James Bowen

Hello All:

I am searching for lenders that will still do this crucial program that can benefit homeowners and keep them in their homes. I have 2 folks that hit some bad times and are now in jeopardy of losing their long time residences. This is a great program but it doesn't appear that it has made it's way into the major players product arena, even though Mr. Obama has made the TARP funds more readily available. I realize that all these lenders are tightening their belts and keeping capital in house, but when you have folks that have suffered a major blow to their income and/or life status, it would seem that the last thing that any lender would want to do is to foreclose. Does anyone have any thought on this program?

james bowen

Just as last week, this weeks market tone will be set in large part by earnings reports. There was improved sentiment in early pre trading as the Pharmaceutical Sector rebounded with news that Phizer was snapping up Wyeth creating the largest Acquisition in history. However, all it took was Caterpillar coming out reporting that their loss expected was well more than predicted. Their further statement of some 20K job cuts once again reinforced that it will get worse before better and that the current Administration is under watchful eyes with the progress of the proposed "Stimulus Package".

The 10 year TNOTE yield continued to climb throughout the week and closed Friday at 2.62%. Just for comparison purposes, Yield was at roughly 2.18% last month and last week it was at 2.39%. Rates have followed that trend as well and are back above 5% and closer to 5 1/8 or more. If the market can keep it's focus away from Financials this week, perhaps TNOTES will see more activity and we'll likely see some slight improvement. It's too early to tell, so keep your eyes open.

THIS IS MY OPINION ONLY NOT THAT OF EAGLE NATIONWIDE MORTGAGE CO. ALWAYS CHECK WITH YOUR MORTGAGE PROFESSIONAL REGARDING YOUR OWN TRANSACTION

Amidst all the Pomp and Circumstance surrounding the the Inauguration of US #44, MARKETS SUFFERED THEIR WORST SINGLE DAY LOSS SINCE EARLY DECEMBER AND CLOSED UNDER 8000 FOR THE FIRST TIME SINCE NOVEMBER. Once again fresh concerns (or at least somewhat fresh) surrounding world financial markets caused investor panic. The Royal Bank of Scotland led the investor blues reporting a 2008 total loss expectation of over 40 billion. This follows last weeks US results from US giants Citi and B of A, each reporting loss numbers that were off the charts. Both of these once "too big to fail" institutions lost 20% yesterday alone in the wake of the world market gloom. Britain reported that it's unemployment rate is now rivaling the US as it tipped the scale over 6% for the first time in more than 10 years. The one financial firm that actually helped to moderate the world tone was France's Societe General which bucked the trend and reported a gain, much like the US's JP Morgan did last week.

Today's market start should be higher as IBM and Ericcson each reported better than expected results. The post Inauguration rally could be short lived as the afternoon brings the release of the Housing Index, which won't bring any big surprises, but will underscore the fact that our new President has LOTS OF WORK TO DO NOW, NOT LATER.

So what does this mean for Mortgage rates? We saw the 10 year TNOTE yield retreat yesterday after several consecutive days of increases. The 30 year rates actually rose to over 5% during this period, but should start the day a little lower in early morning pricing releases. To be honest with you, I am unsure where they will head today. Investor sentiment with the anticipated rally may send pricing up a bit, HOWEVER, if Financials actually see some relief and if the Housing Index releases don't shock the market too severely, there may actually be pricing improvements. Keep your eyes open. NO MATTER WHICH DIRECTION PRICING TAKES, RATES ARE STILL THE LOWEST IN MANY, MANY YEARS AND THIS IS A GREAT TIME TO GET YOUR APPLICATION IN PLACE. IT MAY NOT BE THE DAY TO LOCK THAT RATE, BUT WITH BANK UNDERWRITING TURN TIMES UP AND TYPICAL REFINANCING PERIODS NOW CLOSER TO 45 DAYS THAN TO 30 DAYS, THERE IS TIME TO LOCK DOWN THE ROAD.

THIS IS MY OPINION ONLY AND NOT THAT OF EAGLE NATIONWIDE MORTGAGE CO. ALWAYS CHECK WITH YOUR MORTGAGE PROFESSIONAL REGARDING YOUR TRANSACTION.

Citi and B Of A earnings(or should I say loss) reporting is now out and investors are ready to put this in perspective and also put it behind them and move forward. Citi is breaking up into two units-traditional banking and riskier asset holding-with the intent at some point in time to spin the latter off to other buyers. It has already sold it's investment arm off in order to regroup and raise capital. B Of A successfully negotiated with the current administration and received an additional 20 billion in TARP funds , now matching the 45 billion that Citi has received from the Treasury. This should allow them to get back into operating condition.

These moves will provide a basis for a Friday rally, but sentiment will likely be tempered by economic reports due out today. The Labor Department is releasing the Consumer Price Index results, expected to fall, reflecting the huge drop in gas prices. The other report also expected to show a large drop is Decembers Industrial production reading. Both of these are not expected to be any big surprise, but will show the continued weakness of the economy, not expected to revive any time soon.

So, once again, financials will set the tone today, and consequently treasuries should take a hit, raising TNOTE yield and possibly the 30 year mortgage pricing. There was a slight rate increase yesterday and I think it will continue today, but I also believe that rates will still remain sub 5%.

THIS IS MY OPINION ONLY AND NOT THAT OF EAGLE NATIONWIDE MORTGAGE CO. ALWAYS CHECK WITH YOUR MORTGAGE PROFESSIONAL REGARDING YOUR OWN TRANSACTION

Yesterday's news was pretty dire and today's probably won't be any better. There are lots of reports due out today. The Labor Department is expected to report that after 2 weeks of declines, unemployment claims will once again jump and their report on Producer Prices should show a huge drop of nearly 2% indicating that consumer demand dropped sharply. Two regional Fed's are reporting manufacturing activity which is expected to reveal further drops and three Fed Res. guru's are going to talk today about their economic outlooks.

Now for some better news. JP Morgan actually posted a small 4th quarter profit. But, it also placed over 4 billion aside for further credit writedowns.So, while it appears to have weathered the 2008 crisis a bit better than it's peers, there is still uncertainty over when it will be out of the woods. Conversely, B of A has asked for additional BAILOUT BUCKS so it can finalize it's acquisition of Merrill Lynch. They report earnings next Tuesday, so expect some pretty ugly numbers.

Mortgage application volume was up big last week-over 16% with refinances leading the way. Consumers looking for better rates and terms accounted for a 25% increase from the prior week. This is a result of the National average for 30 year fixed rate mortgages dipping below 5%. Yesterday's 10 year TNOTE yield closed at 2.21%, down from the open of 2.27%. Today's TNOTE direction will be largely affected by how JP Morgan's news is received by investors as it is the first of the big banks to report and will set the tone for the financial markets. The B of A news will also play a big factor. Yesterday's mortgage rates did indeed follow the 10 year bond as I saw rate sheets with pricing approaching 4.625%, down slightly from the prior day. I anticipate that they will hold at this level today.

THIS IS MY OPINION ONLY AND NOT THAT OF EAGLE NATIONWIDE MORTGAGE CO. ALWAYS CHECK WITH YOUR MORTGAGE PROFESSIONAL REGARDING YOUR OWN TRANSACTION