Forecast for the Week  

It will be a quiet week when it comes to economic reports, but with the healthcare debate heating up in Washington and the Fed’s Mortgage Backed Securities Purchase program winding down, there are still plenty of events that could impact the markets and home loan rates.

On the economic report front, Thursday brings another Initial Jobless Claims Report. Last week’s Initial Jobless Claims met expectations, but the big news was that the report showed 5.7M people claiming EUC (Emergency Unemployment Compensation) benefits, which was an increase of over 207,000 from the prior week. 

On tap for Friday is the Retail Sales Report, and as the most-timely indicator of broad consumer spending patterns, it is important to see how the numbers come in. In fact, last week’s Personal Consumption Expenditure report revealed that during January, consumers made less, saved less and spent more - but it remains to be seen if the increase in spending will show up in the Retail Sales Data.

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result.

As you can see in the chart, Bonds made some improvements during the week, but the gains were capped by a rally in Stocks and positive economic data. I’ll be watching closely as always during the coming week - and please feel free to contact me anytime to learn more, or discuss your own financial and home loan situation.

 Patrick Dunn, Westwood Mortgage Inc. & MMG Weekly
patrick@westwoodmortgage.com / http://www.certifiedplanning.com

Last Week in Review  
“LIKE SLUGGISH WATERS THROUGH A MARSH…” The poet Sir Walter Scott wasn’t talking about the economic recovery, but his words paint a pretty vivid picture…and after last week’s economic reports, perhaps a pretty accurate one on the state of the recovery.

Last week’s Gross Domestic Product (GDP) report showed that the economy grew 5.9% in the 4th quarter of 2009, which was in line with expectations and the best GDP reading in more than 6 years - which on the surface, sounds like a great number. However, the gains came from rebuilding of inventory and very modest business spending - not from consumer spending.  The biggest component of GDP is consumer spending and the revised number on that front came in lower than expected, and far worse than the 3rd Quarter of 2009, when the government’s Cash for Clunkers program temporarily boosted sales.

On the housing front, Existing Home Sales for January were reported at 5.05 Million units, which was less than expectation of 5.44 Million.  As you can see from the chart below, Existing Home Sales have now declined for two consecutive months. New Home Sales for January were also reported below expectations last week. 

Odds are that inclement weather affected the housing market negatively in January - since people are less likely to go house hunting in the midst of snowstorms and freezing temperatures. But in any case, last week’s data demonstrated that the housing market remains a bit lethargic.

The good news is that today’s affordable home prices and amount of supply on the market - not to mention low rates and the government’s Homebuyers Tax Credit - present tremendous opportunities for homebuyers who are looking for a great deal.

Chart: Existing Home Sales (By Month)

So how do consumers feel about the economy? Last week, we got a look at two different reports…and both indicated that consumers don’t share the rosy outlook of politicians and the media. Consumer Confidence was reported at 46.0, which was much lower than expectations of 55.0. In addition, the University of Michigan reported that Consumer Sentiment also fell in February. Both reports pointed to ongoing concerns over employment as a major reason for the drop in consumer attitudes about the economy.

Forecast for the Week  
This will be a big week of news, starting off right away Monday morning with reports on Personal Income and Personal Spending. We’ll also get a look at the Core Personal Consumption Expenditure (PCE), which is the Fed’s favorite gauge of inflation.

As if that weren’t enough news for one day, we’ll also see the Institute for Supply Management Index on Monday. This is the king of all manufacturing indices and is considered the single best snapshot of the factory sector, so the markets will be paying attention to this report.

Toward the end of the week, we’ll get another look at employment and housing with the reports on Initial Jobless Claims and Pending Home Sales on Thursday.

Finally, the week ends with a bang when the official Jobs Report is released. This report includes the latest government data on job losses and the unemployment rate, as well as the average work week and hourly earnings. With the ongoing concerns over the struggling job market, it will be important to get a current read on the situation.

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result.

As you can see in the chart below, Mortgage Bonds were able to rally last week on weak housing numbers and the struggling jobs market, resulting in improved home loan rates. I’ll be watching carefully in the week ahead to see if Bonds and home loan rates can build on their positive momentum.

