Other Headlines From Papers Across the Country

2008

eMortgages Find Way Home After Subprime Fiasco
Houston Business Journal | May 09 2008
The number of electronic mortgages has increased dramatically in recent months, and two Houston companies are among a handful of firms nationwide poised to capitalize on the trend. Harry Gardner, vice president of technology for the Mortgage Bankers Association, says although the number of eMortgages is skyrocketing, there are only a few companies providing such services. Two Houston companies -- Encomia and Stewart Information Services Corp. -- are among those firms.

FACTBOX: What Has The U.s. Gov't Done to Fix Housing Crisis?
Reuters | May 09 2008
The Democratic-led House of Representatives on Thursday voted to authorize the government to finance distressed mortgages to steer 500,000 American homeowners away from foreclosure. It was unclear whether Democrats in the Senate could muster enough support to pass a similar version of the bill, which President George W. Bush has threatened to veto.

Plan Offered to Give People Notice About Rates on Some Loans
Associated Press | May 09 2008
People taking out credit cards, home mortgages, auto loans and other loans would be notified when they are offered higher interest rates because of poor credit histories, under a plan federal regulators proposed Thursday. Many lenders offer borrowers rates and terms based on their credit reports, which reflect the borrowers' ability to repay loans. It's called "risk-based pricing." Under the proposal, a notice "would generally be provided to the consumer after the terms of credit have been set, but before the consumer becomes contractually obligated on the credit transaction," the Federal Reserve and the Federal Trade Commission said in a joint release.

Mortgage Crisis Seeps to Prime Loans
USA TODAY | May 09 2008
The first concrete evidence that delinquencies on mortgage bills have spread well beyond those with subpar credit shows that even prime borrowers have increasingly fallen behind on their house payments. The figures remain relatively small so far. But if they rise further, delinquencies on prime loans — given only to those with good credit — could prolong the housing crisis.

The New Mortgage Rate Calculus
CNN Money | May 08 2008
Borrower, beware: The current credit crisis will transform how homes are financed - and who bears the risk. With foreclosures projected to reach 2 million nationwide by the end of next year, bankers are rethinking how they set mortgage rates.

Conflict Over Housing Crisis Threatens Rescue Package
Associated Press | May 08 2008
President Bush and Congress are clashing over how to address the housing crisis, clouding the prospects of an election-year rescue package. Bush said Wednesday he would veto Democrats' broad housing aid plan, saying it wouldn't help struggling homeowners.The centerpiece of the housing package, aimed at preventing foreclosures, would have the government step in to insure up to $300 billion in new mortgages for distressed homeowners.

Home-buyer-friendly Policies Help Out in S.c.
The Post and Courier | May 07 2008
South Carolina doesn't often set economic trends, which helps explain why local foreclosure rates remained fairly steady last year while national headlines called attention to dramatically rising rates elsewhere. But state regulations played a role in the trend, too, according to Charleston County Master-in-Equity Judge Mikell Scarborough, whose office handles foreclosure cases.

March Pending Sales Down 20% Over Year Ago
Philadelphia Inquire | May 08 2008
The National Association of Realtors' national pending-sale index, based on agreements of sale signed for existing homes during a month, fell 20.1 percent in March from the same month in 2007. The February-to-March decline was just 1.0 percent, the NAR said today. The Philadelphia region saw a 20.2 percent decline in its pending-sale index in March over 2007 and a 4.6 percent drop from February to March, according to Prudential Fox & Roach's HomExpert report, which is based on data from Trend Multiple Listing Service.

Fannie Offers Dismal Housing Outlook
CNN Money | May 07 2008
Mortgage financer Fannie Mae warned Tuesday that the tumbling home values and loan defaults that have crippled the U.S. economy are likely to worsen, after posting a far larger-than-expected first-quarter loss. The firm said it now forecasts that home prices will sink 7% to 9% this year, 2 percentage points worse than its previous decline range forecast, a drop that could leave prices 19% off of peak levels. Fannie also increased its reserves to cover bad loans it has backed by nearly $2 billion, and said it expects a worse outlook for credit losses in 2009 than it is seeing this year.

Fannie Posts Loss, to Cut Payout, Raise Capita
Reuters | May 06 2008
Fannie Mae, the largest provider of U.S. home financing, on Tuesday posted its third straight quarterly loss as the U.S. housing crisis took another turn for the worse during the first quarter of 2008. The federally chartered company also said it would cut its common stock dividend to preserve cash and raise $6 billion in new capital as it sees significant credit losses stretching into 2009.

Bernanke: Foreclosure Woes Require Action
CNN Money | May 06 2008
The wave of foreclosures sweeping the nation are driven in part by a nearly unprecedented decline in home prices and require a concerted government and private-sector response, Ben Bernanke, chairman of the Federal Reserve, said Monday."Realistic public- and private-sector policies must take into account the fact that traditional foreclosure avoidance strategies may not always work well in the current environment," Bernanke said .

