Know Before You Owe: Closer to Closing — Testing, Testing ….

The Consumer Finance Protection Bureau has begun testing two new forms to replace the current HUD-1 and Final TIL, which integrate the existing forms into one consumer user friendly form.

The Bureau is seeing feedback on which of the two designs works best.  To see examples go to:  http://www.consumerfinance.gov/knowbeforeyouowe/  and share your thoughts.

Unlike previous changes that have impacted mortgage brokers and bankers, the Bureau is seeking input on the forms, the process and how functionality of disclosures.  The new forms are being tested in Birmingham Alabama.  To have your say go to:

http://www.consumerfinance.gov/knowbeforeyouowe/

• Which design works best? Why?
• Is the information presented in a consumer-friendly format?
• Could consumers easily identify key loan terms and closing costs?
• Does the disclosure cover all the important information you need?
• Is the document easy for lenders and settlement agents to use?

Mortgage Market Update

Good morning,

We are seeing unprecedented trading in the MBS markets this morning and traders as well as Tier One lenders have been struggling to come up with prices to convert to mortgage rates-we will have pricing posted as soon as possible however the lock desk may be delayed slightly from the 11am ET start time to allow some consensus to be built in the markets.

MBS is trading up 24 ticks after the huge run up late yesterday so expect some improvement once pricing is established.

 

Thank you,

Mike Brown

Capital Markets

Mortgage Market Update

After a wild week last week economic releases are light in the coming days, so focus in bond and equity markets is the world-wide recovery, or more importantly lack thereof. With 10 year treasury dabbling with the 2 handle last week, we find the yield early today at 2.99% so the safety play is still on.

Stocks appear slightly weak at the open but no 200 point drops in the works for this morning. MBS is trading close to the closing price from Friday so do not expect much excitement today-for a change.

Greece, Portugal and the growing concern of losing momentum in the US is driving yields lower-stocks still holding up after a long run from the bottom in 2009, as it appears the only place the US stimulus activity seems to have made a difference is in corporate treasuries! Now that that has run out, we shall see how the earnings look this summer.

 

Mike Brown

Capital Markets

Stonegate Mortgage Corporation

Mortgage Market Update – Afternoon

Market has held on to a small gain this afternoon, 4/32nds from the opening price at 9:30.  We have not posted new prices; however, we are improving our fixed rate products by 0.20 in price for the balance of the day.  We will not send new rate sheets but pricing has been added to pricing engines for retail users.

Thank you,

Mike Brown

Capital Markets

Stonegate Mortgage Corporation

Mortgage Market Update

Following a very ho-hum 7 year treasury auction today markets are off their best levels of the day in bonds-10 year yield up to 3.33 from 3.30 and MBS 2 ticks under the opening price.

Stocks still up small amounts, following the love-in with Ben Bernanke yesterday, so at 2pm ET does not bode well for any better pricing mid-day.  Looking like a take it or leave it day.

Mike Brown

Capital Markets

Stonegate Mortgage Corporation