Garrick Werdmuller

On May 1^st Fannie Mae and Freddie mac will implement the home valuation code of conduct. This will change the real estate transaction forever. How does it effect you? Watch the video...

https://www.thinkbigworksmall.com/public/showArchiveVideo/2124/4510

Mortgage backed securities (MBS) prices opened positive on concern the outbreak of swine flu may hamper global economic growth and that U.S. banks may need additional capital, stoking demand for safer fixed income assets, like MBS. Prices reversed course after a report showed consumer confidence increased more than forecast and investors focused on the record $35 billion 5yr note auction today; FNMA 4.0% coupon 100.70bps, +1bp off the intra-day high 100.82bps. In addition to today's auction, the Treasury will sell a record $26 billion of 7yr notes tomorrow and announce the size of 3, 10 & 30yr securities sold next week. Case-Shiller Home Price Index fell 18.6% in February compared to a record decline of 19% the prior month, might signal the market may be stabilizing. Low rates, falling prices and tax credits continue to support sales. Consumer Confidence posted its biggest one-month jump in 4yrs, to 39.2 from 26.9, led by a surge in future expectations, suggesting that pessimism may be easing and consumers see revovery ahead. This is adding to signs the recession may be easing and that recent gains in consumer spending will be sustained.

Sound Familiar? That's what I was told today right before I entered a seemingly endless world of run around and horrible service!

When I called the escrow company someone picked up right away and everyone was quite pleasant, however, as soon as I went to the REO department it was a different world. What is going on with these title departments? Emails take at least 4 hours to return and that is at best. There is literally no one available on the phone and like this call today I was on hold for 45 minutes. I simply sat on hold and used my cell phone for out bound calls and did other work. I wanted the loan to fund....AND IT DID BTW...but I had to get a hold of the officer or ANYONE who could answer the most simple question... "Have you sent in funding conditions?"

Mortgage backed securities (MBS) prices are lower (rates higher) as investors brace for the $101 billion of 2, 5 & 7yr notes slated to be sold next week; FNMA 4.0% coupon 100.05bps, -4bps. Traders also are focused on the preliminary results of tests of U.S. banks, fearing some are still struggling to overcome lending that precipitated the global financial crisis and may find it difficult to raise money after bad assets at the biggest lenders almost tripled on average in the past year. Durable Goods orders declined 0.8% in March, less than expected, but February's sharp gain of 3.5% was whittled down substantially in revisions to a 2.1% increase. Weakness in new orders was widespread, led by communication equipment and primary metals. Year over year, new orders for durable goods are down 25.2%. New Home Sales fell 0.6% in March to 356K, but February's number was revised up to 358K. Sales were down 31% from a year ago but the number of homes for sale fell to 311K, the fewest since January 2002. Supply of homes still is too large, representing 10.7 months of inventory at current sales pace. Median sales price dropped to $201,400, the lowest level since December 2003. Given the jobless rate, tighter credit and record foreclosures, purchases will not rebound substantially in the coming months but are likely to stabilize. With unprecedented help from the Fed, mortgage rates continue to inch downward and for the first time 30yr fixed rates are lower than the 1yr ARM, 4.80% vs 4.82%. That explains why only 1.4% of all mortgage applications are using variable rate products. TGIF!

Mortgage backed securities (MBS) prices are higher (rates lower) in quiet trading as stocks indexes fell and the Fed prepares its first purchase of U.S. debt this week to combat the recession and bring down consumer borrowing costs; FNMA 4.0% coupon 100.30bps, +16bps and just off the high of the session (100.31). Stocks declined as apprehension over U.S. stress tests has sparked a risk-reduction mood across the board, benefiting fixed income assets like MBS. Regulators conducting the the stress tests on the 19 largest U.S. banks are increasingly focusing on the quality of loans they made after finding wide variations in underwriting standards. After three straight weeks of improvement, consumers eased off last week as retail sales were soft, largely a reflection of this year's Easter shift into April. No major economic data is scheduled for today, but there is Fed predident Hoenig testifying before a joint economic congressional committee and Treasury chief Geithner speaking to an oversight panel regarding not needing additional bailout funds. Watch the stock market and news headlines for any guidance.