Mortgage Pros, Inc.

No Economic Indicators are scheduled for release today.
Ten-Year Treasuries Drop on Gain in Equities, Outlook for Greece’s Deficit Treasury 10-year notes fell the most in more than a week as stocks rose after Greece’s government said it will announce deficit cuts tomorrow, reducing demand for the safety of government debt. The Treasury market has generally been supported by a flight-to-quality bid in recent weeks as investors have fretted about fiscally ailing Greece’s ability to meet its debt obligations. The Greek government is expected on Wednesday to outline a new austerity package of around €4 billion ($5.43 billion), in an effort to cut its massive budget deficit by four percentage points. Those additional steps could help address concerns voiced by the European Union that the Greek government is moving fast enough to deal with its problems. Market participants are looking ahead to crucial jobs data later this week to get a gauge on the nascent but fragile U.S. economic recovery. A report on private sector job creation in February from payrolls giant ADP is due Wednesday, while weekly jobless claims and monthly nonfarm payroll data are due Thursday and Friday, respectively.
Mortgage delinquencies rise after Q4 plateau. According to Equifax, more than 8% of homeowners were behind 30 days or more on their mortgage loans, up 4.4 percent from December 2009 and 21% from last January.
FDIC to grease mortgage market with $1.8 Billion deal. Federal Deposit Insurance Corp is planning to sell $1.8 billion of guaranteed asset-backed debt in what may be a step toward restoring confidence in securities closely tied to the financial meltdown. The debt will be backed by residential mortgage assets of failed banks seized by the FDIC. Investors have been on edge for months as they anticipate the end of the Federal Reserve’s $1.25 trillion guaranteed mortgage bond purchase program. The purchases have been a key support for the market where private issuance has been nil. In light of that the FDIC issue may be no coincidence, Tim Ryan CEO of the Securities Industry and Financial Markets Association said in a recent interview. “We need somebody who has a large portfolio, and is a willing seller at a clearing price to move consumer assets in securitized form,” Ryan told Reuters. “Especially now, since the Fed is getting out of funding the business. This is pretty much timed, part of the replacement plan.”

This entry was posted on Tuesday, March 2nd, 2010 at 10:31 am and is filed under HEADLINE NEWS, MORTGAGE NEWS, THE FED. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.