How To Leave Your Underwater Home
Fannie Mae launched a new consumer website, KnowYourOptions.com, to educate homeowners about their options to avoid foreclosure and how to get help. There’s an accompanying site for lenders who want marketing materials to promote these KnowYourOptions features.
Treasury Auctions Next Week
The Treasury will sell $34 billion of 3-yr notes next week, down from $38 billion at its last quarterly refunding, $24 billion of 10-yr notes, and $16 billion of 30-yr bonds on Aug. 12. (The U.S. Treasury again cut the size of debt offerings, citing stronger tax revenues, but warned it may not be able to keep trimming sales at the same rate due to doubts about economic recovery.) By the end of the day, 10-yr Treasuries were down almost .5 in price to 2.96%, and current coupon mortgage security prices were worse by about .125. Originators sold $2.9 billion – mostly 4% – a little more than recent volumes.
PennyMac Profit Up
PennyMac Mortgage Investment Trust reported a Q210 net income of $8.2 million, up dramatically from the $1.3 million earned in the 1st quarter. PennMac, founded by ex-Countrywide employees, primarily invests in residential mortgage loans and mortgage-related assets to the tune of $133 million in distressed mortgage assets, including $97 million in nonperforming residential mortgage whole loans and $36 million in MBS’s last quarter.
Jobless Claims Up
Jobless Claims came out, so that must mean its Thursday. This morning Jobless Claims were up from 460k to 479k, but continuing claims were down. The 4-week moving average moved higher, and in fact Claims are at their highest level since April. Interest rates came down slightly after the number after having gone up overnight/overseas. That is the only news for today, and the 10-yr yield has improved to 2.92% and mortgages are .125-.250 better than Wednesday afternoon’s levels.
Riddle of the Day
Michael J. Fox has a small one.
Arnold Schwarzenegger has a big one.
Madonna doesn’t have one.
The Pope has one but doesn’t use it.
Clinton uses his all the time.
Bush is one…
Mickey Mouse has an unusual one.
Liberace never used his on women.
Jerry Seinfeld is very, very proud of his.
Cher claims that she took on 3.
We never saw Lucy use Desi’s.
The answer is: ‘A Last Name.’ Get back to work.