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Moral Hazard Residential Mortgage Servicing Policies
The moral hazard issue regarding mortgage servicing and its primary cause stems from the GAAP accounting ruling.
Forward Builder Commitment Indications
The difference between a highly profitable mortgage lender and a mediocre one sometimes comes down to the methods and tools used to minimize risk and decrease liability.
CME 5-year Swap Futures Contract
Based on closing data for the past 6 months, the 5 yr. swap futures contract has tracked the price for UMBS 4.0 on average very well. However, they are very different instruments and basis risk may surprise those who rely too heavily on this relationship especially in the short run.
ARMS Today
Currently Agency cash window pricing for 5/1 & 7/1 ARMs as well as 10/1 and 3/1 ARMS on a retained basis. However, the 3/1 and 10/1 are not marketable based on the rates and prices posted. Thus, we will concentrate on the 5/1 product.
Hedge Commander Updated for Long-term Float Down Locks
MCM has just updated its cloud-based Hedge CommanderTM software to provide mortgage bankers with enhanced tools and systems for the pricing, hedging and origination of loans through long-term float down commitments with rate & point caps.