residential lending, and have the inside track on changes coming our way, and that is through the MBA’s membership. (And no, this is not a paid ad.) The MBA is currently offering a deal: 2022 dues rate to enjoy member benefits through the close of the 2023 membership year. That is 19 months for the cost of 12 months. “Your MBA membership grants you access to education, research, committees, informational webinars, and so much more.” If you’re interested reach out to Laura Hopkins. Meanwhile, regardless of lending policies and pricing, the available inventory of homes for sale continues to be a topic of conversation. Land, lumber, and perm
While brokers have taken note of UWM suing America’s MoneyLine for sending loans to Rocket and Fairway (remember UWM’s policy plainly stated last March), this week I head to Florida, which retirees humorously refer to as “God’s waiting room.” The state has its share of expected hot markets for 2022 per Zillow, as does the rest of the Sunbelt. Apparently, people in the northern climes are weary of the yearly weather cycle, and, as usual, expect to establish residences to the south. Throughout our lives we go through many cycles. And who says we’re not in a cyclical business? Remember in the not-too-distant-past when lenders were pricing rates to “shut off the volume spigot” due to low rates? Last week U.S. Treasury prices fell with the 10-year yield briefly topping 1.93 percent, jumping from about 1.5 percent at the start of the year, and the 2-year Treasury is up 58 basis points since 1/1, as the Federal Reserve has signaled a mor
Today is about the day when you have to think twice about wishing anyone, “Happy New Year.” Okay, maybe tomorrow. There’s a lot of news out there to start 2022, including mortgage news. Moves by Freddie, Fannie, FHA, and VA have a ripple effect on the jumbo and non-Agency market as well. We were reminded of this yesterday when Freddie Mac and Fannie Mae, via their conservator FHFA, publicized April changes to their loan level price adjustments. Freddie announced “…changes to our Credit Fees in Price for super conforming mortgages and mortgages secured by second homes. We are making these updates in light of the significant increase in the 2022 loan limits and under the guidance of the Federal Housing Finance Agency (FHFA). These updated fees are effective for mortgages with settlement dates on and after April 1, 2022.” Freddie & Fannie’s change, although the industry has nearly three months to adapt pricing, is a huge adjustm