Government Influenced: Kid Dynamite on Treasury, Reverse Mortgages, Risk Retention, FOMC Analysis, Linda Lowell, COP Says $4.3T

A Sit Down With Senior Treasury Officials – Part I – by Kid Dynamite – I received a mysterious email last week from the Treasury, inviting me to a discussion about the Administration’s policies and reactions to the economic crisis.  Although the timing sucked for me – it was the Monday following the weekend of my move out of NYC – it was too rare an opportunity to pass up. – PART 1   Kid Dynamite’s World

and   Part II -   Kid Dynamite’s World

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HUD: Over $29 Billion of Reverse Mortgage Volume in 2009 – has details – … While Congress extending higher reverse mortgage limits through 2010 is clearly a good thing, it will be a challenge to keep the record setting pace. … – Reverse Mortgage Daily

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Mortgage Liquidity Threat -   Trade Groups Protest Risk-Retention Provision In House Draft - BY JOHN CLAPP – … “By setting risk-retention requirements at each step of the process – from sale to securitization – and layering it over multiple years of originations, the cumulative impact of these requirements on lenders and issuers will reduce liquidity significantly and undermine the ability of the secondary mortgage market to deliver hundreds of billions of dollars of low-cost mortgage credit needed each year,” the joint statement said. … – MortgageOrb
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FOMC Statements : Side by Side Analysis – Andrew Horowitz – The Disciplined Investor

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Viewpoint: Like Us, Whitney Sees Risks in Fed’s MBS Exit – By LINDA LOWELL – HousingWire readers have already been reminded … that banks and would-be mortgage borrowers are first in line to be whacked when the Fed exits the MBS market.  So I was thrilled yesterday when celebrated bank analyst Meredith Whitney put out an industry note that zeroes in on the Fed’s MBS purchase program; She calls the “Great Exit” the biggest market and bank risk over the next four months -  .HousingWire.com 

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U.S. government backed $4.3 trillion in assets in crisis: report – By David Lawder – … The Congressional Oversight Panel said in its latest monthly report that the asset guarantees from the U.S. Treasury, the Federal Reserve and the Federal Deposit Insurance Corp helped calm panic …  To date, the programs have generated fees of about $17.4 billion, while only up to $2 million is expected to be paid out for a default under the FDIC’s bank debt guarantee program. – Reuters