Chart: Fannie Mae 4.5% Mortgage Bond (Friday Feb 26, 2010)

Patrick Dunn, Westwood Mortgage Inc. & MMG Weekly
patrick@westwoodmortgage.com / http://www.certifiedplanning.com

Forecast for the Week  
While it’s hard to say what opinions might be uttered this week, there will definitely be plenty of news in store.

We’ll get a look at the housing market with Wednesday’s New Home Sales Report and Friday’s Existing Home Sales Report. It will be interesting to see if these reports are looking more positive, as many buyers are working to take advantage of the Homebuyer’s Tax Credit before it expires this spring. If you want to learn more about this Tax Credit and how it might help you or someone you know - don’t hesitate to get in touch with me, I can share all the details and important timelines.

Also this week, we’ll get several reads on the health of the economy with Thursday’s Durable Goods Report - which gives us an update on consumer and business buying behavior on big ticket items that last for an extended period of time - and Friday’s Gross Domestic Product Report, which is the broadest measure of economic activity.

Tuesday’s Consumer Confidence Report and Thursday’s Initial Jobless Claims Report will also be important to watch. Last week’s Initial Jobless Claims and Continuing Claims numbers were higher than expected, showing that the labor market is still struggling. The bottom line is that while some of the recent economic reports have had encouraging signs, the economy needs to create jobs and regain consumer confidence before any positive opinions on the economy will become reality.

And as if it won’t be a week jam packed full of opinions already, Fed Chairman Ben Bernanke will be weighing in with some thoughts of his own, as he testifies before Congress on Wednesday and Thursday.

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result.

As you can see in the chart below, Bonds ended the week below an important technical level. I’ll be watching closely to see if Bonds can reverse course and move higher this week, which would result in an improvement for home loan rates.

Chart: Fannie Mae 4.5% Mortgage Bond (Friday Feb 19, 2010)

 
The Mortgage Market View…  
Rates May Be Headed Up Soon…But Why?

You’ve heard a lot over the last several months about historically low home loan rates…but lately, you’ve probably been hearing the buzz that interest rates may be heading up in the near future, due in part to the Fed ending their purchases of Mortgage Backed Securities.

All of this begs the question: How and why do rates move…and what is happening right now?

The answer involves a number of factors and can seem complex. But it doesn’t have to be!

To help you understand how interest rates move, take a look at this easy to understand video. You’ll learn what the Fed has been doing to keep rates low, as well as the connection between interest rates and Mortgage Backed Securities.

Take a look at the following video now for an easy explanation:
How Rates Move - and What it Means Right Now

Patrick Dunn, Westwood Mortgage Inc. & MMG Weekly
patrick@westwoodmortgage.com / http://www.certifiedplanning.com

Forecast for the Week  
The see-sawing motion between Stocks and Bonds will likely be seen during the coming week, as there is plenty of action ahead. After last week’s look at the new construction piece of the housing market, we’ll get more information on housing this week with Tuesday’s Existing Home Sales Report and Wednesday’s New Home Sales Report.

Also on Wednesday we will get an update on consumer and business consumption and buying behavior via the Durable Goods Report, which shows data on items that are non-disposable, such as cars, furniture, appliances, games, cameras, business equipment, etc. Thursday brings a read on the economy with the Gross Domestic Product (GDP) Report, which is the broadest measure of economic activity. Also on Thursday is the weekly Initial Jobless Claims report. Last week’s report showed that continuing claims fell by 148,000 to 6.69 million, which is the largest one-week drop since November of 2001. Jobs are vital to the economy strengthening, so it will be important to see what this week’s report indicates.

This week we also have the Fed’s next regularly scheduled Federal Open Market Committee meeting, followed by their Policy Statement and Interest Rate Decision coming on Wednesday afternoon. It will be important to hear the Fed’s comments on the economy and inflation. And speaking of the Fed and inflation, the Fed’s favorite gauge of inflation, the Core Personal Consumption Expenditure (PCE) index found within the Personal Income Report, will be released on Friday.

Remember: Weak economic news normally causes money to flow out of Stocks and into Bonds, helping Bonds and home loan rates improve, while strong economic news normally has the opposite result. As you can see in the chart below, Bonds were unable to maintain the gains they made earlier in the week. I’ll be watching closely to see what impact this week’s news, including additional supply of Bonds hitting the market, will have on Bonds and home loan rates.

