In a recent article published in the Scotsman Guide, I predicted that last year would be the biggest year for mortgage consolidations since 1994. The prediction was correct but, for different reasons. While I expected a significant increase in the range of interest rates, the loss to the mortgage industry was caused by somewhat higher interest rates resulting in squeezed…
In a recent story in Mortgage Orb, I was asked to comment on the MBA white paper called “GSE Reform: Creating a Sustainable, More Vibrant Secondary Mortgage Market.” The white paper discusses the new MBA proposal to have the GSEs “congressionally re-chartered” (re-privatized) and have the mortgage-backed securities that they issue be “explicitly guaranteed!” I stated that in my opinion, the…
I am very happy to announce that MarketLogics™, our free, daily newsletter, is now featured on Lykken on Lending Radio each week. The newsletter includes: Our nearly-famous song parody’s Market Summary Interest Rate Outlook Volatility Outlook Yield Spread Outlook Long Term Technical Outlook Intraday Technical Outlook MarketLogics Live! is a synopsis of one or two of these insights and, of…
How intimidating is the world of pipeline hedging? Have you ever stood before an audio mixing console in wonderment? The world of audio and hedge systems are related more than you may think. Mortgage originators want to price loans in such a way to make a profit margin. Pipeline risk managers endeavor to keep most of the margin with little…
A major challenge ahead for the market is the transition central bankers policy. A few years ago the G-20 was fairly much in sync on their plan for aggressive stimulation, specifically quantitative easing (QE). The difficulty for some was determining how and how much. Now, the disparity of policy is larger because some have little left in their arsenal to…
(Except from MarketLogics 5-18-15) Imagine that data quality and appropriate manufacturing of mortgage loans really do matter. Think about this quote from the NYTimes Opinion piece, Breaking Laws in the Mortgage Bubble. “The trial against Nomura and R.B.S. rebuts the widespread notion that banks’ greed during the bubble did not amount to lawbreaking, that somehow it was the housing crash,…
