The University of Michigan’s Index of Consumer Sentiment will be posted later today, giving us an indication of consumer confidence which hints at consumers' willingness to spend. As one would expect, if confidence is rising an average person might be more likely to make large purchases, but if they are growing more concerned of their personal financial situations they probably will delay making that large purchase. In March we had a reading of 69.5, and current forecasts are calling for a reading of approximately 69.0 – a 16-yr low.

That is the only news out today, as once again the 10-yr has crept below the 3.50% mark, into the high 3.40’s, and mortgage prices are roughly unchanged from Thursday afternoon. How are locks doing this week industry-wide? Lenders have been reporting that origination volumes have been slow-to-average, and yesterday’s weak TIPS auction didn’t help rates. But with consumer confidence and spending down, unemployment rising, more paychecks going toward food and gas, it is not wonder that many economists are calling for a continued slow down in the US economy accompanied by lower rates.

• Flagstar reiterated their appraisal policies, focusing on using national appraisal vendors. “Ordering from a Flagstar approved national vendor is the best way to get a streamlined review through underwriting.”  Flagstar will require an appraisal from a national vendor on all "For Sale by Owner" transactions, when an existing property being sold by an LLC, all "stated income" or Low Doc Programs, and all construction loan products including Loan Modification Program. Customers are always encouraged to use the national vendors or Appraisal Management Companies (AMCs) because Flagstar will accept the value.
• HSBC is retiring the conforming Accelerated Approval Fixed Rate and Fixed Term LIBOR ARM programs.

A man was in a terrible accident where his face was severely burned. The doctor told the husband that they couldn't graft any skin from his body because he was too skinny. So the wife offered to donate some of her own skin. However, the only skin on her body that the doctor felt was suitable would have to come from her buttocks. The husband and wife agreed that they would tell no one about where the skin came from, and they requested that the doctor also honor their secret. After all, this was a very delicate matter.

After the surgery was completed, everyone was astounded at the man's new face. He looked more handsome than he ever had before!  All his friends and relatives just went on and on about his youthful beauty!

One day, he was alone with his wife, and he was overcome with emotion at her sacrifice. He said, "Dear, I just want to thank you for everything you did for me.  How can I possibly repay you?" 

"My darling," she replied, "I get all the thanks I need ...every time I see your mother kiss you on the cheek."

Rob