Patrick Dunn, Westwood Mortgage Inc. & MMG Weekly
patrick@westwoodmortgage.com / http://www.certifiedplanning.com

“GOOD COMMUNICATION IS AS STIMULATING AS BLACK COFFEE…AND JUST AS HARD TO SLEEP AFTER.” Anne Morrow Lindbergh And communication on the new $789 Billion Stimulus Plan has been flying fierce over the past week, resulting in late nights for Congress and probably more than a few cups of coffee. President Obama is certainly hoping the new plan will wake up the struggling economy, and breathe some life back into the housing market as well.

The tax credit in the Stimulus Bill has been scaled down to $8,000 from its previous level of $15,000, or 10% of the value of the home for any first time homebuyers who purchase homes from the start of the year until the end of November. It starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000, and buyers will have to repay the credit if they sell their homes within three years.

In addition, there’s news that the Obama administration is trying to hammer out a new program to subsidize mortgages to fight the credit crisis. The plan would seek to help homeowners before they fall into arrears on their loans, whereas current programs only assist borrowers that are already delinquent. There are no details yet on this plan, but I will be monitoring this news closely in the weeks ahead.

There was some unexpected good news last Thursday, as Retail Sales increased in January for the first time in 7 months, as you can see in the chart. It could take some time for the Stimulus Plan to positively impact the economy, but if it works, the improvement in Retail Sales could continue later in the year.

The Bond market closed early on Friday in advance of the President’s Day holiday. Bonds and home loan rates had improved a bit early in the week, but lost their ground late in the week, and ended slightly worse than where they began.

Remember that the markets will have a holiday shortened week, as they will be closed on Monday in honor of President’s Day. But that doesn’t mean the rest of the week will be a vacation from volatility, as there are several interesting reports in store.

We’ll get news on the inflation (or deflation) front, with Thursday’s Producer Price Index (PPI) Report and Friday’s Consumer Price Index (CPI) Report. With the recent concerns about deflation, it will be important to see which way these reports have moved, and what the impact may be on home loan rates.

Also this week, we’ll get a read on the new construction housing market with Wednesday’s Housing Starts and Building Permits Reports. And on Thursday, the Philadelphia Fed Report will be released. This monthly survey of manufacturing purchasing managers conducting business around the tri-state area of Pennsylvania, New Jersey, and Delaware is one of the most-watched manufacturing reports, and given the state of the economy, this is likely to be a negative report.

Weak economic news normally helps Bonds and home loan rates improve, as money flows out of Stocks and into Bonds…however, not all investors are passing on their gains recently, as so many homeowners and homebuyers are taking advantage of current low interest rates and have flooded many investors to capacity. Call me to determine if the current market presents opportunity for you.

As you can see in the chart, Bonds and home loan rates faced some tough technical resistance last week, which hampered the way to finding improvement. As always, I will be watching closely to see what happens this week.
Patrick Dunn, Westwood Mortgage Inc. & MMG Weekly
patrick@westwoodmortgage.com / http://www.certifiedplanning.com

Last week was definitely action packed, though only time will tell how intelligent each action was - here are the highlights.

On Wednesday, the Fed announced that it decided to keep the Fed Funds Rate steady at the current 0 - .25% range, the lowest ever. They also indicated that “economic conditions are likely to warrant exceptionally low levels of the Federal Funds Rate for some time” and that “inflation pressures will remain subdued in coming quarters”.

Also last week, the Federal Deposit Insurance Corp (FDIC) announced that it may set up a “bad bank” as a vehicle to buy toxic or illiquid assets from banks. What does a “bad bank” do? No, it doesn’t talk back to you, give you attitude and treat you with disrespect. Lenders and the entire financial sector are struggling with “mark-to-market” accounting issues, and in the absence of a repair of the mark-to-market system, lenders are forced to sell assets in a market where there are few buyers. Hence the bad bank plan, to create an entity that will purchase the assets that no one else will buy, which is yet another very creative way for the government to breathe life back into the financial sector. This action is not finalized, so we’ll keep watching closely to see how it plays out in the days ahead.

