3pm Closing Marks....

FN30_______________________________

FN 4.0 -------->>>> +0-00 to 100-17 from 100-17

FN 4.5 -------->>>> +0-01 to 102-04  from 102-03

FN 5.0 -------->>>> +0-02 to 103-05 from 103-03

FN 5.5 -------->>>> +0-03 to 103-25 from 103-22

FN 6.0 -------->>>> +0-01 to 104-14 from 104-13

GN30_________________________________

GN 4.0 -------->>>> +0-03 to 100-20  from 100-17

GN 4.5 -------->>>> +0-02 to 102-07 from 102-05

GN 5.0 -------->>>> +0-03 to 103-22 from 103-19

GN 5.5 -------->>>> +0-03 to 104-02 from 103-31

GN 6.0 -------->>>> +0-01 to 104-14 from 104-13

MBS was mostly unchanged in after hours trading...

Check out the behavior of the MBS coupon stack since November....

All coupons are nearing/already above January price highs!!! Remember what happened after those January highs?

SEE RED

The biggest reason MBS prices fell so rapidly in January was that prices reached super expensive levels and the MBS market realized that lenders had stopped passing lower borrowing costs along to borrowers....consequentially investor prepay fears (call risk) went out the window and MBS buyers promptly moved "up in coupon". The two months that followed were tedious and painstaking as originators and borrowers  felt like they had missed the boat.

Well MBS prices are once again nearing those January highs and the stack is looking super expensive again...mortgage rates are once again at all time lows. I seldom stand on my soapbox to urge "coming off the fence"...but there has never been a better time to refinance your mortgage.

April 4 begins the era of DU REFI PLUS. This means relaxed underwriting regs and lower LLPAs. Up to this point only a few lenders are communicating their intentions to seek out this business. If you haven't heard any verbiage on DU REFI PLUS from your lender...get on the phone with your AE and ASK WHY!!!! 

If you know of a lender who is already planning to offer the program....PLEASE SHARE THE KNOWLEDGE WITH YOUR INDUSTRY COHORTS. I have started up a Poll that will allow you to leave comments which will provide guidance for your fellow mortgage colleagues. SHARE THE KNOWLEDGE:  POLL AND DISCUSSION ON LENDERS OFFERING DU REFI PLUS

If the Obama Administration's Housing Plans are perceived to be ineffective it will be a GREEN LIGHT for MBS buyers looking to chase profits using "up in coupon"trading strategies. Educate yourself on the program so when it is finally implemented by lenders you are ready to write loans.

UNDERSTANDING AND USING DU REFI PLUS

LINK TO FANNIE MAE "MAKING HOMES AFFORDABLE" PAGE