After one year as the director for the Federal Housing Finance Agency, James Lockhart announced he is stepping down, and plans to return to work in the financial-services industry in New York. The Federal Housing Finance Agency is the Fannie Mae and Freddie Mac regulator, created during the government's seizure of the two companies. According to the Wall Street Journal article, the Obama administration will need to select new director and is expected to make changes to the companies, which it says will be announced February.
The Obama administration is expected to make changes to the mortgage agencies, Fannie Mae and Freddie Mac , who buy and securitize most of the nation's prime mortgages. Currently the agencies are holding troubled loans that could be removed and placed into another government backed financial entity. The government is considering many ways to overhaul the Agencies, and is scheduled to be taken up by the White House's National Economic Council on Thursday.
INTEREST RATES FOR AUGUST 6, 2009
MBS prices were up 7/32 upon opening, Jobless Claims came in lower than expected. Weakness in the labor market is (less bad) compared to expectations. The July employment report is out tomorrow which is the big number. After the news, the yield on the 10Yr Note is up 3.77% and mortgages are slightly worse.
Conforming Conventional 30Yr Fixed 5.500%
Conforming Conventional 15Yr Fixed 4.875%
Conforming Conventional 5/1 IO ARM 4.500%
FHA 30Yr Fixed 5.500%
* Above Conventional rate quotes are as of 8/06/09 on a Conventional $165,000 loan amount, primary residence at 80% loan to value, with a 720 FICO score. APR includes $1,200 in lender fees and 980 in title charges (title charges may vary). FHA Quote assumes a $125,000 loan amount and a 680 FICO score, and a 96.5% LTV. Documentation of income and assets required. No origination or discount points.