Morning Report – The Left continues to push Mel Watt to do principal mods 7/25/14

Stocks are lower this morning on no real news. Bonds and MBS are up.

Durable Goods orders rose .7% in June, topping expectations. Capital Goods ex air / defense rose 1.4%, although May was revised downward in a big way.

The left continues to push Mel Watt to do principal mods on loans held by Fannie Mae. Not sure it is going to happen, as it would undoubtedly trigger a wave of strategic defaults. Interesting that the couple mentioned in the article said they refinanced into a loan with “abusive” terms. A Fannie Mae loan was abusive? Or was this part of the American Dream Commitment, where Fannie partnered with the big subprime players like Countrywide, Irwin, Doral, etc. and agreed to buy their loans for their own balance sheet. Anyway, it looks like Mel Watt is giving the affordable housing advocates the Heisman and running out the clock on principal mods, much to the chagrin of the left.

Potential merger in the real estate data industry: Zillow and Trulia are examining a potential merger.

Good summary of earnings from the homeboys. Orders in units are flat / down (except for D.R. Horton), and ASPs are up. With home prices leveling out, that game isn’t going to last.

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