Volcker Rule implementation: Mission Impossible? – Nom de Plumber’s Thought of the Day

ndp1  Nom de Plumber is a Nom de Plume.

 

A hedge at a bank will be deemed allowable risk mitigation, and not forbidden proprietary trading—–but only if no material new risk arises, unless the hedge simultaneously protects against that too. Yet, in reality, every hedge does NOT eliminate risk, but merely exchanges one risk type for ideally more-palatable risk types. For instance, a bank could hedge the market risk of its Treasury bond portfolio, by shorting Treasury futures. The bank thereby assumes these substantive new risks, instead:

So, how can any hedge truly be Volcker Rule-compliant?

To prove having only client market-making and no proprietary exposures, a bank must attribute its daily trading P&L to particular risk factors (yield curves, prepayments, defaults, credit spreads, equity indices, dividend streams, option-implied volatility, IRR, asset cashflows, currency rates, etc.) and buy-sell activity. It must then report all un-attributable P&L to regulators, for flagging non-client, proprietary risk positions. Yet, in reality, almost every asset (except non-callable, fixed-rate, high-quality sovereign debt) trades strictly by market price……not by observable or consensus settings of underlying risk factors. Because infinite permutations of risk factor movements can cause a specific asset price movement, no definitive anchor points will arise to bootstrap that mandated P&L attribution.

So, how can a bank or regulator attribute daily P&L, to flag proprietary trading versus client market-making?

Bottom line: The Volcker Rule will be remarkably hard, at best, to implement.

Moreover, a bank complying with Dodd-Frank originator risk retention could simultaneously be charged as a disguised version of non-compliant proprietary trading.

http://mortgagenewsclips.com/2011/07/14/dodd-frank-conundrum-can-lender-risk-retention-be-distinguished-from-proprietary-trading-nom-de-plumbers-thought-of-the-day/

I Have Moved this Blog to FayMortgageNews.com and am the Editor There. Same Content, Same Email List. – BC

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Hi – This is Bill Coppedge.

Many of you know that I work at Fay Servicing in Chicago. I have moved my blog there. Same content, same email list.

Fay Mortgage News.com    http://faymortgagenews.com/

Be sure to check out “About the Editor’ there. I hope it makes you smile.

Plus you can get continuous mortgage news updates during the day at

Twitter    @FayMortgageNews

and at my profile on Linkedin.     http://www.linkedin.com/in/billcoppedge

All the best.

CFPB and QM, Rental Buyers, Cost of Renting, Housing Helping GDP, Profitable Servicing Ops, 10 FC Buyer Hazards, Two Harbors Jumbo Deal, Private Risk Share, Tapping Home Equity, Eminent Domain, Sheila at Fed?, $11.15 Trillion Household Debt

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Headsup from BC – Sometime this week, MNC will be migrating to Fay Mortgage News, where I am editor. Besides the blog, there will be increased exposure on Twitter, Google Plus, and Linkedin. No action by you required. You will still be on the email list. BC

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(read all of this – specifics) CFPB Updates Exam Guide for QM, Mortgage Rules – RACHEL WITKOWSKI – American Banker 
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Single-family investors search for different markets – Look to invest in stable cities - Brena Swanson – … reports OwnAmerica, a single-family investment brokerage.  … – Housingwire 
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Cost of Renting, Owning Unaffordable for Many Workers Across the U.S. – BY: ESTHER CHO – .. according to the 2013 Paycheck to Paycheck report from the Center for Housing Policy (CHP). The report examined housing costs related to renting and owning for workers in five jobs that deal with travel and tourism across 207 metropolitan areas. … housekeepers, wait staff, auto mechanics, front desk managers, and flight attendants. – DS News 
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(gives 3 ways) Housing to Continue Aiding Weak Economic Recovery - BY: ESTHER CHO – Despite “lackluster” performance from the economic sector, the housing recovery will press on and stimulate overall growth, according to Freddie Mac’s most recent economic and housing outlook. Over the past four years since the recession ended, GDP has grown only 9 percent. – DS News 
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Servicing Operations Back in the Black – By Ted Cornwell – (quotes wells and KBW) – National Mortgage News
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(interesting consumer piece) 10 Hidden Hazards to Check for When Buying Foreclosed HomesWhiteFence.com 
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(good looking loans) Two Harbors markets first private RMBS - Subsidiary Agate Bay sole depositor in long-awaited deal – … The approximate $434 million deal consist primarily of 30-year, fixed-rate mortgage to low-leveraged buyers with strong credit and loss reserves. The average FICO is 770, and the typical household income is $350,747 annually, with about that amount tucked away in liquidity. For example, the average loan-to-value is below 70%. The highest concentration risk is in California, but that is relatively low at 46.4% … – Housingwire

