Source: http://www.voanews.com/english/news/usa/Obama-Surveys-Alabama-Storm-Damage-120966699.html
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Source: http://feedproxy.google.com/~r/TheRealEstateBookBlog/~3/RqbE9tGcRZ0/
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In September 2009, the President announced that – for the first time in history – the White House would routinely release visitor records. Today, the White House releases visitor records that were generated in January 2011. Today’s release also includes several visitor records generated prior to September 16, 2009 that were requested by members of the public in March 2011 pursuant to the White House voluntary disclosure policy. This release brings the grand total of records that this White House has released to over 1.25 million records. You can view them all in our Disclosures section.
Source: http://www.whitehouse.gov/blog/2011/04/29/over-125-million-white-house-visitor-records-online
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Source: http://realestate.msn.com/listarticle.aspx?cp-documentid=28427588
Source: http://www.voanews.com/english/news/Minister-Al-Qaida-Behind-Morocco-Bombing-121019814.html
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Yesterday, the First Family hosted a record number of people on the South Lawn in their backyard for the 133rd White House Easter Egg Roll. 30,000 people from around the country embraced this year's theme "Get Up Go!" -- a part of the First Lady's Let's Move! initiative to raise a healthier generation of kids. Highlighted by blue skies, amazing performances, healthy activities and eating -- the event was a huge success!
Check out all of the action and fun from this year's event:
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April 25, 2011 | 5:12 | Public Domain
President Barack Obama and First Lady Michelle Obama welcome children and their families to the South Lawn of the White House for the 2011 White House Easter Egg Roll.
To view this content, please download the Adobe Flash Player
President Barack Obama cheers on kids taking part in the Easter Egg Roll on the South Lawn of the White House,
President Barack Obama hits a tennis ball during a sports clinic set up as part of the Easter Egg Roll activities on the South Lawn of the White House,
First Lady Michelle Obama participates in the "Play With Your Food" station with Jacque Pepin,right, Kelly Ripa, left, and Al Roker, second from left, at the annual Easter Egg Roll on the South Lawn of the White House,
Many thanks from the White House Visitors Office to all of the volunteers and everyone that attended to help make this one of the best Easter Egg Rolls ever!
Source: http://www.whitehouse.gov/blog/2011/04/26/photos-videos-2011-white-house-easter-egg-roll
Source: http://feedproxy.google.com/~r/TruliaBlog/~3/jA7fHvrbrrg/
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Today at a community conversation at Miami-Dade College, the White House Initiative on Educational Excellence for Hispanics and the U.S. Department of Education released the report Winning the Future: Improving Education for the Latino Community. The President will be delivering a commencement address at Miami-Dade College Friday evening. To view the report, click HERE.
The report shows that Hispanic success in education and in the labor market is of immediate and long?term importance to America’s economy. It also shows that Hispanics have the lowest education attainment level overall of any group in the U.S. Hispanics are by far the largest minority group in today’s American public education system, numbering more than 12.4 million in the country’s elementary, middle and high schools. Nearly 22 percent, or slightly more than 1 in 5, of all pre?K-12 students enrolled in America’s public schools is Hispanic, but they face persistent obstacles to educational attainment. Less than half are enrolled in any early learning program. Only about half earn their high school diploma on time; those who do complete high school are only half as likely as their peers to be prepared for college and only 4 percent have completed graduate or professional degree programs.
As part of the community conversation in Miami today, Senior Obama Administration officials met with dozens of educators and community leaders, to exchange ideas and outline strategies to meet President Obama’s goal for the nation to have the best-educated workforce in the world by 2020.
Alejandra Campoverdi is the Deputy Director of Hispanic Media.
Source: http://www.whitehouse.gov/blog/2011/04/27/improving-latino-education-win-future
Source: http://www.homefinder.com/news/opening-doors/2011/04/25/instantly-recap-showings-with-tour-narrator/
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Source: http://www.voanews.com/english/news/Obama-Renews-Call-to-End-Energy-Subsides-121022154.html
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Declining secondary marketing income driven by rising interest rates eroded profits at independent mortgage banks and their subsidiaries during the fourth quarter of 2010.
