There is really very little to report regarding the markets today. So while the bond markets prepare for an early start to the weekend @ 2:00, there seems to be a calm in the markets in-spite of the very tense situation going on in Cyprus as the banks reopen. The video of depositors waiting outside the bank is just a scary thought that is reminiscent of the scene from the movie â€œItâ€™s a Wonderful Lifeâ€. So I certainly feel those peopleâ€™s pain and angst. Hopefully the significant losses are isolated to the people who deserve the bad karma. In the meantime we seem to be on solid footing for today with the 10yr trading @ 1.85%.
However, we did have some mortgage news that hit the tape yesterday. The Federal Housing Finance Agency announced a new, simplifiedÂ loan modification programÂ for 90+ dayâ€™s delinquent borrowers that will run from July 1, 2013 to August 1, 2015. Here are the highlights of the program:
Program will be available to:
Now this program does not go into effect until 7/1 so the big aggregators do have time to assess it. I do expect this to initially be a servicer/borrower transaction. However, it would not surprise me if some correspondent lenders start to offer it once the program gets established. The biggest obstacles for this to ever be offered thru the correspondent channels is the wording that â€œservicers will be required to offer eligible borrowersâ€. This does not clearly indicate any allowable involvement for a 3rd party. I am sure that this will be clarified in the weeks ahead.
With the markets closed tomorrow there will be no Update so I hope everyone has a Happy Easter or just a pleasant weekend.