Rep. Frank Wants Answers on Jumbo Loan Inaction
International Herald Tribune | May 06 2008
A key House lawmaker on Monday complained that the mortgage industry has done little over the past month to make higher-value loans available in costly housing markets after Congress took steps to try to infuse more cash into the so-called jumbo market. Rep. Barney Frank, D-Mass., said Monday that the House Financial Services Committee that he chairs will hold a May 21 hearing to try to find out why so-called jumbo mortgages remain difficult to get and continue to carry high interest rates, despite new rules that took effect April 1.

Title Industry Titans Feel the Pain of Housing, Mortgage Downturn
The Housing Wire | May 05 2008
The mortgage mess hit the balance sheets of three large title insurance providers this week, showing that the real estate mess has yet to work its way through the system. Stewart Information Services Corporation, LandAmerica Financial Group, Inc. and The First American Corporation all said this week that the market downturn pushed revenues and income lower during the first quarter — with two of the title companies posting net losses for Q1.

HUD Solicits Comment on Proposed Changes to Real Estate Settlement Act
Tallahassee Democrat | May 06 2008
The U.S. Department of Housing and Urban Development has plans to reform the Real Estate Settlement Procedures Act (RESPA). Included in the proposal are changes that consumers will notice in the forms they receive when buying a house or applying for mortgage financing on a home purchase. Among other things, the proposed HUD rule change would revise and standardize the Good Faith Estimate form and also modify the HUD-1 Uniform Settlement Statement, which homebuyers receive prior to closing so they have a detailed list of charges and fees to expect. The HUD-1 is standard form that clearly shows all charges imposed on borrowers and sellers in connection with the settlement. HUD recommends that those with comments submit them electronically by My 13th y visiting the federal e-rulemaking portal at www.regulations.gov. Background information on RESPA is available online at http://www.hud.gov/offices/hsg/sfh/res/respa_hm.cfm.

Tight Credit Hitting Specialized Areas of Mortgage Market
San Francisco Gate | May 4, 2008
The latest to feel the pinch: -- Cash-out refinancings. -- Loans with anything less than full documentation of borrower income, credit and assets. -- Mortgages for certain second-home purchases. -- Investment loan applications where the buyer already owns at least three other rental properties. -- Short-term construction loans that convert to permanent mortgages.-- Adjustable-rate mortgages where the first rate adjustment occurs within 60 months after closing.

More Big Losses Expected From Fannie, Freddie
Reuters | May 05 2008
Fannie Mae and Freddie Mac, reeling from the deterioration in the housing market, will likely post steep losses for the first quarter, but the two largest home funding companies are expected to escape previous record losses. Slumping house prices and rising foreclosures, even for high-quality loans that comprise the bulk of business at the two federally chartered companies, have eroded their income. Losses were likely tempered, however, after the two raised their fees and as the credit crunch drove many of their rivals to the sidelines. The first quarter, however, held no relief for housing.

Home Sales Slowest in 5 Years
Las Cruces Sun-News | May 05 2008
Mike and A. Lukeck put their Las Cruces house on the market two weeks ago and have already attracted potential buyers. "We have a lot of interest," Mrs. Lukeck said. The couple have had the Coues Deer Avenue house on the market once before and have lowered the price. "We're hoping that will bring some extra attention. I'm pleased with the amount of calls."

New Database Fixes Holes in Regulations
Miami Herald | May 05 2008
There are lots of proposed remedies to prevent another mortgage catastrophe like the one we're going through now. One solution may help stem fraud in the mortgage industry, and it could reduce the number of unscrupulous or unlicensed brokers and loan officers who move from state to state preying on borrowers.

Hidden Mortgage Risks Abound in U.S. Home Market
Bloomberg | May 05 2008
Bottoms up! It's time to swallow a heavy dose of risk realism when considering the U.S. home market. While it's a given that home prices will continue to fall in most major markets in the immediate future, you have to defy the conventional wisdom on what will happen next.

Investors Move in to Save Broken Mortgages
Los Angeles Times | May 1, 2008
Jared Lanning, struggling to pay a home loan on which he owed more than his house was worth, was thinking he might just let the lender take back the property. Then he got a call one evening from an Orange County investor who had bought his mortgage. "I want out of your loan," said the investor, Evan Gentry, chief executive of G8 Capital of Ladera Ranch, who offered to lower the balance and the interest rate.

Mortgage Sector Sees Harmful Mandate
Reuters | May 01 2008
A mandate to split the U.S. home loan and home appraisal industries would needlessly damage those sectors and endanger the two largest U.S. sources of mortgage finance, appraisal and lending trade groups said on Wednesday. The plan in question calls for Fannie Mae and Freddie Mac only to finance home loans from lenders that have put their appraisers at arm's length.

FDIC Chief Backs Treasury Loans to Spur Refinancing
Los Angeles Times | May 1, 2008
A key federal regulator released a proposal to address the mortgage crisis Wednesday, calling on the Treasury Department to help troubled borrowers by lending them 20% of their mortgage principal to spur refinancing into more affordable loans. Chairwoman Sheila C. Bair of the Federal Deposit Insurance Corp. said she was prompted to offer the plan in part by meeting worried borrowers at a housing forum in Los Angeles last week. The crowd of "anxious people" overfilled the auditorium and stretched down the block, she said. "I didn't see a lot of loan flippers or condo speculators," Bair told reporters.

