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F.D.I.C. May Borrow Funds From Banks - By STEPHEN LABATON - Tired of the government bailing out banks? Get ready for this: officials may soon ask banks to bail out the government. Senior regulators say they are seriously considering a plan to have the nation’s healthy banks lend billions of dollars to rescue the insurance fund that protects bank depositors. That would enable the fund, which is rapidly running out of money because of a wave of bank failures, to continue to rescue the sickest banks. - NY Times Business
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Fed's exit strategy may use money market funds: report - The U.S. Federal Reserve is studying the idea of borrowing from money market mutual funds as part of eventual steps to withdraw stimulus, the Financial Times reported on Thursday.  The Fed would borrow from the funds via reverse repurchase agreements involving some of the huge portfolio of mortgage-backed securities and U.S. Treasuries that it acquired as it fought the financial crisis, the newspaper reported, without citing any sources.  This would drain liquidity from the financial system, helping to avoid a burst of inflation as the economy recovered. - Reuters Yahoo 

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U.S. MONTHLY HOUSE PRICE INDEX ESTIMATES 0.3 PERCENT PRICE INCREASE FROM JUNE TO JULY - FHFA Press Release

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Plans Scaled Back for New U.S. Agency - By MICHAEL R. CRITTENDEN - Rep. Barney Frank is paring back his plan to create a dedicated agency to oversee consumer financial products, addressing concerns raised by business groups and lawmakers, but chipping away at a central plank of the administration's plan to overhaul financial regulation. -Wall Street Journal
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HUD Lowers Principal Limit Factors for FHA Reverse Mortgage Program - The U.S. Department of Housing and Urban Development posted Mortgagee Letter 09-43, which announced a new set of principal limit factors for the Federal Housing Administration (FHA) HECM program.  The changes will lower the principal limits for the HECM by 10% - hat tip MK - Reverse Mortgage Daily
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A signal from the Fed? - ... From the FOMC statement September 23:  "In these circumstances, the Federal Reserve will continue to employ a wide range of tools" ... Many Fed watchers have interpreted this as a signal that the Fed is planning to do something different. ... but it is likely that the remaining securities purchases will be "sterelized", meaning some won't be outright buys, but instead may be repo transactions . The Fed may not want significant additional quantitative easing. - Sober Look Blog

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Two Subtle, Significant Changes To The Fed Statement - Greg Fierman - Top Gun Financial Planning