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BLUELINE Blog

Market Commentary: Optimal Blue Examines the Mid-Cycle Adjustment

At its July meeting, the Federal Open Market Committee (Fed) cut its baseline interest rate by 0.25%, its first rate cut in more than a decade. Since the last rate cut, they have executed three rounds of Quantitative Easing (QE), significantly reduced the balance sheet from [...]

Market Commentary: Rates Are Falling, Will It Continue?

With the 10-year treasury yield at 2% again, and the Federal Funds Rate (FFR) at 2.5%, it is natural for the rational mind to assume that this cannot go on for much longer. During normal market conditions, the treasury curve slopes upward; typically, short-term treasuries [...]

Automating the Secondary Marketing Function: Part I

/ by Scott Happ

In the U.S. mortgage market, most loans are sold to secondary market investors during or immediately following the origination process. Although elementary to some, this structural characteristic creates a series of functional requirements for lenders which are generally [...]

Market Commentary: The Impact of Low Rates on Lender Profitability

Consider the direct impact of our recent favorable rate trend on lender profitability. In the paragraphs below, we examine how lower mortgage rates can equate to higher margins for lenders as seen through the primary-secondary spread.

Market Commentary: Monetary Policy Impact on the Mortgage Market

U.S. monetary policy is the purview of the Federal Reserve (Fed) and is broadly responsible for the health and stability of the economy. The Federal Reserve Open Market Committee (FOMC) is the group that decides the monetary policy that the Fed will implement in order to [...]

Examining the Bid Tape Assignment of Trade Strategy

Assignments of Trade (AOTs) have existed in the secondary mortgage market for decades, though a variation that may be somewhat unfamiliar is the bid tape AOT. While it has existed for a couple of years, the industry is just now starting to see exactly how pervasive it has [...]

Market Commentary: Rates Falling, Are Volumes Responding?

Optimal Blue recently released a suite of indices known as the Optimal Blue Mortgage Market Indices (OBMMI™). These indices are calculated from actual locked rates with consumers across more than 30% of all mortgage transactions nationwide and are developed around the most [...]

Bid Tape: A Reflection & Tomorrow's Opportunity

/ by Don Brown

Some years ago, I authored an article in which I was advocating “the new” bid tape process and encouraged readers to give it a try. It seems a bit trite at this point, as so much has changed over the last few years. I feel obligated to revisit the status of this strategy and [...]

Social Media Compliance: Monitoring vs. Auditing

For those that are unfamiliar, there are a total of seven components to the Federal Financial Institutions Examination Council's guidance on social media compliance. Each element is vitally important to an organization's risk management program, with two of them – monitoring [...]

Who's at Risk? Originator License Renewal Concerns

As another renewal season quickly approaches, it is imperative to the wellbeing of your organization that you verify all counterparties with which you have a relationship, have correctly filed their recertification with all of the state agencies in which they operate. There [...]