The other day I was complaining to a friend about the fact that her dog had two beds whilst my dog had none. (After all, for millions of years dogs survived without beds, right?) She answered that she had heard that, under a plan being considered by the Administration, any dogs that lied about their
10yr Note
Pulte Buying Centex Pulte Homes Inc. (Michigan) agreed to buy Centex Corp. (Dallas) for $1.3 billion in an all-stock deal. Pulte agreed to pay 0.975 of a share for each Centex share, valuing Centex at $10.50, or 38 percent more than yesterday’s closing price. The transaction, already approved by both companies’ boards but yet to
Layoff Roundup The US Post office is requesting that they no longer delivery mail on Saturday’s as a way to save money. Makes sense to me. With all of these lay-offs (Kodak is shedding 3,000 jobs), closings (Starbucks is shutting down another 300 outlets, leaving ex-mortgage bankers with no choice but to drive farther for
More Wholesale Rumors I am not a big fan of rumors. (Although they say that language was invented so that people could gossip.) Last Thursday was an example of a rumor whereby CitiMortgage was ending their entire wholesale business channel. It was apparently started by a client, reportedly in Southern California, who was suspended with
Watching rates go up for no sustainable apparent reason is about as much fun as putting away Christmas ornaments and taking the tree to the curb. As they say, “A rising tide raises all boats”, and low rates have helped every lender still in the ring, big or small, regardless of geographic concentration. U.S. Bank’s
The average zero-points loan up to $417k is about 5.25% and the average zero-points loan up to $625k is about 5.75%. Phenomenal record low rates. But economist Paul Krugman thinks they could be lower, citing that the spread between 30yr rates and 10yr Treasuries is still about double the 150 basis point historical spread. He
Auto Bailout We’re supposedly going to hear of the auto bailout plan for the automakers, since the bailout fell apart last week in Congress. (Apparently the bailout fell apart because it was designed by the same people who make the Chevy Malibu.) This morning, however, we’re receiving news that the Bush Administration will be providing
“Please Lord – let there be one more refinance boom. I promise that I will honor my locks, and not spend all my commissions on fancy cars and non-owner occupied houses, and save for retirement!” How many times did I hear agents and brokers utter that prayer in late 2007 and 2008? For borrowers with
More on 4.5% Rate Myths “Shoot yourself in the foot” means to do or say something stupid which causes problems for you. Are mortgage rates really going to be pegged at 4.5%, as the press seems to believe? You’ll notice that stories about this rumor have died down, perhaps because it isn’t true? Unfortunately it
Treasuries of all durations continue rallies as investors flock to the safety of (albeit highly leveraged) government-backed bonds, with 3mo bills rallying so much the yield is now -1 basis point. Treasuries rose, pushing yields on the three-month bill to minus 0.01 percent, as U.S. stocks declined amid concern that the recession will deepen. The
Auto Bailout Update The three big domestic automakers are now saying they are working jointly on a new hybrid car. It runs on a combination of state and federal bailout money. Today marks the major automakers’ deadline to submit restructuring plans as part of its $25 billion bailout package. Conan O’Brien quipped, “A new study
Everyone is waiting to see what Barack Obama has got planned. We already know his economic plan. It’s designed to help small businesses that make under $250,000 a year…Like General Motors and Chrysler. $600b Mortgage Bond Investment By Fed Seriously, this morning rates have improved dramatically the Federal Reserve and Treasury Department unveiled hundreds of
Normally I avoid discussing any advice regarding buying or selling of stocks, but I felt this is important enough to share and give a warning since this explosive situation might prove to be yet another ENRON. Please review any holdings you might have in the following stocks: American Can, Interstate Water, National Gas Company, Northern
Inflation is out of control! Look at the price of Space Food Sticks, which my Mom included in every bag lunch I ever had in school. Ever wonder how, when you buy or sell a bond or mortgage-backed security, how the monies are cleared? Recently they have been in the news, since they have raised
Q. What’s the difference between a mortgage and a Beanie Baby? A. You can still find a buyer for a Beanie Baby. Q: What’s the difference between a pigeon and a Wall Street investment banker? A: Only the pigeon can still make a deposit on a brand new Porsche. Fed & Mortgage Rates Not Correlated
John Courson, who ran Central Pacific Mortgage before they failed early last year, and who was appointed the chief operating officer for the Mortgage Bankers Association of America (and is set to become the association’s president in January), is facing a fraud and embezzlement lawsuit by former branch managers. The MBAA, of course, is now
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