Kevin Rhine
Assistant Vice PresidentMortgage Loan Officer
NMLS# 763454 (940) 720-8031 kevin.rhine@unionsquare.org
Mortgage News
MBS Day Ahead: The Obvious Bounce Could Be Too Obvious
Posted To: MBS CommentaryAs the week comes to a close, we find bonds continuing to trickle toward the lower end of the range that has prevailed for nearly 3 months. In terms of 10yr yields, the upper boundary is clearly established at 1.95%. The lower boundary is slightly more open to interpretation, but in any event is somewhere between 1.69 and 1.71. With yields moving down to 1.717% in the first hour this morning, it's time to ask ourselves if we're about to see another range bounce. Frankly, the only reason we wouldn't see such a bounce at this point is that it's too obvious. Econ data at home and abroad has been "OK" or better on average (especially in areas of concern like German manufacturing, which came out better than expected overnight). We're not at war with Iran. The coronavirus...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
Read MoreChanges to FICO are on the Way
Posted To: MND NewsWirePaying bills on time is about to become more important for American consumers, and this as their debt levels are reaching new highs. Fair Isaac Corporation, the company which creates the FICO credit score models, will introduce two new ones this summer, the FICO Score 10, and the FICO Score 10- T. The company says its new models "incorporate trended credit bureau data to further enhance predictive power" and that lenders could reduce defaults by as much as ten percent among newly originated bankcards and nine percent among newly originated auto loans, compared to using FICO's previous models. The reduction , the company says, could be 17 percent for newly originated mortgage loans compared to the version of the FICO Score used in that industry. The trended credit bureau data to which Fair Isaac...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
Read MoreClient Engagement, Sales, API Products; Coronavirus Scare; ECB's Low Rates
Posted To: Pipeline PressYes, the change in FICO scores garnered some attention, but much of the focus is on Wells Fargo which just can’t stay out of the spotlight… for all the wrong reasons. Ten days ago we learned that the Bank had $2.9 billion of income in the fourth quarter in 2019 (and $60 billion of residential origination) but income didn’t meet expectations and the stock sank. Yesterday came news that ex-Wells Fargo leaders are personally facing $59 million in fines. Former CEO John Stumpf agreed to pay a $17.5-million penalty and is banned from the industry . Carrie Tolstedt, who led Wells Fargo’s community bank for a decade, faces a $25-million penalty that the Office of the Comptroller of the Currency said could climb higher. The news wasn’t a surprise, but analysts were quick...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
Read MoreMBS RECAP: Markets Finally Doing Interesting Things, But...
Posted To: MBS CommentaryWe had to wait all the way until January 24th of 2020, but bonds finally offered their first real shred of willingness to challenge the established range of late 2019. When we talk about ranges, we use 10yr Treasuries for these reasons . In 10yr terms, the range has been 1.71 to 1.95%, which is reasonably narrow for a 3 month+ time frame. It looked like the range would be quickly crushed as war with Iran quickly entered the realm of possibility on the night of the missile attacks against Iraqi air bases. But with the de-escalation the following day, the range was actually strongly reinforced. Rates have been trickling since then without more than a 5bp move in 10yr yields until today. That same move also breaks us well below the 1.71% boundary to close at 1.686%. As we often discuss, the first...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
Read MoreMortgage Rates Drop to 4.5-Month Lows on Virus Fears
Posted To: Mortgage Rate WatchMortgage rates moved meaningfully lower over the past 2 days as panic over the coronavirus outbreak continues affecting financial markets. If this epidemic ends up being similar to SARS in 2003, it ultimately won't be worth as much of a drop in interest rates as we've seen so far. But the thing about brand new strains of deadly viruses is that neither the market nor the medical community knows exactly how this will unfold. Until that picture becomes clearer, the market is preparing for more dire outcomes. For whatever it's worth, the timeline of the SARS outbreak spanned 2 calendar years (2002 - 2004) but the most notable market impact was confined to the space of a single month (March 2003). We'll be a week into February before the current epidemic reaches a similar milestone. I'm basing that...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
Read MoreHere's How The Average Loan Looked in December
Posted To: MND NewsWireThe average interest rate on closed loans inched up in December and the share of those loans that were for refinancing moved lower. Ellie Mae's Origination Insight Report for the month says the average 30-year fixed rate in December rose to 3.99 percent from 3.97 percent in November and the year's low of 3.93 percent in September. The refinance share across all mortgage products declined from 49 to 46 percent. The share of loans that were originated for FHA rose 1 percentage point to 17 percent in December, taking that point from Conventional loans which dipped to a 70 percent share. The portion of VA loans was unchanged at 9 percent. Adjustable rate mortgages accounted for 5.5 percent or originations. The time to close loans rose to the longest periods of the year , averaging 48 days for all...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
Read MoreForeclosures at 14-Year Low; Loan "Mortality" up 126% Annually
Posted To: MND NewsWireEven though many of the measures are already at record lows, mortgage delinquencies continue to tick downward according to Black Knight's "first look" at December loan performance data. At the same time, the Single Month Mortality (SMM) rate, an indicator of mortgage loan prepayments, continues to increase, but at a slower rate. Mortgage delinquencies fell by 3.75 percent from November to December and were down 12.43 percent compared to December 2018. At the end of the month there were 1.80 million loans that were 30 days or more past due, although not in foreclosure, 3.40 percent of all mortgaged homes. That delinquency rate is 0.04 percent away from the record low set in May 2019. Serious delinquencies declined by 12,000 month over month and 84,000 on an annual basis. At the end of December...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
Read MoreNon-QM, Loan Trading Products; Comp Survey; Moderate Expansion Continues
Posted To: Pipeline PressDid you know that you can vote by smart phone in Seattle ? Did you know that less than 20 percent of the world's population has ever taken a single flight ? (U.S. citizens? About 50%.) Did you know that many economists have forecast that this year will bring neither a recession nor outstanding growth? Market indicators, however, signal strong investor optimism. How about future housing values this year? The Basis Point's latest deep dive on current/future state of home valuations have two major implications for debate and discussion: a hybrid robot/human valuation model makes the system safer than human-only appraisals, and valuations can now power instant home buying, financing, improving. Instant home buying? Push button get mortgage? What if I can't get the movers out to my place for 30...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.
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