Q&A: Atlanata Fed’s Altig on Small Business’s Potential to Derail Recovery
In recent weeks, policy makers from President Barack Obama to Federal Reserve Chairman Ben Bernanke have been taking extraordinary measures to remove what they see as a serious impediment to the recovery: A dearth of credit for the small businesses that many economists say must play a leading role in creating new jobs. David Altig [...]
China’s Stocks Drop as CPI Climbs to 16-Month High; SAIC Falls
China’s stocks fell to a one-week low, led by automakers and developers, after inflation accelerated and new loans exceeded forecasts, boosting the prospect for higher interest rates….(read more)
Forward this article via email: Send a copy of this story to someone you know that may want to read it.
Read the full story
Pimco’s El-Erian Says Public Finance Shock May Deepen (Update3)
Mohamed A. El-Erian, whose company runs the world’s biggest mutual fund, said deteriorating public finances may affect the global economy more than is currently realized….(read more)
Forward this article via email: Send a copy of this story to someone you know that may want to read it.
Read the full story
Senate passes $149 bln for jobless aid, tax breaks
WASHINGTON (Reuters) – The Senate on Wednesday passed a $149 billion package of jobless aid and tax breaks, as Democrats continued efforts to lower the 9.7 percent unemployment rate before congressional elections in November….(read more)
Forward this article via email: Send a copy of this story to someone you know that may want to read it.
Read the [...]
The Short Run Elasticity of Housing Supply
Casey B. Mulligan submits: The elasticity of housing supply is the effect on the flow of home building (measured as a log change — think of it as a percentage change) of the inflation-adjusted purchase price of housing (also measured as a log change). The elasticity has long been studied in economics; one of the [...]
FHA considers down payment requirements
The Federal Housing Administration has concluded that its loan volume would have dipped by 40 percent in the next fiscal year and that 300,000 first-time home buyers would have been shut out of the housing market if it had raised its down payment requirements, as critics have pressured it to do, ……(read more)
Forward this article [...]
The Day Ahead: Chinese Inflation Drives Domestic Stocks Lower
Posted To: MND NewsWire
Speculation that China may have to tighten its economic policy is pulling investor sentiment lower this morning. Amid positive data on industrial production and retail sales, Chinese CPI climbed 2.7% in February, indicating that the central bank may have to take a more serious approach to slow down spending. “China is aiming [...]
Reality Check for Bank Investors, Mortgage Investors and Home Buyers
Reggie Middleton submits: Last week I posted a Bloomberg news article supporting my suspicions that investors are putting bad loans back to the banks at an increasing rate. I used JP Morgan ( JPM ) as a specific example – Banks Swallow Another $30 billion or So in More Losses as Their Share Prices Surge [...]
The Economic Drag of Mortgage Deficiencies’ Long Tail
Michael Steinberg submits: You can get whipsawed by the politicians, economists and media predictions of the housing bottom and recovery. Most of the government’s foreclosure prevention programs have unquestionably failed. But the GSE 30-year mortgage security spread over 10-year treasuries is hovering at a record low 63 basis points . And investors are outbidding owner-occupiers [...]
3/10/10–American Banker on 2nd Liens, Home Lending Portfolio, Mortgage Insurers
An interesting article in American Banker this morning touches on the confounding question of how and why 2nd liens continue to perform as well as they have performed. The full article can be found here . "According to Lender Processing Services Inc., the 30-to-89-day delinquency rate on home equity loans held by depositories slid from [...]
Bank Padlocked Wrong House and Took Parrot
Bank of America apologized after its local contractor entered the home of a mortgage borrower when she was away, cut off utilities, padlocked the door and confiscated her pet parrot, Luke….(read more)
Forward this article via email: Send a copy of this story to someone you know that may want to read it.
Read the full story
MBS CLOSE: What Can Today Tell Us About Tomorrow?
Posted To: MBS Commentary
This is always the question right? I mean, after all, we already know what is available on our rate sheets at the moment, but the most valuable question always asks for tomorrow's MBS prices today. Forgetting for a moment that you'll usually LOSE more money thinking that way than you'll make, let's [...]
MBS AFTERNOON: Mortgages Playing Follow the Leader with Benchmarks
Posted To: MBS Commentary
Heading into the 5pm "what a slow day in the mortgage market" marking period… The FN 4.0 is -0-03 at 98-01 yielding 4.189% and the FN 4.5 is flat on the day at 101 the rock yielding 4.39%. The secondary market current coupon is 4.33%. The CC yield is 61bps over the [...]