The Housing Crisis and the Future of the U.S. Economy
Harvard Business Review | May 01 2008
The U.S. economy may be at a turning point: as manufacturing jobs are being shipped overseas, the financial system is experiencing tremendous hardship, largely of its own making. The spread of economic woes caused by the subprime mortgage crisis highlights the failures of national ratings and regulatory systems as well as the dangers posed by companies passing along risks associated with questionable investments and borrowing excessively. The current situation illustrates the need for an increase in the government’s fiscal responsibility and a reevaluation of the federal regulatory bodies that oversee lending practices.

Mortgage defaults up a staggering 37 per cent
The Toronto Star | May 01 2008
Defaults on privately insured U.S. mortgages rose 37 per cent in March from a year earlier for their 15th straight increase, according to an industry report released yesterday. The number of insured borrowers more than 60 days late on payments rose to 58,131 last month from 42,362 a year earlier, the Washington-based Mortgage Insurance Cos. of America said. Mortgage insurers pay lenders when homeowners default and foreclosures fail to cover costs.

Fed Trims Rate to 2%, Signals Ready to Consider Pause
Bloomberg | Apr 30 2008
The Federal Reserve lowered the main U.S. interest rate by a quarter of a percentage point to 2 percent and indicated it's ready to take a break after seven cuts since September.

2010 is Predicted Date for Housing Recovery
Baltimore Sun | Apr 30 2008
2010 is predicted date for housing recovery Baltimore Sun | Apr 30 2008The head of mortgage financing giant Fannie Mae said yesterday that he doesn't expect to see "some recovery and growth" in the housing market until 2010. "We think at Fannie Mae that '08 is going to be a tough year, kind of a continuation of the end of 2007; '09 will be similar," said Daniel Mudd, the company's president and chief executive, who spoke at a business journalism conference in Baltimore. http://www.baltimoresun.com/business/bal-bz.housing30apr30,0,2147791.story The head of mortgage financing giant Fannie Mae said yesterday that he doesn't expect to see "some recovery and growth" in the housing market until 2010. "We think at Fannie Mae that '08 is going to be a tough year, kind of a continuation of the end of 2007; '09 will be similar," said Daniel Mudd, the company's president and chief executive, who spoke at a business journalism conference in Baltimore.

The Road to a Jumbo Mortgage Was Supposed to Get Easier
The New York Times | Apr 30 2008 (Registration Required)
In early February, Congress gave beleaguered mortgage borrowers a rare cause for celebration. As part of the economic stimulus package, it passed rules intended to make it easier and less expensive for people to take out hefty loans in the nation’s costliest housing markets. Economists and legislators said that helping tens of thousands of borrowers take out billions of dollars in new loans could stanch the bleeding in the housing market, spur spending and reduce the pain of a likely recession.

Countrywide, GMAC Losses Underline U.S. Housing Slump
Bloomberg | Apr 29 2008
Countrywide Financial Corp. and GMAC LLC, two of the nation's biggest home lenders, lost a combined $1.5 billion in the first quarter, adding to evidence that the housing slump has deepened. Countrywide, the mortgage lender that Bank of America Corp. plans to buy, posted a loss of $893 million, or $1.60 a share, as late payments and home foreclosures escalated. GMAC, which General Motors Corp. sold last year, recorded a $589 million loss, due largely to its mortgage unit.

Homes Facing Foreclosure More than Doubled in 1q From 2007
Find Law / AP | Apr 29 2008
The number of U.S. homes heading toward foreclosure more than doubled in the first quarter from a year earlier, as weakening property values and tighter lending left many homeowners powerless to prevent homes from being auctioned to the highest bidder, a research firm said Monday. Among the hardest hit states were Nevada, Florida and, in particular, California, where Stockton led the nation with a foreclosure rate that was 6.6 times the national average, Irvine, Calif.-based RealtyTrac Inc. said.

Weak 0.6% Economic Growth in Q1 is Better than Forecast
USA Today | Apr 30 2008
The bruised economy limped through the first quarter this year with growth at a 0.6% annual pace as housing and credit problems forced people and businesses to hunker down. The country's economic growth rate January through March was the same as the final three months last year, the Commerce Department reported Wednesday in its first estimate of first-quarter gross domestic product. This means although economy is stuck in a rut, it is managing to grow — however modestly.

Housing-aid Bill Eyed for Vote Thursday
MarketWatch | Apr 30 2008
Members of the House Financial Services Committee went back to work Wednesday on a multibillion-dollar bill that is intended to help stem the foreclosure crisis. The legislation would allow the Federal Housing Administration to back as much as $300 billion in refinanced loans for homeowners facing foreclosure. Committee Chairman Barney Frank, D-Mass., said that he expects a vote on the bill Thursday. Frank and other supporters say that it will help homeowners and bolster neighborhoods, but critics contend that it would put taxpayers at risk and help lenders more than borrowers.

