Its official: first quarter residential production totaled a startling $913 billion. Amazingly, it wasn't a recordquarter. That distinction belongs to Q4, a period in which $964 billion in loans were funded. But if the firstquarter 2003 volume is extrapolated out, residential lenders could wind up financing a record $3.7 trillion inproduct this year. (All this data is courtesy of National Mortgage News and its affiliate, the QuarterlyData Report). The key to what happens the rest of the year rests in interest rates and employment&
Federal (U.S. government) debt is number one on the hit parade again. Well, almost. When Congress passes thetax cut it also will raise the $6.4 trillion debt limit by $984 billion, bringing the balance to $7.384 trillion.Residential debt in the U.S. currently stands at $6.566 trillion. In other words, housing debt remains the numberone debt market in the world, but once Congress raises the debt ceiling it likely will be eclipsed&
Dave Stevens is SVP of single family lending at Freddie Mac. His job is to keep the company'sseller/servicers happy and to sign up new mortgage banking customers, including community banks and thrifts. Indoing so Mr. Stevens claims that last year he flew about 70,000 miles, almost all of it on United Airlines...
More bad news for the commercial real estate market: a new report by Grubb & Ellis says that industrialvacancy rates recently hit a nine-year high. Moreover, industrial rents are continuing to fall...
Subprime giant New Century Financial Corp. raised its full-year earnings forecast and declared a 3-for-2stock split. Late last year its stock was trading below $20. Recently, it was at well over $40&
WASHINGTON NEWS: Will the Federal Reserve cut rates one more time? In recent Congressional testimonyFed chief Alan Greenspan said the risk of falling prices was minor, but that the potential consequencesof deflation are "very substantial and could be quite negative." The central banker noted that in thecurrent economic environment, the cost of "taking out insurance" against deflation was so low that theFed could "aggressively attack" some of the underlying reasons for deflation -- like weak demand forgoods and services. In other words, a rate cut could fix all that. Last week the House Committee on FinancialServices passed the "American Dream Downpayment Act" which provides $200 million in grant money tolow-income, first-time buyers. The bill was introduced by Rep. Katherine Harris, R., Fla., a Congressionalfreshman who made a name for herself during the Bush-Gore vote recount in Florida.
KEY MEETINGS: The National Association of Mortgage Brokers will hold its annual convention June14-17 in "Charm City," that would be Baltimore for all you non-locals out there.
MORTGAGE PEOPLE: Fannie Mae's board of directors has elected Timothy Howard as its vicechairman. Mr. Howard will continue to serve as the company's chief financial officer. He also will serve in thecompany's "office of the chairman," a group that includes chairman and CEO Franklin Raines andDaniel H. Mudd, vice chair and chief operating officer.
ALL MORTGAGE BANKERS TAKE NOTE ONE LAST TIME (This time we really mean it!): National Mortgage Newsis wrapping up its full-year 2002 lending/servicing survey. Mortgage funders of all sizes are invited to participate.The information will appear in the Mortgage Industry Directory which is the "Who's Who" of mortgagebanking. If you need a survey email:
It costs nothing to participate...
