What We're Hearing

Residential servicers, especially the 'HAMP' kind, should be dancing in the streets today. The U.S. economy added 290,000 new jobs -- the most in four years -- and for lender/servicers that means one very important thing: 290,000 consumers (figure 65% of them, at least have a mortgage) now have a paycheck that can help them make a monthly payment. (At least, that's how it looks on paper.) "Clearly companies have a newfound confidence in the future of the economic recovery and on the part of their own business prospects," said Joel Naroff, president of Naroff Economic Advisors. He added that the job gains are a clear sign that businesses are feeling more comfortable about expanding their work forces. If his prediction proves tree, the delinquency picture should improve dramatically the next 12 months -- and along with it the home buying picture. Keep your fingers crossed...