A Free-Market Approach to Housing Crisis
The Arizona Republic | Apr 29 2008
Home-value depreciation has led a growing number of Arizonans to walk away from their homes rather than make monthly mortgage payments. This is yet another facet of the crisis rocking the housing market and reverberating throughout the American economy. Congress is looking for ways to help, but the costly, big-government solutions being discussed are worse than the problem.

Bank of America to Modify Home Loans
Reuters | Apr 29 2008
Bank of America Corp said on Monday that, as part of its acquisition of Countrywide Financial Corp, it expects to modify at least $40 billion in mortgage loans to help homeowners. The second-largest U.S. bank unveiled its plan at a public hearing on the $4 billion merger at the Federal Reserve Bank in Los Angeles, near where Countrywide is based.

State Senate OKs Foreclosure Bill
Los Angeles Times | Apr 29 2008
A bill aimed at putting the brakes on home foreclosures in California was approved Monday by the state Senate, ending a months-long partisan stalemate. Under the legislation, a lender would have to try at least three times to contact a borrower in person or by telephone 30 days before sending a notice of default. When contact is made, the lender would assess the borrower's financial situation and discuss options to avoid default.

Bank of America to Pledge Mortgage Aid
Los Angeles Tmes | Apr 27 2008 (Registration Required)
Pushing to fast-track its takeover of wounded home-loan goliath Countrywide Financial Corp., Bank of America Corp. will promise today to help 265,000 troubled borrowers keep their homes over the next two years by refinancing or modifying at least $40 billion in mortgages.

Americas Watchdog Wants To Talk To Every New Homeowners
Press Release | Apr 28 2008
Americas Watchdog along with its National Mortgage Complaint Center have just launched a national investigation into US home builders offering home buyers mortgage services, and title insurance. The focus of the examination is where homeowners over charged on either the mortgage, or the title insurance? Americas Watchdog's National Mortgage Complaint Center is one of the leading homeowners advocates in the United States.

Loan Industry Fighting Rules on Mortgages
The New York Times | Apr 28 2008 (Registration Required)
The mortgage industry, facing the prospect of tougher regulations for its central role in the housing crisis, has begun an intensive campaign to fight back. As the Federal Reserve completes work on rules to root out abuses by lenders, its plan has run into a buzz saw of criticism from bankers, mortgage brokers and other parts of the housing industry. One common industry criticism is that at a time of tight credit, tighter rules could make many mortgages more expensive by creating more paperwork and potentially exposing lenders to more lawsuits.

Mortgage Crisis Expands to Prime Borrowers in N.h.
The Boston Globe | Apr 27 2008
New Hampshire housing advocates say they've noticed troubling signs that the mortgage crisis is spreading to prime borrowers. Most of the foreclosures in New Hampshire stem from subprime mortgages made to borrowers who don't qualify for traditional loans, usually because of bad credit or low income. But the director of one counseling agency says he's seen an alarming increase in calls from homeowners seeking help not because of adjustable-rate subprime loans, but because loss of income is making it difficult to keep up with their payments.

Presidential Candidates Call for Government to Rescue Homeowners
The Dallas Morning News | Apr 27 2007
The presidential candidates' aggressive plans for government to rescue homeowners are drawing more attention in Texas as home sales plummet and more borrowers default on loans. Hillary Rodham Clinton would commit the most money, but her plan to stem foreclosures no longer looks very different from ideas pitched by fellow Democrat Barack Obama and Republican John McCain. All three embrace a bigger role for the federal government, which would guarantee hundreds of thousands of shaky mortgages.

The Rating Agencies
CBS News | Apr 27 2008
In the New York Times magazine today, Roger Lowenstein takes a look at the role of rating agencies in our current credit crisis. Were they at fault because they got in bed with their customers and overrated complex new mortgage-backed securities? Or were they innocent bystanders in a world gone mad? Proposition A gets an airing early on. Lowenstein explains that after the sudden collapse of Penn Central in 1970, new rules were put in place that effectively barred large classes of investors from buying anything other than investment grade bonds. And it was the rating agencies that decided which bonds were investment grade and which ones weren't.

Buyers Hurt By Misguided Designations of Risk Areas
San Francisco Chronicle | Apr 27 2008
Could widespread designations of entire ZIP codes, metropolitan areas - even entire states - as "declining markets," hinder a real estate recovery and hurt minority groups and moderate-income buyers disproportionately? Growing ranks of critics say the answer is yes. Since late 2007, most lenders, insurers and mortgage investment firms have compiled lists of local markets that they consider to be posing higher risks because housing values are dropping. Within those areas, borrowers are charged higher rates, loan fees and down payments - costs that can rise significantly when applicants have credit scores below designated minimum levels.

