What's the next huge problem to face our industry? "The potential liability facing bankers arises from the $2 trillion in subprime, alt-A and option-adjustable rate mortgages that they underwrote and sold to investors, mostly as mortgage-backed securities during the home-lending boom of 2005 to 2007. The losses on the mortgages will be horrendous before the dust settles-over $700 billion on these and other so-called non-agency mortgage securities...

To charge a borrower 1.5 points for an 80% LTV with 680 FICO is criminal, and with the recent credit problems most potential borrowers seem to have FICO's between 680 and 720 - how are these new fees helping borrowers or the housing markets get back on their feet? They totally do not help, except the lender coffers, reeling from their inept decisions of giving out retarded loans to one and all in years past! I need to explain this lame industry-wide highway robbery scheme to my clients at least once a week.

I won't even get into the 1 point "penalty" charge/add-on/clip added to that on all 2, 3 and 4 Family homes.

Freddie Mac told homeowners who have lost their homes to foreclosure but are still occupied that they will not be evicted from their properties over the holiday season. "All evictions involving single-family homes and properties of two to four units would be suspended from Dec. 20, 2010, to Jan. 3, 2011. Oh!, btw Happy Holidays.

Mortgage interest rates rose again this week, responding to a growing number of signals of an improving economy. Only a lackluster employment report for November kept them from increasing further.

While the economic news was not universally solid this week, there have been on balance stronger reports than weaker for the past month or two now. Incoming November data was no exception, and each report makes it more likely that the expansion will remain durable and less likely to backslide into recession.

With the increase in rates, it's little surprise that applications for new mortgages have dropped sharply, particularly for refinancing. Given what seems to be the particularly strong interest rate sensitivity of this refinancing boomlet, refinancing activity will probably grind to a halt absent a new decline in rates. Despite the rise, rates remain at extraordinarily attractive levels, but there simply aren't enough high-rate mortgages which can be successfully refinanced at these rates and in the context of today's tight lending standards.

Still, perspective is important. Home purchases rely far less on rock bottom interest rates and far more on economic improvement and especially income and job growth. Those who wish for lower rates are, in a way, wishing economic misfortune on others. At this stage of the recovery, we should all be cheering even mildly better economic news, even if it does engender somewhat higher rates. Yes, fewer household balance sheets will be improved by refinancing, it's true, but if that comes at the expense of more folks getting jobs, spending money and buying homes sooner rather than later, so be it.

Since mid-October, mortgage rates have risen about thirty basis points, a small take-back after a near year-long decline. The economy isn't roaring yet by any means; the stock market is attracting some money formerly stashed in bonds for safety. Over the next couple of weeks, upside surprises notwithstanding, rates should steady and even have some space to ease a little. For next week, though, there does seem to yet be a little upward momentum, so slightly higher rates seem to be the most likely course.

A Catholic Priest, a Baptist Preacher, and a Rabbi all served as chaplains to the students of Northern Michigan University in Marquette. They would get together two or three times a week for coffee and to talk shop.
One day, someone made the comment that preaching to people isn't really all that hard - a real challenge would be to preach to a bear. One thing led to another, and they decided to do an experiment.
They would all go out into the woods, find a bear, preach to it, and attempt to convert it.
Seven days later, they all came together to discuss their experience.
Father Flannery, who had his arm in a sling, was on crutches, and had various bandages on his body and limbs, went first. "Well," he said, "I went into the woods to find me a bear. And when I found him, I began to read to him from the Catechism. Well, that bear wanted nothing to do with me and began to slap me around. So I quickly grabbed my holy water, sprinkled him and, Holy Mary Mother of God, he became as gentle as a lamb. The Bishop is coming out next week to give him first communion and confirmation."
Reverend Billy Bob spoke next. He was in a wheelchair, had one arm and both legs in casts, and had an IV drip. In his best fire-and-brimstone oratory, he claimed, "Well, brothers, you KNOW that we don't sprinkle! I went out and I FOUND me a bear. And then I began to read to my bear from God's HOLY WORD! But that bear wanted nothing to do with me. So I took HOLD of him and we began to wrestle. We wrestled down one hill, UP another and DOWN another until we came to a creek. So I quickly DUNKED him and BAPTIZED his hairy soul. And just like you said, he became as gentle as a lamb. We spent the rest of the day praising Jesus... Hallelujah!"

The priest and the reverend both looked down at the Rabbi, who was lying in a hospital bed. He was in a body cast and traction with IVs and monitors running in and out of him. He was in really bad shape.
The Rabbi looked up and said: "Looking back on it ...circumcision may not have been the best way to start."