THIS IS THE LONGEST POST I HAVE DONE.  WHY?  The Bailout forced me to wait to release regular news clips, so here is all of them. SPECIAL SECRET - the reason I do this is selfish - this blog has a Google search engine on the right side of the page.  Anything that has ever been posted can be found in the search engine.  There are thousands of news clips and commentaries already.  So if you ever need to find anything, come back to http://mortgagenewsclips.com/  , find the Google Search on the right side of the page, and look it up!   Excellent - read this - What's up with the covered bond push? -  thanks Reggie Middleton -   London Banker  - RGE Monitor ------------         Opines why: Mortgage Delinquencies Running Ahead of Rate Reset Pace - (one reason) ... “It is possible that these later vintage borrowers were barely able to afford their mortgage payments from the outset, but that rising house prices made sacrifices worthwhile. However, with house prices in many areas of the US having fallen over the past two years, there may be little incentive to continue to make those sacrifices ... -  Credit Sights, Fitch - Research Recap ------------ interview  - PERSON OF THE WEEK: A Word From "You Walk Away" - Jessica Lillian - ... In the interest of clearing up misconceptions and perhaps gaining a more balanced perspective, MortgageOrb spoke with Jon Maddux, CEO of You Walk Away. ... - Mortgage Orb ------------     Fitch Says Worst of Credit Storm is Over for US Banks  - Fitch Ratings suggests the worst of the credit crisis is over for US commercial banks, though there is still some clean-up to be done.  In its Quarterly Review of the 30 largest US banks ... - Research Recap  ------------ Q3 Core Risk Monitor Report - Now Available  - Q3 Index Projects Risk Up 12% Over Last Year—but Other Data Offer First Glimmer of Hope - thanks Bob Visini - LoanPerformance ------------ FDIC Report Highlights Suggestions for Expanding Mortgage Loans to Low- and Moderate-Income Households - The complete Financial Institution Letter with the summary of best practices is available on the FDIC Web site ------------ The Slow March to End Securitization Inches Forward -  Paul Jackson - Either way, some market pundits that have spoken with HW have said that eliminating “the Q” would also have the effect of killing most modern securitization markets — or, at least, what’s left of them — since the transfer of risk off the balance sheet to a bankruptcy-remote entity is a critical part of the appeal of securitizing assets to begin with. Other sources have been more moderate in their views, however ... - housingwire  ------------ Pimco appoints El-Erian as CEO - ... named Mohamed El-Erian as its chief executive to replace Bill Thompson, who will retire at the end of the year. ... El-Erian will also continue in his role as co-chief investment officer with Bill Gross, the founder and CIO of Pimco, the company said in a statement. -   Reuters  ------------ Lehman May Shift $32 Billion of Mortgage Assets to `Bad Bank' - Yalman Onaran - ... The bad bank, nicknamed Spinco for now, would have about $8 billion of equity coming from Lehman, the people said, speaking on condition of anonymity because the plan is one of several under consideration. Spinco would borrow the remaining $24 billion from Lehman or outside investors. ... - Bloomberg ------------ U.S. banks' direct borrowing from the Federal Reserve hit another record in the latest week, underscoring banks' reluctance to lend to each other, Fed data showed on Thursday. - Reuters ------------ Fannie Mae and Freddie Mac: Avoiding the Next Big Mistake - David C. John - The biggest mistake that Congress and the next president could make about Fannie Mae and Freddie Mac is to leave them alone or let them get away with only minor changes. - has many details  - Herigage.org  ------------ The Banks’ Next Hot Zone: Home Equity Delinquencies - By Elizabeth MacDonald - Fox Business ------------ Washington Mutual Forces Out CEO - DAN FITZPATRICK and PETER LATTMAN - thanks Joe G - Wall Street Journal ------------ Three Brokers Sanctioned for Sales of CMOs to Retail Investors -  thanks Marty Rosenblatt - Originator Times ------------ A Bail-Out For China's Biggest Bank, As Pimco Warns Global Markets Will Get Worse - Perhaps some day the Fed will run out of money. The equivalent is happening in China. The People’s Bank of China managed to put a truck-load of money into US mortgage-backed securities and paper issued by Fannie Mae (FNM) and Freddie Mac (FRE).  