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Housing risks belong with private investors: Bipartisan Policy Center – Creating a mortgage market with choice is the solution – Kerri Ann Panchuk – Housingwire 
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U.S. News: 5 Ways to Tap Home Equity for Retirement – by Alyssa Gerace – Reverse Mortgage Daily 
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Seize The Day – Or The Mortgage – Cities look at eminent domain to ease underwater mortgages. – By Nora Caley – MortgageOrb eFeature

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(focus on housing) Sheila Bair for the Federal Reserve Chairmanship – BY PHIL HALL – Progress in Lending 
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CHART OF THE DAY: This Is What $11.15 Trillion Worth Of Household Debt Looks Like
SAM RO – Business Insider 
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Celebrities, CFPB, MI Deduction, FN Nixes Low Down Payment?, Falling Foreclosures, Cloud Inventory, QRM Good and Bad, FHFA On Eminent Domain, Housing is Hot, Yellen on Banks, Homeownership Perceptions, CA Affordability, Treating Money Well

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Headsup from BCSometime this week, MNC will be migrating to Fay Mortgage News, where I am editor. Besides the blog, there will be increased exposure on Twitter, Google Plus, and Linkedin. No action by you required. You will still be on the email list. BC

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(Fun: you MUST look at this) NYC Artist Shows Us What Famous Celebrities Would Look Like as Normal People – hattip Rob Coppedge – Techebog 

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(Dave Stevens quoted, lots about housing) Don’t blame the CFPB for tight credit – By Lydia DePillis – Washington Post

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(thoughtful view) The Mortgage Interest Deduction Scam – Posted by Tom Lindmark – But Then What 
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Fannie (portfolio) reconsiders low downpayment mortgages – Fannie reconsiders low downpayment mortgages - HousingWire 
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(not mentioned – delevering hurts econ. growth) Falling foreclosures: A sign of borrower heroism – More Americans focus on debt reductionHousingwire 
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Inventory up, demand down, the standoff over cloud inventory begins - OC Housing News – In my opinion, the housing market has reached an important inflection point. … This is an opportunity to get out from under the debt on the house they really can’t afford, so many of them listed in hopes the rising bids would take them out at the ask. The influx of inventory has been significant. … event we all knew was coming — rising interest rates — came upon us sooner than anyone expected. 
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Revised QRM Rule may contain good and bad news - By Stanley Mabbitt – … It is rumored that the proposed revision would require that the 5% risk retention requirement for securitized, non-QRM mortgages be triggered if the borrower’s DTI is higher than 43% (which is the DTI level in the QM rule). …  However, there is speculation that the proposal may also increase the down payment requirement from 20% to 30%, … and lead to contraction in the mortgage market … – CFPB Monitor 
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FHFA Stiffens Its Stance On Eminent Domain – by MortgageOrb.com

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10 Stats That Show The Housing Market Is On A Crazy Tear All Around The Country – JOE WEISENTHAL – Business Insider  – Economist Mark Perry has been tweeting some great stuff this evening about how hot the housing market is around the country.

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Weekly Update: Existing Home Inventory is up 18.1% year-to-date on Aug 12th
by Bill McBride – Calculated Risk 

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Second Quarter Sees Prices Rising in 87% of Metros – BY: TORY BARRINGER    – The national median home price showed its strongest year-over-year gain in more than seven years last quarter, according to the latest quarterly report from the National Association of Realtors (NAR). – The M Report 
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(implies less leverage?) Fed’s Yellen Says Stance on Banks Hardened – Contender for Fed Chairman Says Crisis Made Her Rethink Views on Regulation - By DAMIAN PALETTA – Wall Street Journal

