<< from T2 Report

also has T2 report – The performance of the FHA’s loan portfolio - Tim Iacono – … compliments of T2 Partners fine (and lengthy) report on the U.S. housing market that you can download … – themessthatgreenspanmade 

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Ginnie Mae and the government sponsored mortgage machine – good explanation how GNMA’s “double guarantee” works - Sober Look Blog

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MBA Urges Congress to Rethink 10% Risk Retention – By DIANA GOLOBAY – The Mortgage Bankers Association (MBA) joined the call against risk retention requirements in a recent financial regulatory reform legislation draft. … to avoid unintended consequences.  In particular, the 10% credit risk retention requirement may be inappropriately applied to all loan sale transactions regardless of whether the loan purchaser intends to permanently hold the loan, according to Courson. Independent mortgage bankers may also be forced out of business by the retention requirements. … – HousingWire.com 

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Risk Retention May Shutter Mortgage Bankers: CMBP, CMLA – By AUSTIN KILGORE – HousingWire.com 

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Bernanke Housing Gamble May Bring Pressure to Extend Fed Aid – By Craig Torres – Federal Reserve Chairman Ben S. Bernanke is gambling that come March, he can stop the purchases of mortgage-backed securities that have propped up the U.S. housing market. Congress may have other ideas – Bloomberg

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Fed reads riot act to US bank chiefs – By PAUL THARP – The heads of Wall Street’s top 28 banks got hauled into the federal woodshed yesterday. … The CEOs visited New York Federal Reserve President William Dudley, who told them to follow pay rules — or else. – NY Post 
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The Nascent War on Inflation - By JIM MCTAGUE – YOU DON’T HAVE TO BE A CHINESE CENTRAL BANKER with a vault full of greenbacks to feel queasy about the soaring U.S. deficit and the consequent risks of inflation. Worry warts are breaking out all over. They are sounding the alarm in stock letters, at press conferences, and within the marbled halls of the Federal Reserve itself. … – Barron’s

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Goldman Looks to Buy Fannie Tax Credits – Treasury Lurks as Spoiler as Political Climate Favors Main Street’s Benefit Over Wall Street’s – By DAMIAN PALETTA – Goldman Sachs Group Inc. is in talks to buy millions of dollars of tax credits from government-controlled mortgage giant Fannie Mae, but the potential deal is running into opposition from the U.S. Treasury, which could block the deal.  A sale would bring some needed financial respite to Fannie Mae. But the administration is leery about approving a deal that would help Goldman reduce its tax bill, given the animus held by many lawmakers toward big Wall Street firms in general and Goldman in particular.-  Wall Street Journal

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Tax Credit Deal – Treasury May Block Goldman Sachs, Fannie Mae Deal – Deal Could Help Fannie Mae’s Finances but Is Goldman Sachs Becoming Too Powerful? – By MATTHEW JAFFE -  ABC News Money 

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Buffett Joins Goldman in Bid for Fannie Mae Tax Credits -  By SUSANNE CRAIG, CHRISTINA S.N. LEWIS and DAMIAN PALETTA -  … in the investment bank’s bid to buy $3 billion in tax credits from government-owned mortgage giant Fannie Mae, according to people familiar with the matter.  The involvement of Mr. Buffett adds a twist to what was already a politically sensitive deal.  Berkshire Hathaway could be an appealing partner for Goldman. … One investor who has considered a similar transaction said they promise annualized returns of at least 30%. – WSJ Real Estate 

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Survey Confirms that Traffic is Slowing as The Tax Credit Nears Expiration -  Strategic Building Market Intelligence™ – John Burns Real Estate Consulting

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Government cash injection left J.P. Morgan a “loser” – Greg Burns – A little more than a year ago, the Bush administration pumped $125 billion into nine of the biggest U.S. banks in exchange for preferred shares — and J.P. Morgan Chase somehow came out a loser.  That’s the conclusion of  two University of Chicago finance professors who say Morgan Stanley was the big winner, based on which institutions had the most to lose in the absence of unprecedented government aid. – Chicago Tribune Blogs 

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Moral Hazard: The Long-Lasting Legacy of Bailouts - William Poole – hattip Ira A – … This article proposes reforms to the U.S. financial system. A change in incentives is needed.  … – Financial Analysts Journal                  PDF of 7 page article