Fed's Online Mortgage Maps Show Where Problems Are
Contra Costa Times | Apr 27 2008
The Federal Reserve has made available a new set of online interactive maps designed to provide a clearer, more localized view of where problem mortgages are. The maps, maintained by the Federal Reserve Bank of New York, will be updated monthly. They provide a local look at conditions for the two categories of mortgage loans that are most in distress: subprime and alt-A mortgage loans. See » (http://www.newyorkfed.org/mortgagemaps/ )

Freddie, Fannie Take on Big Loans, Risk
The Street.com | Apr 25 2008
Freddie Mac(FRE - Cramer's Take - Stockpickr) has entered the market for jumbo loans, or loans of more than $417,000. That could be good news for some borrowers, but also means U.S. taxpayers are taking on additional risk. Freddie announced last week that it expects to finance between $10 billion and $15 billion of jumbo loans this year. Some borrowers won't even need the 20% down payment -- the mortgages can be used to finance up to 90% of a property's value.

in Housing Market, It's The Worst of Times and Best of Times
USA Today | Apr 25 2008
Home sellers, brace for some grim news. The spring home-buying season now underway is widely expected to be the worst since the 1980s. Many would-be buyers lack strong enough credit to get a mortgage. Home values are sinking. And in front yards around the country, "For Sale" signs are as ubiquitous as garden weeds.

Homeowners Convert to Costlier Fixed-Rate Loans Amid ARM Fears
Bloomberg | Apr 25 2008
Mortgage refinancing in the U.S. is increasing as record numbers of homeowners dump their adjustable-rate mortgages for the security of a fixed loan. The amount of refinanced home loans will reach $321 billion by the end of June, the most in a year, according to estimates from Washington-based Fannie Mae, the largest buyer of mortgages. Nine out of 10 of those borrowers will choose a fixed rate, Fannie Mae said.

The Subprime Bust in Microcosm: The Saga of a Failed Mortgage Package
The International Herald Tribune | Apr 25 2008
In 1996, Thomas Friedman, a columnist for The New York Times, remarked that there were two superpowers in the world - "the United States and Moody's Bond Rating Service" - and it was sometimes unclear which was more powerful. Moody's, then, was a private company that rated corporate bonds, but it was already exploring how to rate securities backed by pools of residential mortgages.

Us Housing Crisis Deepens as Sales Hit 17-year Low
The Boston Globe | Apr 25 2008
Sales of new homes in the US plummeted far more than anticipated in March, to a 17-year low - a decline so severe that analysts now expect America’s housing crisis to cut the country’s economic growth in half this year. Purchases of new, as opposed to existing, homes fell by 8.5 per cent to an annual rate of 526,000 in March, from the month before, marking the lowest level since October 1991, according to the Commerce Department.

A Federal Cure for The U.Ss. Housing Crisis Faces Obstacles
Los Angeles Times | Apr 24, 2008
Nine months into the worst housing crisis in a generation, Congress this week took up the most aggressive government plan so far to break spiraling home foreclosures and tumbling house prices that threaten to pull the economy down. But even as a key House committee began to mark up the bill Wednesday, there were signs that the measure could be caught up in a crippling political crossfire.

BofA's Lewis Says $4b Countrywide Buy Still a Good Idea
Associated Press | Apr 24 2008
Beleaguered Bank of America Corp. shareholders pleaded Wednesday with the bank's chief executive not to proceed with a $4 billion acquisition of distressed subprime mortgage lender Countrywide Financial Corp. Shareholders told CEO Ken Lewis at the Charlotte-based bank's annual meeting that they were concerned about the company's position in a weakened economy and bearing the brunt of a collapsed stock price.

Pulte Loss Widens to $696.1 Million in Housing Slump
Bloomberg | Apr 24 2008
Pulte Homes Inc., the fourth-largest U.S. homebuilder, reported a $696.1 million first-quarter net loss, about three times wider than analysts expected, as stricter mortgage-lending standards cut demand. The net loss swelled to $2.75 a share, from $85.7 million, or 34 cents, a year earlier, the Bloomfield Hills, Michigan-based company said today in a statement. Pulte's sixth consecutive quarterly loss included $663.6 million of expenses to write down the value of land. Revenue declined 23 percent to $1.45 billion.

U.S. Lawmakers Set to Write Mortgage Bailout Bill
Reuters | Apr 24 2008
A U.S. House of Representatives panel that writes rules for the financial services industry is due on Thursday to outline a new federal program that could buy $300 billion in troubled home loans. The plan conceived by Rep. Barney Frank, chairman of the House Financial Services Committee, would give the Federal Housing Authority fresh funds and a new directive to catch home loans headed for foreclosure.

Fannie Mae Rethinks Rules Critics Labeled as Discriminatory
Bloomberg News / April 24, 2008
Fannie Mae, the largest US mortgage-finance company, said it may retool tougher lending standards that it just imposed after housing advocates called the new rules discriminatory to women and minorities.Fannie Mae and competitor Freddie Mac began introducing or raising fees late last year on mortgages they buy from banks because of rising loan defaults and a slump in home sales and prices. More than 80 housing advocates, mostly small community groups, sent letters to the companies' chief executives yesterday asking them to change the new pricing structures, which they said "is tantamount to both ethnic and gender discrimination."

