“750 pages of the last Harry Potter book, all to find out he grows up to become a mortgage broker? I feel so used.” (Thank you James for that one!)

Yesterday First Franklin announced that they would no longer offer a 100% product.

Is this a refi opportunity for loan agents? According to JP Morgan, in what isn't exactly late-breaking news, many U.S. homeowners will have more problems as troubled loans reset at higher rates and it becomes more difficult to refinance over the next 18 months. "We are really heading into the reset storm," said J.P. Morgan analyst Chris Flanagan. "We are on the cusp of that."

The DOW was down 311 points yesterday, and Treasury securities were the "safe haven" for many money managers who were selling stocks. Although mortgage prices tagged along somewhat, most of the improvement was in non-mortgage related debt instruments. Treasuries rallied strongly throughout the day after the new home sales report came in well below expectations (-6.6% month-over-month versus -2.7% expected) and the prior number was revised down (to -2.2% from -1.6%). 

Several months ago many analysts believed that the problems in subprime mortgages would be limited to pools backed by those loans. Unfortunately for the entire industry, this has turned out not to be the case as delinquency and foreclosure issues are beginning to creep into other mortgage-related securities. For example, this morning before the GDP number, 10-yr Treasury securities were .250 better in price, with the yield below 4.80%, whereas mortgage securities were unchanged.

While attending a Marriage Seminar dealing with communication, Tom and his wife Grace listened to the instructor. "It is essential that husbands and wives know each other's likes and dislikes."

He addressed the man, "Can you name your wife's favorite flower?"

Tom leaned over, touched his wife's arm gently and whispered, "It's Pillsbury, isn't it?