Non-QM 2nds, Renovation, Homeowner, Realtor-Facing Products; Reaction to Govt LLPA and Securitization Changes

What would this opening paragraph be without some fun, non-mortgage stuff? Watch a rare livestream of bald eagles nesting on eggs in California. 32 trillion gallons of water have fallen in California in recent weeks, resulting in a disaster declaration. Speaking of that state, the weather forecast for San Diego is warm and sunny next week as hundreds of mortgage professionals are preparing to go to California for the MBA’s Independent Mortgage Banker’s Conference. (Say “hi” if you see me.) One topic of conversation, of course, will be the bond market and mortgage pricing. Months ago, I’d receive question after question about pricing. “Why is no one paying anything above par (100)? I’d explain that no investor wanted to pay 103 and lose 3 points in a matter of months if rates dropped a little, and that 7 ½ percent 30-year loan refinanced at 100. Well, here we are. Helping lenders was a reduction in securitization costs, but taking away some of the rate environment was yesterday’s conventional conforming price news. Wall Street trader talk yesterday focused on an “up in coupon” recovery “on the heels of the LLPA adjustment (reducing refi's in general, and cash-outs, in particular) and to a lesser extent the stalling of the duration grab.” (More below.) This week’s podcast is sponsored by Candor. Candor’s patented automated underwriting decision engine, CogniTech™, is a state-of-the-art, 100 percent machine platform that can handle infinite loan scenarios. Lender and Broker Software, Products, and Services
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