Mar 30, 2020
12:31:35am
12:31:35am
Don’t know about b of a or chases liquidity situation but the main problem could
Be the need for cash.
Right now the bank is needing money for the following activities.
Advances in their servicing portfolio (huge)
Margin calls
The fund to purchase timeline is increasing dramatically (huge)
If their cash is used for those activities, they might not have it to originate mortgages.
They will originate but for the next few weeks it’ll be slow until the situation calms down and they know their cash constraints better.
Right now the bank is needing money for the following activities.
Advances in their servicing portfolio (huge)
Margin calls
The fund to purchase timeline is increasing dramatically (huge)
If their cash is used for those activities, they might not have it to originate mortgages.
They will originate but for the next few weeks it’ll be slow until the situation calms down and they know their cash constraints better.
Originally posted on Mar 30, 2020 at 12:31:35am
Message modified by conetah on Mar 30, 2020 at 7:50:44am
- Bio page
- conetah
- Joined
- Feb 27, 2011
- Last login
- Apr 28, 2024
- Total posts
- 21,167 (2,833 FO)
Messages
Time
10 year treasury back down - right now it's at .66% Plus, the Fed bought $183B of mortgages last week and is still
3/29/20 9:35pm
They are going down and that's the problem for some lenders. Some are getting crushed on their hedges. But with rates
3/29/20 9:39pm
It won’t happen. Investors and lenders will go broke and destroy the liquidity of the housing industry.
3/29/20 9:41pm
plenty of lenders are fine.. and their spreads are wide right now and the Fed is buying everything up... the healthy
3/29/20 9:43pm
They are not fine. If they think they are fine they are ignoring the industry wide issue. All lenders are at risk.
3/29/20 9:48pm
3/29/20 9:54pm
3/29/20 9:47pm
3/29/20 10:05pm
3/30/20 12:55am