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(Harvard JCHS) Research: Housing Crisis Did Not Damage Homeownership Perceptions – BY: KRISTA FRANKS BROCK – DS News 
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California housing affordability declines as home prices rise – By Alejandro Lazo – Rising home prices in the Bay Area and other coastal markets made buying a home unaffordable for a big chunk of the state’s population last quarter, data show. – LA Times 
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(money goes where treated best) Swaps clients plan US bank exodus – By Mike Kentz – (IFR) – US banks are at risk of losing overseas swaps market share as European clients have begun making every effort to avoid getting caught up in costly cross-border derivatives rules that were finalised by the CFTC last month, and come into effect this October – Reuters

Interactive Population Chart, REO to Rental Securitization, Mortgage Fraud Overstated, CA New Default Trick, Millennials, Post-QE Origination, Remaking the Fed, CA Renters and Food Stamps Rise, Obama Housing Fix, Freddie Hates Eminent Domain, We Buy Ugly Houses, Rick Sharga, FHFA Mortgage Metrics report, Junk Bonds, Home Interest Deduction

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(must see – updates every second) U.S. Population Distribution by Age, 1900 through 2060 – by Bill McBride – Calculated Risk

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Quelle Surprise! Administration Lied About Mortgage Fraud Results, Numbers 4 to 10 Times Too High – Yves Smith – Normally I’d relegate a good job of news spadework to the daily Links feature, but Bloomberg caught out Attorney General Eric Holder in such an egregious lie that this failed con job , ample, widespread publicity and well-deserved derision. So remember that Mortgage Fraud Task Force? No? There’s a really good reason the name doesn’t ring a bell. It’s been missing in action. – Naked Capitalism
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(REO to rental securitization) FeatherStone Investment cracks into new asset class – Christina Mlynski – Housingwire 
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California: Defaulted borrowers can challenge RMBS assignment – Jacob Gaffney – A California homeowner managed to get a court to agree in theory that transferring his mortgage into a securitized trust effectively broke the chain of title. – Housingwire 
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(iteresting charts) Millennials: pent-up housing demand or lost generation?OC Housing News 
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(origination strategies) GET READY FOR THE POST-QE RIDE – Without Fed support, expect the market to be more volatile. – Scotsman Guide http://www.sg-comdigital.com/comdigital/201308ce/?pg=21#pg21
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The Federal Reserve System is nuts. Here’s how we could remake it. – By Neil Irwin – WAPO Wonk Blog 
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Rental World: California adds more than 500,000 renters while the homeownership rate declines amidst a boom. California food stamp users jump from 2.2 million in 2008 to nearly 4 million today. – Dr. Housing Bubble

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Time to fix housing - By: Boston Herald Staff – President Obama has lined up with a group of bipartisan senators who want to replace Fannie Mae and Freddie Mac, the government’s home mortgage dealers, with a new agency. The president’s proposals are sound — they just don’t go quite far enough. 
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Freddie Mac Mulls Action Against Eminent Domain Plan – BY ALLISON HALLIDAY – Realty Biz News
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(We Buy Ugly Houses franchise) HomeVestors posts largest quarterly number of new franchisees – 100 new franchisees added since January – Megan Hopkins – Housingwire 
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(gives 4 reasons) Media pulls a Freddie Krueger, creates a ‘fake’ housing bubble nightmare – Rick Sharga – Housingwire 
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FHFA Releases First Mortgage Metrics Report - National Mortgage Professional – … The report presents key performance data on 30.4 million first lien residential mortgages with outstanding balances totaling $4.4 trillion serviced on behalf of Fannie Mae and Freddie Mac from 2007 through the first quarter of 2008. The report focuses on the delinquencies, loss mitigation actions, and foreclosure data reported by more than 3,000 approved servicers. … 
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(Junk) Bond Hubris Overwhelms Fed in Riskiest Credit-Market Sectors – By Daniel Kruger & Mary Childs – … The amount of loans made this year that lack standard protections for lenders exceed the all-time high set in 2007, and only one other time have investors pumped more money into funds that buy lower-rated loans than they did last week. … – Bloomberg 
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The homebuilding industry’s increasingly desperate attempts to preserve the HMIDOC Housing News

