Intermountain Mortgage Company

Posted To: MBS CommentaryIf yesterday was marked by rather aggressive comments by Fed's Williams (aggressive enough to convince a few market participants that the Fed might cut by 50bps at the end of the month), today was marked by the retraction of those comments. Well, at the very least, that was the only relevant development of the day, and it happened in two phases. The first phase was a simple interview that unwound less than half of yesterday's gains. That actually happened late last night and was well priced-in by the time markets opened. The 2nd phase happened in the middle of the trading day when the WSJ released an article saying the Fed was likely to only be cutting by 25bps at the end of the month. That was good or another 25% unwinding of yesterday's gains, but the weaker momentum fizzled quickly...(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it. […]

Posted To: Mortgage Rate WatchMortgage rates Moved just slightly lower today, despite some push back from underlying bond markets. Typically, weakness in the bond market (like the kind we saw today) corresponds to rising rates--even if only a modest amount. The compensating factor today was the timing of yesterday's bond market gains. Simply put, there is a bit of lag between bond market movement and mortgage lenders' ability or willingness to pass those gain along in terms of improved rates. Additionally, in this more volatile environment with rates already very close to super long-term lows, lenders are generally hesitant match the bond market's movement step for step. All of the above left lenders with some insulation against today's bond market weakness. Had it been any bigger, we probably would be talking about slightly...(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it. […]

Posted To: MND NewsWireThe so-called GSE Patch for the Consumer Financial Protection Bureau's (CFPB) 2013 Ability-to-Repay (ATR) and Qualified Mortgage (QM) rule (Rule) is scheduled to expire in January 2021 (earlier if the government sponsored enterprises (GSEs) are released from conservatorship.) The Patch created a temporary category under the ATR and QM rule under which loans eligible for purchase or guarantee by the GSEs can qualify as QM loans. The ATR and QM rules require lenders to make a reasonable, good-faith determination of a consumer's ability to repay a mortgage loan based on verified borrower financial information. These include consumer protection features generally associated with responsible mortgage lending practices. In most cases, meeting QM requirements provides lenders with a safe harbor from...(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it. […]

Posted To: MBS CommentaryIn the day just passed, bonds did an admirable job shaking off the ill effects of a significantly stronger Philadelphia Fed Manufacturing Business Outlook Survey (aka "Philly Fed"). This report is a solid and fairly consistent market mover. It beat its forecast by the largest amount since 2009. Those facts alone are pretty scary for bonds, but there were nuances that helped mitigate the damage (we discussed them in detail yesterday in the Huddle and the Recap ). Chief among these was a speech by San Fran Fed Pres. Williams which markets took as a potential indication of a 50bp rate cut in July. He's since given an interview saying that wasn't his intention. In the day ahead, nothing really matters because yesterday--and indeed the past several months in general--have shown...(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it. […]

Posted To: Pipeline PressSome people pray for ice cream, and their prayers will be answered as this Sunday is National Ice Cream Day. An MLO prayer? “Dear Lord, just give me one more refi boom. I promise to save my money this time.” At the lender level there is plenty of maneuvering going on. Lenders are busy re-hiring ops staff laid off in the past, setting up contract underwriting with private mortgage insurance companies to handle the overflow, or interviewing competitor’s ops staff. Some are hiring with the caveat of not hiring anyone requiring desk space in the office. Vets know that full pipelines in July don’t necessarily mean full pipelines in October. Lender Products and Services Have you converted your leases to the new accounting standard? The requirement kicks in effective January...(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it. […]