Special Update: Fed to Reduce Bond Purchases

2017-12-20T17:34:12+00:00 December 20th, 2013|Categories: In The News|Tags: , , , , , |

Anyone watching mortgage rates couldn’t miss the news this week that the Fed will begin to “taper, or cut back on their purchases of MBS and Treasury bonds.  All eyes are on the impact this will have on interest rates.  Their plan to purchase $10bb less per month signals the Fed’s growing confidence in the economy.  Important to note though is that this means they will still purchase $75bb per month in MBS and treasuries for the time being, which still amounts to considerable economic stimulus.  Much less publicized, but more immediately significant for interest rates, were two other announcements.  The FHFA announced a .1% increase in the guaranty fee for mortgages delivered to Fannie Mae and Freddie Mac, effective in the spring, which amounts to an automatic .1% increase in interest rates.  Also, Fannie Mae announced new Loan Level Pricing Adjustments (LLPAs) for loans delivered to them, also beginning in the spring.  LLPAs are based on loan characteristics such as credit score, LTV,  loan purpose, occupancy, number of units, product type, etc.  These adjustments will also increase the cost of borrowing for homeowners.  The net effect is that interest rates will likely rise a bit in the near term, [...]

Press Release: Secondary Interactive Offers MBSQuoteline Information

2017-12-20T17:34:15+00:00 August 16th, 2011|Categories: In The News|Tags: , , , , , , , |

Company brings additional resources in a complex market DENVER, Aug. 16, 2011 – Secondary Interactive (SI), the award-winning provider of mortgage pipeline management, best execution and loan allocation technology & services, announced that its customers can now access MBSQuoteline’s live TBA mortgage-backed security prices and mortgage market news and analysis, at a discounted price. While the SI system incorporates real-time market data from Tradeweb and Bloomberg into its analytics, executive management recognized that many of its customers wanted current securities pricing but, could not justify the expense of other providers. This partnership satisfies the demand for a “skinny version that gives SI customers convenient, and portable, access to real-time market quotes. Secondary Interactive customers will now have the entire suite of MBSQuoteline products and services available at a discounted rate, if they choose to supplement SI’s existing offerings. Don Brown, co-founder of Secondary Interactive said, “MBSQuoteline enables SI customers to stay abreast of changing market conditions at an affordable price.  They get a broad range of services including real-time MBS prices, alert e-mails or texts, expanded market coverage, ARM indexes, commentary and analytics, as well as mobile access to the service. We are always looking to give our customers as many [...]

In the News – Is HVCC working? Pt. 2: Appraiser’s Point of View

2017-12-20T17:34:18+00:00 June 3rd, 2010|Categories: In The News, Uncategorized|Tags: , , , , , , , , , , , , , , , , , |

So overall, lenders seem to be content with HVCC.  That’s one out of four.  But how about appraisers? The popular method for lenders to comply with HVCC has been to contract with an appraisal management company (AMC) to handle the appraisal process (though some are managing the process internally).  In this arrangement, the appraisal order is placed with the AMC by a non-production person in the lender’s office, the order is assigned on a random basis to one of the appraisers in a pool, and if the appraiser accepts the order, the appraisal goes forward.  Sounds simple enough and workable, right?  Most appraisers I’ve talked to are somewhat ambivalent on the issue.   They’ve lost business from long term, cultivated, relationships but picked up business from others in the random assignment process.  There’s a middleman now (remember the AMC) and middlemen have to get paid.  We’ve all heard of AMCs demanding appraisers to accept a lower fee for reports to be on their panel.  A common refrain is less qualified appraisers that otherwise might not be able to get business on their own, gladly step in on these terms with the result being poorer quality appraisals.  So, appraisers have had to [...]

In the News – Is HVCC working? The Real Answer? Well, It Depends.

2017-12-20T17:34:18+00:00 May 27th, 2010|Categories: In The News, Uncategorized|Tags: , , , , , , , , , , , , , , , , |

The industry has had a year to operate within HVCC guidelines and the benefits of it pretty clearly depend on just whom you ask. May 1, 2009 marked the implementation of another regulation on the mortgage industry when Fannie Mae and Freddie Mac adopted the Home Valuation Code of Conduct (HVCC) as a result of an agreement between their regulator, the Federal Housing Finance Agency (FHFA), and the New York State Attorney General.  One of many initiatives aimed at improving loan quality in the wake of the subprime market meltdown (and we’re finding quality problems weren’t limited to the subprime market) HVCC’s intent was to ensure appraiser independence in the valuation process, thereby improving appraisal quality.  Doing so, it was reasoned, would better serve lenders because they would get more accurate valuations on which to base their loan decisions.  And borrowers as well would be protected from obligating themselves on loan amounts based on inflated property values. So is HVCC working?  Well, who are you asking?  Basically you have four different players in the origination process impacted by HVCC- the lender (and we’ll include Fannie and Freddie in this category to keep it simpler), the appraiser, the originator and the [...]