Lender's Remorse
Forbes | Apr 23 2008
President George Bush and the U.S. Congress want the Federal Housing Administration to play a leading part in extricating the American real estate market from its subprime quagmire. Too bad they didn't check with the FHA. The agency has qualms about the expanded size and scope of its role, which traditionally was to help prospective first-time buyers of limited means purchase modest homes.

70% in Peril on Mortgages Not Helped, Report Says
The Buffalo News | Apr 23 2008
Seven out of 10 mortgage borrowers in serious default are still not getting help to prevent foreclosure, state officials say, complaining that voluntary industry efforts to address the mortgage crisis are barely keeping up with the rising number of homeowners in trouble. A report issued Tuesday by the State Foreclosure Prevention Working Group — representing multiple states — found that loan servicers and lenders have increased their loss mitigation efforts in recent months.

Expert's Tips on Title Companies
Rocky Mountain News | Apr 22 2008
A state inquiry into ties between real estate brokers and title insurance companies illustrates the need for consumers to take more control of the process, an industry consultant said Tuesday. Historically, most home sellers, or buyers in the case of a refinance, have relied on real estate brokers to select the title company. The title company also usually performs the closing service. But consumers potentially can save hundreds of dollars if they shop around and make the choice themselves, said consultant Garry Wolff.

BofA's Quarter Hints Economy Won't Dig Out of Hole Soon
Seattle Times | Apr 22 2008
If the 77 percent drop in Bank of America's first-quarter earnings is any indication, the economy may have a long way to go before it works out the problems that began with the subprime-mortgage crisis. The nation's largest retail bank Monday quintupled the money it set aside for loans that go sour. It also hinted that consumer weakness and the housing slump mean things will not get better for some time.

Lenders Derail Plan to Let Bankruptcy Judges Modify Mortgages
Los Angeles Times | Apr 22 2008
Sherrie Floyd says she was able to handle the first reset on the $505,000 mortgage she had taken out to refinance her Vallejo, Calif., home. And the second. But this month, when the mortgage reset for the third time -- driving her monthly payment to more than $4,300 on a home worth about $470,000 -- she told the judge overseeing her and her husband's bankruptcy case that they would have to abandon the place unless their lender agreed to modify their loan.

Best Ways to Fix The Subprime Mess
CNN Money | Apr 22 2008
How do we stop the boom in foreclosures from doing more damage? Bureaucrats, consumer advocates, presidential candidates and plenty of others have plans. Here are 4 that, each for its own reason, offer particularly noteworthy fixes.

The Trillion-dollar Mortgage Time Bomb
CNN | Apr 21 2008
Among the nightmares lurking around the corner for the already battered housing and credit markets would be a meltdown at mortgage financing giants Fannie Mae and Freddie Mac. Although few are predicting an imminent need for a bailout just yet, credit rating agency Standard & Poor's recently placed an estimated price tag on this worst case scenario -- $420 billion to $1.1 trillion of taxpayer's money.

Housing-credit Woes Spur Calls for More Federal Regulation
Asscoaiated Press | Apr 21 2008
A heavier federal hand is reaching into American life as politicians in both parties demand an overhaul of government financial regulation and more protection for homeowners in the face of mortgage woes and a weakening economy. This rush to regulate also was apparent in the recent crackdown on the airlines, resulting in thousands of grounded flights for safety inspections as the government beefs up its enforcement of existing laws. There have been mounting proposals for tougher government rules to address climate change. High corporate salaries have come under attack on Capitol Hill, as have oil industry profits and rising food costs.

Condo Financing Getting a Lot Harder in Wake of Credit Woes
San Francisco Chronicle | Apr 20, 2008
If you own or plan to buy a condominium, an ominous new phase of the mortgage credit squeeze could be looming on your horizon.As a result of underwriting changes by giant investors Fannie Mae and Freddie Mac, plus severe new restrictions by private mortgage insurers, getting a loan on a condo unit - or even refinancing one you.

Re/Max Denies Title Firm Favoritism
Rocky Mountain News | Apr 21 2008
Re/Max International denied allegations Monday that some franchisee brokers didn't get customer leads or vacation points unless they used First American for title insurance. Separately, Prudential Professional Realtors Inc. in Colorado Springs acknowledged it has a marketing agreement with a title-insurance company, but said the agreement is "above board," with brokers free to use other title companies.

Re/Max Suit Sparked State Probe
Denver Post | Apr 19 2008
A lawsuit is what prompted the state to look into whether real estate brokerage companies are requiring title companies to pay for referrals. Re/Max International Inc. filed the suit against a California title company, First American Residential Group Inc., on March 20 in Denver District Court. The suit claims that First American didn't fulfill the terms of a marketing contract requiring it to pay Re/Max $1.35 million for marketing its services to Re/Max franchisees.

Edwards Steps Down From Stewart Title
Corpus Cristi Caller Times | Apr 18 2008
The president of the city's leading title company resigned Wednesday, saying he wants to purse other opportunities. The man who replaced him in his former longtime position as head of the Corpus Christi Association of Realtors gave notice the next day of his departure, offering to stay on for a few months.

