What We're Hearing

How much in cash will the new changes made by FHA this morning raise for the government insurance fund? FHA chief David Stevens isn't saying, at least not yet. Perhaps, then, the reserve fund isn't so bad off, after all -- or maybe it's so bad that he doesn't want to talk about it. One thing we know for certain is that FHA delinquencies are still lower than subprime late payments, which are north of 35% at some shops that still hold the loans/ABS. Meanwhile, the political playing field shifted somewhat last night with the win by Republican candidate Scott Brown over Martha Coakley. Congress likely will pass some type of healthcare reform but Republicans will finally have a true say in the bill. But what about reform of Fannie Mae and Freddie Mac? The GOP has never liked the two -- especially now with major taxpayer money keeping their net worths above zero. Nothing will happen legislatively in regard to the GSEs this year but after the 2010 mid-term elections? It could get interesting...