The market got hit when the Fed said that "several on FOMC said Fed should be prepared to vary pace of QE." Immediately, large trades went off in broad stock-related ETFs like the SPDR S&P 500, and stocks began drifting lower. It's pretty simple: less QE=bad for stocks.

JPMorgan Unit Asks Court to Toss Credit Union Regulator's Suit Bloomberg JPMorgan Chase & Co.'s Bear Stearns unit asked a U.S. judge to throw out a regulator's lawsuit accusing it of using misleading documents to sell $3.6 billion in mortgage-backed securities to four credit unions that later collapsed. Bear Stearns, in papers filed ...

Minutes of the Federal Open Market Committee, January 29-30, 2013

Despite official assurances that bond purchases will continue if "the outlook for the labor market does not improve substantially," some Fed policymakers think the policy may have to end earlier.

Merkel Says Euro Has 'Long Way' to Go Before Crisis Is Overcome Businessweek German Chancellor Angela Merkel said the euro area has a "long way" ahead before it overcomes the three-year-old debt crisis even though measures to boost competitiveness and cut debt are bearing fruit. "We've achieved much but still have a lot of work ... and more »

Fed to Test Allowing Smaller Broker-Dealers as Counterparties Businessweek The Federal Reserve Bank of New York said it will test allowing "small broker-dealers" to act as counterparties in sales and purchases of Treasuries for the central bank's portfolio. The New York Fed will conduct a one-year pilot program that will let as many as ... and more »

Today we're in Washington, DC for a discussion on issues facing consumers. Watch here for remarks about the Bureau's 2012 accomplishments from CFPB Director Richard Cordray, followed by discussion by the Consumer Advisory Board, testimony from consumer groups, industry representatives, and members of the public.

Strong Surge for Architecture Billings Index<br/>http://www.aia.org/press/releases/AIAB097808

Borrowers are discovering that their foreclosed homes are coming back to haunt them -- long after they have moved out.

Limited Mortgage Finance Role for US Government Gains Support Businessweek A bipartisan panel including former secretaries of the Department of Housing and Urban Development and retired U.S. senators is preparing to release a proposal for scaling back the government role in mortgage finance that would put taxpayer dollars at risk ...

The business of buying-and-renting houses, long dominated by local mom-and-pop investors, has morphed over the past two years into one of the hottest investments on Wall Street. Now foreign firms are jumping into the pool.

Distinguished Panel Holds that MERS' "had the authority twice over to assign"   Reston, Virginia, February 19, 2013- MERSCORP Holdings, Inc. today announced that a three-judge panel of the U.S. Court of Appeals for the First Circuit issued a ruling favorable to Mortgage Electronic Registration Systems, Inc.'s role and authority as mortgagee by affirming a U.S. District Court dismissal in Culhane v. Aurora . " MERS' role as mortgagee of record and custodian of the bare legal interest as nominee for the member-noteholder, and the member-noteholder's role as owner of the beneficial interest in the loan, fit comfortably with each other and fit comfortably within the structure of Massachusetts mortgage law," Senior Circuit Judge Bruce M. Selya wrote on behalf of the panel. "[T]here is no reason to doubt the legitimacy of the common arrangement whereby MERS holds bare legal title as mortgagee of record and the noteholder alone enjoys the beneficial interest in the loan." The panel also held that MERS' use of signing officers complies with Massachusetts law. Judge Selya was joined by Chief Judge Sandra L. Lynch and the Honorable David H. Souter, Associate Justice (Ret.) of the U.S. Supreme Court, sitting by designation. While the panel did rule that in Massachusetts a homeowner may, in limited circumstances, challenge a mortgage assignment, it cautioned, however, that such circumstances were limited to where the challenge was being made against an "invalid, ineffective, or void" assignment. In November 2011, Judge William G. Young of the U.S. District Court for the District of Massachusetts dismissed this case . "The Court holds that there was no flaw in this process. Under Massachusetts law, MERS lawfully held the legal title to Culhane's mortgage in trust first for Preferred and subsequently for Deutsche," Judge Young wrote. "ven after the most careful scrutiny, it appears that MERS works...

At the end of the day, the doves rule the roost at the Fed, but expect to hear more hawkishness from behind the scenes in Wednesday's release of the Fed meeting minutes.