According to the Mortgage Bankers Association's (MBA) Mortgage Bankers Performance Report those profits dropped to an average of $1,082 per loan from $1,423 in the previous quarter. However, in the fourth quarter of 2009 the figure was $890. A total of 321 institutions, 310 of which reported residential production business, responded to the quarterly survey. 70 percent of those with residential production business were independent companies.
Net secondary marketing income decreased from $4,069 (203 basis points) per loan in Q3 to $3,870 (188 basis points) in the fourth quarter. One year ago that income was $3,118. 84 percent of the firms in the study posted pre-tax net financial profits in the fourth quarter of 2010, compared to 88 percent in the third quarter of 2010 and 76 percent in the fourth quarter of 2009.
MBA said that with the favorable third-quarter refinancing rally after an inauspicious start in the first quarter 2010, full-year 2010 production profits will be lower than 2009 but probably within $200 per loan of 2009 levels. In comparison, average production profits in 2009 were $1,135 per loan originated. Average production profits in 2008 were $305 per loan originated. MBA will release its annual summary report for 2010 by early June.
Rising rates, especially in December, affected net gain on sale for many independent mortgage bankers. Marina Walsh, MBA's Associate Vice President of Industry Analysis said, "During the month of December, the average thirty-year fixed mortgage rate was 4.82 percent, about 37 basis points higher than in November and 55 basis points higher than in October. Considering such variables as the timing of rate locks, pull-through expectations, and hedging effectiveness, some mortgage bankers' earnings were hurt by the rapid change in rate environment in the fourth quarter."
Respondents reported that loan volumes continued to increase though. The institutions originated an average of 1,296 loans during the quarter compared to 1,090 in Q3 and 1,086 in the fourth quarter of 2009. The average total volume of loans was $285,788,000 compared to $237,385,000 in the previous quarter and $215,472,000 in Q4 2009 and the average loan balance was $208,391 against $205,863 and $191,838. Production employees closed an average of 4.01 loans per month compared to 3.50 and 3.79 quarter-over-quarter and year-over-year.
First mortgages accounted for 99.43 percent of loan volume with only a tiny smattering of HELOCs, Reverse Mortgages and other real estate loans. Approximately 34.25 percent of first mortgages were government guaranteed loans, a small drop from 36.36 in the third quarter. One year earlier these FHA/VA/RHS loans accounted for 45.83 percent of first mortgages. The remaining first mortgages were conforming, with prime fixed mortgages making up 59.11 percent of the total (earlier figures were 56.82 percent and 47.30 percent.) Respondents originated 99.27 percent of loans for sale to others and 36.35 percent of loans were sold to the GSE, a percentage that has remained stable over the last year.
The average loan to value of loans originated in the four quarter was 77.37 percent compared to 78.76 percent and 81.85 percent in earlier quarters. The average FICO score was 737, three points higher than last quarter and an 18 point improvement year-over-year. About 52 percent of loans were originated for borrowers with FICO scores exceeding 750.
Refinancing represented 63 percent of originations during the quarter compared to 57 percent in the third quarter and 45 percent a year earlier. 40.34 percent of all loans were cash-out refinancings, a substantial increase from the 25.58 percent one year ago.
The average pull-through (the number of closings divided by the number of loan applications) rose to 74 percent in the fourth quarter from 68 percent in the third quarter of 2010. The year-over-year change was slight, rising from 73.07 percent.