Softening Up QM, Hensarling on D-F and GSEs, Declining Home Inventories, Freddie’s Profit, Manhattan Expensive, FHFA Statement, Builder Confidence Up, On Property Taxes, Mobile Home Parks, ARM Share at Quicken, 30yr Fixed Rate Mortgage, Delinquencies & Foreclosures Recede, GSE REO Inventory Declines, US Wage Suppression

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(already softening QM) Softer U.S. Mortgage Rule Said to Be Proposed at End of August – By Clea Benson – A new version of a rule requiring lenders to keep a stake in risky mortgages that they securitize will be proposed by U.S. regulators in the last week of August, … The 500-page draft regulation written by a panel of six agencies will replace a more stringent proposal for the Qualified Residential Mortgage rule,… –

Bloomberg Businessweek 
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(Rep. Jeb Hensarling blasts) GOP chairman: Dodd-Frank smothering housing market – By Ben Goad – The Dodd-Frank Wall Street reform law is making it harder for middle class families to buy homes, the chairman of the House Financial Services Committee charged Tuesday.- The Hill 

and
Hensarling: Winding down Fannie, Freddie will take at least five years
By Vicki Needham – The Hill
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Inventory Declining at a Slower Pace – BY: KRISTA FRANKS BROCK – Home inventories continue to decline in many markets across the country, but the pace of those declines appears to be slowing, which may in turn slow price appreciation in some markets, according to Realtor.comDS News 
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Freddie Mac Records Second Largest Profit in Its History – BY: TORY BARRINGER – DS News

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Good luck buying a home in ManhattanHousingWire Staff – NYC condos are seeing competition unrivaled in bubble years
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(The Giant Lashes Back) FHFA Statement on Eminent DomainFHFA Press Release

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NAHB: Builder Confidence improves in the 55+ Housing Market in Q2 – by Bill McBride – Calculated Risk 
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US Property Taxes Wipeout Savings & ProfitMartin Armstrong – The American Dream and the pushing of home ownership is one of the biggest scams the politicians can pull off. The above home sold for $14,000 in 1956. Today, the property taxes are $10,000 annually.If you sell it today for even $200,000, the IRS looks at the difference as profit – not inflation. … more 
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(has economics of mobile home parks) Renting Dirt to Owner-Occupants – BY BRIAN KLINE – Realty Biz News 
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(now 20%) Quicken Pitches ARMs as Borrowers Balk at Rate Rise: Mortgages – By Jody Shenn and Heather Perlberg – … About 20 percent of Quicken applications are for adjustable-rate home loans, up from 5 percent earlier this year and last year, said Bob Walters, vice president of the firm’s capital markets group. … – Bloomberg Businessweek 
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(optionality of 30yr FRM?) The Truth Behind the Obama Mortgage Reform Plan - PETER MORICI – President Obama wants private banks to use depositor and investor funds to write 30-year fixed rate mortgages at affordable rates. He won’t admit those goals and others imposed by Congress require the federal government to guarantee mortgages and banks against failure – hattip Phil Hall – Business Superstar 
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MBA: Delinquencies, Foreclosures Recede to More ‘Normal’ Levels – BY: ESTHER CHO – DS News  

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(text and graph) Fannie, Freddie, FHA REO inventory declines in Q2 2013 – by Bill McBride – Calculated Risk 
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(4 charts too) Wages in the US remain suppressedSober Look Blog – … A large part of this wage dislocation can be explained by significantly higher use of part-time labor in the US. … 

Milking the GSEs, Larry Doyle on Mortgage Task Force, Upward Home Price Revisions, Effect of QM and Risk Retention, IOs Are Back!, Raj Date is Ethical, Lawyer-less Mods, Freddie Makes $$, Not Another Fix, Yves and PIMCO on Eminent Domain, Clear Capital Home Price Rises

