Waiting to lock until this morning? I hope not! Mortgage prices are worse by .250 in price and the 10-yr is back up to 4.08% after U.S. Personal Spending jumped a much bigger-than-expected 1.1% in November, the sharpest rise in more than two years, while prices rose. The personal consumption expenditure price index, a key measure of inflation, rose 0.6%, the biggest gain since September 2005. The year-on-year core PCE, a favorite inflation gauge of the Federal Reserve, climbed to 2.2%. The overall PCE index rose 3.6% from a year earlier. Real spending, which adjusts for inflation, rose 0.5% in November, the highest since last year, and inflation flaring above the 2% rate is at the top of the Fed’s “ideal” range. One analyst quipped “Once again it appears the demise of the US consumer has been exaggerated.”

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What does $11 trillion mean to you? According to the Federal Reserve, mortgage debt on single-family housing hit $11.03 trillion in September. No originator would be hard pressed if asked what the fastest growing segment is: conforming conventional and government (FHA/VA). And are borrowers paying on this mortgage debt? Countrywide, with $1.46 trillion, has a 6.79% delinquency rate. Wells, with $1.41 trillion, has a 4.97% rate. Among the top 20 servicers Ocwen “leads” the pack with a 33.3% delinquency rate.

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· HSBC announced to their brokers that “Given current market conditions and the short-term outlook, we will temporarily suspend origination of home equity products in the wholesale channel effective January 2, 2008. Please note that the last day to register Home Equity loans and lines is January 2, 2008.” HSBC states that their “current underwriting is 7-8 days and 2 days for conditions and docs”.

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· For brokers, WAMU yesterday announced that for their Option ARM and Jumbo fixed & ARM product lines, “Low Doc” product, it must have a minimum FICO of 720 and a maximum LTV of 50%. This is effective immediately.

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· PNC Bank announced its decision to discontinue its wholesale home equity broker origination channel. “The decision to exit this channel was based on the current market conditions and the projected impact of higher operating costs associated with wholesale home equity lending. Loan applications will not be accepted after Thursday December 20, 2007. All approved loans must be closed by Friday February 29, 2008.”

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· Remember NovaStar Financial, one of the last of the remaining subpr