Total personnel expense rose slightly to $3,124 per loan in the fourth quarter of 2010, compared to $3,034 per loan in the third quarter of 2010. In the fourth quarter 2009, personnel expenses averaged $2,756 per loan. The average company had 165 full-time equivalent (FTE) production employees about half of which were classified as "sales" personnel
Net Financial Income in Q4 (expressed in Basis Points) was (136.23) compared to (135.47) and (121.73) in the previous periods. Net Interest income was 2.41bps against 3.87 and 6.26. Net Secondary Marketing Income was 187.88bps compared to 203.06 and 164.48, and Total Net Production Income was 54.07 (BP) compared to 71.46 and 49.01.
The "net cost to originate" increased to $2,827 per loan from $2,720 in the previous quarter and $2,345 a year earlier. "Net cost to originate" includes all production operating expenses and commissions minus all fee income, but excludes secondary marketing gains, capitalized servicing, servicing released premiums and warehouse interest spread
159 companies among the respondents service loans. The average servicing portfolio totaled $7,027,082,000, down from $10,259,995,000 a year earlier. Average loans serviced fell from 74,316 one year ago to 44,799 in the recent quarter. Per loan income from servicing was $233 per loan and Net Servicing Financial Income was $139; both were substantial improvements over the earlier periods. In the third quarter income was $216 and Net Income was ($41). One year ago the figures were $193 and $37. The increase in net income might be accounted for by personnel costs. Companies serviced an average of 955 loans per FTE employee in the recent period, up from 849 last quarter and 787 a year earlier.
...(read more)
Source: http://www.mortgagenewsdaily.com/04212011_mortgage_production_mba.asp
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The White House Photo Office just released their latest batch of behind-the-scenes photos, this time following the President from town halls across the country to the Situation Room to a moment alone reading on the patio outside the Oval Office. As always, they've come up with some never-before-seen angles to help document this time for history. See a thumbnail gallery below or check out the full-size gallery at our White House Flickr photostream.
Source: http://www.whitehouse.gov/blog/2011/04/25/photostream-behind-scenes-early-april
Source: http://www.zillow.com/blog/2011-04-27/the-consequences-of-walking-away/
Source: http://www.voanews.com/english/news/middle-east/US-to-Freeze-Syrian-Officials-Assets-120976399.html
The House Republican budget presented by Rep. Paul Ryan calls for Medicare to be transformed from a fee-for-service plan into a "premium support" program. Alice Rivlin, a good Democrat, was OMB Director under Bill Clinton. She also worked with Ryan to refine the premium support concept. I asked her to describe how the ideas works. Here's what she said:
"Under premium support, the beneficiary gets a choice of plans. you go to an exchange and you choose a plan and then the government pays the plan. They don't pay you, they pay the plan. And they pay a risk adjusted amount -- adjusted for your age and how healthy you are. So if you are older and sicker, the plan gets paid more for taking care of you. . . . And you would hope that in such a marketplace, the more efficient, the more effective plans would get more people."
Does this sound familiar? It should. It bears more than a passing resemblance to "Obamacare."
Source: http://www.pbs.org/nbr/blog/2011/04/what_is_premium_support_for_me.html
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Source: http://www.voanews.com/english/news/Britains-Royal-Wedding-Day-Arrives-120945419.html
Standard and Poor's has released February Case-Shiller Home Price data...
S&P/Case-Shiller provides two monthly indices which track the price path of single family homes in a 10-City and a 20-City data base. Each index combines matched price pairs from sales of individual homes. All indices are based on a value of 100 which represents home prices in January 2000. A current index value of 150 percent would translate to a 50 percent appreciation in price since that date. S&P/Case-Shiller provides its data in both seasonally adjusted (SA) and non-seasonally adjusted form but recommends relying on the latter.
Quick Recap from Reuters....
20 CITY INDEX
RTRS - US FEB 20-METRO AREA HOME PRICES -1.1 PCT (CONSENSUS -1.0) VS JAN -1.1 PCT
RTRS - US FEB 20-METRO AREA HOME PRICES -3.3 PCT (CONSENSUS -3.3 PCT) FROM YEAR AGO
The following graph does not illustrate the actual 20 city index supplied by S&P. Instead we have presented the data in appreciation rate format. In the chart below the current 20 city index value of 139.27 would translate to a 39.27 percent appreciation in price since January 2000. The 20 City Composite is virtually back to its April 2009 trough value (139.26) and is 67.25 percentage points below its fastest apprecation rate (July 2006).
