Good Morning,
There is no economic news today.
In a speech from Bush this morning, the Auto makers will receive 17.4 billion to assist them with their intermediary capital issues. The auto makers will have until March to have a plan together regarding how they will restructure. The 17.4 Billion must be repaid, however no time line was spelled out in the speech. The loans may act as an ease for the companies to enter into chapter 11 bankruptcy.
What has this done for MBS? We have been all over the place this morning.
As stocks increase on the news, treasuries and MBS have suffered somewhat.
Many people that have been following MBS have noticed that mortgage pricing should probably be better than it is. That leads of course to the Why?
With the volatility that we've had recently for one with rates dropping significantly, prepayments - due to rates dropping, forward unmet commitments, foreclosure risk, EPO's and EDP's - Investors really don't know where to price anymore. For example, if you purchased MBS with a yield of say 1%, it is going to take some time to see those profits. If the loan pays off early - well, that was a total waste of time for the investor as they will see no gains whatsoever. The reality of gain I was told is roughly 4 years of performance.
Jay Cain - Bank of Ann Arbor
About The Utah Finance Guru!
- Cindee D. Stone
- Loan Officer Interview Q and A: How long have you been in the mortgage business? I have been in the mortgage industry for over 18 years. I have been very blessed and fortunate to have worked with so many wonderful people! How has the mortgage industry changed since you started, and what would you expect in the future? The mortgage industry and changed so much over the last few years. And, continues to change on a daily basis. It is very important to have a loan officer that has the experience to guide you through the process with success. What can borrowers do to insure a smooth mortgage underwriting process? The most common issue during the loan process is getting all of the documents from the borrowers. It is so different now and so much more is needed. This allows us to see the entire picture and make sure it all goes as smooth as possible. What provides you with the most satisfaction in your job as a Loan Officer? Even though the mortgage industry is harder these days, it will never take away the satisfaction and happiness with assisting someone getting into the home of their dreams! Or, helping a homeowner refinance and save money.
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