What We're Hearing

The biggest driver of residential mortgage delinquencies is the unemployment rate and this Friday is 'E-Day' -- when the Bureau of Labor Statistics issues the job cut figures for April. It's pretty much a lock that U.S. businesses shed jobs during the month, the big question being how many. Barclays Capital estimates the national unemployment rate will rise to 8.9% (for April) compared to 8.5% the previous month. The increase means less income for consumers and less income means less money to pay the mortgage. However, because there are foreclosure moratoriums in place in many states we may not see the loan delinquency numbers rise much, at least not immediately. In other news, there's an unconfirmed report that there could be a new large entrant in the warehouse lending sector. Again, we stress that it's unconfirmed. If we learn more the story will appear in National Mortgage News and on its website…