Archive for March, 2008

Most Mortgage Rates Increase During Wild Week in Financial Markets

Wednesday, March 19th, 2008

"Average mortgage rates were up for all loan products reported," said Frank Nothaft, Freddie Mac vice president and chief economist. "However, for the first 11 weeks so far this year, the average 30-year fixed rate is still below 5.9 percent, and the average 30-year rate in January was the lowest ...

OFHEO Lowers Capital Requirements for GSEs to Improve Market Liquidity

Wednesday, March 19th, 2008

OFHEO announced a major initiative in cooperation with the two government sponsored enterprises (GSEs) to increase, by perhaps as much as $200 billion, the liquidity of the mortgage- backed securities market. This reduction combined with the increase of the portfolio caps announced last month should allow Freddie and Fannie to purchase or ...

Housing Starts and Builder Confidence Surveys Released

Tuesday, March 18th, 2008

Housing starts and the pulling of construction permits continued to decline in February according to a monthly report issued by the U.S. Census Bureau and the Department of Housing and Urban Development. The only region of the country where permitting was up month-over- month was in the west where it increased... ...

YSP Clarification

Tuesday, March 18th, 2008

Due to some feedback from our article on the new GFE and YSP, we wanted to try and clarify things. Let's preface "mild correction" by admitting that there are fewer more hotly contested debates among compliance gurus than disclosure of PFC's and YSP. After working over the years with numerous ...

Big Losses for PMI Company and HR Block Unloads Option One

Monday, March 17th, 2008

PMI Group reported a record loss of $1.01 billion or $12.51 a share for the fourth quarter of 2007. The losses were tied both to the growing rate of foreclosures which cost PMI negative income of $236 million in its U.S. mortgage insurance operations. In other mortgage news, Option One Mortgage Corporation, ...

Federal Reserve Makes Three Big Weekend Moves

Monday, March 17th, 2008

The Federal Reserve had a busy weekend. The Fed announced a new lending program aimed at the 20 large investment banks that serve as "primary dealers" and trade Treasury securities directly with the Fed. The program would allow... Read More Now

Stockholders Socked as J.P. Morgan Acquires Bear Stearns in Weekend Rescue

Monday, March 17th, 2008

The news wasn't surprising but the price tag was a real stunner. On Sunday J.P. Morgan chase agreed to pay $2 per share to acquire failing Wall Street investment bank Bear Stearns, lock, stock, and barrel. And the purchase price, by the way, will be paid entirely in stock and includes ...

HUD Introduces New Good Faith Estimate and Proposes Other Changes to RESPA

Friday, March 14th, 2008

On Friday HUD released a proposed mortgage reform package designed to help consumers better understand the terms of the loans they are considering and offering guidelines for shopping for different products. The changes, if enacted, will reform the 30-year old Real Estate Settlement Procedures Act (RESPA). One feature of The Good Faith ...

Paulson Releases Presidential Working Group Recommendations

Thursday, March 13th, 2008

Treasury Secretary Henry M. Paulson, Jr. Thursday released recommendations from the President's Working Group on Financial Markets (PWG.) To address the current financial situation and to guard against a repeat in future years the PWG made six broad recommendations: Read More Now

Mortgage Mess is Apparently Ready to Claim Two More Victims

Thursday, March 13th, 2008

Life for Carlyle Capital has gotten even worse than we reported last week and by Thursday morning it appeared that the hedge fund would not survive. Another loser from last week, Thornburg Mortgage had a bit of a respite earlier this week but got clobbered by new news Thursday morning. ...