What is in the news today besides Brett Favre being traded
to the NY Jets and actor Morgan Freeman getting divorced after 24 years of
marriage? The Olympics! “Staying afloat in a sea of drowning mortgage
employees” is not an Olympic sport this time around. But if you’re
interested in the schedule of sports, the site is http://en.beijing2008.cn/
Remember the “old days”, where when someone used
the word “vintage” you knew they were talking about wine? In an
article today in the WSJ, “mortgages issued in the first part of 2007
are going bad at a pace that far outstrips the 2006 vintage, suggesting
that the blow to the financial system from U.S. housing woes will be deeper
than many people earlier estimated.” Although the numbers are still in
percentages less than 1%, the story reminds us that “the data from the
FDIC and others suggest that lenders didn't substantially tighten standards
until at least July or August 2007…” 2008 will definitely be the
cream of the crop!
Jim Giraldin, the president of First Fed Financial,
commented on the recent article in the Wall Street Journal. He relayed,
“FirstFed has seen its total delinquencies declining for 3 consecutive
months. More than half of our Option ARM loans have already
‘recast’ so the problem is further behind us than most others. Our
SFR business was not our only product line; 30% of our assets are multifamily
loans which have no delinquencies.” Speaking of FirstFed, they reported a
net loss of $35.5 million for the second quarter, citing a $90.2 million
provision for loan losses linked to charge offs, modifications, and nonaccrual
of single-family mortgage loans.
And speaking of inaccuracies, the ol’
Starbucks/internet coupon… http://www.snopes.com/inboxer/nothing/starbucks.asp
Citi wins the award for the first one to change their pricing
(today) as a result of Fannie’s change in October. “The
updated Adverse Market Charge announced by Fannie Mae in Announcement 08-18 and
distributed Monday, 8/4/08, will be incorporated into our base pricing
effective today, 8/6/08. However, for our Mandatory Trade Desk Clients, we will
offset that charge with a 25 bps price improvement via the carry adjustor for
any Trade Desk loan that is purchased by 9/3/08. Trade Desk loans purchased
after 9/3/08 will be subject to the Adverse Market Charge.” AgFirst
quickly followed.
AIG's mortgage insurer, which reimburses lenders when
borrowers don't pay, may be unprofitable through the middle of next year, the
company said. Overall, American International Group Inc., the world's
biggest insurer, lost money for the third straight quarter. The loss of
$5.36 billion was worse than analysts expected and renewed concern that the New
York-based company may need more capital. AIG wrote down the value of
credit-default swaps by $5.56 billion before taxes in the second quarter. The
contracts, which are guarantees AIG sold to protect fixed-income investors,
drove the company to record losses in the two previous periods, accounting for
about $25 billion in write downs over nine months!
Some analysts are pointing to the weekly Jobless Claims
number as a good indicator that the economy is not as healthy as some would
think. (Actually, does anyone think that it is really healthy?) Last week
claims for jobless benefits increased sharply, up to the highest level since
early 2003. The total number of claimants also moved past 3.2 million.
Today’s number was expected to confirm or deny this trend. If this pace
were to continue through next January, the pool of jobless would be as large as
it was at the peak of the 2001-2003 labor market downturn. The labor market
certainly appears to be weakening—job advertising is declining, layoff
announcements are picking up, consumers are reporting more difficulty finding
employment, and so on. The reason is that Congressional extension of eligibility
for jobless benefits may have allowed some individuals whose benefits had
elapsed to reapply for benefits. Today it was reported that the number of U.S. workers
filing new claims for jobless benefits rose 7,000 last week to the highest
level in more than 6 years (455k).
Today for economic news we had Initial Jobless Claims
(expected: -23K, a decline versus last week’s +44K), and later
we’ll have June’s Pending Home Sales (expected: -1.0%. Previous:
-4.7%). Tomorrow we have the 2nd quarter Preliminary Nonfarm
Productivity and Unit Labor Costs, with nothing on Monday. After this
morning’s Jobless Claims data mortgages are roughly unchanged, and the
10-yr continues to hover around 4.01%.
You know you're from California if:
1. Your coworker has 8 body piercings and none are visible.
2. You make over $300,000 and still can't afford a house.
3. You can't remember…is
pot illegal?
4. You take a bus and are shocked at two people carrying on a conversation
in English.
5. You've been to a baby shower that has two mothers and a sperm donor.
6. You have a very strong opinion about where your coffee beans are grown,
and you can taste the difference between Sumatran and Ethiopian.
7. You can't remember…is pot illegal?
8. Gas costs $1.00 per gallon more than anywhere else in the U.S.
9. Unlike back home, the guy at 8:30 am in Starbucks wearing a baseball
cap and sunglasses who looks like George Clooney really
IS George Clooney.
10. Your car insurance costs as much as your house payment.
11. You can't remember…is pot illegal?
12. You pass an elementary school playground and the children are all busy
with their cells or pagers.
13. HEY!!!! Is pot illegal????
Rob
