Market News 3/2/2010

Market Color: Well we have to wish Yahoo today Happy Birthday. They are 15 years old. Economic news today, Ford beat out Government Motors in Monthly Auto Sales for the first time since 1998 and if you want to buy a Toyota, some great deals are coming in the aftermath of the product liability issues in the news. Stock market continues to show an improvement today based upon India reporting good economic results and Europe is playing fiddler on the roof with a possible bailout of the Greek economy. Stateside U S. Auto sales were reported weaker and will we say good bye to Saturday mail? Whew SI is out of breath. Right now, the futures market is pricing in an 86% chance that the Fed keeps rates somewhere between 0% and .25% through June 23rd, 2010. Currently, the Ten Year yield is at 3.64% (3.61% yesterday). And our mortgage market is tanking worse and is down .25% in price. Market News: Sen. Christopher Dodd, D-Conn., has proposed establishing a consumer financial protection division within the Federal Reserve. The lawmaker negotiated with Sen. Bob Corker, R-Tenn., on the proposal, which would give the central bank the authority to write and enforce rules. Meanwhile, Sen. Richard Shelby, R-Ala., has unveiled one plan that would set up a consumer protection unit within the FDIC and another that would establish an interagency consumer protection council, but the agencies would have limited enforcement powers. This will impact our industry dependent upon whatever form this legislation takes. We will have to watch this closely as it develops. Fannie Mae and Freddie Mac appear to be working together under federal conservatorship, rather than competing for market share and preferential status with originators. As the Federal Housing Finance Agency coordinates policies for preventing foreclosures and incentives for saving taxpayers money, lenders say forcing them to repurchase more bad loans has strained relationships with the secondary-market giants. Mortgage bankers and other industry members complain, for one, that Fannie Mae and Freddie Mac have become too risk-averse and bureaucratic.