In this era of low mortgage rates, few borrowers are opting for ARM loans. We all know that at some point that will change and lenders will all have to dust off their ARM margin notes and remember things like LIBOR, created in the 1980’s. The London Interbank Offered Rate is a key adjustable rate
LIBOR
Wells Fargo joined the other large banks in announcing plans to pay back our TARP money. Banks are complaining that they can’t attract top talent with their compensation structures capped. This is good news, since Wells called me the other day to offer me a high paying job (they said I could spel good) but
Attack of the FHA loan files? Most of the United States begins Daylight Saving Time at 2:00 a.m. on the second Sunday in March and reverts to standard time on the first Sunday in November. So by my calculations, that means that this Sunday here in the U.S. most of us “fall back” and it
I can tell that I am grown up because I get up at 4AM, not go to bed at 4AM, and I no longer consider a $4.00 bottle of wine “pretty good stuff”. The French, known for their wine, celebrate Bastille Day today. It is called Fête Nationale (National Holiday) in France and commemorates the
Housing Bottom Watch Two blonds are facing each other across a large river. One cries out to the other, “How can I get to the other side?” The other responds, “Duh, you ARE on the other side!” Are we on the “other side” when it comes to the housing market? Not according to a Harvard
Would you like to feel your head spin? Check out the US Debt Clock. ARM Originations Up As Rates Rise Folks following rates will notice that with the steeper yield curve, interest in ARM loans has picked up. Bank-to-bank lending rates have plunged to near record lows in recent weeks, a positive indication for the
Below is from Teodoro Wealth Report, a weekly produced by Marin County-based financial advisor Alex Teodoro: One key to an economic recovery is a thawing of the credit freeze. Let’s look at three indicators that suggest we’re making some progress in this area. First, the LIBOR is coming down. LIBOR stands for London InterBank Offered
Rates Set By Markets, Not The Fed I love it when folks think that the US Government sets our mortgage rates, and not the supply & demand in the markets. It would sure make life easier for everyone in the business, especially secondary marketing & pricing folks. Market Cliche Storm I was standing in the
AIG Gets More Government Help Jay Leno recently said, “This week, the Nobel Prize for economics went to a highly intelligent economist whose theory is a little hard, I think, for the average person to comprehend. He determined that it was bad business to give loans to people who can’t pay them back!” In that
There are definitely some clever folks out there. Check out these videos: Original Budweiser “Wassup!” commercial (8 years ago) Wassup commercial people 8 years later And then there is this one Treasury Bailout Update I decided that my kids should start a “financial company”. This way, they may be able to take advantage of the
To make good on an announcement earlier this month, the Fed has completed the first few days of
I walked into a Starbucks with a buy-one-get-one-free coupon for a Grande Latte. I handed it to the girl and she looked over at a little chalkboard that said, “Buy One, Get One Free.” “They’re already buy-one-get-one-free,” she said, “so I guess they’re both free.” She handed me my free lattes and I walked out
Why couldn’t I have been born a Saudi prince? Then I could influence the supply and demand of a commodity. Crude oil prices hit a 13-month low, and so now OPEC will probably announce production cuts at a meeting next week. Under the heading, “nothing goes up, or down, forever”, oil has tumbled more than
ANOTHER BLOW TO MORTGAGE BROKERAGE BUSINESS Prospect Mortgage/Metrocities is exiting the wholesale business. Their e-mail stated, “Based on current market conditions, Prospect Mortgage / Metrocities Mortgage, LLC, has elected to exit the Wholesale lending space.” Yesterday they published their last rate sheet, and took their last locks in this business channel. It is debatable whether
LIBOR (London interbank offered rate) is a critical short-term rate for banks to lend to each other and for companies to raise money to fund operations. Overnight, one-month and three-month LIBOR have all shot up recently, and markets have been watching these closely for signs of life in the credit market. MarketWatch reports that three-month
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
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