Although the credit markets are open until noon EST, and thus rates are moving, the Fannie Trading Desk spread the word to clients, "Due to Hurricane Sandy, the Capital Markets Sales Desk will be closed for MBS trading on Monday, October 29th. We will provide liquidity through our whole loan platforms, eCommitting and eCommitONE, until 12:00 PM EST. Fannie Mae's DC, VA, MD and PA offices will be operating with minimal staffing during the storm. We will continue to monitor conditions to determine additional recommendations for Tuesday. Market participants should be aware that SIFMA has recommended a 12:00 PM EST close for the fixed income markets. Please see the link here for SIFMA's announcement."
There is a lot going on with the agencies. (There are some Fannie & Freddie considerations at stratmorgroup .com, click on the link near the top right corner.) But I received this note last week, "Rob, any truth to the rumor about Fannie closing down its gfee related MBS business and have all the business go through its cash window?" Darned if I know - ask your agency rep!
Seriously, remember that these agencies are trying to make a profit, just like "private enterprises" like mortgage brokers, PHH, Wells Fargo, whoever. Recent changes say nothing about charging lower gfees in states that are below the national average. What about that side of the argument? I wouldn't be surprised if that happened. But returning to the question, remember that there are two basic ways to sell loans to the agencies: the "cash window," and the rate sheet guarantor relationship. Both are based on pricing directly to the securities, the delivery is somewhat similar although actual delivery involves delivering to a different class period based on standard calendar...
...(read more)Source: http://www.mortgagenewsdaily.com/channels/pipelinepress/10292012-gfee-impact-on-mortgage-prices.aspx
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