In other news, the House of Representatives passed President Obama’s $819B stimulus package, by a vote of 244-188, being split fairly cleanly by party lines. Existing Home Sales did surprisingly come in a bit better than expected, but 4th Quarter Gross Domestic Product (GDP) numbers showed the economy contracted in the 4th quarter, as you can see in the chart below. While the numbers were better than estimates, the economy was still at its slowest pace in 26 years.

Last week was indeed action packed, and Bonds and home loan rates felt the effect, with rates ending the week about .25% worse than where they began.

The week ahead looks to be loaded with action yet again, as two key reports bookend the week. On Monday, we will get the details on the Fed’s favorite gauge of inflation, the Core Personal Consumption Expenditure (PCE) index, found within the Personal Income report. As mentioned above, the Fed said they believe that “inflation pressures will remain subdued in coming quarters”, so it will be important to see what this report reveals.

On Friday, the Labor Department releases their Jobs Report for January. Last month, they reported 524,000 jobs lost during the month of December. The employment environment continues to be shaky, with many major companies such as Home Depot, Caterpillar, Sprint, and Texas Instruments announcing job cuts recently. While all those cuts won’t take place at once, Friday’s number probably won’t be a pretty one.

Patrick Dunn, Westwood Mortgage Inc. & MMG Weekly
patrick@westwoodmortgage.com / http://www.certifiedplanning.com

Last Week in Review
“I KNEW THE RECORD WOULD STAND UNTIL IT WAS BROKEN.” Yogi Berra. And while last week’s Jobs Report wasn’t the worst record breaker of all time, it showed a loss of 533,000 jobs during the month of November, which represented the most job losses the US has seen in 35 years. And adding more pain to the Report were heavy downward revisions for September and October, which erased an additional 199,000 jobs. In addition, last month was only the fourth time in 58 years that our economy lost over 500,000 jobs.

So what does this mean for Bonds and home loan rates? We first have to acknowledge that we are not in a typical trading environment, where weak or negative economic reports always lead to improved pricing for home loans and vice versa. The dynamics of hedge funds de-levering - where fund managers are selling all types of securities with whatever timing they need to, in order to raise capital - have caused unprecedented volatility of late, and it is not quite clear when that will end.

The Fed has indicated that they would like to be a buyer of Mortgage Bonds, which has resulted in attractive, lower rates right now. But as stated above, the trading environment is extremely volatile, and opportunities to capitalize on lower rates that make sense should be taken advantage of. There have been recent rumors of interest rates being brought down towards 4.5% by the Treasury. This irresponsible release included no definitive plan, no indication of who might qualify, or what the restrictions would be. Like many other recent legislative “solutions”, the restrictions might be very tight, with income limits set very low, and as a result, helping very few people. Remember, it may make sense for you to act now, and take advantage of current historically low rates…with the possibility of refinancing should rates decline further.

In other news to note from last week, the Bank of England and the European Central Bank both cut their key benchmark interest rates in an effort to revive their sagging economies. The reduction in rates was expected as part of a global coordinated effort, and our Fed is widely expected to cut its benchmark rate during its meeting on December 16. While a cut by the Fed often causes home loan rates to rise - because a Fed rate cut can lead to inflation, which is the arch enemy of Bonds and home loan rates - the deflationary environment we are currently in may prevent home loan rates from worsening significantly after the Fed cut.

Bonds and home loan rates tested their best levels of 2008 throughout last week, but could not improve beyond them. As a result, Bonds and home loan rates ended the week slightly worse than where they began…even in the midst of rumors of rates declining as mentioned above.

GAS PRICES SURE HIT A RECORD EARLIER THIS YEAR, BUT NOW THAT THEY HAVE IMPROVED, THE IRS HAS ISSUED NEW MILEAGE RATES FOR 2009. SEE THIS WEEK’S MORTGAGE MARKET VIEW FOR ALL THE DETAILS!

Forecast for the Week
We will likely see another volatile Friday this week, with the release of several important reports at 8:30am ET. First we have the Producer Price Index, which measures inflation at the wholesale level. Given the recent whispers of deflation, this will be an important report to watch. Consumer Sentiment will also be released?but given the state of the economy, the results likely won?t be much of a surprise.

