Morning Report – dismal mortgage banking stats 4/11/14

Vital Statistics:

 

  Last Change Percent
S&P Futures  1818.9 -8.2 -0.45%
Eurostoxx Index 3106.2 -46.7 -1.48%
Oil (WTI) 103.4 0.0 0.03%
LIBOR 0.226 -0.001 -0.26%
US Dollar Index (DXY) 79.52 0.140 0.18%
10 Year Govt Bond Yield 2.61% -0.04%  
Current Coupon Ginnie Mae TBA 106 0.1  
Current Coupon Fannie Mae TBA 104.7 0.2  
RPX Composite Real Estate Index 200.7 -0.2  
BankRate 30 Year Fixed Rate Mortgage 4.26    

 

Markets are lower again this morning after the market sold off heavily yesterday. Bonds and MBS are up. 
 
The producer price index came in at .5%, showing inflation remains tame.
 
LOs, if you have anyone on the fence about locking or who wanted to do a loan but was balking at the rate, give them a call. A 2.61% 10 year yield isn’t going to last long.
 
JP Morgan missed earnings estimates last night, and the only way to describe the mortgage arm is dismal. Mortgage Origination volumes were down 68% from the prior year and 27% from the prior quarter. The business lost $58 million on a pre-tax basis. J.P. Morgan is forecasting a pretax loss of about $100MM – $150MM in the second quarter, and a pre-tax loss for the entire year. The stock is down a couple of bucks (about 3.5%) pre-open
 
Well Fargo, on the other hand beat earnings estimates, however the stock is flat pre-open. Wells originated $36 billion in Q1, down from $50 billion in Q4 and $140 billion a year ago. Gain on sale margins fell to 1.61% from 1.77% last quarter and 2.56% a year ago. 

50 Responses

  1. This sort of thing makes me angrier than gay marriage ever will.

    “Social Security, Treasury target taxpayers for their parents’ decades-old debts
    By Marc Fisher, Published: April 10”

    http://www.washingtonpost.com/politics/social-security-treasury-target-hundreds-of-thousands-of-taxpayers-for-parents-old-debts/2014/04/10/74ac8eae-bf4d-11e3-bcec-b71ee10e9bc3_story.html?hpid=z1

    Like

  2. “alleging that the government violated her right to due process”

    yeah, good luck with that

    Also: Simpsons did it. : Skinner: “I’ve always admired car owners. And I hope to be one myself as soon as I finish paying off Mother. She insists I pay her retroactively for the food I ate as a child.”

    Like

    • jnc:

      BTW, I am on my way to Richmond. Taking my middle daughter to see UoR. Was going to try to take you out for a drink, but looks like the schedule is tight. Have an afternoon tour and then have to be at my sister-in-laws by early evening, so can’t do it. One of these days…

      Like

  3. Have a good trip. If she’s interested in U of R, I may have some contacts there that may be of help.

    Like

  4. What do the shitheads at PL think of BitCoin?

    Like

  5. JNC. that’ SS story. It’s a Treasury legislative proposal. see page 48 (the numbered page, not the PDF count)

    http://www.treasury.gov/about/budget-performance/budget-in-brief/Pages/index_08.aspx

    first appeared in FY 2005, based on my very quick search.

    Like

  6. SOL is one thing. The premise that a blood relative, solely due to being a blood relative is responsible for the debts of another member of the family goes against all previous US jurisprudence as far as I know.

    Reason is correct. It’s straight out of the feudal system along with “corruption of blood”.

    Like

    • Not exactly, JNC. We have not only spousal responsibility for necessaries, but parental responsibility for the necessities purchased on behalf of minors. Some states – PA, for one – have tried to impose their remaining colonial derived laws that were never repealed with statehood to make adult children responsible to pay back Medicaid expended on their aged parents in nursing care. There has been litigation and I do not know the results.

      ADDENDUM: http://blog.aarp.org/2013/10/28/more-filial-support-cases-ending-up-in-court/

      Aside from spousal and child support, I agree with you that the conclusion should be that relatives should be beyond reach, absent participatory fraud or an express guarantee.

      Like

  7. Boy, this broad’s a stickler for detail.

    It’s still a stumper why the website flamed out.

    http://freebeacon.com/issues/sebelius-cant-even-resign-correctly/

    Like

  8. Obama “I don’t want anything to happen to her while enrollment is still open.”

    Like

  9. In my head Biden is Fredo.

    #ImSmartandIWantRespect

    Like

  10. Thanks. Good thing my schedule is clear tonight to watch godfather II and whatever else i want.

    #KidsAsleepWifeOutofTown

    Like

  11. It should be watched sans spouse, they don’t “understand” it.

    #Thisisthebusinesswehavechosen

    Like

  12. Progressive’s have labeled him good, so no problems.

    Like

  13. Why should this be done? Because the purchaser’s are stupid or because it hurt’s Obamacare?

    http://m.washingtonexaminer.com/hhs-rule-would-further-tighten-noose-on-individual-insurance-market/article/2547121

    Like

  14. Yes. Needless to say I would oppose them, but I stand corrected on the state of the law. I wonder what the process is for “divorcing” your parents? Presumably something similar to the emancipation of a minor.

    The flip side of course is that the parents should then be considered a ward of the child and relinquish any legal rights to spend their money. No more bumper stickers “I’m spending my child’s inheritance” on an RV.

    Like

  15. Re Buffet:

    Not a corporate tax attorney, but I think the rationale is that no actual cash is changing hands at this point – it is a stock swap. Taxes are still going to be paid; they are simply being deferred.

