Date:

March 29, 2010 at 8:45 Eastern

Benchmark	APR FN30 4.5	FN30 CC	FN30 NR	JUN EDF 2.0 BUNDLE	APR GN30 4.5
Last Close	100:14	4.48%	5.14%	98.526	101:06
Current Level	100:12 -2	4.49% +1 bp	5.15% +1 bp	98.523 -0.3 bps	101:04 -2

Latest Spreads:

Product	Last	Change
FN30 CC Spread	96 bps	+0 bps
		MTD +6
FN30 4.5 TOAS	11 bps	-2 bps
C30 Avg GPM	62 bps	+2 bps
Production Index	Day over day	222.0%
	% of 10 day avg	62.2%
Mand-BE Spread	48 bps	+0 bps
MSR Retain IRR	22.48%	+5.97%
MSR Index	104.0%	MTD  +4.0%

House Price Data provided by Radar Logic, Inc. 

RPX MSA	Price per Square Foot	M-T-M*	Q-T-Q*	RPX Implied HPA through 12/31/2010
25-MSA Composite	$186.00/sqft	-$7.62/sqft	-$7.97/sqft	+4.3%
Sacramento	$118.16/sqft	-$1.31/sqft	-$3.29/sqft	No Contract

Economic News/Activity Today 

Time	Release	Period	B’Berg Survey	Actual	Prior	Revised
8:30	Personal Income	FEB	0.1%	0.0%	0.1%	0.3%
8:30	Personal Spending	FEB	0.3%	0.3%	0.5%	0.4%
8:30	PCE Deflator (YoY)	FEB	1.8%	1.8%	2.1%	--
8:30	PCE Core (MoM)	FEB	0.1%	0.0%	0.0%	--
8:30	PCE Core (YoY)	FEB	1.3%	1.3%	1.4%	1.5%
10:30	Dallas Fed Manf. Activity	MAR	5.2%	--	-0.1%	--

Market Color 

Personal income and spending printed close to expectations.  Greece plans to sell 7yr notes, its first debt offering since the EU agreed to help the nation finance its debt.  The Fed is scheduled to end the $1.25T MBS purchase program on Wednesday; Nonfarm payrolls is set for release on Friday (consensus is +190K).  Right now, the futures market is pricing in a 74% chance that the Fed keeps rates at .25% through August 10th, 2010.  Currently, the Ten Year yield is at 3.87% (3.88% on Friday) and the 2-10 yield spread is at 283bps, steepening 3bps since Friday morning.

Disclaimer:  C30 Avg GPM (Conventional 30-year Average Gross Profit Margin), MSR Index, FN30-NR, BE-MAND Spread and MSR Rich/Cheap represent generic industry measures.  Actual results and measures will likely vary by individual originator or servicer.

* Radar Logic Daily™ Price Data represents the previous day's 28-day average price per square foot compared to previous month's (M-T-M) or quarter's (Q-T-Q) 28-day average price.  For more information on RPX™ Forward Contracts, Radar Logic Daily™ Price Data on an MSA or ZIP level contact or valuation and/or hedging application of either, please contact Compass at 415 462 7500.

 

**If you would like to be added to this distribution list or would like an explanation of any of these numbers, please send an email to dbennett@compass-analytics.com**