Based on some of the bigger "stock-related" stories of thepast week, it appears as though mortgage rates will stay at their current low levels for at least the first quarter,probably longer. Bad news for stocks means good news for low rates. Among the negative reports: Ford Motorreporting a 17% drop in sales, AOL reporting a weak online ad market, and retail holiday sales looking decentbut soft. Late last week, the 10-year (which mortgages are pegged to) was yielding 4.11%...
One negative for housing and mortgage professionals is the slowdownin home price appreciation. Then again, maybe a bit of a slowdown is what the market needs. Lenders have been quietlytightening their underwriting standards, as have FannieMae and FreddieMac...
FM Watch is takingumbrage at Fannie Mae paying Capitol Hill staffers to serve on focus groups that judge its corporate ads. (Theads are targeted toward consumers, not mortgage lenders.) Fannie Mae says it's no big deal, that it's been holdingfocus groups for quite some time, including both Hill and non-Hill staffers...
Was last week's news that FHLB-Chicago can buy CMOs and resell them to members and other FHLBs a big deal or a bigyawn? It's too early to tell, but both GEMortgage Insurance and WellsFargo (both FM Watch members) are supporters of the Chicagobank's MPF program. One thing's for certain, Chicago and like-minded FHLBs cannot grow MPF/MPP etc. significantlywithout securitization. But Chicago is not securitizing MPF loans,well at least, not directly. Stay tuned. It's an interesting development, nonetheless. But keep in mind that Fannieand Freddie are great at marketing their products and wares to the industry. Lenders love their AU offerings. UnlessChicago comes up with some marketing dollars (don't bet on it)or some AU bennies, you can bet that for now MPF/MPP will be nothing more than an annoying gnat...
According to a report in the WallStreet Journal, Citigroup has just three branches in Malaysia, but is that country's third largest mortgagelender. (Mortgages make up 70% of Asia's consumer loans.) Go east, young man...
The FederalDeposit Insurance Corp. will spend 8% less in 2003 ($1.1 billion)than in 2002. How did they pull off this amazing budget accomplishment? Reductionin head count, of course.And it all comes at a time when banks probably need more supervision, not less...
E-LOAN'sshare price broke through the $2 level this past week,the first time it's been north of that mark since early 2002. But by week's end it was back below...
IN CASE YOU MISSED IT: Fleet National Bank has chosen CendantMortgage as its private-label funder/servicer. Private label appears to be a growth industry with bothCountrywide and Nexstarhoping to make a dent in Cendant's turf.