In addition, we?ll get a read on consumer spending patterns with November?s Retail Sales Report. This Report is a measure of the total receipts of retail stores from samples representing all sizes and kinds of business in retail trade throughout the nation. Black Friday kicked off the holiday shopping season last week and the National Retail Federation amazingly estimated that shoppers spent 7.2% more than last year?but this is likely a result of the deep discounting seen by retailers, and it could well be that many shoppers who normally wait until December to get started on holiday purchases went out early to take advantage of the sales. Don?t be surprised if this is a horrible report, as not only have the holiday shopping lists become shorter, but the amount spent for each individual has likely been reduced. In any event, it will be important to see what the report reveals, as a lousy report should be friendly towards home loan rates.

Remember, as Bond prices move higher, home loan rates move lower. And as you can see in the chart, Bonds have stalled out in their improving direction for the time being, after making some great gains over the last month. Home loan rates currently stand at historic lows.

Patrick Dunn, Westwood Mortgage Inc. & MMG Weekly
patrick@westwoodmortgage.com / http://www.certifiedplanning.com

This week, several scheduled items could cause some more manic movements in the markets…and the biggest of all could be the Fed Policy Statement and Rate Decision that will come on Wednesday, following the wrap of the Fed’s regularly scheduled Federal Open Market Committee meetings. Remember: The Fed joined with other central banks from around the world and cut their benchmark Fed Funds Rate earlier this month to help restore confidence to the financial markets. The Fed is widely expected to cut its benchmark rate again this week, and some people are wondering if the Fed could go where it has never gone before and bring the rate below 1%.

Other important reports to note this week include Wednesday’s Durable Goods Orders, which is a measure of how many “durable” or non-disposable goods have been purchased during the previous month, and Thursday’s Gross Domestic Product (GDP) Report, which is the broadest measure of economic activity. Also, on Friday we will get the details on the Fed’s favorite gauge of inflation, the Core PCE (Personal Consumption Expenditure) data, from the Personal Income report. Each of these reports will be telling, given the growing talk of recession.

Before all of this, there will also be housing news in store with Monday’ New Home Sales Report. Last week, we learned that Existing Home Sales jumped to a thirteen-month high as foreclosures continue to drive down home prices, and it will be important to see if a similar trend is occurring with New Home Sales.

If the economic news this week is dismal, Bonds and home loan rates may be the beneficiary and find some improvement…but the words and actions of the Fed are likely to be the primary driver for interest rate action this week. As always, I will be watching closely and would welcome your calls with any questions you may have on your own situation, and how the changes of the week may impact you.

Patrick Dunn, Westwood Mortgage Inc. & MMG Weekly
patrick@westwoodmortgage.com / http://www.certifiedplanning.com

Last Week in Review

“THERE IS NOTHING WRONG WITH CHANGE, IF IT IS IN THE RIGHT DIRECTION.” Winston Churchill. And the housing and mortgage industries experienced a great change in the right direction last week, as the Federal government moved to support Fannie Mae and Freddie Mac, causing Bonds and home loan rates to improve significantly and end the week around .25 percent better than where they began.

So why did the Federal government take action? Fannie Mae and Freddie Mac both have issued many Bonds which over time mature, and Fannie and Freddie need to pay back the principal on the maturing Bonds. The way they raise capital to pay these maturing Bonds is to issue new Bonds, which happens every month. And as long as Fannie and Freddie can sell new Bonds this system works well.

But the problems in the mortgage industry have reduced investor appetite to purchase these Bonds. Without the ability to sell new Bonds, Fannie and Freddie are less able to meet the capital requirements to pay off the maturing Bonds. And if Fannie and Freddie were to default and become insolvent, the mortgage and housing industries…and homeowners across our nation… would face even more struggles than we are seeing now.

So the government’s decision to back Fannie Mae and Freddie Mac is great news for homeowners, because it ensures the continued liquidity of conforming loans nationwide and it ensures that buyers of this type of Bond have a safe investment going forward.

In other Bond-friendly news, we saw good news on the inflation front last week. Overall Import Prices declined for the first time since December, thanks in part to the recent plunge in oil and gas prices. And Wholesale Prices, which help measure inflation, fell in August for the first time this year.

Overall, the good inflation news and the Fed’s decision about Fannie and Freddie should lead to improving Bond prices and home loan rates in the long-term. With home loan rates at such low levels, it’s a great time to review your mortgage situation and make sure you have the rate and program that best suits your current financial needs. I’d be glad to do a quick review for you - and your friends, family members, neighbors or coworkers as well - so just give me a call or email, I’ll look forward to hearing from you!

