One potential pitfall could be all the private loan modifications granted by the major servicers. These are modifications performed outside of HAMP, which have notoriously higher levels of default. Well over 40% of private mods granted since the third quarter of 2009 are now back in default. I’ve heard about some of these modifications leading to higher mortgage payments. These won’t all default in one fell swoop like everyone feared with rate recasts, but we could slowly see more and more decay as they tick off. Short sales have basically replaced foreclosures, and the private investors scooping up homes in serious default could set a floor under that side of the market and help prices. But that’s a bubble waiting to happen.
2--Some Smart Money is Already Exiting the Single Family Rental Landgrab, naked capitalism
Reuters describes how one of the funds that was first to get on the “buy single family homes out of foreclosure and rent them” bandwagon has decided to exit
3--Wall Street CEOs Up Pressure for Grand Bargain in the Lame Duck Session, Firedog Lake http://fdlaction.firedoglake.com/2012/10/18/wall-street-ceos-up-pressure-for-grand-bargain-in-the-lame-duck-session/
4--Housing starts boosted by FHA loans, Sober Look
5--Today’s investors have pulled $440 billion from U.S. equity mutual funds since 2008, Bloomberg
... and sent trading to the lowest levels in at least four years, retrenching after the worst financial crisis since the Great Depression and the May 2010 stock crash, data compiled by Bloomberg and the Investment Company Institute show.
6--Say "Good bye" to SEC's Mary Schapiro, Bloomberg