Subpoenas Issued in Real Estate Probe
The Denver Post | Apr 18 2008
The state is investigating whether nine Colorado real estate brokerages required title companies to pay up to $1 million each for referrals from their agents. The Colorado Division of Real Estate on Monday sent subpoenas via certified mail to the brokerages, as well as to a California company.

Foreclosures Push States to Try a Mix of Solutions
New York Times | Apr 18 2008
As the federal government debates responses to the foreclosure crisis, states are experimenting with a broad range of solutions, including emergency loans and agreements to limit high interest rates. The result is a rapidly changing patchwork of local approaches, some far-reaching, others modest, according to a survey issued Tuesday by the Pew Charitable Trusts. Among other measures, 20 states have created intervention programs, 13 have set up counseling hot lines, 14 have assembled task forces and 9 have established funds for emergency loans or refinance loans, totaling $450 million.

Regulator Knocks Fannie, Freddie Appraisal Deal
Reuters | Apr 16 2008
An effort by Fannie Mae (FNM.N: Quote, Profile, Research) and Freddie Mac (FRE.N: Quote, Profile, Research) to put home lenders and appraisers at arm's length is flawed, a top U.S. bank regulator said on Wednesday. Comptroller of the Currency John Dugan said the deal struck between the two mortgage-finance giants and New York Attorney General Andrew Cuomo in early March will not eliminate flawed appraisals and might unduly burden mortgage companies. The plan would prohibit Fannie Mae and Freddie Mac from buying home loans where the property value is determined by an in-house appraiser.

U.S. Economy is Rough Shape, Fed Reports
Market Watch | Apr 17 2008
The U.S. economy is in rough shape, a reading of the Federal Reserve's most up-to-date report on conditions indicates, with conditions weakening across much of the nation. Consumer spending has fizzled out, labor-market conditions are worsening and manufacturing activity is treading water, according to the Fed's Beige Book collection of anecdotal information from its 12 regional banks. Nine of the 12 districts said economic conditions were worse in mid-April than in the previous month. Three said that conditions had not changed much.

Mortgage Fraud Cases Strain FBI
Washington Post | Apr 17 2008 (Registration Required)
FBI Director Robert Mueller said the agency's mortgage fraud caseload has surged because of the subprime loan meltdown, and he expects it to grow further. There are now 19 investigations of Wall Street banks, mortgage lenders and other financial institutions, Mueller told a Senate Appropriations subcommittee. The inquiries have strained the FBI's resources and the agency has shifted agents from other duties to help out, he said.

Housing Bailout: Helping Hand Or Handout?
USA TODAY | Apr 16 2008
Even as home prices jumped earlier in the decade, conservative lenders in Vermont resisted high-cost, exotic loans. Today, as a massive U.S. housing bubble bursts, the state's mortgage delinquency rate is less than 3%, while values are still stable. In Nevada over the same period, home buyers gorged on unconventional loans, with 30% of Las Vegas borrowers taking out higher-cost subprime products in 2006. The state's delinquency rate is above 7%, home prices have plummeted, and in some areas, a majority of borrowers owe more than their homes are worth.

Merrill Lynch: As Bad as It Gets?
Business Week | Apr 17 2008
The news from Merrill Lynch (MER) was bleak Apr. 17, but the reaction from the stock market was a collective shrug. Merrill posted a loss of $2.20 per share in the first quarter, above the $1.99 loss analysts were expecting, but by noon ET the brokerage house's stock was trading 1.5% higher. Almost nine months after the start of the credit crisis that has decimated the finances of Wall Street firms, Merrill investors seem to have built up an immunity to bad news.

Median Price Keeps Falling
San Duego Union Tribune | Apr 16 2008
San Diego County's median home price tumbled below the $400,000 mark last month for the first time in nearly five years as the region grappled with rising foreclosures and defaults, DataQuick Information Systems reported yesterday. The overall median stood at $395,000, down $20,000 from February and off 19.4 percent from a year earlier. It was the first time since November 2003 that prices were below $400,000.

AP Interview: Frank Threatens Tough Mortgage Rules
Associated Press | Apr 16 2008
Democratic efforts to let bankruptcy judges rewrite mortgages for strapped borrowers won't make it through Congress this year, the chairman of the House Financial Services Committee said Tuesday. Rep. Barney Frank, D-Mass., told The Associated Press in an interview that the only thing lawmakers can do to get lenders to help struggling homeowners avoid slipping into default is to threaten the lenders with tougher regulation in the future. "The only other thing we can say to them is, 'If you don't do this, then there are going to be tougher rules going forward than there might otherwise have been,'" said Frank, who plans to meet with mortgage servicers Wednesday.

Fannie Mae Releases Homestay Details for Homeowners Facing Foreclosure
The Couier New | Apr 16 2008
Fannie Mae is working with lenders, loan-servicing companies and policymakers to respond to the housing and mortgage market crisis. The goal is to minimize the impact on families and communities by preventing foreclosures, supporting counseling efforts and helping to stabilize the market by keeping affordable mortgage funds flowing to lenders and to home buyers — ultimately, to ease the pain of the housing correctionand speed the recovery.

