ABN AMRO announced that it is selling ABN AMRO Mortgage Group, its US-based Residential Mortgage Broker
Origination platform and servicing business (which includes AAMG, InterFirst and Mortgage.com), to Citigroup.
Citigroup will purchase approximately $9 billion in net assets, of which approximately $3 billion is ABN AMRO M
ortgage Group's mortgage servicing rights associated with its $224 billion mortgage servicing portfolio.
Are you more confident this month than last? Rates increased slightly on Friday, and prices worsened, after a
private report (the University of Michigan Consumer Sentiment) showed consumer confidence increased in
January for the first time in three months. This means that surveyed consumers were much more optimistic
about their own financial situations than thought, bad news for bonds because rising confidence usually indicates
that consumers are more apt to make large purchases in the near future. The related strength raises inflation
concerns in the markets, and traders further scaled back bets on the Federal Reserve will cut borrowing costs
during the first half of 2007, since the numbers have consistently shown the economy is doing better than
people anticipated. Speaking of forecasting what the Fed is going to do next, traders see no chance the Fed will
cut its benchmark interest rate at its two meetings before April. The odds reached as high as 70% last month, as
in not good for anyone hoping that ARM prices will improve much. Traders see an 8% chance that policy makers
will reduce borrowing costs in May.
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