Morning Report: the third party election 5/11/16

Stocks are lower this morning on no real news. Bonds and MBS are flat.

Slow news day, with no economic data

Mortgage Applications rose 0.4% last week as purchases rose 0.4% and refis rose 0.5%. Refis accounted for 52.8% of all originations.

Bernie Sanders and Donald Trump won their respective primaries in West Virginia yesterday. Hillary looks to have sewn up the Democratic primary, despite Bernie Sanders’s determination to play it out. Neither Trump nor Hillary are especially popular in their respective parties. 2016 could be the year of the third party candidate, with Sanders supporters going for Green Party candidate Jill Stein and establishment GOP voters siding with Libertarian candidate Gary Johnson.

Stonegate Mortgage announced earnings yesterday, missing estimates on both the top line and the bottom line. Originations decreased by 15%, while the company took a $36 million writedown of its MSR portfolio. The write-down lowered revenues to $5 million from $47 million at the end of the fourth quarter. Originations decreased 15% to $1.94 billion sequentially and fell 26% on a YOY basis. The stock is trading at $4.16 early, down 28% in May alone.

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