MBS Live: MBS Afternoon Market Summary

Volume was fairly light today for MBS and Treasuries alike.  Both were more keen to take the casual observer role as European markets and equities underwent the bigger gyrations.  German Bunds hit another record low yield and US Treasuries continued to move in the same direction as Bunds, but on a much smaller scale.  Overall, the Europe-induced nausea--apart from being one of the main reasons yields are low in the first place--was also good enough to help Treasuries not bat much of an eyelash at a relatively major correction in stocks.  S&P's moved up over 15 points in the first few hours of trade after tanking overnight on the JP Morgan news.  But Treasuries held their ground, inviting production MBS to do the same.  In very uneventful fashion, Fannie 3.5's hit their 103-29 support and bounced back into the 104's.  Given that 103-29 was the first support level we noted this morning, it tells you that markets were just trying to "stay between the lines" as it were, and reassess the situation with a fresh week (and FOMC Minutes) after this much-needed weekend.

Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.

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.

12:49PM  :  Bond Markets Continue Holding Pattern as Friday PM Volumes Set In

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.

Jason York  :  "http://www.benefits.va.gov/warms/pam26_7.asp"

John McClellan  :  "anyone have a link to VA underwriting guides"

Brent Borcherding  :  "REPRICE: 1:37 PM - Sierra Pacific Better"

Matt Hodges  :  "credit/background does matter as it relates how you manage your resources. if you can explain an exception, much like extenuating circumstances, then you should be given a chance"

Clayton Sandy  :  "SS, I work for a credit union and we do background checks and tons of test and compliance we have to do. I agree on the credit issue."

Victor Burek  :  "credit shouldnt matter"

Matt Hodges  :  "i work for a bank and we have 10 tests between now and 6/30, have to have good credit and pass background"

Steven Stone  :  "its a buncha bs that if you work for a bank - you dont have to pass a test, have reasonable credit or have a background check"

Bill Laffey  :  "Ray j - issues resolved @irs"

Matt Hodges  :  "it'd be nice if we all passed the same tests"

Tom Schwab  :  "I think there is less to fear about it than many of you do."

Tom Schwab  :  "You all need to read the CFPB proposal outline this weekend before making glib comments. I read it and it looks like they are putting a lot of consideration into any changes AND making bank LO's meet the same level of professionalism us non bank MLO's operate under. It will also be nice to get sample guidance on what works for LO comp and what doesn't."

Ray J  :  "Any update on the IRS server issues for 4506's?"

Jason York  :  "I like the part of making DURP and Refi Plus basically the same"

Michael Mitchell  :  "A $900,000 loan now gets charged $2000. A $90,000 loan now gets charged $2000. Who won?"

Michael Mitchell  :  "How does the government not understand that a flat fee system is a penalty on the poor?"

Matthew Graham  :  "don't get me wrong, I am too, but fingers remain crossed"

Matt Hodges  :  "i'm jaded, mg"

Matthew Graham  :  ""The bill also extends the date of eligibility for borrower participation an additional year, through May 31, 2010,""

Matthew Graham  :  "you don't want this bill to pass? http://www.boxer.senate.gov/en/press/releases/051012.cfm"

Matt Hodges  :  "more likely lobbying efforts"

Matthew Graham  :  "right hand, hi.... this is left hand. Long time no talk..."

Scott Valins  :  "So Obama's trying to level playing field to increase competition but CFPB is attempting to enforce rules that will do the opposite. Our government has cognitive dissonance."

Matthew Graham  :  "exactly david"

David Z.  :  "We can streamline same servicer"

Victor Burek  :  "mentions the higher costs of appraisals, but it is the govt reg. that increased the cost of appraisals"

Matthew Graham  :  "key word: "streamlined""

David Z.  :  "Why don't they know most of the benefits are currently available to non underwater borrowers as well?"

Matthew Graham  :  ""Extending streamlined refinancing for all GSE borrowers: The President’s plan would finally extend these steps to streamline refinancing for homeowners to all GSE borrowers. Those who have significant equity in their home – and thus present less credit risk – should benefit fully from all streamlining, including lower fees and fewer barriers. This will allow more borrowers to take advantage of a program that provides low-hassle, low-cost access to today’s low interest rates – and make it easier"

Matthew Graham  :  ""Increasing competition so borrowers get the best possible deal: Today, lenders looking to compete with the current servicer of a borrower’s loan for that borrower’s refinancing business continue to face barriers to participating in HARP. This lack of competition means higher prices and less favorable terms for the borrower. The President’s plan would extend the same streamlined underwriting currently enjoyed by the borrower’s existing lender to the rest of the market, leveling the playing field"

Matthew Graham  :  ""Cutting red tape: Some borrowers still need manual appraisals to determine if they are eligible for refinancing, which can take lots of time and cost up to $1,000. Under the President’s plan, the GSEs would be directed to expand their automated valuation processes, eliminating a significant barrier that will reduce cost and time for borrowers and lenders alike.""

Matthew Graham  :  "more detailed write-up on the way, but http://www.mortgagenewsdaily.com/05112012_refinancing_legislation.asp . "

Matthew Graham  :  "Obama to the rescue this afternoon, fighting back against the conspiracy!"

John Paul Mulchay  :  "Let's just call loan origination philanthropy and be done with it"

Ira Selwin  :  "I started to read it, and started to sweat so I stopped. I'd rather not read it close to me eating a meal either."

Matthew Graham  :  "i have a feeling, if I read it all, that I would turn green and break things anyway."

Matthew Graham  :  "it might have been in the news stream but I haven't seen it yet. Thanks! please summarize in one page or less because I don't think I can read all that on a Friday. "

Ira Selwin  :  "MG - not sure if this link was mentioned in regards to the CFPB discussions: http://www.aba.com/aba/documents/blogs/doddfrank/CFPBmortgageoutlineproposal.pdf"

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