Economists, like royal children are not punished for their errors. Data revision can be a career strategy for some, and certainly some companies wish they could revise data occasionally – especially lenders in the first quarter. Given recent data, here’s one analyst who believes it will be tough sledding for Impac, for example.

Capital markets

Yield curve update? As Treasury yields rose after the election, then fell again, and have recently moved slightly higher, the gap between two- and 10-year notes has settled to pre-election levels of 1.04 percentage points as the market's expectations for economic growth and inflation drop.

Looking back to Friday, the bond markets were certainly influenced by the weak Retail Sales and Consumer Price Index reports for April... does our economy need, or can it absorb, two more rate hikes this year? Especially if they're combined with a tapering of the Fed buying MBS? Consumer spending, however, is clearly on a path toward being a much better contributor to second quarter real GDP growth than it was in the first quarter. And consumer inflation pressures moderated a bit in April. (That won't change the thinking that the Fed will raise rates at its June meeting, yet it will temper concerns about the Fed possibly needing to be more aggressive with its rate hikes.) Rates headed lower with the 10-year's yield hitting 2.32% although it closed at 2.33% and its price improving nearly .625 better than Thursday's close. As usual, the 5-year T-note and agency MBS prices lagged somewhat, improving .250-.375 depending on coupon, security, and maturity.

Overseas fun? Early last week the financial markets were breathing a big sigh of relief with the results from the French elections, which produced a lopsided victory for the establishment (i.e., pro-European Union) candidate, Emmanuel Macron, versus the extreme right candidate, Marine Le Pen. One less thing to worry about.

Looking at this week... there isn't much at which to look for scheduled news. And who knows what will come out of the White House? Expect volatility to remain low - which is fine with most folks. This morning we'll have the Empire State Manufacturing Survey (May) at 8:30am ET, along with the NAHB Housing Market Index for May. Tuesday are Housing Starts & Building Permits for April and Industrial Production and Capacity Utilization for April. Wednesday is only the MBA's Mortgage Applications Index. Thursday are Initial Jobless Claims, the Philadelphia Fed Index, and Leading Economic Indicators. Friday is zip.

The Comey fallout continues although the narrative around the Trump/Ryan pro-growth agenda isn't changing dramatically. In the early going, pre-numbers, we find the 10-year yielding 2.33% and agency MBS prices roughly unchanged versus Friday night, so rates haven't done much since the end of last week.

New Government Products and Pricing

JMAC Lending is offering a .25% price improvement on all FHA and VA loan products for wholesale and correspondent business. The rate must lock by June 30, 2017. Borrowers need a 620 FICO to qualify for the price improvement (JMAC does go down to 580 FICO). "JMAC's government lending features manual underwriting, fast closing (15-days or faster), plus the opportunity to talk directly to the underwriter. Visit www.JMACLending.com for more info."

NYCB Mortgage has posted an updated FHA Case Number Assignment form for its Table Funding Clients. This updated version of the form is required when requesting new FHA Case Numbers and FHA Case Number Transfers. This form is required for NYCB to initiate the underwriting of an FHA loan, so be sure to upload the form along with other required underwriting documentation (asset documentation as required by AU Findings, income documentation as required by AU Findings, 1003, and Purchase Agreement if applicable).

Royal Pacific Funding has reduced its Non-California Lender fee to $795.00. It has also added 600 FICO High Balance availability on FHA/VA including Cash Out.

FHA launched its improved lender list search capability from a new HUD Lender List Search web page on HUD.gov. From this page, the public can search for HUD-approved Single Family and/or Multifamily lenders, using a variety of criteria.  The new HUD Lender List Search page replaces the previous Lender List lookup page on HUD.gov. While search criteria have not changed, users will notice improved performance and quicker response times when using the new search capability.

If you're a broker and have you been looking for a jumbo 80/10/10 product, contact Sierra Pacific's AE Kelly Brown for details.

NewLeaf Wholesale updated its NewLeaf Asset Depletion, Residual Income and Jumbo 90% LTV No MI Product Matrices.

Speaking of which, what is the news out there in down payment and LTV land?

Down payment assistance programs are helping middle class families buy homes in hot markets. Mortgage credit certificates become more popular and imaginary barriers hold back buyers. The February Down Payment Report, covering news and data on residential down payments, is now available. 

Pacific Union Financial announced the launch of PacificPlus, the latest nationwide mortgage program with +Plus  down payment protection by ValueInsured embedded directly into the mortgage loan. With PacificPlus, homebuyers can safeguard their down payment and buy with confidence. Even if they need to move and real estate market values are down when they sell, up to the full amount of their down payment may be covered and, if all program requirements are met, any potential loss would be reimbursed.