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(GSEs here to stay – as long as Gov’t can milk them)
Fannie Mae starts paying income tax again -
Jacob Gaffney – G-fee rises expected as CEO cites “appropriate” amount – Housingwire 
and
Fannie posts $10B profitHousingwire – GSE posts a profit for six consecutive quarters – … “Much of current GSE ‘profit’ is the reversal of earlier accruals,” explained Jim Vogel an analyst at FTN Financial, “which kinda means the original losses that caused great outrage weren’t necessarily that big to begin with.” The enterprise attributes its strong second-quarter results to stable revenue, rising home prices and a decline in loss reserves. … 
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Mortgage Fraud Task Force Stats: Did You See This? WOW – Posted by Larry Doyle – More lying and blatant misrepresentation emanating from Washington…you cannot make this stuff up. Bloomberg reported the following incredible news late Friday afternoon, President Barack Obama’s administration significantly overstated statistics from a year-long mortgage-fraud initiative, including total number of victims, their losses suffered and number of individuals criminally charged, according to an FBI memo. – Sense on Cents 
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Economists Revise Home Value Forecasts – BY: TORY BARRINGER – Home values are on track to reach more than $167,000 by the end of 2013, according to economists and real estate experts surveyed by Zillow and Pulsenomics. … That said, many predicted appreciation rates will slow from 2014 through 2017.  … – The M Report 
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The Future of Home Mortgages in the U.S. - By: Robert C. Pozen – Have you heard of the two terms “risk retention” and “qualified residential mortgages”? Federal regulators are reportedly close to adopting rules defining these two terms, which will largely determine the future shape of the home mortgage market. – Brookings.edu 
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How to get a $1 million home for $1,900 a month: The leverage provided by the resurgence of interest only loans. Leveraging up in expensive neighborhoods.Dr. Housing Bubble 
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Raj Date’s post-CFPB role viewed as ethical, normal - Kerri Ann Panchuk – Ethical experts defend founding of Fenway Summer – Housingwire 
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Don’t Call A Lawyer – South Carolina Supreme Court rules attorneys not needed for loan modifications. – By Nora Caley – MortgageOrb eFeature 
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Freddie Mac on Q2: $5.0 Billion Net Income, No Treasury Draw, REO Declines – by Bill McBride – Calculated Risk 
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If Housing Is Booming – Why Do We Need Another Fix – Written by Lance Roberts – StreetTalkLive.com 
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Freddie Mac explores eminent domain options – Jacob Gaffney – Aims to stop pressured loan sales – Freddie Mac used its second-quarter earnings call to field a question on eminent domain, and discuss the risk it poses to the GSE’s residential mortgage-backed securities portfolio. – Housingwire 
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Beware Private Equity Guys Bearing Gifts: Eminent Domain Mortgage Scam Hit with Well-Deserved Lawsuit – Yves Smith – Naked Capitalism

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Pimco, BlackRock Seek to Bar California Mortgage Seizures – By Jody Shenn, Karen Gullo & John Gittelsohn – Bloomberg 
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Report: Price Gains to Moderate in 2nd Half of 2013 – BY: ESTHER CHO – In July, national home prices jumped 9.3 percent year-over-year, led by gains in the West, according to Clear Capital’s latest housing report. – DS News 
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Mortgage Revenues, Monthly Home Payments, Annaly Worst Over?, Buying in Chicago, Lending Standards Tighten, Subprime Rises, Moodys Hates Eminent Domain, 244 Metros Better Off, Phil Hall on Larry Summers, Miami-Dade Up, Big DQs Drop, Trulia Asking Prices

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(looks at mortgage revenues at big banks and smaller originators) The Threat From Higher Mortgage Rates: Truth vs. Fiction – By Matt Koppenheffer – Motley Fool 
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(thanks rising rates) Chart Of The Day: Monthly Home Payment Soars 40% To 2008 Levels – Submitted by Tyler Durden – Zero Hedge 
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(from several perspectives) Is The Worst Over For Annaly? – Christopher F. Davis – Seeking Alpha
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(Chicago) Do rising rents mean it’s time to buy? – By Alby Gallun – … soaring rents and recovering home prices have made ownership more compelling to many Chicago-area residents. … In one River North tower, the cost of owning a condominium is about $300 less than the cost of renting a similar one. … – Crain’s Chicago Business