10 CITY INDEX....
RTRS - US HOME PRICES IN 10 METRO AREAS -1.1 PCT IN FEBRUARY VS REVISED -1.0 PCT IN JAN - S&P/CASE-SHILLER
RTRS - US FEB HOME PRICES IN 10 METROPOLITAN AREAS -2.6 PCT FROM YEAR AGO - S&P/CASE-SHILLER
The following graph does not illustrate the actual 10 city index composite supplied by S&P. Instead we have presented the data in appreciation rate format. In the chart below the 10 city index of 152.70 would translate to a 52.70 percent appreciation in price since January 2000. The 10 city composite is almost back to its low of 150.44 seen in April 2009 and is 73.29 percentage points below its fastest appreciation rate (May 2006).
Excerpts from the Release....
“There is very little, if any, good news about housing. Prices continue to weaken, trends in sales and construction are disappointing.” says David M. Blitzer, Chairman of the Index Committee at S&P Indices.
"Ten of the 11 MSAs that recorded index lows in January fell further in February. The one exception, Detroit, is 30% below its 2000 price level. The 20-City Composite is within a hair’s breadth of a double dip. Fourteen MSAs and both Composites have continued to decline month-over-month for more than six consecutive months as of February.
“Atlanta, Cleveland and Las Vegas join Detroit as cities with home prices below their 2000 levels; and Phoenix is barely above its January 2000 level after a new index low. The one positive is Washington D.C. with a positive annual growth rate, +2.7%, and home prices more than 80% over its January 2000 level. Other cities holding on to large gains from 11 years ago include Los Angeles (68.25%), New York (65.19%) and San Diego (55.05%)”
“Recent data on existing-home sales, housing starts, foreclosure activity and employment confirm that we are still in a slow recovery. Existing home sales and housing starts rose in March, but remain close to recent lows. Foreclosure activity showed decreases in mortgage delinquencies in the fourth quarter of 2010, but are still close to historic highs. The nation and 34 states registered a decline in their unemployment rates for March.”
Plain and Simple: According to Case-Shiller data, home prices have fallen every month since July 2010. That's a seven month losing streak. READ MORE: Home Prices Stuck in Negative Feedback Loop. Would You Buy?
...(read more)
Source: http://www.mortgagenewsdaily.com/04262011_case_shiller.asp
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The Obama administration has jumped into the never-ending debate between parents, children, and eyes that are too big for tummies. It is clear we are a nation of over-eaters. It begins in childhood, which is why the President wants to limit advertising of unhealthy foods to kids, putting at risk the job security of many an animated cereal mascot.
We live in an age of cut backs. Drive less, spend less, and now, with luck, our kids will eat less too.
To anyone following the debate over kids and food advertising, the discussion about the value of the dollar will sound familiar. For decades, our economic eyes have been too big for our collective tummies. Our trade deficits over the last 18 years total an obscene $7 trillion dollars.
What this means is that we have been living way beyond our means, buying from the rest of the world far more than we can afford. Just as those sugary cereal bowls adds up, so do the debts we have accumulated overseas.
Since things that can't go on forever stop, this too has to stop. But how? One way to stop our foreign buying binge is through protectionism. We can stop trading with the rest of the world. That's not in the cards considering how global markets are now, though polls show Americans are not eager to expand free trade deals. Another way to stop buying more than we can afford is to let our currency depreciate.
A weak dollar acts like a spending diet. The price of consuming foreign goods goes up. An instant economic diet. No advertising censorship needed. That's what is happening now.
