MBS Live: MBS Afternoon Market Summary

Although MBS and Treasuries began the day in slightly weaker territory, they both rallied during the Bernanke testimony despite a sizable sell-off in stocks suggesting markets downgraded their expectations for impending QE3.  The bond market rally was more to do with overhang from the European trading session where Bunds were really on a tear into the 11am close.  This suggestion is supported by the 11am bounce off low yields in 10's (or price highs in MBS).  From there, stocks bounced back as well and the rest of the day became about trying to hold on to previously established support levels for bond markets.  They failed, but not too miserably as Fannie 3.0's managed to grind support at yesterday's opening lows and a well-traveled pivot at 103-13.  10's rose to a fairly ho-hum 1.50 for the 3pm close. 

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.

1:26PM  :  ALERT ISSUED: Slightly Increased Reprice Risk As MBS Hit Lows

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.

Grant R. Menard  :  "yES JUST GET A LETTER OF EXPLAINATION AND A COPY OF HUD FROM SHORT SALE. SEND IN A A MANUAL UNDERWRITE. sorry caps"

Rich DiLallo  :  "have any of you run into issues with Equifax reporting a short sale as foreclosure? "

Jason York  :  "the customer asked if he could request it to be reevaluated, and I said sure, but don't expect much, jumped up $10k"

Jason York  :  "just had the same thing happen with one of my customers too"

Matt Hodges  :  "this is a first for me - we asked VA appraiser to re-evaluate a value - gave two add'l closed comps and she jumped value by $12K, which makes the refi work"

Jason Harris  :  "Just got an approved HUD for a 115LTV165CLTV taking the guy from 7.25% to 4.25%.....closing tomorrow...one happy camper....sub took two months with Greentree"

B-C  :  "this is the scenario shredders were made for MH"

Matt Hodges  :  "indeed it cross-cuts, bc"

B-C  :  "does your shredder work?"

Matt Hodges  :  "think any underwriter would take this scenario: H & W separated for 3 years. he deposits his entire pay check into their joint account. No agreement in place until today. Agreement for spousal support is roughly 1/2 of his pay. I can't marry the idea of the numbers being wrong and the agreement just being signed to work until 6 months from now. Thoughts?"

Matthew Graham  :  "RTRS - PIANALTO SAYS 'NO QUESTION' ASSET BUYING CAN PROVIDE BENEFITS, BUT THEY ARE LIMITED AND NEED MORE ANALYSIS "

Matthew Graham  :  "RTRS - PIANALTO SAYS MONETARY POLICY SHOULD DO WHAT IT CAN TO SUPPORT RECOVERY, BUT THERE ARE LIMITS TO WHAT IT CAN ACCOMPLISH "

Brent Borcherding  :  "Agreed, Bob, I left that part out as for the larger portion of the country there isn't any wage growth."

BVG  :  "Or by increasing input and keeping output constant"

Brent Borcherding  :  "You build savings my lowering your output, not by rate of return on savings accounts, that isn't just a recent phenomenon."

Adam Quinones  :  "can't build a savings bc rates are too low!"

Adam Quinones  :  ""no incentive to save""

Adam Quinones  :  "http://www.economist.com/node/18834259"

Adam Quinones  :  "http://en.wikipedia.org/wiki/Financial_repression"

Andy Pada  :  "AQ, how do you define repression?"

Matthew Graham  :  "just a hop and a skip from "late 2014," and then you have Bullard, just as a for instance, greasing the skids by saying stuff like "current forecasts are predicated on a better economic picture than what we've seen recently." "

Adam Quinones  :  "repression!"

Adam Quinones  :  "that is most likely to happen next..."

Andy Pada  :  "did Steve Liesman assert that one the Fed's viable options is extending the date from 2014 to 2015?"

Brian Atha  :  "115% CLTV"

Steven Fishman  :  "FHA refi will allow for 125 CLTV?"

Jeff Statz  :  "Although term reduction makes sense, it's not in the original "spirit" of the Streamline's scope"

Jeff Anderson  :  "Love the people that make these rules. Borrower needs to save $100-200 per month for a benefit. Never mind the 10's of thousands they'll save by shortening the life of their loan. Drives me crazy."

Brayden Alexander  :  "shortening of term in itself is not seen as a benefit"

Brayden Alexander  :  "only if it has a benefit to borrower in monthly savings"

Clayton Sandy  :  "Hey guys, having a brain cramp. Can you do a 30 to a 15 FHA as a streamline? "

Brent Borcherding  :  "Any assumption of knowledge in that room would be a mistake."

Matthew Graham  :  "he can't assume too much about what they know"

Matthew Graham  :  "no, he's talking to congress"

B-C  :  "he just realized that MG?"

Matthew Graham  :  "RTRS - BERNANKE SAYS MANY COUNTRIES IN EUROPE ALREADY IN RECESSION, COULD TAKE A VERY LONG TIME TO RESOLVE CRISIS "

Matt Hodges  :  "Taryn: my company requires a US address - perhaps a family member that they use for correspondence"

Joel Marks  :  "Taryn. I did one for a guy working in Laos. Used NYCB. Painful, but got done. I couldn't find anyone else to touch it."

Grant R. Menard  :  "Taryn , I had a client from England. We had to call the credit bureau and they were able to do it manually."

Taryn Reuter  :  "anyone had an issue with a borrower that is a US citizen that lives and works abroad for a US company, but Fannie/Freddie say I have to use their current address to pull credit (in AUS) but our credit system doesnt allow? it only takes US addresses?"

Matthew Graham  :  "Not sure. It's been a bit noisy in the past half-hour, but pretty thinly traded as well"

Christopher Stevens  :  "MG- Are the large swings in the 3.5 is telling us the market is just looking for some actual guidance regarding QE3"

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