Brent Nyitray
Fairlington Blade
Let the mutherfuker burn!
jnc4p
Kevin S. Willis
Michigoose
lmsinca
markinaustin
Arcanaut
novahockey
quarterback
ScottC
yellojktVital Statistics:
| Last | Change | Percent | |
| S&P Futures | 1367.0 | 9.9 | 0.73% |
| Eurostoxx Index | 2353.9 | 32.4 | 1.39% |
| Oil (WTI) | 101.25 | 0.2 | 0.23% |
| LIBOR | 0.4687 | -0.001 | -0.11% |
| US Dollar Index (DXY) | 79.641 | -0.219 | -0.27% |
| 10 Year Govt Bond Yield | 2.03% | 0.04% | |
| RPX Composite Real Estate Index | 170.77 | 0.2 |
Equity markets are firmer as the sell-off takes a breather and investors digest Alcoa’s numbers. Spanish yields are lower as well. Italy sold 11 billion euros of T-bills at 2.84% vs 1.405% a month ago. Bonds are a touch weaker and MBS are flat. Mortgage applications were down 2.4% last week.
As Spain becomes the latest worry, the natural question becomes “Who holds the old maid?” Not the Japanese, who cut their exposures to all but the highest Euro credit last year.
The CFPB has put out proposed rules for servicers aimed at improving transparency and accountability. Certainly the tone of the piece (putting “service” back into servicing and “preventing runarounds”) suggests the government is going to regulate servicers more closely, and partially explains why you can’t give away MSRs these days.
Everyone is trying to read the tea leaves on Acting FHFA Director Ed DeMarco’s commentsregarding principal forgiveness for conforming loans. Some saw a change in tone. Others did not. The problem with principal forgiveness is that someone has to eat the losses. There certainly does not appear to be the political appetite to pass losses on underwater homes to taxpayers, and members of Congress realize their state pension funds (not to mention their own!) would get slammed if the losses were passed to them. Neither option is particularly appetizing to politicians on either side of the aisle. So, Ed DeMarco remains a very convenient guy in Washington, allowing the Left to fulminate over his obstinate refusal to budge on principal reductions, safe in the knowledge that they won’t have to face the consequences of what they advocate.
Are lenders moving back out on the risk curve? Seems like it, at least as far as credit cards and auto loans are concerned. Aside from a few hard money lenders, we aren’t seeing this in the mortgage business yet, as it remains impossible to securitize this sort of paper.
Filed under: Morning Report |
All Things in Moderation 
I believe I read commentary to the effect that the Obama administration was preparing to tap some remaining TARP funds to help fund Fannie & Freddie principal forgiveness to prompt DeMarco to go aong with it as they would have identified a source of funds that could be used to make Fannie & Freddie “whole” and thus comply with his mandate.
http://online.wsj.com/article/SB10001424052702304023504577321853240466464.html
http://www.bankrate.com/financing/mortgages/demarco-reconsiders-loan-reduction/
I had thought that the authority for TARP was expiring or had expired already?
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jnc, I think Congress and the Executive have disagreed about what happens to “unspent” TARP since GWB. I seem to recall that Geithner speculated it was like a revolving kitty. Once Congress appropriated the funds for lending, they were Treasury’s to lend. I cannot say I agree with that exercise in using inflated debt, although I know the Fed does analogous stuff it is off book to our budget.
Brent, I agree with you on the politics of attacking deMarco.
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I thought that there was a specific two year expiration period written into the statutue for TARP. Guess I was wrong.
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RE: The Buffet Rule.
I believe that what’s needed here is a good rebranding effort and some perks:
“U.S. Offers PlatinumPlus Preferred Citizenship
October 29, 1997 | ISSUE 32•13
WASHINGTON, DC—In an 86-14 vote, the Senate approved legislation Monday establishing PlatinumPlus Preferred citizenship, an exciting new program offering special benefits and discounts to select members of the U.S.
“By becoming a PlatinumPlus citizen, you join an exclusive club of elite Americans,” said President Clinton, who signed the bill into law late Monday. “And as part of that club, you’ll be eligible for many special benefits, including tax breaks, excusal from jury duty, and vacations at special PlatinumPlus Caribbean resorts, which are off-limits to ordinary, EconoBudget citizenry. It’s our way of saying thank you to our best customers.”
“And, of course,” Clinton added, “there are never any annual fees.”
PlatinumPlus citizens—selected according to a number of demographic factors, including age, race and socio-economic status—will enjoy a wide variety of other benefits, including immunity from speeding tickets; separate, no-wait lines at over 50,000 post-office locations nationwide; and wider, more comfortable window seating. ”
http://www.theonion.com/articles/us-offers-platinumplus-preferred-citizenship,889/
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