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Lending standards continue to tighten – Housing demand spikes – Brena Swanson – There is still a wide pool of potential homeowners hoping to lock in a mortgage, according to the Federal Reserve July 2013 Senior Loan Officer Survey. – Housingwire 
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Demand for Non-Traditional, Sub-prime Loans Up – BY: MARK LIEBERMAN – Adding to concerns of a new housing bubble, lenders reported an increase in demand for “non-traditional” and sub-prime mortgage loans and that they’ve responded to that demand by easing standards, the Federal Reserve reported Monday in its quarterly Senior Loan Officer Opinion Survey. – DS News 
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Obama Said to Call for Limited U.S. Mortgages Role – By Clea Benson & Hans Nichols – President Barack Obama will call for Fannie Mae and Freddie Mac (FMCC) to be replaced with a government mortgage reinsurer that would sustain losses only in catastrophic circumstances. – Bloomberg 
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(another nail in eminent domain coffin) Richmond’s eminent domain plan credit negative for RMBS – Moody’s - (Reuters) – The city of Richmond, California’s decision on July 30 to potentially use eminent domain to seize “underwater” mortgage loans is credit negative for U.S. residential mortgage-backed securities, Moody’s Investors Service said Monday. 
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(NAHB) 244 Metro Markets Show Improvement in JulyNational Mortgage Professional 
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Keep Lawrence Summers Out Of The Fed - BY PHIL HALL  – The idea of putting Lawrence Summers in charge of the Federal Reserve is the equivalent of putting a pyromaniac in charge of a matchbox factory – he’ll have a very strong interest in his duties, if only for all the wrong reasons. – Progress In Lending 
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(keeps 30yr fixed rate mortgage) Housing experts, lawmakers express support for Obama housing plan - By Vicki Needham – The Hill
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Report: Miami-Dade home prices up more than 13 percent in June – by Alex Viega – AP – Miami Herald  
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Q2 Delinquency Rate Decrease Represents All-Time High – BY: ESTHER CHO    – The national mortgage delinquency rate sunk to 4.09 percent in the second quarter of this year, representing a near 26 percent decrease from the same quarter last year, according to data from TransUnion. – DS News 
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Trulia: Asking Prices Decline in July – by Brad Finkelstein – The Trulia Price Monitor for July was down 0.3% on a seasonally adjusted basis compared with June, the first decline in seller asking prices on a month-to-month basis since last November. Year-over-year, prices are up 11%. – National Mortgage News

FHFA vs. Eminent Domain, Sand States, Freddie’s Profit, Tapering Tim?, Getting Better, Move-up Buyers, Home Price Gain Analysis, Affordability Fading, Repo Market Regulatory War, 5% Risk Share Exemptions, Doves at Fed, Student Loans, QE and Fed Balance Sheet, Closing Costs Rise

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FHFA opposition to eminent domain changes the game – An 800-pound gorilla joins the fightHousingWire 
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‘Sand state’ foreclosures are receding fast – Tim Mullaney, USA TODAY – STORY 3 HIGHLIGHTS
1. Fannie Mae is seeing many fewer mortgage loans go bad in California, Arizona
2. Florida now accounts for 29% of Fannie’s single-family home loan losses
3. Ohio, Indiana, Illinois and Michigan are home to 22% of Fannie’s losses
 
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(helps to extend sequester?) Freddie Mac reports $5 billion profit, will repay Treasury $4.4 billion – By Katerina Sokou – Washington Post 
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(metamorphosis from Turbo Tim to Tapering Tim?) Is it Tim’s time to lead Fed? – By JONATHON TRUGMAN – NY Post

