Market Update, Monday, June 1, 2020
Mortgage origination flows continued to be strong with day over day improving by ~13% to $9.24B vs $8.20B. Lenders surveyed last week reported rates slightly lower, with most posting rates 3% to 3.5%. Using 3.25% as the prevailing 30yr rate, the primary/secondary spread was 157bps on Friday, tightening from the week prior. Dealers reported the 2% and 2.5% coupons were the primary hedge coupons last week, with the 2.5% coupon remaining at approximately 50%.
Announcement: EZQual Service Changing to EZCalc Service
EZCalc is a quick and easy way LoanStream can help you spend more time closing loans and less time calculating your borrower’s income.
Market Update, Friday, May 29, 2020
Treasury supply and record mortgage originations continue to put pressure on bond prices. FedTrade purchases continue to buy an average of $4.5B per day. Mortgage originations remain strong with dealers reporting $7-8B per day on average. More than 25% of 30y origination flows are in UMBS 2.0’s. The FedTrade will buy up to a maximum of ~$4.77B in current coupon FNCL and G2SF securities.
Market Update, Thursday, May 28, 2020
The 10 year treasury reached a 0.73% yield in early trading yesterday before rallying back to close roughly unchanged at 0.68%.
Market Update, Wednesday, May 27, 2020
What difference a day makes. Investors shrugged off concerns with US/China relations, poor economic data and sub par earnings to focus on buying equities. Germany announced plans to lift travel restrictions, Japan is ending the state of emergency and optimism in the US had investors scrambling to buy particularly in sectors hardest hit by the pandemic. The Dow and S&P rallied by +2.2% (+529.95) and +1.2% (+36.32) respectively. Renewed investor optimism in an economic recovery appear to be driven by easing of restrictions and ongoing stimulus from major economies. Markets will however watch for new developments in Hong Kong and a U.S. reaction to the new national security laws in China as well and any vaccine related developments.
Announcement: Guidance Loans in Forbearance – Conventional
Borrowers who are currently or have been in Forbearance are acceptable with the following restrictions. Borrower(s) must be current on all mortgages for all properties owned through the month of closing.
Announcement: Borrower Guide to eDisclosures
LoanStream has now made signing eDisclosures easier for borrowers with our Electronic Document Delivery Instructions.
Market Update, Tuesday, May 26, 2020
Throughout last week, production coupons managed to trade higher by +8/32nds. The Dow was lower w-o-w by -132 points (-0.54%) but the S&P was slightly higher by +7 points (+0.05%). Origination volume remained healthy to close out the week with dealers reporting $5.75B to $7.6B in flows.
Market Update, Thursday, May 21, 2020
Mortgage supply continues to be robust. Several broker dealers saw origination topping over $5B. The Federal Reserve had a large buying operation in both current coupon UMBS and G2SF. Today they will continue their buying operations in UMBS-30yr and UMBS-15yr.
Market Update, Wednesday, May 20, 2020
Originations continue to be strong as dealers are reporting north of $5B in originations. The Federal reserve continues to support the mortgage market with QE4 purchases. Mortgages were well supported in 2.0-3.0s, where the fed is conducting their operations.