Random observations / thoughts:

> Over 50% of all mortgages being originated are through the FHA programs, concern as that product matures (and defaults may rise), the Gov’t will pull back which is a risk to the industry.

> Still much “bitching” about lack of warehouse financing, yet there were several warehouse lenders attending, looking for business. Agree there are only a few warehouse players out there, and that creates risk, another problem is the “lenders” who need the leverage don’t like the tight rules the warehouse lenders have out on the process.

> No sign of private label securitizing

> The only jumbo financing is funded by the big banks, for their customers, held on balance sheet.

> Too much talk about HEMP and modifications, no talk about the real symptom which is jobs. Fix the employment/underemployment issue, and then the mods will work. Oh, BTW you can’t mod a guy who 1) Doesn’t have a job 2) Has a debt ratio over 50 (some to 80) percent AND/OR 3) No longer occupies the house. Get that guy back to work, let’s talk about that.

See you at the ABS.