{"id":422348,"date":"2010-03-12T22:20:02","date_gmt":"2010-03-13T02:20:02","guid":{"rendered":"http:\/\/mortgagenewsclips.com\/2010\/03\/12\/the-garrett-watts-report-march-11-2010-and-arent-you-getting-sick-of-winter\/"},"modified":"2010-03-12T22:20:02","modified_gmt":"2010-03-13T02:20:02","slug":"the-garrett-watts-report-march-11-2010-and-aren%e2%80%99t-you-getting-sick-of-winter","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/422348","title":{"rendered":"The Garrett, Watts Report (March 11, 2010 and aren\u2019t you getting sick of Winter?)"},"content":{"rendered":"<p><a href=\"http:\/\/garrettwatts.com\/\"><img loading=\"lazy\" decoding=\"async\" style=\"border-bottom: 0px; border-left: 0px; display: inline; border-top: 0px; border-right: 0px\" title=\"garrettwatts\" src=\"http:\/\/mortgagenewsclips.com\/wp-content\/uploads\/2010\/03\/garrettwatts4.jpg\" border=\"0\" alt=\"garrettwatts\" width=\"433\" height=\"68\" \/><\/a><\/p>\n<p>To Our Clients, Colleagues and Friends<strong>,<br \/>\n<\/strong><\/p>\n<ul>\n<li>We made reference last week to Marion Berry snorting crack, and you wouldn\u2019t believe how many people wrote us that you smoke it and don&#8217;t snort it.\u00a0 One who wrote us is a major name in warehouse lending, another one a top secondary marketing executive, and one is a bank President. How do they know this sort of stuff?<\/li>\n<li>With all the moving and shifting, here are the most recent numbers on the largest banks ranked by size:<\/li>\n<\/ul>\n<table class=\"MsoTableGrid\" style=\"border-bottom-style: none; border-right-style: none; border-collapse: collapse; border-top-style: none; margin-left: 0.7in; border-left-style: none\" border=\"1\" cellspacing=\"0\" cellpadding=\"0\">\n<tbody>\n<tr>\n<td style=\"padding-bottom: 0in; background-color: #ffcc99; padding-left: 5.4pt; width: 2.5in; padding-right: 5.4pt; padding-top: 0in; background-origin: initial; background-clip: initial; border: windowtext 1pt solid;\" width=\"240\" valign=\"top\" bgcolor=\"#ffcc99\">\n<p class=\"MsoNormal\" style=\"margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\"><span style=\"font-family: 'Comic Sans MS'; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">1. $2.52 trillion\u00a0\u00a0 Bank of America<\/span><\/span><\/p>\n<\/td>\n<td style=\"border-bottom: windowtext 1pt solid; padding-bottom: 0in; background-color: #ffff99; padding-left: 5.4pt; width: 2.5in; padding-right: 5.4pt; border-left-style: none; border-top: windowtext 1pt solid; border-right: windowtext 1pt solid; padding-top: 0in; background-origin: initial; background-clip: initial;\" width=\"240\" valign=\"top\" bgcolor=\"#ffff99\">\n<p class=\"MsoNormal\" style=\"margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\"><span style=\"font-family: 'Comic Sans MS'; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">6.\u00a0 $768 billion\u00a0\u00a0 Morgan Stanley<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-bottom: 0in; background-color: #ffcc99; padding-left: 5.4pt; width: 2.5in; padding-right: 5.4pt; border-top-style: none; border-right: windowtext 1pt solid; padding-top: 0in; background-origin: initial; background-clip: initial;\" width=\"240\" valign=\"top\" bgcolor=\"#ffcc99\">\n<p class=\"MsoNormal\" style=\"margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\"><span style=\"font-family: 'Comic Sans MS'; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">2. $2.94 trillion\u00a0\u00a0 JPMorgan Chase<\/span><\/span><\/p>\n<\/td>\n<td style=\"border-bottom: windowtext 1pt solid; padding-bottom: 0in; background-color: #ffff99; padding-left: 5.4pt; width: 2.5in; padding-right: 5.4pt; border-top-style: none; border-left-style: none; border-right: windowtext 1pt solid; padding-top: 0in; background-origin: initial; background-clip: initial;\" width=\"240\" valign=\"top\" bgcolor=\"#ffff99\">\n<p class=\"MsoNormal\" style=\"margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\"><span style=\"font-family: 'Comic Sans MS'; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">7.