What We're Hearing

Higher mortgage insurance premiums being charged to FHA borrowers are hammering the origination market. The Mortgage Bankers Association cited the recent hike in premiums while discussing its just-released application index. In other news, former Washington Mutual CEO Kerry Killinger was on the Congressional hot seat Tuesday and -- as I anticipated -- he blamed everyone but himself for that mega thrift's downfall. His most ludicrous assertion entailed saying WaMu would not have been seized if only the institution had been part of some type of Wall Street/financial services "club." Killinger seems to think club membership would've spared WaMu. JPMorgan Chase CEO Jamie Dimon was asked about Killinger's club comment during the bank's earnings call this morning. He insisted that he is "unaware" of any such club. (JPM bought WaMu in a federally assisted transaction during the fall of 2008.) Memo to Dimon: if Killinger is right, you'd better join that club quick, just in case...