The Wall Street Journal reports that, due to the federal tax credit to buy high-mileage cars, the Federal government is now paying Americans to buy golf carts. As it turns out, the IRS has ruled that golf carts qualify for the electric-car credit as long as they are also road worthy. The federal credit “provides
October 2009
Lehman’s Aurora unit was well known for originating Alt-A jumbo mortgages—Alt-A was for lesser credit quality, lower down payments and limited income documentation borrowers. When credit markets seized, Aurora got in trouble and Lehman collapsed. Now as Lehman is engaged in asset sale activities, the Aurora unit could be gearing back up. They’ve got a
The US Producer Price Index, which measures inflation at the business and manufacturing levels of the economy, was -0.6% in September and -4.8% year-over-year through September. Excluding volatile oil and food costs from the readings, “Core” PPI for September was -0.1% and +1.8% YOY through September. You can also view and download historical PPI data
“A woman in Great Britain has died after being hit in the back of the head by a golf ball, on the first hole. Her husband was so distraught he only played the front nine.” Stories like that are terrible, and it is hard for men to catch a break. It is also hard for
Bank of America announced that it will sell First Republic for an undisclosed sum to “a number of investors” led by First Republic management and including investment funds managed by Colony Capital and General Atlantic, according to their press release. The transaction is expected to close in the second quarter of 2010, subject to receipt
The MacArthur Foundation gave out its annual ‘genius’ awards last week. This year’s awards went to a journalist, a mental health scientist, and a couple who sold their house three years ago. Well, maybe they want to buy it back. Even though the availability for jumbo loans wasn’t what it once was, the IRS has
What is every mortgage bank’s nightmare? Some out there wake up in a cold sweat thinking about the Fed stopping their purchase program, leading to higher rates, the production volumes sink to half of what they are now, the company hasn’t set aside any money for a rainy day, and they’re hit with MI rescissions
The US Consumer Price Index, which measures inflation at the consumer level of the economy, was +0.2% in September and -1.3% year-over-year through September. Excluding volatile oil and food costs from the readings, “Core” CPI for September was +0.2% and +1.5% YOY through September. You can view and download historical CPI data by scrolling down
Everyone makes mistakes, and estimates are only that: estimates. The MBAA, who is pretty good at estimates, believes that mortgage originations will hit $1.5 trillion in 2010. This follows Wells Fargo and JPMorgan’s estimates (or at least the last one that I had heard) of volumes of about $1 trillion. Either way, it seems that
Sorry the commentary is a little late today. I was trying to track my Chia Pet order. Who could resist? Don’t be the last one on your block to own one! (These may have contributed to the strong Retail Sales number this morning.) Little Hope For Non-Portfolio Jumbo Mortgages In my spare time I write
Greetings from San Diego, where, coincidentally, there is a national mortgage banking conference. Although I didn’t see any chains of mortgage banker types forming conga lines in any hotel lobbies, the mood here has improved since the last few conferences, and most are cautiously optimistic. There is still the “Hey, congratulations, we’re still in the
Greetings from San Diego, where, coincidentally, there is a national mortgage banking conference. Although I didn’t see any chains of mortgage banker types forming conga lines in any hotel lobbies, the mood here has improved since the last few conferences, and most are cautiously optimistic. There is still the “Hey, congratulations, we’re still in the
I never did well in the corporate world. Any employee knows, when you “take a long time”, you’re “slow”. When your boss takes a long time, he’s “thorough”. When you “don’t do it”, you’re “lazy”. When your boss doesn’t do it, he’s “too busy”. Such a double standard. And the economy seems to have a
Cassius Clay preferred traveling in his own 1953 30-passenger bus. He said, “One good thing about a bus: If it breaks down, it doesn’t fall 30,000 feet”. Ali was also rumored to have the following conversation with a flight attendant on a trip where he couldn’t take a bus: Flight Attendant: “Buckle up, Champ”. Ali:
Not a week goes by that someone doesn’t send me a script for a Hollywood movie based on mortgage banking. Usually it is either a) zany comedy starring Ben Stiller as a loan agent who doesn’t know that the jumbo market has gone away, with Samuel L. Jackson as an irate borrower, b) an intense
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