\u00a0 $535 billion\u00a0\u00a0 MetLife<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-bottom: 0in; background-color: #ffcc99; padding-left: 5.4pt; width: 2.5in; padding-right: 5.4pt; border-top-style: none; border-right: windowtext 1pt solid; padding-top: 0in; background-origin: initial; background-clip: initial;\" width=\"240\" valign=\"top\" bgcolor=\"#ffcc99\">\n<p class=\"MsoNormal\" style=\"margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\"><span style=\"font-family: 'Comic Sans MS'; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">3. $1.88 trillion\u00a0\u00a0 Citigroup<\/span><\/span><\/p>\n<\/td>\n<td style=\"border-bottom: windowtext 1pt solid; padding-bottom: 0in; background-color: #ffff99; padding-left: 5.4pt; width: 2.5in; padding-right: 5.4pt; border-top-style: none; border-left-style: none; border-right: windowtext 1pt solid; padding-top: 0in; background-origin: initial; background-clip: initial;\" width=\"240\" valign=\"top\" bgcolor=\"#ffff99\">\n<p class=\"MsoNormal\" style=\"margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\"><span style=\"font-family: 'Comic Sans MS'; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">8.\u00a0 $390 billion\u00a0\u00a0 HSBC<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-bottom: 0in; background-color: #ffcc99; padding-left: 5.4pt; width: 2.5in; padding-right: 5.4pt; border-top-style: none; border-right: windowtext 1pt solid; padding-top: 0in; background-origin: initial; background-clip: initial;\" width=\"240\" valign=\"top\" bgcolor=\"#ffcc99\">\n<p class=\"MsoNormal\" style=\"margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\"><span style=\"font-family: 'Comic Sans MS'; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">4. $1.22 trillion\u00a0\u00a0 Wells Faro<\/span><\/span><\/p>\n<\/td>\n<td style=\"border-bottom: windowtext 1pt solid; padding-bottom: 0in; background-color: #ffff99; padding-left: 5.4pt; width: 2.5in; padding-right: 5.4pt; border-top-style: none; border-left-style: none; border-right: windowtext 1pt solid; padding-top: 0in; background-origin: initial; background-clip: initial;\" width=\"240\" valign=\"top\" bgcolor=\"#ffff99\">\n<p class=\"MsoNormal\" style=\"margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\"><span style=\"font-family: 'Comic Sans MS'; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">9.\u00a0 $377 billion\u00a0\u00a0 Barclays<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-bottom: 0in; background-color: #ffcc99; padding-left: 5.4pt; width: 2.5in; padding-right: 5.4pt; border-top-style: none; border-right: windowtext 1pt solid; padding-top: 0in; background-origin: initial; background-clip: initial;\" width=\"240\" valign=\"top\" bgcolor=\"#ffcc99\">\n<p class=\"MsoNormal\" style=\"margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\"><span style=\"font-family: 'Comic Sans MS'; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">5. $882 billion\u00a0\u00a0\u00a0\u00a0 Goldman Sachs<\/span><\/span><\/p>\n<\/td>\n<td style=\"border-bottom: windowtext 1pt solid; padding-bottom: 0in; background-color: #ffff99; padding-left: 5.4pt; width: 2.5in; padding-right: 5.4pt; border-top-style: none; border-left-style: none; border-right: windowtext 1pt solid; padding-top: 0in; background-origin: initial; background-clip: initial;\" width=\"240\" valign=\"top\" bgcolor=\"#ffff99\">\n<p class=\"MsoNormal\" style=\"margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\"><span style=\"font-family: 'Comic Sans MS'; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">10. $368billion\u00a0\u00a0 Deutsche Bank<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>A few others you know are #12 U.S. Bancorp ($265 billion), #17 BB&amp;T ($165 billion), #23 Fifth Third ($110 billion), #33 Comerica ($59 billion), #82 Sterling Financial, Spokane ($11.9 billion).<\/p>\n<ul>\n<li>A good example of how much access banks have to non-deposits funding sources is the Bank of America.\u00a0 Although they have $2.52 trillion in assets, they have only $976 billion in deposits.<\/li>\n<li>The Wednesday <em>Wall Street Journal<\/em> was chockfull of items meant to assist those involved in business and finance. On page D-3 we learned that breast augmentation beat out liposuction, 311,957 to 283,735 as the most popular surgical procedure for the second year in row. Interestingly, buttock augmentations beat out buttocks lifts, 4,996 to 3,024. And no, we don\u2019t have any idea what a buttock augmentation is or why someone would want one.<\/li>\n<li>Between the Marion Berry crack item and everything-you-never-wanted to know about buttocks augmentation, we have only one question:\u00a0 Why do you read this trashy newsletter?<\/li>\n<li>Top bank research firm Keefe, Bruyette has identified 21 distinct periods of bank performance starting in the early 1960s.\u00a0 Outperformance periods averaged 34 months in length, during which bank stocks outperformed the market by an average of 20.8% annualized. The under-performance cycles averaged 23 months, during which bank stocks lagged the market by 20% per year, on average. Our view is that an outperformance for small cps banks is just around the corner.