Daily Market Update 3/29/11

Rates held steady Tuesday in quiet trading. In economic news, Consumer Confidence fell to a 3-month low in March to 63.4 from 72.0 in February. The FDIC is expected to released its proposed definition of a Qualified Residential Mortgage today. The announcement will clarify which mortgages will be subject to risk retention by lenders, and may affect pricing of certain high loan-to-value loans. The National Association of Mortgage Brokers (NAMB) is seeking a temporary restraining order to block implementation of the new Fed rule regarding loan originator compensation scheduled to take effect April 1. The rule is based on a three-year old study of phone interviews with 35 “hypothetical” borrowers by Fed staff, yet will change the entire mortgage delivery system, raising costs and limiting options for consumers. Our belief is that the rule is all about increasing market share of the “too big to fail” financial institutions. For more information, log on to Results of today’s 5-year Treasury auction will be released at 1:00 PM.

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