The Federal Reserve gets a lot of heat for keeping interest rates low, a policy which discourages investment in the U.S. and weakens the dollar. But the latest readings on the economy show that we are not growing strongly enough now to tolerate higher rates.
The only choice is to go on a dollar diet. We have to live within our means again. That applies to cereal and sugar snacks as well as foreign vacations and fancy imports.
Source: http://www.pbs.org/nbr/blog/2011/04/the_dollar_diet.html
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Still not exactly sure what House Republicans will offer next week in their budget, though some are still expecting a voucher program, as I mentioned in my last post.
Today House Majority Leader Eric Cantor offered his views in a briefing for reporters:
"Most of us 54 and younger are not going to be able to enjoy the same type of programs that are in existence now. There have to be changes. The numbers just don't add up."
Source: http://www.pbs.org/nbr/blog/2011/03/update_on_medicare_and_voucher.html
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The economy has hit an "air pocket" according to Fannie Mae's latest economic projections. If your plane has ever hit one you're familiar with the feeling; weightlessness, stomach not quite where you left it. You know or at least hope the plane will stop dropping, you are just not sure when...
Fannie Mae's April Economics and Mortgage Market Analysis attributes the current state of temporary weightlessness to a pair of major shocks - the political turmoil which continues in the Middle East and North Africa and the earthquake and resulting nuclear catastrophe in Japan coupled with what it calls multiple cross-currents in both the U.S and Europe. These include budget problems on all levels of government and related cut-backs in spending, concern over federal monetary policy and "rising headline inflation" driven by increasing food and energy prices.
Meanwhile, there appears to be a slowdown in economic activity in the first quarter of the year with consumer spending growth poised to come in well short of the high-water mark set in the fourth quarter of 2010. Business investment and nonresidential investment in structures also slowed and housing is showing renewed softness. Just as the picture begins to seem bleak, Fannie Mae's economists post some good news - more new jobs created in March, an unemployment rate that dropped to its lowest level in two years, and the best quarter for the Dow Jones Industrial Average in 12 years. Despite the overall gloom in the report, Fannie Mae says the contraction in growth is expected to be temporary with a modest acceleration projected for the second half of the year. The group predicts economic growth to average 3.1 percent for 2011, a downgrade from 3.5 percent projected in the March forecast. The key to this outlook is continued improvement in the labor market and moderating oil prices in the second half of the year. Fannie does however exhibit nervous sentiments on the potential for further downgrades, saying "significant challenges lie ahead, which could potentially lower growth this year by much more than we project."
The report calls housing the "Achilles Heel of the Expansion." Activity weakened across the board in February. Existing home sales fell 10 percent, perhaps partially due to earlier weather conditions and distressed sales continue to account for more than a third of total housing sales. The distressed sales are a particular hurdle for the new home market which set a new record low in February and is now 9 percent below the old record set last August. The lack of sales activity has resulted in sharp drops in housing starts which are now only about four percent above the record lows in January 2009 and the second consecutive monthly drop in the issuance of single-family permits suggest continued sluggish homebuilding activity near term.
Distressed sales and a winding down of programs to support the housing market have affected home prices which have shown persistent declines. The FHFA purchase-only price index fell in January for the seventh time in eight months while the CoreLogic and Case-Shiller indices show year-over-year home price appreciation during the first half of 2010 and then renewed declines following expiration of the homebuyer tax credits. Market expectations for home prices have deteriorated over the past several months according to multiple surveys of consumers.
Some of the shifts in housing projections since the March report are disquieting. Median prices of existing homes which were projected to float in the $211,000 to $223,000 range through the end of 2012 have been downgraded to a range of $160,300 to $167,500 in the first three quarters of 2011, falling again at the end of this year and beginning of next before recovering to around $167,000 by Q4 2012. Housing starts have been downgraded to 478,000 for the year compared to 508,000 in the March report and total housing sales projections were modified slightly from 5.56 million 5.53 million. Mortgage originations are still projected to total $1.038 billion with 40 percent coming from refinances and the estimate for the 30-year interest rate remains at 5.4 percent at year-end.