<\/li>\n<li>We just looked at the schedule for the Cal football team in the Fall.\u00a0\u00a0 They open September 9<sup>th<\/sup> against UC Davis, and all we can say is, uh oh. We predict that Cal will win by more than 50 points.<\/li>\n<\/ul>\n<ul>\n<li>The Mandatory\/Best Efforts Spread in February averaged 38 bps with a peak of 48 bps and a low of 33 bps.\u00a0 We also tracked it the last 11 days, and it was 41 bps. There are many, many companies that should stick to best efforts delivery, maybe most companies, but for those capable of hedging, tracking and of being disciplined, this pick-up can be a big contributor to earnings.<\/li>\n<li>We were looking at a Private Placement Memorandum for up-and-coming Seacoast Commercial Bank in San Diego .\u00a0 One interesting piece of this turnaround situation is that they\u2019ve sold $9.1 million of the guaranteed portion of some SBA loans and realized a gain of $780,000. That\u2019s a nice, round 8.5 point gain. And by the way, there\u2019s no such nonsense as giving SBA loan officers a 60-40 split like in residential. SBA lending can turbo-charge a bank\u2019s earning faster than anything else we can think of.<br \/>\n<a href=\"http:\/\/mortgagenewsclips.com\/wp-content\/uploads\/2010\/03\/j2.gif\"><img loading=\"lazy\" decoding=\"async\" style=\"border-bottom: 0px; border-left: 0px; display: block; float: none; margin-left: auto; border-top: 0px; margin-right: auto; border-right: 0px\" title=\"j2\" src=\"http:\/\/mortgagenewsclips.com\/wp-content\/uploads\/2010\/03\/j2_thumb.gif\" border=\"0\" alt=\"j2\" width=\"156\" height=\"156\" \/><\/a><\/li>\n<li>From 1961 through 2010 year-to-date, bank stocks rose slightly less than the S&amp;P 500, 5.6% versus 6.2% per year based purely on stock price appreciation. Once we consider dividends, on a total return basis, large-cap bank stocks have returned 9.9% annually versus 9.6% for the S&amp;P since 1961.<\/li>\n<li>Let\u2019s pretend you\u2019re a bank and you\u2019re funding mortgages today with Fed Funds.\u00a0 Fed Funds will cost you 16 bps, and let\u2019s say you\u2019re closing 5% loans.\u00a0 Your spread while you hold them in warehouse is 4.84%, and let\u2019s assume you\u2019ll hold these loans for 15 days before they\u2019re purchased.\u00a0 On a $250,000 loan, that comes to $33.15 per day, which comes to $497 in net interest income for the 15 days. That\u2019s an extra 20 bps, just from the cheaper funds. If you do $50 million a month in volume, you\u2019ll make an extra $100,000 that month. Realistically, you\u2019re not going to fund all your loans with Fed Funds, but you get the point.<\/li>\n<li>Let\u2019s instead look at the same numbers above and assume you fund your mortgages with deposits costing 1.25%.\u00a0 You\u2019re picking up 15 bps during those 15 days, and on the $50 million that funds that month, you\u2019d make an extra $77,000 by holding them 15 days.\u00a0 Want to make an extra $5,000 to put to the Christmas Party?\u00a0 Just ship your loans on the 16<sup>th<\/sup> day instead of the 15<sup>th<\/sup> day.<\/li>\n<li>We know we sound like a broken record, but don\u2019t be fooled by how many dollars your company made last year.\u00a0 Look at your pre-tax earnings and divide that by your total volume.\u00a0 If you made less than 65 bps, you were below average.\u00a0 If you\u2019re okay with being average, God bless you.\u00a0 If you want to do better, we can probably help.<\/li>\n<li>Have you noticed that the music on TV ads isn\u2019t what it used to be?\u00a0 We can remember the <em>1812 Overture<\/em> for Quaker Oats Puffed Rice (the part where the cannons explode).\u00a0 The Loan Ranger had <em>The William Tell Overture,<\/em>and Malto Meal had that classical piece, maybe Berlioz, with the words added about how \u201cWinners\u2026\u2026. wake up with Malto-Meal.\u201d\u00a0 Can anyone remember any others?<\/li>\n<li>Here are some selected prices, today and a year ago.\u00a0 We don\u2019t know if there is any deep meaning in these numbers, but it sure looks like there may be some inflation heating up.\u00a0 By the way, we don\u2019t bother to describe all the details of the type or unit of measurement.\u00a0 For instance, there\u2019s <em>Wheat, hard, Kansas City<\/em> and there\u2019s <em>Wheat, No. 1 soft white, Portland , Oregon<\/em> .\u00a0 We have no idea what this means so we just chose whatever seemed logical.\u00a0 Notice how, except for wheat, everything\u2019s really gotten more expensive.