MBS Purchase Program Archives

BlogTalkRadio Podcast – Apr 19, 2010

MBS prices are down 3/32nds this morning. Leading Indicators were released at 10:00 a.m. et and were a little stronger than expected. Last week was another good week for mortgage rates. Mortgage rates fell about 10 basis points during the week. The Fed Beige Book painted a pretty picture for mortgage rates, slow growth and low inflation. CPI confirmed the low inflation part as it reported prices in March rose at a 1.1% annual rate. Volatility continued during the week. Volatility has persisted since the end of the MBS purchase program on March 31st. As the Fed is no longer a consistent big buyer, the market is functioning more naturally and that includes reacting more significantly to economic announcements and changing sentiment. Mitch Kider, of Weiner Brodsky Sidman Kider PC, joined the show to discuss the result of a recent Department of Labor ruling which changes an interpretation of labor laws as it relates to loan originators (LOs) and overtime. The new ruling overrides previous rulings that allowed LOs to be exempt from overtime as they were considered to be performing administrative duties. Now their duties are not considered administrative and the labor laws says, if they do not meet [...]

BlogTalkRadio Podcast – Apr 5, 2010

JoeFarr 2017-12-20T17:34:19+00:00 April 22nd, 2010|Categories: BlogTalkRadio Podcasts|Tags: best efforts strategy, BlogTalkRadio, Community Mortgage Banking Project, David Lykken, Fed, Federal Reserve, Glen Corso, ISM Services Index, Lykken-on-Lending, mandatory delivery strategy, MBS, MBS Purchase Program, MBSQuoteline, mortgage prices, National Association of Realtors, nonfarm payrolls, Pending Home Sales Number, Restoring American Financial Stability Act of 2010, Rob Katz, Tom Million, Treasury, Treasury Auction|

MBS prices are lower this morning after a stronger than expected ISM Services Index was announced at 8:30 a.m. et and then at 10:00 a.m. et a much better than expected Pending Home Sales number was released. This followed a week last week that saw MBS prices fall by about 1%. Last week included the end of the Fed’s MBS purchase program, but the end of the program cannot be the sole blame for the drop in MBS prices. Treasury prices fell as well and stocks improved. Generally, the economic announcements during the week, including the Nonfarm Payrolls, were better than expected increasing the need to build in yield to cover longer term inflation. The spread in yields for 10 yr Treasuries versus mortgage-backed securities did widen but only by 15 to 20 basis points. The focus of the mortgage industry regarding pending legislative and regulatory issues is now placed squarely on the Senate Finance Committee’s passage of the Restoring American Financial Stability Act. This Act contains many provisions which if passed will impact mortgage companies, but possibly none as significantly as a provision which will require mortgage originators and/or security issuers to retain 5% of the risk of the [...]