ARCHIVED BLOG POSTS
2009
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Mortgage backed securities (MBS) closed down 28 basis points (bps) today at 101.22 after falling below the 50 day moving average at 101.37. Yesterday's conquest became today's failure. The lack of any economic news left traders with little to focus on other than cashing in on yesterday's positi...
12/18/2009
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In my mortgage market Wrap-up today I referred to a stochastic crossover. What in the world are stochastics you might wonder. When trading stocks, commodities and bonds in an open market, technical factors and historic levels are important in determining trends and market directions. Stochasti...
12/17/2009
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Mortgage backed securities (MBS) closed up 59 basis points today at 101.50 having powered through the 50 day movinga average they are now resting just 24 basis points below resistance at the 25 day moving average. A positive stochastic crossover combined with the coattails of yesterday's positi...
12/17/2009
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The new RESPA law, which is effective January 1, 2010, has altered the list of items which constitue a loan application. If a mortgage originator gathers information from a client if he/she has all of the following information, a good faith estimate must be issued to the client within three days...
12/16/2009
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Mortgage backed securities (MBS) closed up 6 basis points today closing at 100.91 still in a gap between resistance offered by the 50 day moving average at 101.37 and above the 100 and 200 day moving averages. MBS bonds opened on the up side early in the day. When the FED announced that it wou...
12/16/2009
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More complicated Federal regulations having to do with the Good Faith Estimate and the HUD1 closing document will arrive the first of the year. The onorous new regulations will require that a new Good Faith Estimate be issued within three days of every application and again any time a change is ...
12/15/2009
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Mortgage backed securities (MBS) closed down 25 basis points (bps) at 100.84 just barely above support at the 100 and 200 day moving averages and below resistance offered by the 50 day moving average at 101.39. The Producer Price Index released today showed a much higher level of inflation tha e...
12/15/2009
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The Fed has its monthly meeting Tuesday and Wednesday. Since most markets experience light trading at this time of year, there is little likelihood of the Fed annoucing anything earth shaking. When trading is light, markets are prone to accencuated swings in reaction to news because the smaller...
12/14/2009
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Mortgage backed securities (MBS) closed down 12 basis points (bps) today at 101.09 below resistance offered by the 50 day moving average and above double support of the 100 and 200 day moving averages. It was a relatively calm day for both stocks and commodities. As a result, MBS bonds drifted ...
12/14/2009
Currently mortgage brokers are compensated by commissions paid by banks called yield spread premiums. The government is considering eliminating this form of compensation. Brokers are required to disclose these premiums on the Good Faith Estimate. Banks pay similar premiums to their originators...
12/11/2009