<\/li>\n<\/ul>\n<table class=\"MsoTableGrid\" style=\"border-bottom-style: none; border-right-style: none; border-collapse: collapse; border-top-style: none; margin-left: 1.95in; border-left-style: none\" border=\"1\" cellspacing=\"0\" cellpadding=\"0\">\n<tbody>\n<tr>\n<td style=\"border-bottom: windowtext 1pt solid; padding-bottom: 0in; background-color: #ccffcc; padding-left: 5.4pt; width: 1.25in; padding-right: 5.4pt; border-left-style: none; border-top: windowtext 1pt solid; border-right: windowtext 1pt solid; padding-top: 0in; background-origin: initial; background-clip: initial;\" width=\"120\" valign=\"top\" bgcolor=\"#ccffcc\">\n<p class=\"MsoNormal\" style=\"margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\"><span style=\"font-family: 'Comic Sans MS'; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\"><br \/>\nMarch 12, 2010<\/span><\/span><\/td>\n<td style=\"border-bottom: windowtext 1pt solid; padding-bottom: 0in; background-color: #ccffcc; padding-left: 5.4pt; width: 63pt; padding-right: 5.4pt; border-left-style: none; border-top: windowtext 1pt solid; border-right: windowtext 1pt solid; padding-top: 0in; background-origin: initial; background-clip: initial;\" width=\"84\" valign=\"top\" bgcolor=\"#ccffcc\">\n<p class=\"MsoNormal\" style=\"margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\"><span style=\"font-family: 'Comic Sans MS'; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">A year ago<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-bottom: 0in; background-color: #ffcc99; padding-left: 5.4pt; width: 1in; padding-right: 5.4pt; border-top-style: none; border-right: windowtext 1pt solid; padding-top: 0in; background-origin: initial; background-clip: initial;\" width=\"96\" valign=\"top\" bgcolor=\"#ffcc99\">\n<p class=\"MsoNormal\" style=\"margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\"><span style=\"font-family: 'Comic Sans MS'; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">Milk<\/span><\/span><\/p>\n<\/td>\n<td style=\"border-bottom: windowtext 1pt solid; padding-bottom: 0in; background-color: #ffff99; padding-left: 5.4pt; width: 1.25in; padding-right: 5.4pt; border-top-style: none; border-left-style: none; border-right: windowtext 1pt solid; padding-top: 0in; background-origin: initial; background-clip: initial;\" width=\"120\" valign=\"top\" bgcolor=\"#ffff99\">\n<p class=\"MsoNormal\" style=\"margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\"><span style=\"font-family: 'Comic Sans MS'; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">$112<\/span><\/span><\/p>\n<\/td>\n<td style=\"border-bottom: windowtext 1pt solid; padding-bottom: 0in; background-color: #ffff99; padding-left: 5.4pt; width: 63pt; padding-right: 5.4pt; border-top-style: none; border-left-style: none; border-right: windowtext 1pt solid; padding-top: 0in; background-origin: initial; background-clip: initial;\" width=\"84\" valign=\"top\" bgcolor=\"#ffff99\">\n<p class=\"MsoNormal\" style=\"margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\"><span style=\"font-family: 'Comic Sans MS'; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">$85<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-bottom: 0in; background-color: #ffcc99; padding-left: 5.4pt; width: 1in; padding-right: 5.4pt; border-top-style: none; border-right: windowtext 1pt solid; padding-top: 0in; background-origin: initial; background-clip: initial;\" width=\"96\" valign=\"top\" bgcolor=\"#ffcc99\">\n<p class=\"MsoNormal\" style=\"margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\"><span style=\"font-family: 'Comic Sans MS'; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">Oil<\/span><\/span><\/p>\n<\/td>\n<td style=\"border-bottom: windowtext 1pt solid; padding-bottom: 0in; background-color: #ffff99; padding-left: 5.4pt; width: 1.25in; padding-right: 5.4pt; border-top-style: none; border-left-style: none; border-right: windowtext 1pt solid; padding-top: 0in; background-origin: initial; background-clip: initial;\" width=\"120\" valign=\"top\" bgcolor=\"#ffff99\">\n<p class=\"MsoNormal\" style=\"margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\"><span style=\"font-family: 'Comic Sans MS'; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">$83.01<\/span><\/span><\/p>\n<\/td>\n<td style=\"border-bottom: windowtext 1pt solid; padding-bottom: 0in; background-color: #ffff99; padding-left: 5.4pt; width: 63pt; padding-right: 5.4pt; border-top-style: none; border-left-style: none; border-right: windowtext 1pt solid; padding-top: 0in; background-origin: initial; background-clip: initial;\" width=\"84\" valign=\"top\" bgcolor=\"#ffff99\">\n<p