Fantasy Football Woes.   I’m having the worst Fantasy Football year ever. For many of you this news is probably extremely disappointing. I know, I know, you expect more from your Rep, but I just can’t get it together this year. I’ve been playing in my homie group for about 20 years, I even won it once, but this year is the worst ever…my team is just awful. As an example, I think my Defense is my best player. I’ve had injuries and players just not stepping up. This season is already over. That’s all I have to say about that.

My Market Watch:  Bonds Down Slightly – Gov’t Shutdown 15 – Fixed Pricing Worse.  The 30-year Fannie Mae bond is trading lower on the day but is actually up ever so slightly since our rates were published. But don’t expect a reprice improvement…everyone is listening intently on Washington…its everything right now.  Trading has come to a halt as everyone is keying listening to Capital Hill and the Fed. Once again the GOP attempted to resolve the impasse by trying to sneak in an alteration to Obamacare. Dudes! Obamacare is already a law…it was already enacted! You can’t change that this way…it’s inappropriate…it’s, it’s, it’s not right. GET OVER IT! Aaiiyyaayyaaaaaaaaaa.

Get Locks Before The End. I think it’s fairly obvious at this point that an end to the shutdown will result in a resurgence in stocks and bonds will suffer. An end is imminent in my opinion…I advise you use it as a catalyst to get some locked loans. Simply put, an end to the shutdown will increase a demand for stocks since traders will want to invest in the economy. When that happens bonds usually sell off which lowers its price. Capital Markets typically responds by adjusting rates/pricing for the worse.

Government Shutdown Remains. It is now day 9…I reiterate my point that Obamacare is a valid law, enacted by due process.  Again, if Republican leaders don’t like it, then they should work to change it using constitutional methods, not extortion. Whether you like Obamacare or not, and whether you are Democrat or Republican or otherwise, you should not excuse our leaders’ actions. I am extremely disappointed in our Republican leaders.

Wholesale: Non-Conforming Matrix & Guidelines
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Interbank Will NOT Require Transcripts for all conforming and High-Balance Agency loan transactions. In order to facilitate loan closings during the government shutdown, Interbank has amended its requirements for IRS transcripts, Social Security number validation, and verification of employment…email me for specifics.

I flailed about like a fish fighting in the boat after being pulled out of the water…and then gasping…trying to breathe. You ever had that feeling? It’s awesome!  As I came into the house from grilling in the backyard to join neighbors and my wife, I attempted to sit on a bar-stool in front of the island in my kitchen.  I missed…  Falling down isn’t that bad if you’re even slightly prepared for it, you know, like when you can put your hand down to break the fall. But when you fall on your ass unexpectedly and with no way to break the fall, you tend to fall hard, very hard, and that’s exactly what happened to me. Yowza!

My tail hit the floor and that hurt real bad. There was a slight hesitation…and then my back spasmed and I couldn’t breathe…it threw me into the flailing fish-like action. My daughter was screaming…based on my reaction I think she thought my torso was severed from a Ninja attack…no doubt she will require psychiatric treatments. My wife tried to hold back her laughter…she’s been tormenting me all weekend. Aaarrrggg. You know those movies where someone is shot in the legs six times but still manage to run five miles to save the day…yeah, apparently that’s not me.

My Market Watch:  Bonds Up – Gov’t Shutdown Remains – Fixed Pricing Improved Yet Again.  The The 30-year Fannie Mae bond is trading higher about +16bps. But it was up higher earlier when rates were published and now it’s fallen about -12bps since then. Although this is not enough to warrant a mid-day rate change yet, Capital Markets has been trigger happy with mid-day reprices…as a price leader that tends to be the case since hedging is so critical. Be on the look out…if bonds fall much further you should expect a rate change for the worse.

The interesting thing is the government shut down has helped bonds tremendously. Why?  It’s indirectly helped because stocks have been affected negatively. When traders pull money out of stocks they will typically invest in bonds instead. And when traders invest in bonds the price improves and Capital Markets improves our rates. Watch out when the government goes back to work…my guess we’ll see a reversal and rates will climb fast.

