MBSonMND: MBS RECAP
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FNMA 3.5
96-24 : +0-05
FNMA 4.0
100-26 : +0-05
FNMA 4.5
103-30 : +0-04
FNMA 5.0
106-18 : +0-02
GNMA 3.5
98-02 : -0-13
GNMA 4.0
102-17 : +0-04
GNMA 4.5
105-28 : +0-04
GNMA 5.0
108-13 : +0-05
FHLMC 3.5
96-24 : +0-09
FHLMC 4.0
100-23 : +0-04
FHLMC 4.5
103-27 : +0-04
FHLMC 5.0
106-13 : +0-01
Pricing as of 4:05 PM EST
Afternoon Market Updates
A recap of MBS Market Updates provided by MND Analysts and streamed live to the MBSonMND Dashboard .
3:07PM  :  New Mortgage Rate Watch Post
2:09PM  :  ALERT: Reprices for the Worse at Risk Following Fed QE2 Move
The NY Fed just announced and extra $62 bln dollars go toward purchasing Treasuries and TIPS between June 13th and July 11th. This, in addition to the $600 bln easing already scheduled to end on June 30th. Bond markets are tanking in response, stocks are gaining back previous losses. Fannie Mae 4.0's are down from 100-30 to 100-25. Although 100-25 isn't exactly far enough from the bulk of the MBS range for the day to justify reprices for the worse, it's possible that the nature of the market moving info, combined with the rapid, unexpected, late day price movement, constitutes an increased risk of reprices for the worse.
12:42PM  :  Stocks on the Mend, Bond Markets Meet Resistance
Treasuries and MBS had been benefiting from big stock losses on the day, but as those seem to have found a floor just after 11am, so too have bond yields. The location is really nominal for a market that doesn't want to telegraph any particular convictions about next week's trade as it occurs EXACTLY on the super long term trendline seen in much of our recent analysis. But it's still a green day for bonds... The 10yr yield down just over 4 bps on the day although our beloved MBS aren't quite rallying to the same extent. Fannie Mae 4.0 coupons are up 7 ticks on the day at 100-28, almost back to the last prices seen on yesterday's June coupons (remember, today is July coupons and thus, inherently about 15 ticks lower in price. June coupons closed yesterday at 101-02. July coupons at 100-21. The day over day change of 7 ticks pertains to July coupons since June has gone bye-bye. All in all, prospects of reprices in either direction look limited for now. But if a lender were to reprice now or soon, we'd lean towards that being a reprice for the worse. The bigger concern is whether or not 10's make it through resistance next week. Historical precedent says they might, but also that a failure to do so would see a steep enough back up to ultimately effect Best-Ex mortgage rates.
11:19AM  :  New MBS Commentary Post
Featured Market Discussion
A recap of the featured comments from the Live Discussion on the MBSonMND Dashboard .
Adam Quinones  :  "WHAT A SLOW DAY!"
Kent Mikkola #353976  :  "all of my lenders do it on total loan amount"
Adam Quinones  :  "S&Ps 10s pts off their lows."
Adam Quinones  :  "stocks making a little late day surge here"
Adam Quinones  :  "SRP is another story. Classifying rebate as "SRP" leaves out half of the loan pricing equation, the base price, whether it be a discount or a premium. (disco)"
Adam Quinones  :  "YIELD SPREAD, REBATE, OVERAGE..they all mean the same thing. They all come from the same source. There is a premium paid for above market note rates (discount cost for below market). Attached to that premium is another premium paid for the value of the servicing. BASE PRICE + SERVICING VALUE = FINAL PRICE (plus delivery incentives if applicable). Wholesalers call that final price "yield spread", retailers call it "overage", direct bankers call it "rebate". "
Eric Leithliter  :  "I thought it was off total too, but my broker says he's going to only pay me off base. I'm pretty sure he is pocketing the overage"
Jeff Anderson  :  "I think it depends on the lender. GAMC pays on total loan amount, UFMIP included."
Ira Selwin  :  "May depend on the lender then"
Eric Leithliter  :  "For FHA loans, is Rebate paid on Base Loan Amount or Final Loan Amount with UFMIP financed?"
Adam Quinones  :  "The Volcker Rule, also known as the "Volcker Plan," is a proposal by American economist and former Federal Reserve Chairman Paul Volcker to restrict banks from making certain kinds of speculative investments if they are not on behalf of their customers. Volcker has argued that such speculative activity played a key role in the financial crisis of 2007–2010. Volcker was earlier appointed by Obama as the chair of US President Barack Obama's Economic Recovery Advisory Board, a board created on Febr"
Adam Quinones  :  "they'll just trade using their accounts' money instead of their own."
Adam Quinones  :  "id assume theyre shutting down the prop desk bc of FinReg"
Jason Wilborn  :  "B. of A. to shut proprietary bond trading arm"
Adam Quinones  :  "that is the last QEII schedule"
Matthew Graham  :  "NY FED SAYS $50 BLN OF LATEST PURCHASES TIED TO QE2, $12 BLN FROM MATURING MORTGAGE SECURITIES "
Matthew Graham  :  "$600 BLN OF QE2 PURCHASES WILL END ON JUNE 30 - NY FED "
Matthew Graham  :  "US FED TO BUY ABOUT $62 BLN OF TREASURIES AND TIPS JUNE 13 THROUGH JULY 11 - NY FED "
Matthew Graham  :  "CUMULATIVE DEFICIT $927.44 BLN FOR FIRST 8 MONTHS OF FISCAL 2011 VS COMPARABLE PRIOR YEAR'S $935.61 BLN "
Matthew Graham  :  "MAY BUDGET OUTLAYS $232.55 BLN VS MAY 2010 OUTLAYS $282.72 BLN "
Matthew Graham  :  "MAY BUDGET RECEIPTS $174.91 BLN VS MAY 2010'S $146.79 BLN "
Matthew Graham  :  "ONE-TIME DOWNWARD RE-ESTIMATE IN TARP BAILOUT COSTS REDUCED MAY 2011 OUTLAYS BY ABOUT $45 BLN "
Matthew Graham  :  " U.S. TREASURY SAYS MAY BUDGET DEFICIT $57.64 BLN VS $135.93 BLN DEFICIT IN MAY 2010 "
John Paul Mulchay  :  "On the flopping article, won't this come up in a title search when the original owner tries to buy it back? I wouldn't think any lender would fund a loan with that kind of title history. "
BVG  :  " Max----Union Bank"
Matthew Graham  :  "if we had continuous July 4.0's on the chart, it would just be one gigantic "inside day," shying away from either the highs or the lows. "
Christopher Max  :  "Does any Wholesale bank compete with ING for jumbos? "
Adam Quinones  :  "http://www.mortgagenewsdaily.com/mortgage_rates/blog/214354.aspx"
Peter Gladkin  :  "do we have jobs numbers"
Matthew Graham  :  "85k of the day's 670k came in the 10 minutes between 1040am and 1050am"
Matthew Graham  :  "big spike at 10:50 bringing things up"
Matthew Graham  :  "It's a bit higher than medium/average owl"
Risky Features  :  "MG/AQ.....how is the volume right now?"