class=\"MsoNormal\" style=\"margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\"><span style=\"font-family: 'Comic Sans MS'; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">$48.78<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-bottom: 0in; background-color: #ffcc99; padding-left: 5.4pt; width: 1in; padding-right: 5.4pt; border-top-style: none; border-right: windowtext 1pt solid; padding-top: 0in; background-origin: initial; background-clip: initial;\" width=\"96\" valign=\"top\" bgcolor=\"#ffcc99\">\n<p class=\"MsoNormal\" style=\"margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\"><span style=\"font-family: 'Comic Sans MS'; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">Gasoline<\/span><\/span><\/p>\n<\/td>\n<td style=\"border-bottom: windowtext 1pt solid; padding-bottom: 0in; background-color: #ffff99; padding-left: 5.4pt; width: 1.25in; padding-right: 5.4pt; border-top-style: none; border-left-style: none; border-right: windowtext 1pt solid; padding-top: 0in; background-origin: initial; background-clip: initial;\" width=\"120\" valign=\"top\" bgcolor=\"#ffff99\">\n<p class=\"MsoNormal\" style=\"margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\"><span style=\"font-family: 'Comic Sans MS'; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">$2.13<\/span><\/span><\/p>\n<\/td>\n<td style=\"border-bottom: windowtext 1pt solid; padding-bottom: 0in; background-color: #ffff99; padding-left: 5.4pt; width: 63pt; padding-right: 5.4pt; border-top-style: none; border-left-style: none; border-right: windowtext 1pt solid; padding-top: 0in; background-origin: initial; background-clip: initial;\" width=\"84\" valign=\"top\" bgcolor=\"#ffff99\">\n<p class=\"MsoNormal\" style=\"margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\"><span style=\"font-family: 'Comic Sans MS'; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">$1.13<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-bottom: 0in; background-color: #ffcc99; padding-left: 5.4pt; width: 1in; padding-right: 5.4pt; border-top-style: none; border-right: windowtext 1pt solid; padding-top: 0in; background-origin: initial; background-clip: initial;\" width=\"96\" valign=\"top\" bgcolor=\"#ffcc99\">\n<p class=\"MsoNormal\" style=\"margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\"><span style=\"font-family: 'Comic Sans MS'; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">Silver<\/span><\/span><\/p>\n<\/td>\n<td style=\"border-bottom: windowtext 1pt solid; padding-bottom: 0in; background-color: #ffff99; padding-left: 5.4pt; width: 1.25in; padding-right: 5.4pt; border-top-style: none; border-left-style: none; border-right: windowtext 1pt solid; padding-top: 0in; background-origin: initial; background-clip: initial;\" width=\"120\" valign=\"top\" bgcolor=\"#ffff99\">\n<p class=\"MsoNormal\" style=\"margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\"><span style=\"font-family: 'Comic Sans MS'; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">$17.08<\/span><\/span><\/p>\n<\/td>\n<td style=\"border-bottom: windowtext 1pt solid; padding-bottom: 0in; background-color: #ffff99; padding-left: 5.4pt; width: 63pt; padding-right: 5.4pt; border-top-style: none; border-left-style: none; border-right: windowtext 1pt solid; padding-top: 0in; background-origin: initial; background-clip: initial;\" width=\"84\" valign=\"top\" bgcolor=\"#ffff99\">\n<p class=\"MsoNormal\" style=\"margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\"><span style=\"font-family: 'Comic Sans MS'; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">$13.08<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-bottom: 0in; background-color: #ffcc99; padding-left: 5.4pt; width: 1in; padding-right: 5.4pt; border-top-style: none; border-right: windowtext 1pt solid; padding-top: 0in; background-origin: initial; background-clip: initial;\" width=\"96\" valign=\"top\" bgcolor=\"#ffcc99\">\n<p class=\"MsoNormal\" style=\"margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\"><span style=\"font-family: 'Comic Sans MS'; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">Copper<\/span><\/span><\/p>\n<\/td>\n<td style=\"border-bottom: windowtext 1pt solid; padding-bottom: 0in; background-color: #ffff99; padding-left: 5.4pt; width: 1.25in; padding-right: 5.4pt; border-top-style: none; border-left-style: none; border-right: windowtext 1pt solid; padding-top: 0in; background-origin: initial; background-clip: initial;\" width=\"120\" valign=\"top\" bgcolor=\"#ffff99\">\n<p