Market Update, Tuesday, May 19, 2020
Originations were strong as dealers were reporting north of $3B in supply. The Federal Reserve bought $2.97B in UMBS 2.0-3.0s and an additional $1.575B in GNMA 2.5-3.5s. They will be conducting another operation tomorrow at 10am for UMBS-15yr followed by an 11:30 operation in UMBS 2.0s-3.0s.
Announcement: Verification of Employment
Effective immediately, on all existing and new loans, we will no longer allow a WVOE as the only form of income documentation from Veri-Tax.
Market Update, Monday, May 18, 2020
Mortgage supply remains robust with the record low rates. A few dealers were reporting more than $4B in total originations. Liquidity finally appeared in the FNCL 2.0 coupon this past week with about 35% of supply being sold in that coupon. Large originators tend to play in that space at a larger percentage than smaller originators. They have the loans to fill the trades in the event liquidity diminishes.
Announcement: Lock Desk Hours – Memorial Weekend
The LoanStream Mortgage Lock Desk will be closed at 10am on Friday, May 22nd and closed on Monday, May 25th.
Announcement: Important Disclosure Information for Brokers
LoanStream has important information to share with brokers regarding the disclosure process and e-disclosures.
Announcement: FHA/USDA/VA Appraisal Relief
Per recently announced guideline updates from HUD and VA, the following appraisal relief applies to all FHA/VA & USDA loans, unless otherwise notated, that close on or before June 30, 2020.
Market Update, Thursday, May 14, 2020
The Fed has two operations where they will focus their allocated $4.875B of MBS purchases on UMBS 15yr 2.0%-2.5%s followed by UMBS 30yr 2.0%-3.0%s. U.S. treasury yields were lower across the curve, led by the longer dated notes as Chairman Powell distinguished that negative rates were currently not under consideration.
Market Update, Wednesday, May 13, 2020
Daily originations were reported in the $6.0B-$9.0B range. The Fed utilized their gunpowder and purchased the maximum allocation ($5B) of MBS across two operations. This week marks the first time the Fed has bought UM30 2.0%s and similar to Monday, the Fed purchased $240M worth of UM30 2.0%s on Tuesday. Continued Fed sponsorship in the lower portion of the production coupon stack should drive primary rates lower going forward.
Market Update, Tuesday, May 12, 2020
Daily originations continue to be elevated, with reported volumes ranging from $8.0B to $9.5B. The Fed purchased their maximum allocation of $5B in MBS across two operations bringing its QE4 purchase total to a staggering $628B.
Market Update, Monday, May 11, 2020
The Fed buying schedule saw a reduction in the maximum MBS purchases to $5B a day where they will be focusing purchases in 2.0%-3.0% coupons in 30yr conventionals going forward. Origination supply was on the lighter side to end the week, reported at ~$8B versus Thursday’s ~$8.5-$10B.