Forecast for the Week  

This week several important economic releases will arrive, and the flavor of these headlines will help determine if things can continue to move in an improving direction. Tuesday’s Consumer Price Index (CPI) report will show us inflation at the consumer level - that is, how much more expensive goods and services are for consumers this month over last month. If CPI brings more good news on the inflation front, Bonds and home loan rates may add to their improvements from last week.

Also on Tuesday, the Fed will release their latest Policy Statement and Interest Rate Decision. It is widely believed that the Fed will keep the Fed Funds Rate at 2% given the lessening concerns over inflation, but it will be important to see if the Fed’s statement gives us a hint as to what their plans are for the near future.

Later in the week, we will get a read on the housing market via the Housing Starts and Building Permits Report on Wednesday, as well as a look at the manufacturing sector via the Philadelphia Fed Report on Thursday. This monthly survey of manufacturing purchasing managers conducting business around the tri-state area of Pennsylvania, New Jersey, and Delaware is one of the most highly watched manufacturing reports. If manufacturing appears to be getting stronger in this region, Stocks could move higher at the expense of Bonds and home loan rates.

Remember when Bond prices move higher, home loan rates move lower…and vice versa. As you can see in the chart below, Bonds and home loan rates have improved significantly over the past month, but got stopped in their tracks last week by a technical “ceiling of resistance”. I will be watching closely to see if Bonds and home loan rates can break this barrier and find more improvement in the weeks ahead.

Patrick Dunn, Westwood Mortgage Inc. & MMG Weekly
patrick@westwoodmortgage.com / http://www.certifiedplanning.com

We will likely see another volatile day on Friday this week, with the delivery of two high impact reports with the potential to shake things up. Both set for release at 8:30am ET, we will see the wholesale inflation measuring Producer Price Index, as well as the Retail Sales Report. It will be important to see if the recent drop in oil prices has made an impact on either the cost to manufacture (PPI) or if it has invigorated retail purchases due to the savings in the cost to fuel vehicles.

Inflation at any level remains a strong concern, so the Producer Price Index will be of high interest to many, including the Fed. On the Retail Sales Report, remember that a strong Report would be good for the Stock market - which stands to reason, as it would indicate continued consumer confidence and dollars being poured into the economy. But stronger economic news and higher stock prices will likely worsen Bonds and home loan rates. The aforementioned 200-day Moving Average, seen below in blue, is an important threshold in determining the direction of home loan rates in the coming weeks. A convincing move above this line would be good news for Bonds. Let’s watch this closely, as it may represent some opportunities ahead.

Remember when Bond prices move higher, home loan rates move lower…and vice versa. As you can see in the chart, Bonds and home loan rates managed to stay above the 200-Day Moving Average. I will be watching closely to see if Bonds and home loan rates can remain above this important level.

As you know, Treasury Secretary Paulson and Federal Housing Finance Agency Director Lockhart announced that “FHFA has placed Fannie Mae and Freddie Mac into conservatorship.”  The government (FHFA) will now be managing Fannie Mae and Freddie Mac for the foreseeable future.
 
A leading Washington DC firm provided an analysis of possible implications of this event. Here are some excerpts:
Overview:
To stabilize and to stimulate the housing and financial markets, the Federal Government is taking the following key steps.
- The GSEs will be allowed to increase their MBS portfolios through the end of 2009
- Treasury will be initiating a program to purchase GSE mortgage-backed securities (through December 31, 2009)
- Treasury has established a new secured lending credit facility which will be available to Fannie Mae, Freddie Mac and the Federal  Home Loan Banks
Short term impact:
For the housing industry, the short-term impact of the Government takeover appears to be positive.
- Mortgage rates should decline
- Liquidity should be increased
- Some housing experts feel house price may stabilize sooner and the level of further house price decline will be moderated as a result
Potential Impact:
- There could be a mini-refinance boom if the rate decline materializes.
- Hedging of servicing portfolios and pipeline problems will have to be addressed
- FHA appeared on the way to 50% market share later this year.  

More to come!

Patrick Dunn, Westwood Mortgage Inc. & MMG Weekly
patrick@westwoodmortgage.com / http://www.certifiedplanning.com