Atlanta-based Down Payment Resource (DPR), the nationwide databank for homebuyer programs, and the New York State Association of Realtors announced a new down payment program search tool for NYSAR members. "The online resource will allow New York State's Realtors to search and review eligibility and benefit details of all homeownership programs in New York, helping connect their buyers with available programs. Down Payment Resource's database uses a proprietary rules engine that automates the process of matching eligible borrowers with affordable lending programs, including down payment assistance, grants, Mortgage Credit Certificates and more. DPR tracks 2,400 programs nationwide, including 100 programs spanning New York City to central and western New York."

Per FAMC National Correspondent's recent update, properties that have been listed for sale must be taken off the market on or before the disbursement date of the new loan and follow the applicable program LTV/CLTV/HCLTV ratios. The previous requirement was 6 months before the disbursement date of the new loan and limited the LTV/CLTV/HCLTV to the lesser of the program requirement or 70%. In addition, all outstanding student loans require a monthly payment to be included in the borrower's monthly debt obligation, regardless of repayment status. The monthly payment reflected on the credit report may be utilized for qualifying purposes. If there is no payment indicated for the student loan, or if the credit report shows $0 as the monthly payment, the qualifying payment MUST be calculated using one of the following options: 1% of the outstanding student loan balance (even if this amount is lower than the actual fully amortizing payment), OR A fully amortizing payment using the documented loan repayment terms.

Jobs, Personnel Changes, and Products

A Southern California-based mortgage lender is "seeking highly talented and experienced Wholesale Sales Executives to join our growing team. Our company has been doing business successfully over 20 years and is currently expanding throughout the country. We are Fannie, Freddie and GNMA approved coupled with a very unique non-QM product line. Our professional underwriting and operations team is second to none within the mortgage industry. We continue to be leaders in pricing & service. If you want a stable corporation with an entrepreneur growth mindset, then we are a great fit for you." Contact me with confidential resumes for forwarding.

NRL Mortgage is extending an exclusive invitation to the attendees of the upcoming Mastermind Summit in June.  They've arranged an exciting cocktail reception with music, food, fun and networking with the industry's elite top producers, and will be getting REAL with their special guest & friend, Josh Altman, star of Million Dollar Listing Los Angeles!  This private event will be held at The Palms, Las Vegas "Real World" Suite; June 7th, 5-7PM, and is already drawing much attention. Those interested should RSVP quickly to NRLEvents. Click here to explore the potential of what NRL Mortgage offers, as it is licensed in 45+ states and growing nationally. Any top producers and top managers interested in having a confidential conversation regarding a new opportunity should reach out to president Ron Zach.

In retail news, Envoy Mortgage announced that Patricia Trimble has been appointed Chief Production Officer. "This announcement highlights the company's focus on and investment in continued, long-term growth and success following Envoy's record-breaking production in 2016. Patricia's addition accompanies a strategic reorganization of production leadership, which includes the promotion of Michael Reddington to Executive Vice President, National Retail Production. "Patty is a strategic and valued addition to Envoy's executive leadership team. With her broad management background, proven track record in production and operations across origination channels, and strong fit with our organizational culture, she is a welcome addition and will be pivotal in executing our major corporate initiatives and strategic plans," said Pat Walden, President and CEO." To confidentially learn more about opportunities at Envoy Mortgage, visit www.envoymortgage.com or email recruiting@envoymortgage.com.

"Appraisal Process Ensures High Quality, Strong Turn Times. National AMC, Valuation Partners' propriety Purchase Appraisal Process offers originators accelerated turn times alongside unmatched accuracy. The approach was unveiled in 2016 and continues setting industry standards. "We recognize the demand for a true appraisal partner in the mortgage industry," said Clint Reinhardt, SVP at Valuation Partners. "We developed Our Purchase Appraisal Process as a key competitive advantage for our clients that helped them drive repeat business." The AMC has dramatically improved the means of securing high-quality appraisal to meet today's purchase market demands. More information on the company's Purchase Appraisal Process can be found at www.valuationpartners.com. Owned and managed by appraisers for over 30 years, Valuation Partners delivers the expertise, strength and coverage clients need to grow-and the personal care to get the job done.

Bill Sohan & the Northeast Region of Academy Mortgage are excited to announce the hiring of Brooke Anderson and Jim Bromwell. "Brooke comes to us with 10+ years' experience and will head up the Recruiting & business development department. And Jim comes to us with 20+ years management experience and will be instrumental in the growth of the Delaware market. Academy Mortgage is looking for Branch Managers and Loan Officers who want to join a company that is focused on providing the best possible experience not only for the borrower, but for all our team members. To learn about opportunities, please contact Brooke Anderson."

In other news, many in the industry are watching Congress' moves. Recently H.R. 10, the Financial CHOICE Act introduced by House Financial Services Committee Chairman Jeb Hensarling, R-Texas, obtained enough votes to move the bill on to the House of Representatives floor. The Act seeks to rollback or modify many of the regulatory and supervisory requirements imposed by the Dodd-Frank Act.