Government Shutdown Remains. It is now day 7…I reiterate my point that Obamacare is a valid law, enacted by due process.  Again, if Republican leaders don’t like it, then they should work to change it using constitutional methods, not extortion. Whether you like Obamacare or not, and whether you are Democrat or Republican or otherwise, you should not excuse our leaders’ actions.

Wholesale: Non-Conforming Matrix & Guidelines
Correspondent: Non-Conforming Matrix & Guidelines

She is Not Invisible.  My wife is not invisible as she suggested in her heartfelt story, but apparently many women over the age of 40 feel that way. I don’t claim to understand women despite spending nearly the last 15 years with my beautiful adventurous Travelmama wife. But I do understand this…Colleen is thoughtful to a fault and courageous in her expression.  There are many stories she’s written over the years I admire, and these two are among them, even if I don’t understand why she feels the way she feels. But many obviously feel the same way…evident by the number and content of the comments. Her first story was Midlife Crisis in Maui and was followed by Finding Myself on a Horse in Hana. Here was my comment I posted to her story,

You have always been incredibly sexy and nothing has changed. I know you’re writing about how you feel, and I commend you for your bravery in that regard, but if you think you’re not sexy you’re wrong…crazy maybe…but definitely not not sexy.

Photos courtesy of Travelmamas.com.

My Market Watch:  Bonds Up – Government Shutdown Remains – Arm & Fixed Pricing Improved.  The 30-year Fannie Mae bond is trading higher about +15bps.

VIDEO: Doors Locked

Rates/pricing continue to be strong and improved, and I see no reason for that to change at the present moment. First, traders continue to buy bonds despite the Weekly Jobless Claims report coming in lower, meaning less people were claiming they are out of work. To traders a report such as this usually indicates an improved stronger economy and typically these traders would use this as a good reason to buy stocks and sell off bonds. Logically rates/pricing would worsen as a result…but not today. Bonds continue to hold their ground, no doubt because of the sustained government shutdown. Second, there are nasty storms looming in the Gulf…nasty weather has a tendency to work against stocks and indirectly in favor of bonds. For these two reasons, I expect our great rates/pricing to hold. That said, the trend or moving averages as we like to call them indicate rates have reached a high level of resistance. That is, the chances rates/pricing will continue to improve isn’t great, unless something positive happens to push them over the ceiling….

Government Shutdown Remains. It is now day 3 despite a meeting between President Obama and leaders of Congress last night. I really don’t think the President is going to back down and why should he? Obamacare is a valid law, enacted by due process. If Republican leaders don’t like it, then they should work to change it using constitutional methods, not extortion. Regardless of my opinion about the Act itself, as an attorney I am confused and even offended by our leaders’ actions.

No Jobs Report Tomorrow. Fed Meeting on Monetary Policy – QE Tapering Likely Delayed. The Jobs Report was scheduled for tomorrow but now it will not be released. Similarly, the Fed meeting this month to discuss QE tapering will likely be postponed or cancelled.

Wholesale: Non-Conforming Matrix & Guidelines
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Shutdown Impact – 4506 Transcript Delays.  First, my sarcastic post yesterday received a flurry of responses, mostly supportive, a few confused about my point. My main point was the Republican Party is completely out of line and it infuriates me since it has already lost two elections and now promises to alienate even more American voters. Simply put, Obamacare is already a law. Our elected officials’ job at this point is to provide a budget, not fight an already existing law. We cannot shut the government down at this point…it’s inappropriate and irresponsible both to our economy and to the Republican Party itself. I think the Republican Party is putting itself in even greater danger by doing so. But enough about that.

4506 Delay Because of Shutdown.  A direct impact of the shutdown is Interbank’s ability to receive ordered transcripts from the IRS. From what I understand, we aren’t going to get them. So, Interbank will do what it can to move transcript conditions PTF, and, we might even fund without the transcripts if the loan profile warrants it…but no promises. Everything will be case-to-case. I can tell you that any Jumbo loans, loans with DTI >40% and self-employed loans will probably not fund without transcripts.

New 4Q Comp Plans. If your comp plan changed for the 4th quarter it is applicable today. All loans that are submitted today, meaning you are uploading the submission package to Interbank, must reflect your new comp plan. When the loan was locked is irrelevant. Let me know if you have questions.

