Morning Report – Jobs Day 11/7/14

Markets are higher after a mixed jobs report. Bonds and MBS are flat.

Jobs Report data dump:

  • Nonfarm payrolls + 214k (down from 248k in Sep. 235k expected)
  • Two month revision +31k
  • Unemployment Rate 5.8% (down from 5.9% in Sep)
  • Average Weekly hours 34.6 (flat with Sep)
  • Average Hourly Earnings +.1% (Sep was flat)
  • Labor Force Participation Rate 62.8% (up from 62.7% in Sep)

So overall, it shows the labor market continues to improve, however wages are still going nowhere.

The servicers are getting slammed this year, with Ocwen, Nationstar, and Walter leading the way. Nationstar reported numbers last night, and the stock was down 22% after hours. Walter Investment received an investigative subpeona from California, and we we are well aware of Ocwen’s issues. I have not seen this affect MSR valuations yet, but it will if these state AGs start forcing these companies to sell their portfolios.

Fannie Mae CEO Timothy Mayopoulos laid out further details on the new low downpayment program. Private Mortgage Insurance would have to cover the first 20% of loss, however which would limit the program. That said, he expects the cost of one of these mortgages to be less than the cost of a FHA loan.

23 Responses

  1. NoVA–what did you do to piss off Corey (not that it takes a lot, my being a veteran, when she remembers it, is enough to send her into apoplexy)?

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  2. Nothing really. it was a “you can’t look down on people and expect them to vote for you.”

    that was somehow offensive.

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  3. She hates the idea you are a vet?

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  4. Brett — i heard from a D source that obama did not know who was charing the W&M committee. had no idea. he’s not engaged with congress even at the most basic level.

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    • nova:

      he’s not engaged with congress even at the most basic level.

      This really does not surprise me at all. It has always seemed to me that he isn’t really interested in the actual work involved in governing – the negotiating, compromising, cajoling, convincing. He wants to dictate, and let it be done. Chris Matthews had some surprisingly insightful comments on this the other day:

      What bothered me about him [today] he keeps talking about common ground. Damn it, there’s very little common ground between left and right, but what there is is compromise. You do something for me on minimum wage, I’ll do something for you in corporate tax reform. You give me something on corporate tax reform and I’ll get rid of some of the loopholes or I’ll do something on trade for you. He never talks about trading and compromising, he always talks about common ground. Well, damn it, you can not run a government on common ground.

      He misses the main point of politics which is to be a politician and to trade. Okay, you want this? You want to take care of people who have been here illegally for 20, 30 years? Here’s what I want. No more illegal hiring, and that’s all in the Senate bill. But he won’t sell the compromise. There’s something in this guy that just plays to his constituency and acts like there is no other room out there. And that’s going to be a collision at the end of this year like you have never seen.

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  5. She hates the idea you are a vet?

    She says that vets have entitlement problems. Given her background I find that rich.

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  6. she once said that the state should take my son away because i said something negative about common core. said it was child abuse.

    but the left doesn’t want to destroy the family. no sir.

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  7. That is astounding information. Kind of belies the 11-dimensional chess master image, doesn’t it?

    Michi – being against VA benefits is sort of like being against apple pie

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  8. been saying that for years. and it’s true.

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    • nova:

      been saying that for years. and it’s true.

      Tempermentally I think he is more suited to be head of state in an authoritarian regime than in a tri-branch democracy. That, coupled with his progressivism (which by its nature tends to be authoritarian) helps explain his embrace of rule by executive order (and judicial dictat).

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  9. you know, i bet he’s actually do very well at a think tank. put out white papers and make speeches.

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  10. Obama’s view of compromise has always been to compromise with what he thinks Republicans should want, not what they actually want.

    Hence why they can say with a straight face that the PPACA was a “Republican plan”.

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  11. jnc

    Hence why they can say with a straight face that the PPACA was a “Republican plan”.

    Didn’t that really have as much to do with “Romenycare” as anything else?

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  12. Obama’s view of compromise has always meant, more simply, Rs compromise and he doesn’t.

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  13. jnc,

    Re your take on Sutton’s opinion, it isn’t quite that line drawing is arbitrary but that lines drawn by a law don’t have to be perfect. So long as the law is rationally related to some legitimate purpose, it is constitutional (setting aside the questionable legitimacy of the test itself). There’s another nuance as well: the government doesn’t actually have to show that the lines drawn serve a legitimate purpose, only that the law does. Alleged over- and under-inclusiveness do not make it irrational. Everyone who attended law school knows that all the arguments made by Kennedy, Posner, et al. in the SSM cases are completely dishonest. All those objections (but what about infertile couples, what about other forms of “loving” relationships, what about those other children) are complete nonstarters under honest rational basis review. This is what Sutton is saying.

    But it won’t matter to King Anthony Kennedy.

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  14. Ahh, got it. That makes more sense.

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  15. are you familiar with the MMRF and/or Kathy Giusti?

    Other than the fact that the MMRF has a very good reputation both scientifically and as a charitable organization, no. I know some people who might, though–would you like me to ask anyone any questions?

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    • Mich:

      No…I actually know the MMRF and the Giusti’s (who founded MMRF) very well. We live in the same town. It just came to mind because the MMRF had their annual fundraiser on Saturday, which I went to, and it occurred to me for the first time that they are doing things that you might be involved in or aware of. I was curious if you had a take on their apparently unique model for research and developing treatments.

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  16. The part you crossed out.

    Like

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