Morning Report – Head of the MBA explains why credit is so tight 8/14/14

Posted on August 14, 2014 by Brent Nyitray

Markets are flattish on no real news. Bonds and MBS are higher.

Initial Jobless Claims rose to a six week high at 311,000. That said, initial jobless claims are pretty much back to boom-time levels. Consumer Comfort ticked up last week, according to Bloomberg.

Import prices fell .2% month-over-month and rose .8% on an annual basis. Oil drove the decrease. Ex food and fuels, import prices were flat.

The latest CoreLogic Market Pulse is out. Home prices increased 7.5% year-over year, while foreclosure inventory is down 35%. However, foreclosure inventory is still not far off peak levels in the judicial states of New Jersey and New York.

foreclosure invetory

In another warning sign for the economy, Wal-Mart reported flat same store sales and cut its forecast for the year. The low-end consumer is still trying to pick themselves up off the mat. Health care costs were a factor in the revision as well. Separately, Cisco is cutting 6,000 jobs as it struggles to compete with software that manages data and internet traffic.

The head of the Mortgage Bankers Association schools the left explains why credit is so tight. Having exposure to treble damages (in other words three times the loan value) if a FHA loan goes bad and the government finds an error in your file tends to dissuade people from making these loans and is why Jamie Dimon fired a shot across the bow of the government on FHA loans. Meanwhile, the sky has turned legal pad yellow as the lawsuits against the industry continue unabated.

Filed under: Morning Report |

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13 Responses

  1. Kevin S. Willis, on August 14, 2014 at 10:41 am said:

    Frist, mother-cluckers!

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    • markinaustin, on August 14, 2014 at 3:33 pm said:

      It’s a dangerous servant and a fearful master.—

      George, are you old enough to recall Kent State?

      In any event, I agree with you that this level of police response has been suspect from the gitgo, and that we always have a whole lot riding on being able to trust our local cops. A whole lot.

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  4. jnc4p, on August 14, 2014 at 3:54 pm said:

    Anyone else notice that there’s been more media attention paid to whether Rand Paul would comment on Ferguson than to President Obama?

    I wonder if the whole “focus on Rand to help him discredit himself” media strategy will backfire and end up elevating his status to a plausible presidential candidate.

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  5. Let the mutherfuker burn!, on August 14, 2014 at 4:00 pm said:

    Rand continues to be underestimated and, like Bush, has used it to his advantage.

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  6. Let the mutherfuker burn!, on August 14, 2014 at 4:02 pm said:

    If I were the Governor of Missouri I’d try to get the local PD to stand down and send in State police. I’d have a large, unarmed State police presence there to listen to grievances, allow themselves to be yelled at and to assure locals matter won’t be swept under table.

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    • markinaustin, on August 14, 2014 at 4:19 pm said:

      If I were the Governor of Missouri I’d try to get the local PD to stand down and send in State police.

      I thought that was actually happening today.

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  7. jnc4p, on August 14, 2014 at 4:29 pm said:

    It is.

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  10. ben1brigade, on August 14, 2014 at 8:47 pm said:

    “I wonder if the whole “focus on Rand to help him discredit himself” media strategy will backfire and end up elevating his status to a plausible presidential candidate.”

    He’s now only six points behind Hillary in the polls, 48-42, which can’t be good for Hillary at this stage of the game. She’s a presumptive general election candidate, he isn’t.

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  11. Let the mutherfuker burn!, on August 14, 2014 at 9:11 pm said:

    Non-scandal update.

    http://jwatch.us/xp83zN

    Still nothin’ to see I suppose.

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