class=\"MsoNormal\" style=\"margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\"><span style=\"font-family: 'Comic Sans MS'; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">$3.36<\/span><\/span><\/p>\n<\/td>\n<td style=\"border-bottom: windowtext 1pt solid; padding-bottom: 0in; background-color: #ffff99; padding-left: 5.4pt; width: 63pt; padding-right: 5.4pt; border-top-style: none; border-left-style: none; border-right: windowtext 1pt solid; padding-top: 0in; background-origin: initial; background-clip: initial;\" width=\"84\" valign=\"top\" bgcolor=\"#ffff99\">\n<p class=\"MsoNormal\" style=\"margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\"><span style=\"font-family: 'Comic Sans MS'; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">$1.61<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-bottom: 0in; background-color: #ffcc99; padding-left: 5.4pt; width: 1in; padding-right: 5.4pt; border-top-style: none; border-right: windowtext 1pt solid; padding-top: 0in; background-origin: initial; background-clip: initial;\" width=\"96\" valign=\"top\" bgcolor=\"#ffcc99\">\n<p class=\"MsoNormal\" style=\"margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\"><span style=\"font-family: 'Comic Sans MS'; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">Cotton<\/span><\/span><\/p>\n<\/td>\n<td style=\"border-bottom: windowtext 1pt solid; padding-bottom: 0in; background-color: #ffff99; padding-left: 5.4pt; width: 1.25in; padding-right: 5.4pt; border-top-style: none; border-left-style: none; border-right: windowtext 1pt solid; padding-top: 0in; background-origin: initial; background-clip: initial;\" width=\"120\" valign=\"top\" bgcolor=\"#ffff99\">\n<p class=\"MsoNormal\" style=\"margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\"><span style=\"font-family: 'Comic Sans MS'; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">$0.74<\/span><\/span><\/p>\n<\/td>\n<td style=\"border-bottom: windowtext 1pt solid; padding-bottom: 0in; background-color: #ffff99; padding-left: 5.4pt; width: 63pt; padding-right: 5.4pt; border-top-style: none; border-left-style: none; border-right: windowtext 1pt solid; padding-top: 0in; background-origin: initial; background-clip: initial;\" width=\"84\" valign=\"top\" bgcolor=\"#ffff99\">\n<p class=\"MsoNormal\" style=\"margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\"><span style=\"font-family: 'Comic Sans MS'; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">$0.37<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-bottom: 0in; background-color: #ffcc99; padding-left: 5.4pt; width: 1in; padding-right: 5.4pt; border-top-style: none; border-right: windowtext 1pt solid; padding-top: 0in; background-origin: initial; background-clip: initial;\" width=\"96\" valign=\"top\" bgcolor=\"#ffcc99\">\n<p class=\"MsoNormal\" style=\"margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\"><span style=\"font-family: 'Comic Sans MS'; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">Wheat<\/span><\/span><\/p>\n<\/td>\n<td style=\"border-bottom: windowtext 1pt solid; padding-bottom: 0in; background-color: #ffff99; padding-left: 5.4pt; width: 1.25in; padding-right: 5.4pt; border-top-style: none; border-left-style: none; border-right: windowtext 1pt solid; padding-top: 0in; background-origin: initial; background-clip: initial;\" width=\"120\" valign=\"top\" bgcolor=\"#ffff99\">\n<p class=\"MsoNormal\" style=\"margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\"><span style=\"font-family: 'Comic Sans MS'; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">$4.63<\/span><\/span><\/p>\n<\/td>\n<td style=\"border-bottom: windowtext 1pt solid; padding-bottom: 0in; background-color: #ffff99; padding-left: 5.4pt; width: 63pt; padding-right: 5.4pt; border-top-style: none; border-left-style: none; border-right: windowtext 1pt solid; padding-top: 0in; background-origin: initial; background-clip: initial;\" width=\"84\" valign=\"top\" bgcolor=\"#ffff99\">\n<p class=\"MsoNormal\" style=\"margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\"><span style=\"font-family: 'Comic Sans MS'; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">$6.03<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-bottom: 0in; background-color: #ffcc99; padding-left: 5.4pt; width: 1in; padding-right: 5.4pt; border-top-style: none; border-right: windowtext 1pt solid; padding-top: 0in; background-origin: initial; background-clip: initial;\" width=\"96\" valign=\"top\" bgcolor=\"#ffcc99\">\n<p class=\"MsoNormal\" style=\"margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\"><span style=\"font-family: 'Comic Sans