BlogTalkRadio Podcast – Apr 12, 2010

MBS prices are up nicely this morning, up 9/32nds.  No economic data was released this morning.  The Dow is also up.  It is above 11,000 for the first time in 18 months.

Last week was a great week for the mortgage market.  MBS prices improved about 24/32nds during the week.  Most of the improvement followed a very strong 10 yr Treasury auction.  Strong demand and foreign participation fueled a rally in Treasury prices, which spilled over to MBS prices.  Also kind to MBS prices during the week were the minutes from the 3/16 Fed meeting.  The minutes showed that the Fed was nearly unanimous in their belief that Fed funds rates need to stay very low for an extended time and that inflation was not a concern.   Next week will be full of significant economic announcements.  On Wednesday both CPI and Retail Sales for March will be released and on Thursday Industrial Production will be released.

Glen Corso, Executive Director of the Community Mortgage Banking Project, joined the show to discuss further the need to voice concerns about the 5% risk retention provisions in the current Financial Reform bill before the Senate.  Glen described that passage of the bill with this provision in its current form will be detrimental to community mortgage bankers and their customers.  Glen proposed a revision to the bill to exempt from the retention provisions soundly underwritten loans.  The Bill is expected to be voted on by the full Senate in late April and Glen encouraged all the listeners to contact their Senators.

Andy Schell, a CPA and a CMB, joined the show to discuss the importance of quality loan level accounting systems and reports.  Too many mortgage bankers have no way of knowing which of their loans make them money and which cost them money.

Click PLAY to listen to the podcast of this week’s BlogTalkRadio/Lykken on Lending with Dave Lykken and MBSQuoteline’s Joe Farr :