Points of Interest ©

•  JPMorgan Chase has decided to close its warehouse lending division and is giving its non-bank customers just a few months to secure new lines.

•  Key Republican congressmen say they are willing to work with the Obama administration on bankruptcy cramdown legislation that exempts Fannie Mae, Freddie Mae, the Federal Housing Administration and government-related loan programs.

•  The leader of the largest private bank in America, Bernanke of the Federal Reserve suggested in congressional testimony that it was time to start buying the "bad" assets of the public banks.  Privatize the profits and socialize the losses.  And yes, I did say private.  The Federal Reserve is not a US government institution.  It is a private central bank given its authority by Congress in what could easily be argued was one more unconstitutional moment of congressional lunacy.

•  The Gaussian copula function.  What is it and how did it add to this mess?

•  Single-family existing home sales fell 4.7% in January from December, but Realtors are optimistic the economic stimulus package passed by Congress will boost home sales this year.

•  Freddie Mac saw a spike in delinquencies in the month of January along with lackluster issuance of mortgage-backed securities and portfolio activity.

•  Expecting another big year for the FHA single-family insurance program, House appropriators are increasing the agency's commitment level to $315 billion, a 70% improvement from last year.

•  Home prices fell 18.2% in the fourth quarter, retreating to their 2003 levels, according to the newly released Standard & Poor's/Case-Shiller housing price index.

•  The loan-to-value limit on mortgages that Fannie Mae and Freddie Mac can refinance under the President's foreclosure rescue plan could go higher than 105%.

•  The National Association of Student Financial Aid Administrators reports that "People claiming to represent the U.S. Education Department are calling students to offer scholarships and grants," the Star-Telegram reports.  The callers ask for a bank or credit-card number, saying the information will be used for a $249 processing fee.  But it’s a fake. … ‘Do not give your financial information to individuals making these claims,’ the department warns.

If you receive a call, report it to 1-800-MIS-USED, or send an e-mail to oig.hotline@ed.gov.  The government Web site www.ftc.gov/scholarshipscams shares tell-tale signs of fraud.

•  Chain store sales are falling, jobless claims climb as well as productivity which increased at a pace of 3.2% in the 4th quarter.  Factory orders were down 3.9% in December.

•  a Bankruptcy cramdown bill is getting new life from the House Financial Services Committee.

•  Mortgage rates continue to edge up.  Given the sour data on the economy this seems less than intuitive.

•  Senate support for adding a housing component to the economic stimulus bill is growing and a proposal by minority leader Mitch McConnell, R-Ky, to include a 4% mortgage rate buy down program is gaining bipartisan interest.

•  Pending home sales reported a slight increase in December.  This was bound to happen as price decreases strayed into the zone of buyer demand.  The most attractively priced homes are not staying on the market long.  You should be approved prior to shopping for a new home.  Get a loan commitment first.