08-14-2023 Weekly Mortgage Updates with Adam DeSanctis, Les Parker, Matt Graham, David Kittle, Alice Alvey, Allen Pollack, Marc Helm, and David Lykken

08-14-2023 Weekly Mortgage Updates with Adam DeSanctis, Les Parker, Matt Graham, David Kittle, Alice Alvey, Allen Pollack, Marc Helm, and David Lykken

Show notes:

TMSpotlight:

8.14.23 How's Your Appetite? "Eat the Rich"

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Well, rates moved up last morning
On the wrong side of the trade
And now Bonds got to thinkin'
About all those things Jay said
About rich MBS trades
And how they make apps sick.

In Japan and Europe, inflation eased, tanking the Dollar and sinking Oil.  But, the bearish US news caused rates to rise amid erratic price action.

Loans can get adversely priced when locks come in during volatile moves.  On Friday afternoon, hedgers that waited to sell the flow discovered the pain of selling below the locked price.  It made the locks rich.

Secondary tries to fade trades or sell ahead of future flows to Beat the Rich lock.  The hedging axiom lives: “You can’t hedge away richness.”  But they try.

These views are mine.
Beat the rich
Don't stop them now.  They’re going crazy

Beat the rich
Now that's their idea of a good time, LO
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Song:  Eat the Rich (1993)  Aerosmith
https://www.youtube.com/watch?v=o-0lAhnoDlU

The Lykken on Lending program will feature our Weekly Mortgage Updates with Adam DeSanctis and his MBA Mortgage Minute, and then Les Parker’s TMSpotlighta macroeconomic perspective on the economy with a music parody. That leads to Matt Graham of MBS Live providing you a rate & market update, followed by David Kittle, Chief Executive Officer @ Cypress Mortgage Capital, to discuss mortgage originations. Then we have Alice Alvey of Union Home providing a regulatory & legislative update, then Allen Pollack giving us a Tech Report on the latest technology impacting our industry. Finally, we wrap up the first half of the program with Marc Helm, Senior Executive Partner @ Transformational Mortgage Solutions, talking about Loan Servicing and the “Agencies”.