MS'; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">Eggs<\/span><\/span><\/p>\n<\/td>\n<td style=\"border-bottom: windowtext 1pt solid; padding-bottom: 0in; background-color: #ffff99; padding-left: 5.4pt; width: 1.25in; padding-right: 5.4pt; border-top-style: none; border-left-style: none; border-right: windowtext 1pt solid; padding-top: 0in; background-origin: initial; background-clip: initial;\" width=\"120\" valign=\"top\" bgcolor=\"#ffff99\">\n<p class=\"MsoNormal\" style=\"margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\"><span style=\"font-family: 'Comic Sans MS'; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">$1.12<\/span><\/span><\/p>\n<\/td>\n<td style=\"border-bottom: windowtext 1pt solid; padding-bottom: 0in; background-color: #ffff99; padding-left: 5.4pt; width: 63pt; padding-right: 5.4pt; border-top-style: none; border-left-style: none; border-right: windowtext 1pt solid; padding-top: 0in; background-origin: initial; background-clip: initial;\" width=\"84\" valign=\"top\" bgcolor=\"#ffff99\">\n<p class=\"MsoNormal\" style=\"margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\"><span style=\"font-family: 'Comic Sans MS'; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">$0.81<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td style=\"border-bottom: windowtext 1pt solid; border-left: windowtext 1pt solid; padding-bottom: 0in; background-color: #ffcc99; padding-left: 5.4pt; width: 1in; padding-right: 5.4pt; border-top-style: none; border-right: windowtext 1pt solid; padding-top: 0in; background-origin: initial; background-clip: initial;\" width=\"96\" valign=\"top\" bgcolor=\"#ffcc99\">\n<p class=\"MsoNormal\" style=\"margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\"><span style=\"font-family: 'Comic Sans MS'; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">Tin<\/span><\/span><\/p>\n<\/td>\n<td style=\"border-bottom: windowtext 1pt solid; padding-bottom: 0in; background-color: #ffff99; padding-left: 5.4pt; width: 1.25in; padding-right: 5.4pt; border-top-style: none; border-left-style: none; border-right: windowtext 1pt solid; padding-top: 0in; background-origin: initial; background-clip: initial;\" width=\"120\" valign=\"top\" bgcolor=\"#ffff99\">\n<p class=\"MsoNormal\" style=\"margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\"><span style=\"font-family: 'Comic Sans MS'; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">$1,078<\/span><\/span><\/p>\n<\/td>\n<td style=\"border-bottom: windowtext 1pt solid; padding-bottom: 0in; background-color: #ffff99; padding-left: 5.4pt; width: 63pt; padding-right: 5.4pt; border-top-style: none; border-left-style: none; border-right: windowtext 1pt solid; padding-top: 0in; background-origin: initial; background-clip: initial;\" width=\"84\" valign=\"top\" bgcolor=\"#ffff99\">\n<p class=\"MsoNormal\" style=\"margin: 0in 0in 0pt; font-family: 'Times New Roman'; font-size: 12pt\"><span style=\"font-family: 'Comic Sans MS'; font-size: x-small;\"><span style=\"font-family: 'Comic Sans MS'; font-size: 10pt\">$671<\/span><\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<ul>\n<li>In the last six months we helped nine different banks start up Warehouse Lending operations.\u00a0 All are extremely small banks lending only in their own back yard, but what\u2019s really pleased us is that five of them are already funding loans and a sixth will start next week. Two are still a month or two away from going live, and one has it hold due to regulatory issues.\u00a0 We can\u2019t wait to get to see their six month numbers.\u00a0 The two who\u2019ve been doing it the longest have shown us their metrics, and they\u2019re generating an ROA in excess of 2% so far.<\/li>\n<li>How about all those new licensing regs?\u00a0 Probably a good thing to get the sleaze balls out of the industry, but it sure is bitter medicine, isn\u2019t it?<\/li>\n<li>One of the bad things about living in or near San Francisco is that you don\u2019t get to stay in the hotels here.\u00a0 The Palace and the Ritz-Carlton are just two of many magical hotels in the City by the Bay.\u00a0 Anyway, the average daily room price fell from $190.12 two years ago to $160.27.\u00a0 Come on out, stay in one of the great hotels here, and we\u2019ll take you out for a drink.<\/li>\n<\/ul>\n<p>*\u00a0\u00a0\u00a0 *<\/p>\n<p>This week\u2019s cartoon is dedicated to all parents whose kids <em>didn\u2019t<\/em> get into Harvard, or even apply. And doesn\u2019t it seem like only yesterday when we\u2019d stand there and just watch them sleep in their cribs? Crawling amazed us, and walking blew us away.