    The reason why companies do stock swaps is that it allows cash-poor companies to grow by acquisition. Many tech / biotech companies are cash flow negative (especially if their main product is in development and they are incurring R&D costs but no revenues). For these companies, capital is very expensive, so they are reluctant to tap VC / angel funding for a merger. They much prefer to issue equity for equity, which saves precious cash for running the business / development.

    Like

  16. Like

  17. There literally is nothing more normal than taking a dump while a member of the opposite sex pees in the stall next to you.

    Like

  18. Well why should men care about the women’s outcries?

    Seriously?

    Like

    • My point was that if you give those fools what they want – they won’t want it.
      —–
      Why does anyone think it is cool that a squatter and tax cheat gets a competitive advantage over his neighbors by grazing on federal land and not paying his fees? Imagine if there were a rally for welfare cheats. I suppose some legislator might show up.

      Like

  19. Is the Federal response proportionate? Maybe they oughta torch the guy’s house and shoot his wife in the head.

    Does every violation of a court order deserve a massive military response? Surely even you don’t agree with that. I like Williamson’s response here.

    http://www.nationalreview.com/article/375453/coases-tortoise-kevin-d-williamson

    Like

    • Is the Federal response proportionate? Is it? I thought all the BLM did was remove his herd after repeated warnings. Then I thought he and his apparent like minded buddies reacted by arming and approaching and threatening.

      Does every violation of a court order deserve a massive military response? No. And there was no such event here. BLM is not to be confused with the FBI, ATF, DEA, or a federalized National Guard.

      Williamson article would make more sense were it not for the prior history of litigation. During the time frame of litigation there would have been room for negotiation and settlement of the kind Williamson describes. In fact, in other areas, the tortoises have been caught and removed to accommodate settlements of these disputes.

      Like

  20. What if it’s the Fed’s that won’t negotiate?

    Like

    • I do not know who failed to negotiate, but the trial ended the negotiation phase. Bundy lost. After a twenty year dispute, the trial provided finality. The sympathizers to Bundy act as if there is no history here.

      Like

  21. True, but he’s a sympathetic figure (rancher/farmer) who’s an underdog against a moronic Federal overreach. What lawsuits in AZ have proven for example is that the desert tortoise does better on grazed land versus ungrazed land. I’m very much in favor of citizen nullification. Think about the gun registration laws in New York and Conneticut. Massive, unprecedented lack of compliance. When it comes to Federal or State overreach ( and public land is, in my mind, the biggest Fed/State overreach there is, I don’t much care about the government’s rightness. It should not be theirs to own or regulate.

    Granted, this dude’s cause is probably ill thought out and he may be on the wrong side of the law, but the more citizens realize just how nefarious, malevolent and self-dealing government is, and are willing to stand up to it, the better.

    I’m not afraid of anarchy, I’m afraid of government doing stuff for me or in my name. Their ability to do so should be extremely limited.

    Like

  22. Americans deserve this.

    http://m.washingtonpost.com/politics/social-security-treasury-target-hundreds-of-thousands-of-taxpayers-for-parents-old-debts/2014/04/10/74ac8eae-bf4d-11e3-bcec-b71ee10e9bc3_story.html?hpid=z1

    The more government encroaches the faster Americans will either reject it or accept it.

    Are we citizens worthy of this Country’s wealth and power?

    Like

  23. We deserve this.

    http://m.huffpost.com/us/entry/5128771

    I’m sure the government action was justified.

    Like

  24. Excellent synopsis by the Blaze of the Bundy mess. But by all means, go apeshit over desert scrub. It’s funny that they euthanized the very tortoises they were trying to protect. Ran out of money.

    Bundy’s a nut, no argument. He deserves an extreme response cause?

    Why is wild more valuable then tame?

    Like

  25. Who here could disagree? Those that oppose are the evil others. Bernie smile’s.

    Like

  26. Worth a read:

    “The Truth About Chicago’s Crime Rates
    The city’s drop in crime has been nothing short of miraculous. Here’s what’s behind the unbelievable numbers.

    By David Bernstein and Noah Isackson”

    http://www.chicagomag.com/Chicago-Magazine/May-2014/Chicago-crime-rates/

    Like

  27. Also worth a read on the full context of the oft quoted Lee Atwater interview.

    http://www.powerlineblog.com/archives/2013/06/what-did-lee-atwater-really-say.php?ModPagespeed=noscript

    Like

  28. Also worth a read on the full context of the oft quoted Lee Atwater interview.

    If you operate from the premise that every accusation made by liberals takes words out of context or is false, distorted, or a half truth, you will be on solid ground 99% of the time.

    Heck, look at just the pattern the past few years of their “hearing” things that were never said in the first place.

    Like

  29. ” “They essentially wiped away one of the murders in the city, which is crazy,” says a police insider. “But that’s the kind of shit that’s going on.”

    Lies, damn lies, etc.

    It must be easy. If you can fudge/withold numbers for something more pedestrian, I’m not really surprised it creeps into more important stuff.

    Like

  30. Like unemployment statistics? Or quarterly GDP estimates? Infant mortality? Obamacare Enrollments? Spending? Domestic surveillance?

    Fucking wingnuts! It’s a one-off!

    Like

  31. Another solid look at the south and the GOP. Don’t post it at PL, the drooling morons would shit themselves.

    http://www.realclearpolitics.com/articles/2013/04/30/southern_whites_shift_to_the_gop_predates_the_60s_118172.html

    Like

  32. Troll, you forgot deportation statistics.

    Like

  33. I was thinking about that afterwards. Shoulda, but I can only conspiracize so much.

    Need help from the other knuckledraggers around here.

    Like

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