Some other details from the forecast....
In January real (inflation adjusted) consumer spending declined for the first time in nine months, January growth was approximately -.03 percent compared to over 1 percent in December. It rebounded to December levels in February but the near-term outlook appears, the report says, subdued "as confidence has recently turned sour."
The rapid rise in gasoline prices - up by 80 percent on an annualized basis in the three months ending in February (and substantially higher since) has taken a toll on consumer confidence. The March Conference Board consumer confidence index fell to 63.4 percent from the recovery high point of 72.0 it reached in February and the consumer sentiment index from Reuters/University of Michigan fell ten points during the month. Fannie Mae economists expect that the growth in consumer spending during the first quarter will be below 2 percent compared to over 4 percent in Q4 2010.
Unemployment was down to 8.8 percent in March, the fourth consecutive monthly drop and the rate for the quarter decreased 0.7 percent to 8.9 percent, the steepest quarterly drop since 1984. The vast improvement in the unemployment rate in December and January was due to a huge drop in the labor force (nearly 800,000 during the two month period). The forecast projects an unemployment rate of 8.4 percent by year-end. Initial unemployment claims have also declined with the four-week moving average remaining below 400,000 for six straight weeks. In a survey by Business Roundtable 52 percent of CEOs said they intend to add to payrolls, up from 45 percent in the fourth quarter.
The labor participation rate, which had been falling almost continuously since April of last year, has shown signs of stabilization though. The rate remained unchanged in March for the second consecutive month at an historically low level of 64.2 percent, half a percentage point below that of six months ago. A declining participation rate is historically quite unusual during economic expansions with the notable exception of the jobless recovery following the 2001 recession.However, the dip in the rate in February and March indicated a genuine improvement as gains in household employment substantially outweighed the increase in the labor force.
The average workweek for all employees on private payrolls was unchanged at 34.3 hours in March. In addition, the average hourly earnings of all employees also were unchanged for the fourth time during the last five months. During the past year, wages have risen just 1.7 percent, which will provide little help for consumers to combat higher gasoline prices. However, soft wage trends appear to give the Fed some comfort, in that underlying inflation will likely be benign in the face of rising energy and commodity prices.
READ MORE...
Inflation Update: Cost of Living Rising as Wage Growth Lags
Inflation Expectations Distorted by Bullish Perspectives of Reality
Two-Headed Labor Market Presents Problem for Bond Investors
...(read more)
Source: http://www.mortgagenewsdaily.com/04202011_economic_forecast_fannie_mae.asp
Source: http://www.voanews.com/english/news/usa/Obama-Surveys-Alabama-Storm-Damage-120966699.html
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Source: http://feedproxy.google.com/~r/TruliaBlog/~3/6Wt5ZPuMkjs/
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Source: http://realestate.msn.com/slideshow.aspx?cp-documentid=28497328
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Majority Leader Eric Cantor just wrapped up a speech to students and faculty at Stanford today, lauding the private sector as a source of innovation in our economy. Absolutely true. We have the most dynamic private sector in the world.
You can find Cantor's speech here.
Cantor's point is that the people, not the government will generate jobs and growth:
Individual initiative in the private sector has been and always will be the wellspring of America's prosperity provided we don't stifle it.
Also true.
But Cantor, while hailing the innovation that comes out of Stanford's famous labs, failed to mention that federal and state governments lavished $36 billion on university research in 2009. The federal government is the largest source of university research dollars. And Stanford is one of the top universities in the country receiving federal dollars for research.
Turns out a lot of government money is involved in helping along private sector innovation.