\u00a0 Remember when they started to talk? And then there was nursery school, elementary school, and middle school, and the start of secret crushes and dance lessons.\u00a0 High school was real dances, a first date, a driver\u2019s license and proms. And for those whose kinds were born in 1991-92, there are the letters coming in from colleges right about now.\u00a0 We get excited at the acceptance letters, but we wonder what it will be like when they actually get on a plane and head off to college. They\u2019ll get their degree and get a job, and eventually, they\u2019ll have their <em>own<\/em> family.\u00a0 Joni Mitchell called it <em>The Circle Game<\/em>:<br \/>\n<a href=\"http:\/\/mortgagenewsclips.com\/wp-content\/uploads\/2010\/03\/j15.jpg\"><img loading=\"lazy\" decoding=\"async\" style=\"border-bottom: 0px; border-left: 0px; display: inline; border-top: 0px; border-right: 0px\" title=\"j1\" src=\"http:\/\/mortgagenewsclips.com\/wp-content\/uploads\/2010\/03\/j1_thumb4.jpg\" border=\"0\" alt=\"j1\" width=\"205\" height=\"182\" \/><\/a><br \/>\n\u201cSixteen springs and sixteen summers gone now. Cartwheels turn to car wheels thru the town. And they tell him, take your time, it won&#8217;t be long now, till you drag your feet to slow the circles down. And the seasons they go round and round, and the painted ponies go up and down.\u00a0 We&#8217;re captive on the carousel of time.\u00a0 We can&#8217;t return, we can only look, behind from where we came, and go round and round and round, in the circle game.\u201d\u00a0 <a href=\"http:\/\/jonimitchell.com\/music\/song.cfm?id=39\">The complete lyrics are attached<\/a>.<\/p>\n<p><a href=\"http:\/\/www.scribd.com\/doc\/17693166\/My-Brush-With-History\">We\u2019ve also attached a lengthy but fun article for you new-comers to the Garrett, Watts Report. Page 3 has a small blurb about the time Garrett, Watts Partner Joe Garrett (that\u2019s me!) went out with Joni Mitchell once. Sort of.<\/a><\/p>\n<p><a href=\"http:\/\/garretwatts.com\/\">Garrett, Watts &amp; Co.<\/a><\/p>\n<p><em>Helping <\/em><em>lenders increase revenues, control costs, and better manage risk.<\/em><\/p>\n<ul>\n<li>Mike McAuley\u00a0\u00a0 (<a href=\"mailto:MMcAuley@GarrettWatts.com\">MMcAuley@GarrettWatts.com<\/a> )<em> <\/em><\/li>\n<li>Corky Watts\u00a0\u00a0\u00a0\u00a0\u00a0 (<a href=\"mailto:CWatts@GarrettWatts.com\">CWatts@GarrettWatts.com<\/a>)<\/li>\n<li>Joe Garrett\u00a0\u00a0\u00a0\u00a0\u00a0 (<a href=\"mailto:JGarrett@GarrettWatts.com\">JGarrett@GarrettWatts.com<\/a> )<\/li>\n<\/ul>\n<div class=\"feedflare\">\n<a href=\"http:\/\/feeds.feedburner.com\/~ff\/mortgagenewsclips\/qTBe?a=n2479mri8Ao:2s-P81bZYoA:yIl2AUoC8zA\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/mortgagenewsclips\/qTBe?d=yIl2AUoC8zA\" border=\"0\"><\/img><\/a> <a href=\"http:\/\/feeds.feedburner.com\/~ff\/mortgagenewsclips\/qTBe?a=n2479mri8Ao:2s-P81bZYoA:D7DqB2pKExk\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/mortgagenewsclips\/qTBe?i=n2479mri8Ao:2s-P81bZYoA:D7DqB2pKExk\" border=\"0\"><\/img><\/a> <a href=\"http:\/\/feeds.feedburner.com\/~ff\/mortgagenewsclips\/qTBe?a=n2479mri8Ao:2s-P81bZYoA:F7zBnMyn0Lo\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/mortgagenewsclips\/qTBe?i=n2479mri8Ao:2s-P81bZYoA:F7zBnMyn0Lo\" border=\"0\"><\/img><\/a> <a href=\"http:\/\/feeds.feedburner.com\/~ff\/mortgagenewsclips\/qTBe?a=n2479mri8Ao:2s-P81bZYoA:V_sGLiPBpWU\"><img decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~ff\/mortgagenewsclips\/qTBe?i=n2479mri8Ao:2s-P81bZYoA:V_sGLiPBpWU\" border=\"0\"><\/img><\/a>\n<\/div>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~r\/mortgagenewsclips\/qTBe\/~4\/n2479mri8Ao\" height=\"1\" width=\"1\"\/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>To Our Clients, Colleagues and Friends, We made reference last week to Marion Berry snorting crack, and you wouldn\u2019t believe how many people wrote us that you smoke it and don&#8217;t snort it.\u00a0 One who wrote us is a major name in warehouse lending, another one a top secondary marketing executive, and one is a [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-422348","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/422348","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=422348"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/422348\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=422348"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=422348"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=422348"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}