Special Update: Fed Rate Hike

2017-12-20T17:34:11+00:00 December 16th, 2015|Categories: Special Update|Tags: , , , , , , |

After holding the federal funds rate near zero for seven years, the Fed announced a rate hike of 25 basis points, as widely expected. This was the first rate hike since June 2006. Investors are now asking what the pace of future rate hikes will be. According to the Fed statement, Fed officials expect that economic conditions will warrant only "gradual" increases in rates. The statement also noted that the Fed does not expect to reduce its holdings of MBS and Treasuries any time soon. Investors were pleased that the Fed does not appear to be in any rush to tighten monetary policy, and MBS prices and stocks moved a little higher. Want to see live MBS prices on the go? Check out the new look of www.mbsquoteline.com  from your mobile device. All features optimized for your device. | Questions call 800-627-1077

Blog Talk Radio Show Summary August 16, 2010: Online Mortgage Industry Resource

2017-12-20T17:34:16+00:00 August 20th, 2010|Categories: BlogTalkRadio Podcasts|Tags: , , , , , , , , , , |

Lykken-on-Lending (LoL) has partnered with HousingMatrix, an online resource of information for the housing industry.  HousingMatrix now hosts the  LoL  library of the most recent recorded program as well as all prior programs.  HousingMatrix is a site you should explore if you have not been there before.  If the information you seek has to do with housing, you will find it at HousingMatrix. Mortgage rates have continued their move lower this week, reaching a new low this morning.  Last Tuesday’s Fed announcement helped push mortgage rates lower and then the announcement on Friday that July’s inflation remains very low helped as well.  The Fed announced that they were keeping the Fed Funds rate between .25% and 0% and that they expect to keep it at this very low level for an extended period of time.  This was as expected.  What was a bit of a surprise was that they expressed a concern that the pace of the economic recovery was slowing and they announced a new policy to add a little stimulus to the economy.  The new policy deals with what they will do with the cash the Fed receives from payments on their portfolio of Treasury and mortgage-backed securities.  [...]

In The News: “Skin in the Game” – Risk Retention Amendment to Senate Bill 3217

2017-12-20T17:34:18+00:00 May 21st, 2010|Categories: In The News|Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , |

Senate Bill 3217 Restoring American Financial Stability is working its way through the Senate and is expected to be passed in the coming weeks.  Certain provisions of this bill will have a significant impact on the mortgage industry. As you may recall, the Senate Bill 3217, as originally proposed, included a provision which would have required 5% of the risk on all loans originated be retained by the originator upon sale to investors.  The provision was not clear as to which entity or entities in the origination chain would be required to retain the risk.  It was not clear whether the risk that was to be retained would be an ownership interest in the loan or reserves supported by cash.   It was also not clear how long the originator would have been required to retain the risk.  The original provisions would have been devastating to the mortgage industry.  The 5% risk retention would have forced many mortgage originators from the business and would have driven mortgage rates much higher.  After significant industry efforts, this provision was amended last week. The amendment, as passed by the Senate, does very little to answer these questions, but what it does do is exempt [...]

BlogTalkRadio Podcast – Mar 29, 2010

2017-12-20T17:34:19+00:00 April 22nd, 2010|Categories: BlogTalkRadio Podcasts|Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , |

MBS prices were volatile last week and fell about half a point during the week.  Most of the push for MBS prices lower came from weak Treasury auctions.  On Wednesday the 5 Yr Treasury Note received lower than usual demand, especially from foreign investors, and the yield required from the bidders was higher than the previous trading range.  The weakness in the Treasury auction spilled over to the MBS market.  The economic data released during the week was mixed with Durable Orders better than expected and the housing data was a little weaker than expected. All of the focus in Congress now that Health Care has passed seems to be with the Restoring American Financial Stability Act of 2010.  This proposed law will have sweeping changes for the mortgage industry, if passed.  It includes the creation of a new regulator for consumer protection, retention of 5% of the risk on loans originated and then sold, and increased HMDA reporting requirements, among other things.  This 1300 page bill seems to be on a fast track. Discussion continued on the risks and benefits of converting a mortgage company’s operations from a best efforts delivery of loans originated to a mandatory delivery.  The [...]