Source: http://www.pbs.org/nbr/blog/2011/03/majority_leader_eric_cantor_sp.html
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Last week, Federal agencies released, for the first time, their scorecards on energy and environmental performance. This marked an important milestone towards achieving the President's sustainability goals under Executive Order 13514 on Federal Leadership in Environmental, Energy and Economic Performance. By establishing benchmarks, these scorecards help guide agencies' 2011 sustainability plans to save energy, improve the environment, and save money. Today, we mark the next milestone in this process by releasing the first-ever comprehensive Greenhouse Gas (GHG) Emissions Inventory for the Federal Government, which accounts for the GHG emissions associated with the Federal Government’s operations in 2010.
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Welcome to the West Wing Week, your guide to everything that's happening at 1600 Pennsylvania Avenue. This week, President Obama held townhalls in Northern Virginia, California, and Nevada, to speak directly to the American people about his vision for reducing our debt and bringing down our deficit based on the values of shared responsibility and shared prosperity.
Source: http://www.whitehouse.gov/blog/2011/04/22/west-wing-week-my-old-number-twenty-three
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Declining secondary marketing income driven by rising interest rates eroded profits at independent mortgage banks and their subsidiaries during the fourth quarter of 2010.
According to the Mortgage Bankers Association's (MBA) Mortgage Bankers Performance Report those profits dropped to an average of $1,082 per loan from $1,423 in the previous quarter. However, in the fourth quarter of 2009 the figure was $890. A total of 321 institutions, 310 of which reported residential production business, responded to the quarterly survey. 70 percent of those with residential production business were independent companies.
Net secondary marketing income decreased from $4,069 (203 basis points) per loan in Q3 to $3,870 (188 basis points) in the fourth quarter. One year ago that income was $3,118. 84 percent of the firms in the study posted pre-tax net financial profits in the fourth quarter of 2010, compared to 88 percent in the third quarter of 2010 and 76 percent in the fourth quarter of 2009.
MBA said that with the favorable third-quarter refinancing rally after an inauspicious start in the first quarter 2010, full-year 2010 production profits will be lower than 2009 but probably within $200 per loan of 2009 levels. In comparison, average production profits in 2009 were $1,135 per loan originated. Average production profits in 2008 were $305 per loan originated. MBA will release its annual summary report for 2010 by early June.
Rising rates, especially in December, affected net gain on sale for many independent mortgage bankers. Marina Walsh, MBA's Associate Vice President of Industry Analysis said, "During the month of December, the average thirty-year fixed mortgage rate was 4.82 percent, about 37 basis points higher than in November and 55 basis points higher than in October. Considering such variables as the timing of rate locks, pull-through expectations, and hedging effectiveness, some mortgage bankers' earnings were hurt by the rapid change in rate environment in the fourth quarter."
Respondents reported that loan volumes continued to increase though. The institutions originated an average of 1,296 loans during the quarter compared to 1,090 in Q3 and 1,086 in the fourth quarter of 2009. The average total volume of loans was $285,788,000 compared to $237,385,000 in the previous quarter and $215,472,000 in Q4 2009 and the average loan balance was $208,391 against $205,863 and $191,838. Production employees closed an average of 4.01 loans per month compared to 3.50 and 3.79 quarter-over-quarter and year-over-year.
First mortgages accounted for 99.43 percent of loan volume with only a tiny smattering of HELOCs, Reverse Mortgages and other real estate loans. Approximately 34.25 percent of first mortgages were government guaranteed loans, a small drop from 36.36 in the third quarter. One year earlier these FHA/VA/RHS loans accounted for 45.83 percent of first mortgages. The remaining first mortgages were conforming, with prime fixed mortgages making up 59.11 percent of the total (earlier figures were 56.82 percent and 47.30 percent.) Respondents originated 99.27 percent of loans for sale to others and 36.35 percent of loans were sold to the GSE, a percentage that has remained stable over the last year.
The average loan to value of loans originated in the four quarter was 77.37 percent compared to 78.76 percent and 81.85 percent in earlier quarters. The average FICO score was 737, three points higher than last quarter and an 18 point improvement year-over-year. About 52 percent of loans were originated for borrowers with FICO scores exceeding 750.
