Infinity and Beyond, FNMA VOA, MBS Valuations, Watch Out Walkaways, Finally Asking, Too Few LO’s, Lower Rates, Krugman Loves QE3, Hard To Get, QM and Cordray


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(scathing) Bernanke: To infinity & beyond – Jonathon M. Trugman – … With his Ben Lightyear announcement of “QE to infinity . . . and beyond,” Bernanke stated that socialism, not capitalism, is the path to prosperity. … So instead of loosening up the parts of Dodd-Frank that are the true constrictors of growth, or allowing banks in good order to leverage up to 20-to-1 (a mere half what they were leveraged pre-crisis), the Fed has leveraged itself up to more than 50-to-1. Our taxpayer-supported Fed. … – NY Post

New Fannie Mae Guidelines Allow Verification of Assets in Lieu of Income – Jann Swanson – Mortgage News Daily

(look at charts) Agency MBS spreads collapse, durations shorten, swap spreads follow, and fundamental valuations go out the windowSoberLook Blog

Draining duration from the marketsSober Look Blog – As part of Operation Twist, the Fed was taking tremendous amounts of duration out of the market. In effect the average duration of outstanding fixed income products in the market was lowered by their action. The idea was to create a shortage of high duration product, thus lowering long-term rates.

(Attn walkaways: watch out!) Mortgage cops taking tough stance – Office of Inspector General on the prowl for strategic defaulters – By Lew Sichelman – Strategic defaulters, beware. The feds are coming for you. And they are not happy. Not the FBI. The Office of the Inspector General at the Federal Housing Finance Agency. – Chicago Tribune

(mentions FN and Fred) Four Years After The Financial Implosion Questions Finally Begin To Be Asked – Raymond J. Learsy – Huffington Post
(too few LO’s) QE3 hit by mortgage processing delays – By Tom Braithwaite, Tracy Alloway and Robin Harding, -… but bankers say the impact will be limited by a dearth of loan officers with banks reluctant to cut mortgage rates without the staff to process any increase in business. … –
(good charts) How much will lower mortgage rates help the US economy?Sober Look Blog –  …It is quite clear that even though lower mortgage rates are helpful to economic growth, another 50bp (or even larger) reduction in rates will have only a marginal impact on hiring and growth. …

(Krugman no surprise) Hating on Ben Bernanke – By PAUL KRUGMAN – NY Times

(aka can kicking?) Bernanke is buying time for Congress, presidents to fix U.S. finances – The following editorial appeared in Friday’s Washington Post – Herald Online

The Fed Will Make Your Mortgage Cheaper, But Someone Has To Make It Harder To Get – By Matt Levine – DealBreaker

(QM & Richard Cordray) Consumer Bureau Chief: We Don’t Want To ‘Freeze’ Mortgage Lending – By Maya Jackson Randall and Alan Zibel – WSJ Blogs


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