Don’t let this happen to you at the next mortgage conference:THOUSANDS PROTEST CORRUPTION

Maybe this person works for the Treasury Department, and the spill impacted the plans for Freddie and Fannie - which could be why the plans, which are “required” by the end of January per Dodd-Frank, have now been pushed back until mid-February. ”

Officials say the delay is needed to accommodate other major policy initiatives, including next month’s release of the annual budget and the president’s State of the Union address today.”

Try that excuse when delaying your 4/1 comp plan! It doesn’t help that the Treasury has had some personnel turnover, and policy disagreements between Treasury and White House officials. When it does come out, expect two or three proposals for what should replace Fannie and Freddie, and discussions of the merits and drawbacks of the different approaches. FULL STORY: KICKING THE CAN DOWN THE ROAD

The plan needs to address a way for the government to continue backing existing mortgage-backed securities (F&F own or guarantee about half the $10+ trillion of home loans), and how to structure a market with no government guarantees for some products. Is there enough capacity in capital markets to finance mortgages without some type of government guarantee? If you’re a money manager in Taiwan or Egypt, wouldn’t you demand a higher rate of return to match the risk without any government guarantee? And if bank-owned cooperatives issue government-backed mortgage bonds, wouldn’t that concentrate more power among the largest U.S. banks?

No matter what, smarter minds than mine say we need private capital to return to the market, Fannie & Freddie to raise fees they charge lenders for riskier loans, and possibly reducing the maximum loan limits for mortgages the companies can purchase to push more loans toward other institutions. One industry vet wrote, “Isn’t it a bit funny that while the GSEs must reduce the size of their portfolio, the Treasury purchased over $1Trillion of MBS and continues to buy government securities for their portfolio through QE2.”

While we’re on the topic, wanna buy a house? Call the agencies - Fannie & Freddie’s combined inventory of foreclosed residential property has quadrupled in just three years and now stands at $24 billion, and the number of properties on their books (over 241,000) has increased fivefold. That’s roughly a third of the total U.S. portfolio of repossessed homes. And the numbers show no signs of declining, since it seems that nationwide foreclosures are going up faster than buyers can be found. Let me think about that supply versus demand curve…HOUSING GLUT

Say what you will about the Nationwide Mortgage Licensing System and Registry (NMLS), but it is a fact of life in our industry. The organization is conducting the third annual NMLS User Conference & Training February 7-10, 2011 in Orlando, Florida. “The NMLS User Conference & Training brings together state and federal mortgage regulators, industry professionals, compliance companies, top law firms, and education providers to learn about the latest developments in mortgage supervision and to discuss pressing issues confronting the industry.” If the site of hundreds of compliance officers doing the rumba through a hotel lobby appeals to you, go to the Conference website HERE

On behalf of the state regulatory agencies participating in the NMLS, the State Regulatory Registry is invitingpublic comments on the Uniform Licensing Forms developed by state regulators and used by all states through NMLS; and the NMLS Policy Guidebook. UNIFORM LICENSING FORMS

There is scuttlebutt out there that the FHA will suspend its anti-flipping rule for a second year in 2011. Whether investors go along with it remains to be seen, however. HUD’s existing rule, that prohibits the FHA from insuring a mortgage on a home that was owned by the seller for less than 90 days, was temporarily put on hold last February to help liquidity. There are certain restrictions, well known in the industry, but a HUD spokesman reported told HousingWire that the rule is currently “in the clearance process.”

Turning to LO compensation, one reader opined, “What I am hearing is that for the most part, the Dodd Frank legislation will indeed impact certain segments of the LO population. High volume producing agents may be the least impacted, since they often use the lowest margins already. Agents who originate few loans, but with high margins, will see the most change, and some management teams don’t seem to mind since “we have the most problems with the agents doing the least loans.” (Licensing hurdles and requirements have removed many already.) Production teams are working with producers to maximize their time and efficiency, although smaller-sized loans apparently still help originators from the aspect of adding to their reputation and helping with referrals.”

more news on part 1 of the MBA questions/Fed answers, published by SunTrust, Bank United, NYCB (Amtrust), Colorado State Bank & Trust Mortgage Group, Maverick Funding Corp., bond markets, FOMC, and Joke of the Day – click here.