When I was signing over my economic stimulus check to the
ARCO gas station owner yesterday so I could fill up my tank, I asked him if the
higher prices ($135/barrel this morning) had hurt his business. He pointed to
the Loomis Armored Car truck pulling away, and said, “No, not really. If
you don’t buy it at these prices, someone in some other country
will!”
Going to church doesn't make you a Christian anymore than standing
in a garage makes you a car. The Mortgage Bankers Association released a new
policy paper titled, “Mortgage Bankers and Mortgage Brokers: Distinct
Businesses Warranting Distinct Regulation.” The
MBA’s paper examines the different relationship and expectations that
borrowers have with bankers and brokers, along with and the compensation
structures, oversight, and incentives that each have. The MBA is recommending
that borrowers receive clear disclosures of the brokers’ responsibilities
and compensation, mortgage brokers who claim to be or act as borrower agents be
treated legally as agents, mortgage brokers have sufficient financial resources
– through a national minimum net worth requirement – to
provide
protection to borrowers and mortgage bankers where
necessary, mortgage brokers be appropriately bonded to give consumers greater
protection; and all loan originators, including brokers and bankers, be
registered and appropriately licensed in accordance with rigorous standards.
For the full story visit:
http://www.mortgagebankers.org/NewsandMedia/PressCenter/62646.htm
What did yesterday’s FOMC meeting minutes say? The
Federal Reserve appeared to shut the door to the possibility of further
interest rate cuts, saying in April meeting minutes that the last rate cut
was a "close call," and that many officials think future reductions
are unlikely even if the economy contracts. The Fed cut its growth outlook and
raised its unemployment-rate estimate to between 5.5% and 5.7%. The Fed also
raised its projection for inflation.
Weekly Jobless Claims moved from 374k down 9k to 365k, and
continuing claims continues near its 4 year high, a tad above 3 million. Rates
crept up, with the 2-yr hitting 2.49% the 10-yr hitting 3.88%, and mortgage
prices worse by .250 in price. Yes, inflation is heading higher, but the
economy just cannot “boom” with oil prices near $135 and apparently
going higher and thus is impacting the stock market. Oil is up 39% this year
and is more than double its price of 52 weeks ago. Can anyone ask how long it
takes a nuclear power plant to be built? (Almost 10 years.) Solar? A grid 100
miles by 100 miles would take care of the US – but how to distribute
it?
More good mortgage news: Following a similar decision by
Fannie Mae, Freddie Mac has eliminated the requirement for borrowers to
put up larger down payments in markets where home prices are declining.
Everyone is hoping all of the middle investors and MI companies will follow.
According to a news report, a certain private school in Washington recently was
faced with a unique problem. A number of 14-year-old girls were beginning to
use lipstick and would put it on in the bathroom.
That was fine, but after they put on their lipstick they
would press their lips to the mirror leaving dozens of little lip prints.
Every night the maintenance man would remove them and the
next day the girls would put them back. Finally the principal decided that
something had to be done.
She called all the girls to the bathroom and met them there
with the maintenance man. She explained that all these lip prints were causing
a major problem for the custodian who had to clean the mirrors every night.
To demonstrate how difficult it had been to clean the
mirrors, she asked the maintenance man to show the girls how much effort was
required.
He took out a long-handled squeegee, dipped it in the
toilet, and cleaned the mirror with it.
Since then, there have been no lip prints on the mirror.
There are teachers, and then, there are educators.
Rob
