I was at a cash machine when an old lady came up to me and asked to check her balance. So I pushed her over.

Things are pretty quiet today in the bond market (so far), with the 10-yr hovering around 3.60% and mortgages roughly unchanged. “Lock desks everywhere could use a calm day,” stated the head of one desk. The only news out today – January’s Institute of Supply Managers’ non-manufacturing index, which is expected to decline – is not expected to move the markets.

Wells Fargo correspondent and wholesale channels announced that they will purchase FHASecure program loans as long as they have the following additional characteristics: refinance of an option ARM into a 30-year fixed rate FHASecure loan (any delinquency must be due to reset/recast), the FHASecure refinance of a conventional loan to a 30-year fixed rate FHA loan where the CLTV exceeds FHA Standard LTV requirements (as published by FHA in handbooks and mortgagee letters) - the loan being refinanced may be current or delinquent; however, if delinquent, it must be due to the reset.

The fiscal stimulus bill, which the House passed last week, is likely to see have the Senate’s version voted on tomorrow. If differences exist between the two bills, at least one additional legislative step would be required before the bill would be presented to President Bush for signature. At this stage, it is still possible that Congress will send a finalized stimulus package to the White House before it leaves for recess on February 15, but if the Senate passes legislation this week that differs significantly from the House-passed bill, this could push enactment into late February or early March. It appears that all systems are “go” for the House stimulus bill’s increase of the limit on loans purchased by Fannie Mae and Freddie Mac as well as those insured by the Federal Housing Administration (FHA) to as high as $730k in some high priced areas. Lower priced areas would see an increased FHA limit only. Both increases would be effective only through the end of 2008.

As I mentioned, the Senate will vote on the Senate Finance package and possibly a separate series of other measures this week. Some Republicans are expected to filibuster the Senate Finance package and any other amendments to the House economic stimulus package because of the additional cost or because it will slow the process. Generally speaking, it is not thought to present a major hurdle in light of President Bush’s and the overwhelming House Republican support for the $146 billion House package. The difference can be whittled down in conference, and in any event the additional cost could be more than offset if both parties simply agreed to eliminate all earmarks in future spending bills. Congress can still easily achieve the February 15 deadline it has set to send the package to the President. To do that the Senate and House would have to name conferees immediately after the Senate votes and agree to send the compromise version of the package back to their respective bodies for final approval quickly.

Fifty-one years ago, Herman James, a North Carolina mountain man, was drafted by the Army. On his first day in basic training, the Army issued him a comb. That afternoon the Army barber sheared off all his hair. On his second day, the Army issued Herman a toothbrush. That afternoon the Army dentist yanked seven of his teeth. On the third day, the Army issued him a jock strap. The Army has been looking for Herman for 51 years.

Rob