My Market Watch:  Bonds Down – Government Shuts Down – Arm & Fixed Pricing Unaffected Thus Far.  The  30-year Fannie Mae bond is trading lower about -15bps. Being a price leader can sometimes make Capital Markets trigger happy on mi-day reprices. If the bond ticks down another 5-10bps we could see a reprice for the worse.

Jobs Report Delayed?  The Jobs Report was scheduled for Friday but now it might be delayed.

Fed Meeting on Monetary Policy – QE Tapering Delayed?  Similarly, the Fed meeting this month to discuss QE tapering might also be affected…it might also get delayed. This is the one good thing about the shut down since any discussion of QE tapering would likely result in increased rates.

Wholesale: Non-Conforming Matrix & Guidelines
Correspondent: Non-Conforming Matrix & Guidelines

WARNING – SARCASM DETECTED!

American Psyche.  Sure, let’s shut the government down…what difference does it make? Estimates appear to be in the $1.5 billion range but that’s no big deal, right? And what about the Republican party?  They can take the hit even if most American’s feel they are acting like cry babies willing to hurt our entire economy to ensure our President doesn’t get his way. But no matter…the Republican Party is strong, right?  It can take it!

It’s not like the Republican party has been reeling the last two elections. Sure, Mitt Romney was unable to connect with middle-minded Americans and these citizens sided with the Democratic Party as a result. But it’s not like the Republican party has lost that many numbers, right? It’s not like the Republican party needs to find its way back to the majority. The Republican party can withstand yet another hit to its public confidence. I’m sure the middle-minded American people will flock to support the Republicans after they are blamed for the government shutting down. Eh, who cares anyway…we’ll just have Democrats on Capital Hill indefinitely…no big deal, right?

Oh, and our economy can take it, can I get an “Amen!” Sure sure, we’ve got nothing to worry about…the economy is improving, right? Oh, wait a minute, the Fed decided not to taper QE because it said the economy was still too fragile. Oh well, I’m sure shutting the government down won’t impact things. I’m sure our elected officials have our best interests at heart.

We’re the world’s super power…nothing can stop us. Even an internal meltdown and constant bickering instead of working together won’t weaken the great United States of America!  Our elected officials can play rock ’em sock ’em robots all day long and we’ll still be the best! In fact, I’m sure our most successful American businesses are taking notes on how to be more successful next year. America is teaching its businesses and future leaders that an approved budget just isn’t necessary…we don’t need it!  I’m so proud!

My Market Watch:  Bonds Flat – Government Shutdown Looms – Arm & Fixed Pricing Unaffected Thus Far.  The  30-year Fannie Mae bond is trading flat. At one point I was concerned bonds would be sold off and Capital Markets would reprice for protection, but that threat appears to have dissipated.

Government Shutdown. The government is preparing to shut down tonight unless a last-minute resolution is reached. Again, I just can’t believe I typed that. And quite frankly I have no idea how the markets are going to react to either a shutdown or a last minutes resolution. I guess it could go either way. Since traders are not doing anything, I don’t think they really know what to do either.

Wholesale: Non-Conforming Matrix & Guidelines
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It’s not the miles, it’s how you live them…  Life is not a journey to the grave with the intention of arriving safely in a pretty and well-preserved body. But rather, to skid in broadside, thoroughly used up,totally worn out, and loudly proclaiming …. WOW what a ride! ~Mark Frost

It’s not the miles, it’s how you live them…

My Market Watch:  Bonds Up Again – Arm & Fixed Pricing Improved…Again!  The  30-year Fannie Mae bond is trading up again about +30bps.

Government Shutdown. What?!  The government is preparing to shut down next week. I can’t believe I just typed that. I don’t even know where to begin on this topic. Is Obama right? Should he continue to stand his ground? Are the Republicans being unreasonable? At what cost? I’m absolutely categorically disappointed in our government, Democrats and Republicans alike. That’s all I have to say about that, at least for now….

