As we went to press this weekend the yield on the 10-year Treasury was at 3.98%, but on Thursday it dipped aslow as 3.8%. A month ago it would have been hard to imagine that the 10-year would fall below the 4% mark. On Fridaythe employment number came out and it wasn't pretty: new jobs grew by just 78,000 and Federal Reserve watchersnow are of the mind that the central bank may be done -- for now -- raising short-term rates...
In Monday's edition National Mortgage News will report on the still hot interest only market,including an exclusive ranking of the nation's top IO funders. Who's the nation's largest IO funder? If you guessedCountrywide Home Loans go the head of the class. (Don't subscribe to NMN? Call: (800) 221-1809.)A few weeks ago Countrywide chief Angelo Mozilo noted that about 25% of Countrywide's production consistsof IO loans...
The general news media (which tend to spot financial trends late) is finally catching up on the IO phenomena.The Washington Post has been covering the IO boom, shining a not-so-positive light on the product.Of course, as most mortgage bankers know, the industry's red-hot product isn't the IO (though the IO is still hot)but the payment-option loan, which gives the homeowner four payment options, including negative amortization. Onelending executive told NMN's Lew Sichelman that half his payment-option customers are choosing thelowest payment option...
GSE critic Bert Ely had less-than-kind words (what a shock) about Fannie Mae's board choosingcompany insider Daniel Mudd to be its permanent CEO. Mr. Ely in a statement said, "One must wonderwhy the Fannie board picked Mudd after almost a six-month search for a new CEO. Could it not find a highly qualifiedfinancial executive with some Washington political experience (certainly not Mudd's forte) to bring fresh air anda big broom to Fannie? Or did potential CEO after potential CEO turn down the Fannie job because of Fannie's seriouspolitical and business problems, some of which may have not yet aired? Did these turndowns force the Fannie boardto turn, in desperation, to Mudd?" Some in the mortgage industry have suggested that although Mr. Mudd servedin the office of the chairman with former Fannie CEO Franklin Raines, he was less than enamored with hisboss. Back in April, Mr. Mudd apologized to members of the Senate Banking Committee for Fannie's accountingmess, something Mr. Raines would never do. Others have suggested that perhaps Mr. Mudd is somewhat of a whistleblower...
Countrywide's share price is once again toying with its 52-week high of $39.93. At press time it was at $38.02...
According to the U.S. Census Bureau, in 2003 just 1% of all homes were worth $1 million or more. Chancesare -- based on home appreciation rates of the past 18 months -- that ratio must be a bit higher today.
WASHINGTON NEWS: Fannie Mae has expanded its product line to include 40-year fixed-rated and hybrid adjustable-ratemortgages. Fannie lenders can now submit 40-year mortgages through its automated underwriting system, Desktop Underwriter,for approval. Previously, the secondary market buyer limited originations of 40-year mortgages to 22 credits unionthat participated in a pilot program. "The 40-year mortgage is ideal for borrowers who face affordabilityissues and think homeownership is beyond their reach," Fannie said. In addition to a standard fixed-rate mortgage,Fannie is offering 3/1, 5/1, 7/1 and 10/1 hybrid ARMs that amortize over 40 years. Fannie-approved lenders alsocan offer borrowers a 30-year term (balloon) loan with a 40-year amortization schedule. Freddie Mac doesnot offer 40-year loans.
MORTGAGE PEOPLE: C-BASS has named Peter Cerwin managing director in its capital markets group.
FINAL-FINAL SURVEY REMINDER: This time we really mean it, folks. Lenders and servicers please fill outNMN's annual production/servicing survey. Respondents will receive FREE our daily mortgage news briefing(which is called, of course, Daily Briefing) plus will be ranked in NMN, the Mortgage IndustryDirectory and other publications. To view the survey
DATA NOTICE: The first-quarter 2005 edition of both the Quarterly Data Report and AlternativeProducts Quarterly Data Report is now available.
The AP-QDR features rankings on the top interest-only, alt-A and jumbo lenders. For more info about these productscontact:
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