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Originally posted by Scrooge McDuck

i dont know who he is, but hes on imdb.com which is interesting.

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Originally posted by Boulderco

Anyone here subscribing to his service? I'd appreciate your feedback.

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Originally posted by broker

We are brokers here correct?

Why would anyone need to know whether to lock or float a loan. If you sell a loan to a client, the first thing you do is go out and lock it. We as brokers don't need to take risks we have the both of best worlds. If rates drop, we can just move the loan to another lender.

Why in the world would I need to pay for this info when you can get the same market data real time if you watch the 10 yr bond (and spare me the sermon on how it has nothing to do with mortgage rates). The reality is the 10 yr will track identically with what lenders will do to the wholeale rates they set each day.

Anyway, this guy reminds me of the snake oil salesman on TV -David Trudeau.

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Originally posted by vburek

Broker, i basically do the same thing as you regarding the steps you follow. But if i sell a certain rate to a client, i want to make sure i make the highest ysp. So, i watch bonds, i may lock the day i sell or i might float if i can pick up an extra .25 in ysp. Just maximizing what i make while still giving the client a great rate with great mortgage planning advice. The only area i disagree is saying ysp follows the 10 yr note, cause it just doesn't.

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Originally posted by broker

quote:

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Originally posted by vburek

Broker, i basically do the same thing as you regarding the steps you follow. But if i sell a certain rate to a client, i want to make sure i make the highest ysp. So, i watch bonds, i may lock the day i sell or i might float if i can pick up an extra .25 in ysp. Just maximizing what i make while still giving the client a great rate with great mortgage planning advice. The only area i disagree is saying ysp follows the 10 yr note, cause it just doesn't.

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My impression was that most lenders' secondary department priced (YSP) off the 10 yr treasuries. I just got off the phone with the regional manager of one lender and she confirmed in fact that is what they do.

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Originally posted by broker

The 10 yr is the 10 yr. I do know the difference between Bills, Notes and Bonds, Sorry to use Bond instead of Note.

Getting back to the issue. I guess I don't understand how others here may run their business.

Part of originating a loan for me, is letting the client know about lcoking them in on a rate with a lender.
When the client says OK lets go, I generally:
1. get the rest of their info over the phone
2. Run them through DO/LP
3. Lock them with a lender (if no surprises in DO/LP)
4. Refis close in 2 to 3 weeks.

To answer your question about moving loans. I suppose in cases of extreme fallout with a particular lender, you could get some flack, but, by and large, my fallout is so low that it is never an issue.

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Originally posted by 1paul

brianconner.....Where are you getting your info. on: The 5.5% MBS??
Is there a website where it is tracked, that we can find, for FREE, or is it just thru PAID services?

benjamin....You mentioned: "His rate forecasts are a day behind what you can get on internet".....what sites are you looking at, to get more current info.?? again, times are tough...any FREE sites??

Thanks in advance....
b

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Originally posted by brianconner

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Originally posted by 1paul

b

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I'm looking at www.mortgagemarketguide.com, Barry's site. It is around $700 or $800 per year, which is insignificant if you are managing a meaningful pipeline. Yes, times ARE tough, which is why you NEED up to date, accurate info to protect your pipeline.

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Originally posted by mustang05

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Originally posted by brianconner

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Originally posted by 1paul

b

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I'm looking at www.mortgagemarketguide.com, Barry's site. It is around $700 or $800 per year, which is insignificant if you are managing a meaningful pipeline. Yes, times ARE tough, which is why you NEED up to date, accurate info to protect your pipeline.

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I made $2,600 extra in one deal this year. Just make sure you take the time to learn about all of the provided services.... I know at least 5 other LO's that have subscribed and every one of them have sworn by it.