I strongly encourage you to lock as many loans as you can…preferably now. I know pricing has improved steadily, but rates are great…get commitments from your borrowers!   Take advantage of this time. I don’t want to be a buzz-kill, but it’s not going to last. If we’re lucky, we can squeeze a couple of more months out of the current low trend. But eventually QE Tapering will make its way back to the forefront, and when that happens, well, you know….  So, use this as a motivation to get as much business as you can, and acquire as many referral sources as you can. When rates increase, you will need those referral sources greatly.

Wholesale: Non-Conforming Matrix & Guidelines
Correspondent: Non-Conforming Matrix & Guidelines

Lenny Kravitz Is Cool  I’m a fan…love his music. And if you look Lenny Kravitz up in the dictionary it simply says, “cool.”  I even follow him on Facebook and I don’t follow any other celebrities…not really my style. So let me make a case for this odd and somewhat embarrassing behavior.

First, he married Lisa Bonet who I was absolutely in love with when I was in high school…she’s my age you know. Ugh. Second, even though he is divorced from Lisa, they have a kid together and remain close friends. They even hang out with each other and with their new spouses. I don’t think I could do that but I admire it…very mature. Third, Lenny is very laid back and seems to me to be very down to earth, unlike most Hollywood types. I love this post he put on Facebook…he was having a drink in New Orleans and heard a band playing his song “Fly Away” in the distance. So, he went to investigate…see what happens….  I don’t even think most of the kids realized who he was…you got to check this out. 

My Market Watch:  Bonds Up – ARM & Fixed Pricing Improved.  The 30-year Fannie Mae bond is trading positively this morning and is up +13bps on the day. As a result, fixed pricing is improved from Friday.

This week has a lot of housing reports. Hopefully with QE Tapering off the table for a month we might see some stable responses from Capital Markets when the reports starting coming in tomorrow. I think this is a good time to lock although I wouldn’t be surprised to see many float in hopes of better pricing throughout the week. For my money, I think we’re at the top of the roller coaster.

I could write something about Durable Goods or other housing data, but suffice it to say the reports have been uneventful this week so far and bonds remain sticky at their current levels. This is a welcome sight since volatility seems to work against bonds most of the time, at least for the last 4 months. The other encouraging news is the data on the purchase market which seems to be strong. This is a bit concerning to me since the brokers I speak to indicate that purchases have been harder to find. Hopefully the uptick in MBS buying will help.

Wholesale: Non-Conforming Matrix & Guidelines
Correspondent: Non-Conforming Matrix & Guidelines

Pink Party!   My wife turned 40 yesterday (shhhh, don’t tell her I told you) and she wanted a pink birthday party…so that’s what she got. We had pink food, pink drinks, pink flowers, pink cake, pink decor, and guests came dressed in pink. It was pinkalicious! The best part of the party was having Colleen’s sister fly in from Minnesota for the pink festivities.  What a weekend!

Strong Nerves.  I don’t want to get kicked out of the man club so I’ll tread lightly here, but I have sensitive nerves. I went to the dentist to get a filling replaced. They hit me with the novacaine. Then I told the hygienist I wanted more…I explained I’ve had issues in dental chairs before. So, she hit me with another dosage of pain killer.

You’d think I’d be good at this point, yes? No. The dentist hit something and my reaction must have scared the living crap out of him. If I were Spiderman I would have sprung out of the chair and found myself clinging to the ceiling. So, they hit me with the third dosage. At this point I couldn’t feel half my head which was fine by me. However, trying to drink some coffee and eat some eggs that morning became quite challenging.

Fed Tapers Tapering!  I said the likelihood the Fed would back off QE tapering was as likely as:

1. The Minnesota Vikings Winning the Superbowl;
2. Me winning the Powerball Lottery; and
3. The Fed declaring daily Happy Hour mandatory for the entire mortgage industry.

DREAMS DO COME TRUE! The Fed said it would continue to buy bonds at the same clip previously, nearly $85/month because of a soft economy. I am ecstatic! Price improvements are coming already…buckle up! The Fannie 30-year bond is up over +115bps so far and rising! Interbank already repriced twice and the bond continues to soar. I recommend you wait to lock and see where things settle for now.

Wholesale: Non-Conforming Matrix & Guidelines
Correspondent: Non-Conforming Matrix & Guidelines