In all seriousness, I met with a realtor Tuesday evening and she was very polite and enthusiastic.

I ordered a #2, supersized, and she told me to drive to the second window.

We had another roller coaster day yesterday after the Fed lowered overnight Fed Funds by 75 basis points. What’s wrong with that? Nothing, but they expressed concern about inflation, two Fed Governors dissented, and it wasn’t the 100 basis points that some were expecting. Suddenly mortgage originators began locking/selling production, driving prices down and rates higher. On top of that, stocks rallied. Some analysts believe that lately the Fed “euphoria” has only been lasting a few days. In fact so far this morning, with no news, the 10-yr’s yield is 3.45% and mortgage prices are better by roughly .250.

More good news for mortgage rates! As we all know, Fannie Mae and Freddie Mac have released eligibility and pricing guidelines for their new conforming-jumbo securities programs, and are expected to capture market share for newly conforming borrowers with LTV’s below 80% and FICO’s above 660, while weaker credit borrowers should flow into FHA programs. Although the pricing is not good so far (2 points on a $700k loan is still $14k the last time I checked), with the lower rates in general agents are beginning to clear the logjams that are on their desks. In general, most of the loan eligibility and pricing guidance is similar between the two agencies. At first glance, Fannie Mae’s program has stricter eligibility rules, which may push more loans to be delivered into Freddie Mac’s program. For example, Freddie Mac’s program allows cash-out refinancings, fixed-rate IOs, and rate refinancings on loans up to 90 LTV, while Fannie Mae’s program does not.

• More good news: Astoria Federal dropped, at least for now, the negative .500 California rate adjuster in favor of a .750 fee adjuster.  Roughly, this results in a .250 rate decrease for them.
• Indymac Bank is discontinuing their “Agency Eligible Fast Forward” program for all their business channels at the end of March.
• Citi is definitely focusing on keeping their clients, sending out advertising saying, “Thinking you have the mortgage option you want. Knowing you have the mortgage option you need. We don't want to lose you as a valued CitiMortgage customer. If we don't MEET OR BEAT ANY DEAL*, we have a $100 Gift Card just for you. Expect these services and more:  Easier process, Less paperwork, Fast closing, Personalized service.”
• HUD has finally released its RESPA Reform proposal. On Wednesday, March 26, 2008 from 2:00PM – 4:00PM EDT, NAMB will host a RESPA Reform meeting. Panelists will include the HUD’s General Deputy General Counsel and Deputy Assistant Secretary for Regulatory Affairs, among others. During the briefing officials from HUD and industry experts will discuss the proposed RESPA rule (including changes to the GFE and HUD-1); the impact on the industry; and the timeline for final adoption and implementation.  Check the NAMB website for details, or write to GovernmentAffairs@namb.org.

A guy was sitting quietly reading his paper when his wife walked up behind him and whacked him on the head with a magazine.
“What was that for?” he asked.
“That was for the piece of paper in your pants pocket with the name Laura Lou written on it,” she replied.
“Two weeks ago when I went to the races, Laura Lou was the name of one of the horses I bet on,” he explained.
“Oh honey, I'm sorry,” she said. “I should have known there was a good explanation.”
Three days later he was watching a ballgame on TV when she walked up and hit him in the head again, this time with the iron skillet, which knocked him out cold.
When he came to, he asked, “What the heck was that for?”
“Your horse called.”

Rob