Refinancing represented 63 percent of originations during the quarter compared to 57 percent in the third quarter and 45 percent a year earlier. 40.34 percent of all loans were cash-out refinancings, a substantial increase from the 25.58 percent one year ago.
The average pull-through (the number of closings divided by the number of loan applications) rose to 74 percent in the fourth quarter from 68 percent in the third quarter of 2010. The year-over-year change was slight, rising from 73.07 percent.
Total personnel expense rose slightly to $3,124 per loan in the fourth quarter of 2010, compared to $3,034 per loan in the third quarter of 2010. In the fourth quarter 2009, personnel expenses averaged $2,756 per loan. The average company had 165 full-time equivalent (FTE) production employees about half of which were classified as "sales" personnel
Net Financial Income in Q4 (expressed in Basis Points) was (136.23) compared to (135.47) and (121.73) in the previous periods. Net Interest income was 2.41bps against 3.87 and 6.26. Net Secondary Marketing Income was 187.88bps compared to 203.06 and 164.48, and Total Net Production Income was 54.07 (BP) compared to 71.46 and 49.01.
The "net cost to originate" increased to $2,827 per loan from $2,720 in the previous quarter and $2,345 a year earlier. "Net cost to originate" includes all production operating expenses and commissions minus all fee income, but excludes secondary marketing gains, capitalized servicing, servicing released premiums and warehouse interest spread
159 companies among the respondents service loans. The average servicing portfolio totaled $7,027,082,000, down from $10,259,995,000 a year earlier. Average loans serviced fell from 74,316 one year ago to 44,799 in the recent quarter. Per loan income from servicing was $233 per loan and Net Servicing Financial Income was $139; both were substantial improvements over the earlier periods. In the third quarter income was $216 and Net Income was ($41). One year ago the figures were $193 and $37. The increase in net income might be accounted for by personnel costs. Companies serviced an average of 955 loans per FTE employee in the recent period, up from 849 last quarter and 787 a year earlier.
...(read more)Source: http://www.mortgagenewsdaily.com/04212011_mortgage_production_mba.asp
Foreclosures Home Sales Outlook Housing Starts President Obama
Every four years -- count on it -- some political reporter will write a story about the odds of a brokered convention. You know, a deadlocked presidential nomination battle that ends when the winner emerges from a smoke-filled room only to find our intrepid reporter has already broken the story!
What could be better for a political reporter than that?
Never happens, but reporters can dream -- and write about it.
The economics reporter must settle for something less cinematic. Our version of the "Odds for a Brokered Convention" story is the "Grand Bargain Struck on Deficit."
There is no smoke-filled room in this narrative, merely a drab conference center at Andrews Air Force Base or some other location where reporters can be kept a respectable distance away. The parties emerge late in the evening to pronounce a deal that turns, not on promises to the Florida delegation, but on adjustments to inflation measurements in the Social Security formula that better reflect the actual rate of change in the cost of living.
(Can you imagine anything better? I thought you could.)
Still, I get excited about talk of Grand Bargains and the odds of this happening -- never good to begin with -- are getting better. The tide is moving to deficit reduction. The last-hour deal to avert a government shutdown can be read as a sign of seriousness and progress.
Next, the President will lay out his long-run budget plan on Wednesday. House Republicans have staked out their position. Our grand bargainers are setting the table.
Or not. The problem with Grand Bargains is that they are rare, in part because they ask too much. Problems are rarely solved in a comprehensive way by a small crowd at the table. More likely, Democrats and Republicans will gather for years at many conference tables, cutting many small and medium-sized bargains along the way. At the end of this -- three years? five? -- we'll look back and declare it adds up to a Grand Bargain. If that happens, it will still be a great story.
Source: http://www.pbs.org/nbr/blog/2011/04/brokered_conventions_grand_bar.html
