Supposedly Groucho Marx toured the New York Stock Exchange many years ago, and a stock trader asked him, "Groucho, where do you put all your money?" Groucho was said to have replied, "In Treasury bonds", and the trader said, "You can't make much money on those." Groucho said, "You can if you have enough of them!" I mention this clever exchange because Groucho's house in Beverly Hills is on the market for .9 million. He lived there from 1956 until his death in 1977, and has five bedrooms and six bathrooms in 6,000 square feet on a three-quarter acre lot.
When I grow up, I want to work for Wells Fargo in their REO department. Friday the press carried stories about a WF commercial real estate exec that had moved into a million Malibu beach house shortly after it was handed back to the bank. Cheronda Guyton, who is/was responsible for foreclosed commercial properties (which typically include high-value homes), used the house for parties and weekends frequently this summer. Heck, I never got an invite! Wells is investigating, but I doubt if they welcome the publicity.
Regardless of who and who is not buying high LTV loans, this weekend, in celebration of Pirate's Day, Fannie Mae will implement the DU Version 7.1. Fannie Maes release sets forth the Max. ratio to One Hundred and Twenty Five percent (125%) for Refi Plus loan files, updates to Home Affordable Refinance, committing whole loans, etc. "DU Refi Plus loan casefiles with LTV ratios greater than 105% will reflect an updated DU credit risk assessment and will be limited in product eligibility to fully amortizing fixed-rate 30-year mortgages. The required borrower benefit (either a reduced monthly mortgage payment or a more stable product) will continue to apply, which lenders represent and warrant when selling the loan to Fannie Mae."
Back to the economy! Whereas last week we didn't have much news, aside from the well-received auctions which helped rates, this week we have the monthly inflation reports. The Producer Price Index (PPI) comes out tomorrow, focusing on the increase in prices of "intermediate" goods used by companies. The CPI comes out Wednesday (consumer price index)and is tracked carefully since it looks at the pricing changes the public see. Given the current economic environment, inflation is not a major issue, but these can definitely move the markets. We also have Retail Sales tomorrow, Industrial Production and Capacity Utilization comes out Wednesday, on Thursday we have Jobless Claims, Housing Starts, and the Treasury's announcement of the size of next week's auctions. To start the week the 10-yr is chopping around 3.thirty eight percent and Mortgage Security Prices are not as good as Friday by .125.
The coach had put together the perfect team for the Oakland Raiders. The only thing that was missing was a good quarterback. He had scouted all the colleges and even the Canadian and European Leagues, but he couldn't find a ringer who could ensure a Super Bowl win. One evening while watching BBC he saw an Afganistan scene of war. In the background, he spotted a young Afghan Muslim soldier with a truly incredible arm. He threw a hand-grenade straight into a 10th story window 50 yards away. KABOOM! He tossed another grenade 65 yards, perfectly landing in a chimney. KA-BLOOEY! Then he threw another at a passing car going 50 mph. BULLS-EYE! "I've got to get this guy!" Coach said to himself. "He has the perfect arm!" So, he brings him to the States and teaches him the great game of football. And the Raiders go on to win the Super Bowl. The young Afghan is hailed as the great hero of football, and when the coach asks him what he wants, all the young man wants is to call his mother. "Mom," he says into the phone, "I just won the Super Bowl!" "I don't want to talk to you, the old Muslim woman says."You are not my son!" "I don't think you understand, Mother," the young man pleads. "I've won the greatest sporting event in the world.
I'm here among thousands of my adoring fans."
"No! Let me tell you!" his mother retorts. "At this very moment, there are gunshots all around us. The neighborhood is a pile of rubble. Your two brothers were beaten within an inch of their lives last week, and I have to keep your sister in the house so she doesn't get assaulted!" The old lady pauses, and then tearfully says, "I will never forgive you for making us move to Oakland!"
Copyright (c) 2009 Christian Amstadter