It is hard to be critical of the communist bankers since they made the same mistake as almost every large financial firm in the US and EU.  24/7 Wall Street ------------ S&P: End may be in sight for subprime losses -  Mark Adelson, chief credit officer at Standard & Poor's, said losses on subprime-mortgage bonds, including collateralized-debt obligations, would likely hit about $550 billion. Financial institutions have written down more than $500 billion in holdings, making Adelson's projection a signal that most of the damage has already been taken into account. -  Bloomberg ------------ Mortgage Resets: COFI Numbers Improving - VIX and More ------------          News flash: supposedly out-of-control housing inventory isn't as out-of-control as you think. Tom Brown explains at bankstocks.com  ------------ Mortgage REIT Insider: At Thornburg, a Never-Ending Story - Patrick Harden - Secondary Market/Investors While the news in the mortgage REIT sector has slowed to a trickle after the frenzy of second quarter earnings, there have been a few interesting developments of late. Subprime mREIT ECC Capital, which delisted its shares and sold off its origination platform to Bear Stearns & Cos. last year, has managed to stay alive and remain a REIT ... - housingwire  ------------ Thoughts on the Continuing Crisis - John Mauldin - We are entering the next stage of the credit crisis, and one which is potentially more troubling than what we have seen over the past year, absent some policy reactions by the central banks and governments world wide. The crisis was started by an intense run-up in leverage ... The easy part of that process has been just about done. Now is the time for the really hard work.  ... - Thoughts From The Frontline ------------    Speculation does not explain all the apparent “overvaluation” of housing markets in Europe, Oxford Analytica argues in a new report. - Research Recap ------------ Paper: “Juvenile Delinquent Mortgages: Bad Credit or Bad Economy?” - Andrew Haughwout, Richard Peach, and Joseph Tracy -  The authors study early default, defined as serious delinquency or foreclosure in the first year, among nonprime mortgages from the 2001 to 2007 vintages. ... examine two primary explanations: changes in underwriting standards that took place over this period and changes in the economic environment. ... changes in the economy after 2004--especially a sharp reversal in house price appreciation--were the more critical factor in the increase in default rates. - full report at NY FED  ------------ Affordable Housing Exists, If You Know Where to Look - Prashant Gopal  - Most Americans can't afford housing as easily as they once did. Take a look at where the most and least affordable homes can be found - BusinessWeek  ------------ Paper: Resolving the Foreclosure Crisis: Mortgage Modification in Bankruptcy - Adam Levitin and Joshua Goodman - ... the Article argues that permitting modification of home mortgages in bankruptcy presents the best solution to the foreclosure crisis.  ... - thanks Susan Kulakowski -  SSRN  ------------ long but worth it - quite bearish - Jim Rogers: How the Federal Reserve Will Fail and the One Sector Every Investor Should Be In Keith Fitz-Gerald, Investment Director - Money Morning  ------------ Oil, Stock, and Housing Declines - Ironically, oil is now down more than the stock market and even home prices!  From their peaks, oil is down 27.18%, the S&P 500 is down 22.16%, and the S&P/Case-Shiller 10-City Median Home Price index is down 20.46%. - full size chart at Bespoke Investment Group  ------------    BILL GROSS ON WELLS PREFERRED DEAL: CLUELESS - Bill Gross says there was no institutional interest in Wells Fargo’s $1.75 billion preferred offering this week. Wells CFO Howard Atkins says oh yes there was—a ton. Jim Cramer mediates . . . My take: Atkins is right and Gross is wrong. - Tom Brown - bankstocks.com  ------------      HUD’s Neighborhood Watch Tool Helps Analyze Reverse Mortgage Data - Not sure if people were aware of this already, but I  stumbled across a nice tool that HUD provides called Neighborhood Watch. - Reverse Mortgage Daily