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MBS

2/22/2019 - Happy Friday everyone. Good news for all you home buyers out there. Housing inventory in Jan. was up 6.3% over Jan. 2018 levels, the largest supply increase in four years! Tight housing inventory was an issue for most of 2018. Freddie Mac reports lower borrowing rates for the third consecutive week, with the 30yr coming in at 4.35%. In the "How the other half lives" news segment, Elon Musk closed with Morgan Stanley on 5 loans at the end of 2018 totaling $61 million. His total in monthly payments? About $180,000! 


In other mortgage news, the Mortgage Bankers Assn. (MBA) reports that the delinquency rate for 1-4 unit residential properties is at 4.06%, an 18yr low. Bonds are up in price today, with the 10yr UST +10/32 to yield 2.66% and 30yr MBS +6/32, to yield 3.57% (+104/Treasuries). MBS origination yesterday was strong at $1.92 billion, with production spread fairly evenly between 3.50%’s, 4.00%’s and 4.50%’s. 


Everyone have a great weekend and don't forget us if you trade MBS, SBA, CRA products or whole loans. We'd like to earn your business!

Mortgage Backed Securities

Five Minute Maturity

Check out this video regarding Mortgage Backed Securities. 

Hanover Securities Cherry Picks

ARMS / FLOATERS

Cost:

Average Life:

Yield:

Speed:

Spread:

Coupon:

# Loans:

Origination:

Lifetime Cap:

WAM:

Factor:

Caps:

Floor:

1 Yr. Libor

$20.6mm+ Fannie Mae 5/1 ARM 3.115% #BM4496 9/48 stated final

$100-16+

3.0 yr

2.88%

15% CPB

+30/Z curve

3.115%

127

2018

8.115% 

352

.9502

2/2/5

1.611

+1.611

10 YEAR FIXED

Cost:

Average Life:

Yield:

Speed:

Spread:

Coupon:

# Loans:

Origination:

Type:

WAM:

Factor:

$102-00

3.6 yr

2.86%

264 PSA

+35/I curve

3.5%

426

100% 2018

Freddie Giant

116

.9860

$10mm+ Fannie Mae 10yr am 3.50% #MA3585   2/29 stated final

15 YEAR FIXED

Cost:

Average Life:

Yield:

Speed:

Spread:

Coupon:

# Loans:

Origination:

Type:

WAM:

Factor:

$98-07

5.2 yr

2.88%

147 PSA

+35/I curve

2.5%

502

2017/2018

Freddie Giant 

167

.9245

$14mm+ Freddie Mac Nugget 2.50% #G18694  5/33 stated final

20 YEAR FIXED

Cost:

Average Life:

Yield:

Speed:

Spread:

Coupon:

# Loans:

Origination:

Type:

WAM:

Factor:

$101-08

5.5 yr

3.24%

247 PSA

+70/I curve

3.5%

449

2018/2019

Freddie Multi

239

1.0000

$9mm+ Fannie Mae 20yr am 3.50% #C92038 3/39 stated final

30 YEAR FIXED

Cost:

Average Life:

Yield:

Speed:

Spread:

Coupon:

# Loans:

Origination:

Type:

WAM:

Factor:

$100-12

8.0 yr

3.43%

147 PSA

+80/I curve

3.5%

25,238

2017

FNMA Major

341

.9176

$68mm+ Fannie Mae 30 yr am 3.50% #MA3210 12/47 stated final

AGENCY CMBS

Cost:

Average Life:

Yield:

Speed:

Coupon:

Call Protection:

Tier

GEO:

DSCR:

LTV:

OCC:

Factor:

$103-13+

9.8 yr

3.40  +70/swaps

0% CPY

3.76%

84 mo Yield Maintenance

2

CA

1.27x

70%

93%

1.0000

$6.4mm FNMA 10/7  DUS #BL1451

3.76% coupon  12/2029 stated final

AGENCY CMO - 3 YEAR

Cost:

Average Life:

Yield:

Speed:

Spread:

Collateral:

Coupon:

Band:

Avg Life:

      w/ rates +300:

Factor:

$98-29+

2.9 yr

3.36%

618 PSA

+85/I curve

Jumbo 30yr 4.00%

3.00%

201-275


6.2 yr 

.9336

$50mm Fannie Mae   PAC 3.00% 

#FNR 2018-13  PA 3/48 stated final

AGENCY CMO - 5 YEAR

Cost:

Average Life:

Yield:

Speed:

Spread:

Collateral::

Coupon:

Band:

Avg Life:

   w/ rates +300

Factor:

$98-07

4.9 yr

3.41%

223 PSA

+90/I curve

Jumbo 30yr 3.50%

3.0%

none


8.0 yr 

.8965

$20mm+ Freddie Mac Busted PAC 3.00% 

#FHR 4683 PD   4/48 stated final

AGENCY CMO - LONG END

Cost:

Average Life:

Yield:

Speed:

Spread:

Collateral:

Coupon:

Band:

Avg Life:

  w/ rates +300

IO till:

Factor:


$93-26+

15.3 yr

3.54%

200 PSA

+75/I curve

New Fannie  Jumbo 3.50%

3.0%

127-199


16.8 yr 

4/2029

1.0000

$13.0mm Fannie Mae PAC 3.00% 

#FNR 2018-8 MU   2/48 stated final

Jim Tait is a registered representative with, and offers securities through Hanover Securities, Inc. (Hanover), Member FINRA & SIPC. Although this information has been obtained from sources we believe reliable, we do not guarantee its accuracy, and it may be incomplete or condensed. This is for information purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. Securities which may be shown are subject to availability and changes in price. Past performance is not indicative of future results. Changes in any assumptions may have a material effect on projected results.


This information from Hanover Securities is for your private use and does not constitute an offer or solicitation with respect to the sale of any security. This information was obtained from sources we believe to be reliable but we do not represent that it is accurate or complete, and it should not be relied on as such. Certain transactions may give rise to substantial risk and are not suitable for all investors. This information was based on current market indicators which may vary over time. We may from time to time buy or sell, or have long or short positions in securities identical or related to those identified herein. 


Although this information has been obtained from sources we believe reliable, we do not guarantee its accuracy, and it may be incomplete or condensed. This is for information purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. Loans and/or Securities which may be shown are subject to availability and changes in price. Past performance is not indicative of future results. Changes in any assumptions may have a material effect on projected results. This information from Banes Capital Group (BCG) and/or Hanover Securities is for your private use, and was obtained from sources we believe to be reliable. However, we do not represent that this information is accurate or complete, and it should not be relied on as such. This information is for institutional investors only, and as such certain transactions may give rise to substantial risk and are not suitable for all investors. This information was based on current market indicators which may vary over time. We may from time to time buy or sell, or have long or short positions in loans or securities identical or related to those identified herein. 


The pricing of loans or any Level II or III asset is inherently an exercise in quantifying uncertain variables. As such, great care should be taken when pricing loans for reporting purposes. The information included herein should never be taken as the sole method, or even a method to be relied on, for the pricing of loans or other Level II or III assets as this is for informational purposes only.

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