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Majority of Americans expect housing fundamentals to rise – Christina Mlynski – Housingwire 
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Survey: Move-Up Buyers Nearly Ready to Take Action - BY: TORY BARRINGER – The M Report
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Analysts Address Truths and Untruths of Home Price Gains – BY: ANDY BETH MILLER – …  recent U.S. Housing Market Update from Capital Economics suggests that the information reported in indices may not exactly measure up. … – The M Report 
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OC housing affordability fading fastOC Housing News 
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(4 problems from central planning) The regulatory war on repo will have unintended consequencesSober Look Blog – In addition to the pending Basel-based regulation on minimum leverage ratio (see post), US regulators are pushing to set the minimum supplementary Tier 1 leverage ratio for the eight “systemically important” US banks to 5%. Once again, this is expected to hit the repo market as well as other assets with low risk weights. 
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(5% risk share exemptions) Proposed new rule under Dodd-Frank Act – BY VERONICA GORDON AND ROBERT SIEGEL – Key exemptions in the Dodd-Frank Act allowed lenders to securitize risky mortgages – Mortgage Crisis Watch 
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The US Federal Reserve is set for a dovish replacement for Ben Bernanke – Why ex-US Treasury secretary Lawrence Summers and Fed vice-chair Janet Yellen are leading contenders as chair – Kenneth Rogoff – theguardian.com 
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Only 40% Of Federal Student Loan Borrowers Are Currently Making A Payment – Submitted by Tyler Durden – Zero Hedge 
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(timing) Reader Question: Does the Fed Balance Sheet Properly Reflect QE Announcements? - Mike Shedlock – … “Hi Mish I hope you can explain something. Everyone talks about QE of $85 billion per month, but where does the alleged money go?  The fed’s balance sheet doesn’t reflect it. … – MISH’S Global Economic Trend Analysis    
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Mortgage Closing Costs Up 6% in 2013 – BY: TORY BARRINGER – … according to a report from Bankrate.com. The average closing cost across the United States rose over the year to $2,402. Origination fees increased 8 percent to $1,730—accounting for the bulk of the increase in closing costs—while third-party fees rose 1 percent to $672. – The M Report

Rising Rate Effects, Private Label Litigation, Kroll Looks at FNMA, Basel 3 and Risk sharing, Unemployment Seasonality, Dodd Frank – Risk Retention – Guarantees, DQs Plummet, Fed Shakeup, Employment 1955-2013, Eminent Domain, CFPB Complaint Department, Pew Study on Ben

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A New Survey Shows That Surging Mortgage Rates Aren’t Freaking Out American Homebuyers – MAMTA BADKAR – Mortgage rates have been rising for some time now. Fannie Mae’s July national housing survey showed that 62% of respondents think mortgage rates will continue to rise over the next 12 months, this is up from 57% in June. – Business Insider 
and

As mortgage rates rise, ARMs finding favor – Tim Mullaney, USA TODAY – Adjustable-rate mortgages are starting to creep back into the real estate market as fixed-rates move from their all-time lows. 
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(2008 private label deals) DOJ and SEC File (Civil) Suits Against Bank of America
BY PHILIP R. STEIN – Mortgage Crisis Watch 

also
(mortgage-related) JPMorgan Reveals It Faces Criminal and Civil Inquiries
– BY JESSICA SILVER-GREENBERG AND BEN PROTESS – NY Times DealBook

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Kroll digs into Freddie data to prep for potential risk-sharing securitizations – Kerri Ann Panchuk – Housingwire  
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Fitch: Basel III Treatment for GSE Risk-Sharing Deals Unclear – BUSINESS WIRE – MarketWatch 
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(on Unemployment numbers – 3 charts) Seasonality adjustment magic aside, private payrolls are growing in a linear fashionSober Look Blog 
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(retaining 5%) Dodd-Frank Risk Retention Would “Dramatically Shrink” CLO Market, Managers Say -  Kerry Kantin – Forbes

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Dodd-Frank Rules Impact Standard Subsidiary Loan Guarantees – By William R. Parish, Jr. – Law.com
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First mortgage delinquencies plummet – Few loans originated after 2010 fall deliquentHousingwire 
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The Federal Reserve Board May Be Headed For A Big Shakeup When Bernanke Leaves – DAVID KOTOK, CUMBERLAND ADVISORS – Business Insider 
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An Analysis of July Employment Numbers 1955 to 2013; Full-Time Employment Down Over 5 Million Since 2007 – Mike Shedlock – Reader Tim Wallace provides another excellent set of graphs on employment as shown below. – MISH’S Global Economic Trend Analysis

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Eminent Domain Mortgage Battle Is a Lose-Lose Situation – BY Shanthi Bharatwaj – TheStreet.com 
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(please don’t fine me) Watchdog’s complaint tracking gets results – Jayne O’Donnell, USA TODAY – The Consumer Financial Protection Bureau’s growing complaint database is a valuable guide for consumers shopping for financial services, says Director Richard Cordray in an interview.

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(great slides) Bernanke Wants 2% Inflation in a Deflationary World; Who Pays the Price? – Mike Shedlock – PEW Social Trends research shows a Record 21.6 Million Young Adults Live in Their Parents’ Home – Here are some clips from the fascinating PEW study. – MISH’S Global Economic Trend Analysis