Mortgage broker turned investment advisor John Downs just wrote a good piece on why big banks are headed for more mortgage trouble. It’s good because of his insider take: he was a small mortgage lender during the boom and was squeezed out as big banks were bailed out. Excerpts below summarize and here’s full story
November 2010
Mortgage broker turned investment advisor John Downs just wrote a good piece on why big banks are headed for more mortgage trouble. It’s good because of his insider take: he was a small mortgage lender during the boom and was squeezed out as big banks were bailed out. Excerpts below summarize and here’s full story
Today I’d like to pay tribute to our veterans for doing the harrowing jobs that desk jockey bankers like me have never done. I offer my full and humble respect. And since banks are closed today, I also offer this picture (via my brother h1ghway) for true fans of Heat, the greatest bank heist movie
Yesterday’s market was a roller coaster with rates up big in the morning then regaining some ground by market close. Jobless Claims decreased by 24k suggesting labor market improvement, and the trade deficit narrowed slightly due to the dropping dollar pushing exports. China downgraded U.S. debt and the 30yr Treasury bond auction was poorly received
Now that the dust has settled from the election, what did it all mean for the mortgage consumer? Historically Republicans are reputed to be more “pro-business”. Republicans may try to rein in regulators implementing a sweeping overhaul of financial rules and press for a smaller federal role in the mortgage market. This will be interesting,
Which Bonds Are Mortgage Rates Tied To? Every investor in fixed-income securities has choices to make: U.S. Treasury debt, foreign bonds, corporate notes, etc. And each investor has limited capital, the supply of each of those is carefully monitored, and a large amount of one type can drive prices down and rates higher and compete
Which Bonds Are Mortgage Rates Tied To? Every investor in fixed-income securities has choices to make: U.S. Treasury debt, foreign bonds, corporate notes, etc. And each investor has limited capital, the supply of each of those is carefully monitored, and a large amount of one type can drive prices down and rates higher and compete
Jumbo Loans Made But Not Securitized For folks who continue to look toward the “non-agency” or jumbo mortgage backed securities sector, rates have been coming down, and analysts are pointing to slower liquidation rates on option ARMs and subprime loans. Banks are starting to make jumbo loans again. Smaller, and regional, lenders are issuing more
Jumbo Loans Made But Not Securitized For folks who continue to look toward the “non-agency” or jumbo mortgage backed securities sector, rates have been coming down, and analysts are pointing to slower liquidation rates on option ARMs and subprime loans. Banks are starting to make jumbo loans again. Smaller, and regional, lenders are issuing more
Following this morning’s better-than-expected October jobs report, mortgage bonds are down 50 basis points which brings rates up by about .125%. The report showed 159,000 private sector jobs were gained, and the economy has now added 1.1m private sector jobs this year. Commentary and charts below. The economy gained +151,000 non-farm jobs in October—the administration
Top 10 Lenders For 2Q Here’s the top 10 residential lenders for 2Q from Mortgage Stats. Total production for lenders 3-10 basically matches Wells Fargo’s total (in spite of its back office backlog). And here’s good stats on #2 Bank of America’s loan production: they originated $73 billion in first mortgages in the third quarter,
Jobless Claims Up This morning’s weekly Jobless Claims showed an increase to 457,000, slightly higher than expected, and the 4-week moving average is up 2k to 456k. Non-farm productivity came in at +1.9%. Unit Labor Costs were -.1% after adjusting for productivity. After this news and the Fed announcement yesterday (see below), stocks and mortgage
Jobless Claims Up This morning’s weekly Jobless Claims showed an increase to 457,000, slightly higher than expected, and the 4-week moving average is up 2k to 456k. Non-farm productivity came in at +1.9%. Unit Labor Costs were -.1% after adjusting for productivity. After this news and the Fed announcement yesterday (see below), stocks and mortgage
The Fed said it will buy $600b in long-term Treasuries from now until June 30, 2011 as part of a second round of quantitative easing, and made no mention of buying more mortgage bonds. Buying Treasuries helps overall rates in the economy but has no direct impact on mortgage rates like buying mortgage bonds does.
Election Summary Stocks and bonds both rallied yesterday. MBS prices were better by .5 in price on the lower coupons, and .375 in the slightly higher ones on $1.7 billion in origination. The yield on the 10-yr closed at 2.59%. The election results came in after the US markets closed, but were pretty much as
Quantitative Easing is one of the most used financial phrases of 2010 so homeowners and buyers need to know what it means. The core definition is simple: it’s when the Fed buys bonds to lower rates. More explanation is needed to understand rate and housing market implications, so below is a Q&A addressing this technical
Load More