MBS Live: MBS Afternoon Market Summary
Bond markets continue rebuilding from the wreckage they woke up to on Friday morning.  A great majority of that rebuilding effort was undertaken on Friday itself, but the past two sessions of moderate improvements have helped the overall gain edge closer to a full point than the mere half point with which we began.  Much like yesterday, today's session saw some volatility before the noon hour with a tremendously well-contained, sideways drift prevailing from then on.  Though the calendar was nominally busier than yesterday, none of it had much of an impact on trading momentum.  Regardless of news and data, bond markets simply added another brick to the rebuilding effort, but gave no indication as to how likely it is to continue.
MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.
FNMA 3.0
104-13 : +0-04
FNMA 3.5
106-08 : +0-03
FNMA 4.0
106-29 : +0-00
FNMA 4.5
107-30 : +0-01
GNMA 3.0
105-22 : +0-05
GNMA 3.5
108-05 : +0-03
GNMA 4.0
109-09 : +0-00
GNMA 4.5
109-09 : +0-01
FHLMC 3.0
104-01 : +0-04
FHLMC 3.5
105-30 : +0-02
FHLMC 4.0
106-15 : +0-01
FHLMC 4.5
107-04 : +0-03
Pricing as of 4:07 PM EST
Afternoon Reprice Alerts and Updates
Below is a recap of instant Reprice Alerts and updates issued via email and text alert to MBS Live subscribers this afternoon.
3:23PM  :  MBS Continue Coasting Sideways To Slightly Lower
There are no material "cause and effect" relationships between news/data and the slight bias toward weakness seen in MBS since the 10am hour. That weakness may look more pronounced than it actually is, due to the narrowness of the trading range. Fannie 3.0s are only 2-3 ticks from their highs of the day, currently at 104-12.

The 1pm 3yr Treasury Note Auction proved to be as uneventful as ever, leaving the focus on tomorrow's 10yr Notes at the same time. Consumer Credit at 3pm, along with comments from Fed's Lacker were similarly uninspiring. This has left us in a perpetual sideways drift after putting in the best levels of the day during the Fed' scheduled buying earlier this morning. The MBS version of the drift has simply been slightly weaker than the Treasury version, but we're not currently seeing any price-based risks of negative reprices.
Live Chat Featured Comments
A recap of the featured comments from the MBS Live Dashboard's Live Chat feature, utilized by hundreds of industry professionals each day.
Alan Craft  :  "I don't think you will get UW to agree with that. Just like any joint debt, if one party doesn't pay their share, the other is responsible for entire debt."
Steve Chizmadia  :  "I would think you can take his ownership percentage of the total PITI payment, but I'm not sure "
Andy Pada  :  "According to the Bloomberg article on Fannie's CEO, Fannie Mae had $9.7 Billion net income for the first 3 quarters of 2012...more than their entire history."
Thomas Quann  :  "My point to the underwriter is that he is only taking for example 50% of income and 50% of expenses, however we are bashing those figures up against 100% PITI which is making his paper losses 3 x times his actual losses."
Steve Chizmadia  :  "Thomas, I have a scenario in which they are looking at the rent schedule on corporate returns and even though the borrower is not on the financing or title of some of the other properties they are taking the total payment and considering the other properties financed properties for the max of 4 financed unless I take it FNMA direct where I can get up to 10 financed properties"
Thomas Quann  :  "My question is can I reduce the PITI on the Fannie Mae Worksheet if the investor is a .333% owner or .500% owner. The issue is the only item we don’t extract from the returns is the PITI for which he is either a .333% owner or .500% owner. His actual losses on the returns subtotal $1104.42 but by hitting him for the full PITI his losses more than TRIPLE. If I could reduce the Fannie Mae Worksheet to reflect his actual PITI responsibility, his losses would come in line with his actual losses o"
Timothy Baron  :  "We've been told to always use the most recent HVE value, presumably due to investor overlays. "
Andrew Russell  :  "The wholesaler, though, may not follow this. But what I have stated is 100% fact."
Andrew Russell  :  "Freddie allows you to use any HVE value based off LP findings within 90 days from the note date. "
MortgageMan007  :  "I have a loan that when originally submitted was 62% now is 59% based on latest lp findings...which this greatly affects our pricing (tune of 1.25%)"
MortgageMan007  :  "for relief refi's do you use the initial HVE or the final HVE value?"
Mark Egolf  :  "What AMC's would you recommend for out of footprint work? We are using Rels and their executions is killing us. Thanks "
Matthew Graham  :  "RTRS - U.S. 3-YEAR NOTES BID-TO-COVER RATIO 3.62, NON-COMP BIDS $30.12 MLN "
Matthew Graham  :  "RTRS - U.S. SELLS $32 BLN 3-YEAR NOTES AT HIGH YIELD 0.385 PCT, AWARDS 5.51 PCT OF BIDS AT HIGH "
Steve Chizmadia  :  "Slow and steady wins the race"
Raul Lopez  :  "+4 today, +4 yesterday, +4 tomorrow, +4 day after....... I can get used to that."
Steve Chizmadia  :  "I usually run them through Guild Mortgage in California, but maybe Flagstar and Nationstar as mentioned earlier today on this topic"
Mike Drews  :  "streamline Lynn"
Lynn ONeal  :  "for my FHA friends..is there ever a case that FHA will refi an investment?"
Andrew Horowitz  :  "1.87 resistance"
Matthew Graham  :  "yeah, a bit more active than yesterday, but still definitely quiet in the bigger picture."
Steve Chizmadia  :  "Seems like another relatively quiet day based on activity in the charts. "
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