In another blow to brokers, it was announced last week that Countrywide
closed 16 wholesale loan centers. This, of course, re-ignited the discussion
of what Bank of America will do with Countrywide’s three business
channels: retail, wholesale, and correspondent. Generally speaking, retail is
viewed as “the surest thing”, but there are definitely reasons for
BofA to keep the other two channels in one form or another.
FNMA/Fannie/Fannie Mae’s 1st quarter
results showed a loss of $2.2 billion, considerably worse than consensus
estimates. Where did the loss come from? Many think that Fannie Mae only is involved
in prime mortgages, but 43.0%, or $946 million, of the $2.2 billion in losses
incurred during the first quarter involved Alt-A loans. They also said that the
company's "Alt-A book will continue to drive an outsize portion of our
overall credit losses." Fannie also reported $344.6 billion current Alt-A
exposure and a limited strategy for stemming future losses.
Are mortgage and housing problems hitting state budgets? You
bet! In a story in Bloomberg,
California’s
budget deficit could hit $20 billion by July because of a slumping economy
and required spending. Composite home-price indices often show California among the
hardest-hit states. http://www.bloomberg.com/apps/news?pid=20601103&sid=aDV0N3Sqi9m4&
HSBC is now restricting a minimum lock of 60 days for FHA
loans! Loans that were mistakenly locked for 15, 30 or 45
day will be converted to 60 day lock by HSBC on the day of the lock.
The 10-yr has shot up to 3.92%, and mortgage prices are
slightly worse than yesterday afternoon. It is a very
light news week, and in a “thinly traded” market (without much
volume) it is easy for volatility to increase and for rates to drift up or
down. Unfortunately rates have gone up, with analysts reminding everyone that
it appears that the Fed is done lowering rates, and indeed inflation is a
concern.
A Department of Water representative stopped at a farm and
talked with an old farmer. He told the farmer, 'I need to inspect your farm for
your Water allocation.'
The old farmer said, 'OK, but don't go in that field over
there.'
The Water representative said, 'Mister, I have the authority
of the Federal Government with me. See this card? This card means I am allowed
to go WHEREVER I WANT on ANY agricultural land. No questions asked or
answered. Have I made myself clear? Do you understand?'
The old farmer nodded politely and went about his farm
chores.
Later, the old farmer heard loud screams and saw the Water
Rep running for the fence and close behind was the farmer's huge-horned prize
bull. The bull was gaining on the Water Rep. with every step. The Rep was
clearly terrified, so the old farmer immediately threw down his tools, ran to
the fence and shouted out.....
“Your card! Your card! Show
him your card!”
Rob
