Daily Market Update 3/7/11

Mortgage rates held steady Monday in quiet trading. No economic data will be released today. The National Association of Independent Housing Professionals (NAIHP) filed a lawsuit today against the Federal Reserve over the Fed's loan originator compensation rule scheduled to go into effect April 1. The National Association of Mortgage Brokers (NAMB) is expected to join the suit within days. The Small Business Administration (SBA) has requested a one-year delay in implementation of the rule to allow for further clarification and to study its long-term impact on consumers and small businesses. We view the rule as poorly conceived and grossly anti-competitive. If the rule is allowed to go forward in its present form, consumers can expect to pay higher mortgage costs and receive lower levels of customer service. Meanwhile, profits will soar among the industry's largest players (those "too big to fail"). For more information, please visit www.namb.org.