November 9, 2018

Market News

Stocks are moving lower to begin Friday’s trading session as weakness in the technology sector weighs on investor psyche.  Energy producers are also down big in the AM as crude trades in a bear market.  The S&P500 is currently trading at 2,782.20, 0.88% lower, and is 4.06% higher YTD.

Treasuries are marginally higher in the AM as investors digest the latest Federal Reserve policy announcement.  FOMC members relayed that they expect “further gradual increases,” which was congruent with market expectations, and also set the stage for a December 25bp increase.  The US 10-YR Note is currently trading at 3.1875%, 0.0499 lower.

TBA MBS’ are little changed in the early morning shuffle as MBS investors peruse the latest FOMC announcement.  The statement read, “The Committee expects that further gradual increases in the target range for the federal funds rate will be consistent with sustained expansion of economic activity, strong labor market conditions, and inflation near the Committee’s symmetric 2 percent objective over the medium term.”  Liquid coupons are currently trading 6 tics higher.

The USD is moving higher in the AM after PPI data came in stronger-than-expected.  The Producer’s Price Index came in at a 0.6% MoM rise versus analyst estimates of a 0.2% increase.  The DXY is currently trading at 96.79, 0.16% higher.

Oil continues to move lower as concerns over supply have investors on edge.  WTI is currently trading at 59.75, 1.52% lower.

 

Josh Pappert – VP, Capital Markets
Nations Direct Mortgage

 

Disaster Announcement – California Wild Fires

Three large fires have engulfed Butte County(Camp Fire), Southern Ventura County and Northwestern Los Angeles Counties (Woolsey & Hill Fires), many properties have been destroyed and thousands are being evacuated. Properties located in the affected areas listed below are subject to re-inspection if the appraisal was completed on or before the incident period. Counties may be added or removed as the fire progresses and information on the damage becomes apparent.

Incident Period; November 9th to (on-going)

Affected Areas

  • Butte County
  • Malibu
  • Westlake Village
  • Thousand Oaks
  • Agoura
  • Agoura Hills
  • Calabasas
  • Saratoga Hills
  • Camarillo
  • Hidden Hills
  • Simi Valley
  • Newbury Park

Re-Inspection Policy

For properties located in an NDM declared disaster areas, NDM will require a property re-inspection as per the below “Inspection requirements”. Re-inspection requirements are expected to remain in place for all properties with appraisal dates prior to the incident end date or for at least 90 days following the incident end date for loan transactions where an appraisal inspection is not otherwise required, unless otherwise announced by NDM.

Re-Inspection Requirements

If a property is in a identified disaster area and the most recent appraisal in the loan file was completed on or before the incident period end date*, or an incident period end date has not yet been declared, then, subject to the applicable product and program requirements, NDM requires that an acceptable property inspection meeting the following requirements be completed prior-to-purchase:

  • A final exterior inspection or appraisal update signed by the original appraiser and completion date
    • Appraisal Update, form Fannie Mae 1004D, Disaster Inspection, or
    • Completion Report, form Freddie Mac 442, or
  • Property Inspection Report –
    • Form Fannie Mae 2075, or
    • Form Freddie Mac 2070, Streamlined Inspection

 

Kris Gomez, Chief Credit Officer
Nations Direct Mortgage