Mortgage Rates Rise Ahead of Treasury Auction. Fail to Recover Afterward
Posted To: Mortgage Rate Watch
Much like Monday, yesterday was a data-less day in the marketplace, leaving me at a loss for words and new guidance. Mortgage-backed securities prices did managed to move higher following a very strong 3 year Treasury debt auction, unfortunately MBS price appreciations were not strong enough to warrant reprices for the [...]
FICO: Americans More Likely to Default on Mortgages than Credit Cards
Posted To: MND NewsWire
American consumers are now defaulting on their mortgages in even greater numbers than they are walking away from credit card debt. According to FICO's® Score Trends Service, this is a phenomenon that is historically unique. FICO said the mortgage default risk for consumers with high FICO scores now exceeds their credit card [...]
More: Short Sales and 2nd liens
This is a follow up on the previous post on short sales and 2nd liens . (the previous post had excerpts from the NY Times, Short-Sale Program to Pay Homeowners to Sell at a Loss and WSJ Home-Saving Loans Afoot ) Just to be clear on what subordinate lien holders will receive under a HAFA [...]
Report: HAMP Modification Conversion Rate at about 33%
From Shahien Nasiripour at the Huffington Post: Obama Foreclosure-Prevention Plan Lagging, New Data Shows Only about a third of the homeowners who have successfully completed the trial period of the Obama administration's mortgage modification program have been offered permanent relief, according to new federal data obtained by the Huffington Post. The conversion rate — about [...]
Unemployment Rates, by State: Most Regions Added Jobs in January
See the full interactive graphic. Thirty states and the District of Columbia recorded unemployment rate increases in January from a month earlier, while states registered rate decreases, the Labor Department said. But in a sign the job market is inching toward recovery 31 states added jobs in the first month of the year. In January, [...]
Can Your iPhone Tell You Which House to Buy?
For those seeking bargains in today’s bombed-out housing market, it helps to have strong nerves and a big wad of cash. Getty Images But do you also need a fancy cellphone? As I write in today’s Journal , real estate brokers and software firms are rushing out all kinds of applications, or “apps,” designed to [...]
California Homeownership Without Mortgage Payments: Homeowner Associations Pay For California Mortgage Moratoriums
While some people struggle to keep their mortgage payments current, others are living in their houses for free. Not only are they not making mortgage payments but they are being offered incentives when they don't….(read more)
Forward this article via email: Send a copy of this story to someone you know that may want to read it.
Read [...]
MBS LUNCH: 10 Year Treasury Auction Results and Reactions
Posted To: MBS Commentary
10 year auction has impressive demand, but at higher rates. 3.45 Bid To Cover, but 3.735 % high yield with 70.94% of the bids at high yield MBS and Treasuries both slightly better on the announcement 4.5's are now down only 2 ticks on the day at 100-29 and 10yr yields are [...]
Loan Demand Stagnates. Only One Bright Spot in the Production Slowdown
Posted To: MND NewsWire
The Mortgage Bankers Association (MBA) today released its Weekly Mortgage Applications Survey for the week ending March 5, 2010. The survey covers over 50 percent of all US residential mortgage loan applications taken by mortgage bankers, commercial banks, and thrifts. The data gives economists a look into consumer demand for mortgage loans. [...]
MBS MORNING: Losing Ground As Benchmarks Back Up
Posted To: MBS Commentary
4.5 MBS down 6 ticks to 100-26 10yr Tsy about 5bps higher at 3.743 (vs. 5pm yesterday) Wholesale Trade Improves from -.8% to -.2%, but misses expectation of +.2%, no one cares Pre-Auction Concession + range dynamics weigh on 10's, MBS follow The movements in bonds this AM tells us just how [...]
Underwriters: Loan Quality Still in Need of Improvement; Interesting FICO Score Data; Will the Fed sell their MBS Holdings?
Posted To: Pipeline Press
At the last company Christmas party, loan agents lined up on one side of the room and the underwriters on the other side. The loan agents throw fire cracker at the underwriters…and the underwriters lit them and threw them back. A long-time underwriter wrote to me and opined, "Consumers always want more [...]
MBS OPEN: Rates Ticking Higher Just Because They Can
Posted To: MBS Commentary
Good Morning. I've had some great coaches in my lifetime…none better than my high school/juniors hockey skipper. Many of the messages he bestowed upon me have carried over from the locker room into my professional life. One of my favorites is the K.I.S.S principle. KEEP IT SIMPLE STUPID This is incredibly relevant [...]
