Chrisman Commentary - Daily Mortgage News

9.24.21 Apologies to Hemingway; Why Rates Rose Yesterday

September 24, 2021
Chrisman Commentary - Daily Mortgage News
9.24.21 Apologies to Hemingway; Why Rates Rose Yesterday
Show Notes Transcript

Thanks to today’s podcast sponsor, Reggora. If you haven’t heard about Reggora yet, pay attention. Reggora is a fast-growing fintech, dedicated to modernizing residential appraisal and valuation. Lenders and appraisers across the country are seeing impressive efficiency gains and cost reductions with Reggora’s platform—including a 213% increase in appraisal
capacity and saving $70 per loan file. All this efficiency comes from configurable automations and embedded LOS and POS integrations, which bring speed, transparency, and control to the appraisal process. In fact, Reggora’s platform is the only appraisal solution on the market to truly unlock the full potential of loan file data and documentation. Integrating deeply with your tech stack, Reggora can deliver the right data and documentation to stakeholders
inside and outside of your organization in virtual real time. Reggora enables appraisal desk managers to reduce double work and empowers loan officers to close faster. Learn more at

In response to FHFA's September 14th announcement, loanDepot Wholesale has removed occupancy LLPAs on investment properties and second homes. The rate sheets and mello® 

Broker Portal have been updated to reflect these fee changes, effective on loans locked today or after. 

Conventional LLPA’s for Investment Properties and 2nd Homes has been significantly improved, applicable to new locks as of September 17 and going forward. All pricing vendor partners have been notified of this change. View the Franklin American Mortgage Company rate sheet for the new LLPA.

Starting with new locks as of Thursday, September 16, 2021, Flagstar Bank improved the listed Agency Investment and Second Home loan level price adjustments.

Investment/2nd Home LLPA and LTV Limit adjustments have been removed from all First Community Mortgage Wholesale Second Home and Investment properties. Loan Level Price Adjustment (LLPA) 2 Points, above Standard Agency. Maximum 75% LTV/CLTV.

Capital markets

Do you need to sell loans your company no longer needs or desires to hold? We work with mortgage lenders and sellers of all sizes across the country to facilitate whole loan trades, whether it’s a reaction to historic volume from 2020 or adjusting to the new Government Sponsored Enterprise (GSE) purchase caps, we can help. NASB Whole Loan Trading has a dedicated loan purchasing team, that provides a quick turnaround along with competitive pricing. Regardless of if it’s “scratch and dent” seasoned or non-seasoned loans in your portfolio, we buy both scenarios. NASB purchases* in bulk or even potentially individual loans. We buy residential property loans (1-4 units), mortgage loans in 1st lien position (excluding HELOCs), and loans underwritten to Agency standards but are non-salable. Contact NASB Whole Loan Trading Today! *Purchase approval subject to NASB’s purchase loan due diligence review.  NMLS ID: 400039, EHL, & Member FDIC.

MIAC is offering a portfolio of approximately $63 billion of XS IO, comprised of FHLMC/FNMA/GNMA/PLS collateral and produces a strip of approximately 6.8 bps. The collateral carries a note rate of approximately 4.35% and is seasoned by 129 months. The pool is not a security but rather a private contract between the current investors and their servicers. The bid date is September 29th by EOD. For details and an offering memorandum, after completing a requisite NDA, please contact your MIAC sales representative at 212-233-1250 or Steve Harris.

Why did rates go up yesterday? First, countries around the world continue to see good news about their respective economies. Nice to see, but good economic news typically leads to higher rates. On the flip side, ever heard of Evergrande? Yes, think “big Chinese company.” Like Lehman? Will Evergrande’s default lead to a collapse of China? Banks around the world are trying to reassure markets that the Evergrande debacle is contained. Here in the U.S., the Fed’s soothing words on the strength of the economy jump-started a two-day rally that more than offset the big decline on Tuesday. Stocks have rallied nicely, and the “risk-on” sentiment translated to less interest in fixed-income securities. U.S. treasuries, and with them mortgage-backed securities, sold off on the risk-on move, trading lower in price and higher in yield. The 10-year treasury closed down -23/32nds to 1.410% yield, the highest since early July.

The only scheduled news out today is New Home Sales. It is not an “important 8:30AM ET number,” so probably won’t move the market much. We start Friday with the 10-year yielding 1.42 percent but Agency MBS prices better/up a few 32nds.

A father passing by his son's bedroom noticed the room unusually clean and saw an envelope propped up prominently on the pillow. It was addressed, “Dad.” With the worst premonition, he opened the envelope and read the letter, with trembling hands.


Dear, Dad. It is with great regret and sorrow that I'm writing you. I had to elope with my new girlfriend, because I wanted to avoid a scene with mom and you.

I've been finding real passion with Stacy. She is so nice, but I knew you would not approve of her because of all her piercings, tattoos, her tight motorcycle clothes, and because she is so much older than I am.

But it's not only the passion, Dad. She's pregnant. Stacy said that we will be very happy. She owns a trailer in the woods, and has a stack of firewood for the whole winter. We share a dream of having many more children.

Stacy has opened my eyes to the fact that marijuana doesn't really hurt anyone. We'll be growing it for ourselves and trading it with the other people in the commune for all the cocaine and ecstasy we want.

In the meantime, we'll pray that science will find a cure for AIDS so that Stacy can get better. She sure deserves it!

Don't worry Dad, I'm 15, and I know how to take care of myself. Someday, I'm sure we'll be back to visit so you can get to know your many grandchildren.


Your son, Josh.


P.S. Dad, none of the above is true. I'm over at Jason's house. I just wanted to remind you that there are worse things in life than the school report that's on the kitchen table. Call when it is safe for me to come home.


Visit for more information on our industry partners, access archived commentaries, or to subscribe to the Daily Mortgage News and Commentary. If you're interested, visit my periodic blog at the STRATMOR Group web site. The current blog is, “An M&A Snapshot.” The Commentary’s podcast is live and at any place you obtain your podcasts (like Apple or Spotify).