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Originally posted by Balin

Here's an explanation from Mortgage Daily News

What a week! The US 10-Year is improved by 10/32nds and we're worse 10/32nds on MBS. Oh cruel fate! Why?! It's pretty obvious that MBS are the last kid to get picked for the kickball team these days, meaning investors not only don't want to buy them compared to treasuries, but sellers of MBS are eager to sell. That's not a good scenario as it lowers prices and raises mortgage rates. The discrimination can come from many factors:

1. Quality Demand. The perception of MBS quality is waning relative to treasuries due to trickle up fear from non-agency MBS crashing, plus very poor earnings reported by GSEs (fannie and freddie)

2. Where's the cash? The big boys need cash as they continue to write down billions. One way to get it is to sell MBS. Hey! Even though they're getting cheaper by the day, selling MBS creates more cash, more quickly than selling treasuries. Still, the spread between the two is so many standard deviations from the mean at this point that I lost count. I think I'll crack the old business school econ book and see what that means. I do know you want your company to be "six sigma," but you don't want your MBS spread to be!

3. Inflation? Yeah, it may be a factor, but then why all the buying of treasuries this morning? I don't think inflation is as much on the minds of traders today. We're dealing more with the impacts of the two previously mentioned factors.

At any rate (no pun intended), traders don't want MBS right now, though we are seeing some buyers coming in at this point to take advantage of the low prices. As such, the 5.5% coupon stack is significantly up from it's lows of the morning, now down only about 8/32nds. So unless that ticks up here in the next half hour, look for another approximately .25-.375 rebate missing from your rate sheets this morning. We might only lose .125 in some of the higher coupon stacks.

Hopefully some time soon, the MBS supermarket will be perceived for what it is: the Wal-Mart of the fixed income market, and buyers will come in droves as they hit themselves on the head saying: "Oh, that's a way higher yield than I can get on that old 10 year." The reason that hasn't happened again, is likely the negative buzz on other MBS and fears that agency MBS (which is the stuff we always track) will follow suit.

But, I don't know when the discount superstore frenzy will happen or even if it will happen. On a technical analysis, we've moved under all the moving averages that serve as floors. We've even crossed the 200 day moving average today! Bad news! We crossed the hundred day average several days ago. The last time that happened, we stayed below that mark for months. So buckle in for a bumpy ride.

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Originally posted by broker

My impression was that most lenders' secondary department priced (YSP) off the 10 yr treasuries. I just got off the phone with the regional manager of one lender and she confirmed in fact that is what they do.

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Originally posted by 808

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Originally posted by broker

The 10 yr is the 10 yr. I do know the difference between Bills, Notes and Bonds, Sorry to use Bond instead of Note.

Getting back to the issue. I guess I don't understand how others here may run their business.

Part of originating a loan for me, is letting the client know about lcoking them in on a rate with a lender.
When the client says OK lets go, I generally:
1. get the rest of their info over the phone
2. Run them through DO/LP
3. Lock them with a lender (if no surprises in DO/LP)
4. Refis close in 2 to 3 weeks.

To answer your question about moving loans. I suppose in cases of extreme fallout with a particular lender, you could get some flack, but, by and large, my fallout is so low that it is never an issue.

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your obviously not locking any loans w Citi or TBW or Wells Fargo

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Originally posted by broker

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Originally posted by vburek

Broker, i basically do the same thing as you regarding the steps you follow. But if i sell a certain rate to a client, i want to make sure i make the highest ysp. So, i watch bonds, i may lock the day i sell or i might float if i can pick up an extra .25 in ysp. Just maximizing what i make while still giving the client a great rate with great mortgage planning advice. The only area i disagree is saying ysp follows the 10 yr note, cause it just doesn't.

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My impression was that most lenders' secondary department priced (YSP) off the 10 yr treasuries. I just got off the phone with the regional manager of one lender and she confirmed in fact that is what they do.

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Originally posted by anthony7656

Broker I can confirm what brianconner said

Posted - 03/06/2008 : 1:53 PM
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Today is a perfect example of the disconnect between 10 yr. and 5.5% MBS. 10 yr. closed up 81 beeps, 5.5% MBS closed DOWN 103 Beeps!! If you're not watching this, you won't know about rates going up .25 to RATE in one day!

You can google this info your self. 5.5 FNMA 30YR 5.5% is down (-103) MMG will know what this means and US 10 YR T-Note is showing at (+81) BPS only difference of 184 and if you can tell me that our rate will get better by 84 BPS then you are the money but I am sure that by morning my rate is going up by at list 1/4 % and my borrower knows this info since I have to call them and ask them to lock for last 3 days, and now panic has set in..... we'll see how this works out...

Happy Hunting.

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