Appraisers Say WaMu Cut Corners to Increase Its Mortgage Business
Seattle Times | Apr 15 2008
Washington Mutual's mortgage woes come as no surprise to Graham Albertini, a real-estate appraiser who worked at WaMu's Bellevue office when its mortgage business was going gangbusters. Over eight years, Albertini said, he watched the bank trade safety for speed in its home-lending operations. The trade-off, he said, eroded fundamental safeguards put in place to protect WaMu from lending more against homes than they were worth.

U.S. Steps Up Response to Housing Crisis
The Christian Science Monitor | Apr 14, 2008
Amid reports that potential losses in the US housing crisis could near $1 trillion, Congress, the White House, and even the leading presidential candidates are converging on a strategy to create a federal safety net for hundreds of thousands of families facing the loss of their homes. At the heart of the emerging consensus is a bigger role for the Federal Housing Administration in helping borrowers refinance loans they cannot afford to pay. The issue is no longer if but how the Depression-era agency, eclipsed by new financial instruments in the boom years of the housing market, should ramp up fast enough to deal with the millions of homeowners facing foreclosure.

Prime Time for Subprime Plan
GC California Magazine | Ap 15 2008
In the wake of the housing and subprime meltdown, companies face unprecedented legal exposure ranging from regulatory and criminal investigations to private litigation. To put this situation into historical perspective, the savings-and-loan crisis of the late 1980s and early 1990s ultimately cost an estimated $160 billion and affected more than 1,600 U.S. banks insured by the Federal Deposit Insurance Corp. It was one of the worst financial scandals in history. But the S&L crisis, while costly, was limited to only a section of U.S. financial institutions. In contrast, the breadth and the depth of the subprime mortgage crisis will likely far exceed that of the S&L crisis. Standard & Poor's has estimated that losses from securities linked to subprime mortgages will exceed $265 billion as financial institutions worldwide write down the value of their holdings. And the breadth and depth of regulatory investigations and private litigation, as discussed in this column, is unprecedented.

At Wachovia, Pick-A-Pay Becomes Pick-A-Problem
CNN Money | Apr 15 2008
Wachovia Corp.'s (WB) controversial Pick-a-Payment mortgage program lets borrowers choose between four monthly payment amounts. Unfortunately for Wachovia, these "Pick-a-Pay" borrowers are increasingly inventing a fifth choice: Not making mortgage payments at all. The Charlotte bank reported on Monday a $350 million loss during this year's first quarter, due in large part to stunningly high losses within its $121 billion-plus book of flexible-payment, or Pick-a-Payment, mortgages - a legacy of Wachovia's ill-conceived 2006 purchase of Golden West Financial.

Title Companies to Appeal PRC Order
Las Crues Sun News /AP Apr 11 2008
Title insurance companies are appealing an order reducing rates for title insurance in New Mexico. The state insurance superintendent has ordered a 6.3 percent drop in the rates, but an industry association argues that the amount is too much on top of previous reductions. A notice filed in state district court by the New Mexico Land Title Association and seven companies says the Public Regulation Commission, which oversees the Insurance Division, ordered the overall premium reduction.

AP Poll: Growing Majority Avoid Buying Homes as Pessimism Over Housing Crisis Grows
WZTV/ AP | Apr 14 2008
much is the nation's sputtering real estate market weighing on the minds of Americans? Quite a bit, according to a new poll. An Associated Press-AOL Money and Finance survey finds one-in-seven mortgage holders are worried that they won't be able to make their monthly payments on time over the next six months. And more than a-quarter are concerned that their home will lose value over the next two years.

Where WaMu Went Wrong
Seattle Times | Apr 14 2008
When Washington Mutual's shareholders gather at Benaroya Hall on Tuesday, they'll confront a company in full crisis mode.Seattle-based WaMu, one of the nation's biggest mortgage lenders and consumer bankers, lost money last year for the first time since 1984. Wall Street doesn't expect a return to profitability until sometime next year, if then. Billions of dollars in tarnished debt sit festering on WaMu's books.

Analyst: US to Lean on Fannie, Freddie
Forbes (AP) | Apr 14 2008
A Piper Jaffray analyst said Monday the federal government is likely to do whatever it can to rescue the housing market - even at the expense of Fannie Mae and Freddie Mac. Fannie Mae and Freddie Mac were created by Congress decades ago to bolster liquidity in the housing market. These companies buy home loans from mortgage lenders, package the loans into bonds and sell the bonds to investors. This ensures mortgage lenders can find a buyer for their loans.

HUD Boss Jackson Chided on Loan Oversight
UPI | Apr 13 2008
The outgoing U.S. Secretary of Housing and Urban Development is getting a tepid farewell from critics who say he misread the growing housing slump. The Washington Post reported Sunday that Secretary Alphonso Jackson came under fire in recent months for repeatedly dismissed the developing downturn as a short-turn correction in the market and continuing to push legislation that would make it easier for lenders to make risky mortgage loans.

Title Insurers Face Criticism Over Pricing
The Boston Globe | Apr 13 2008
The price of title insurance, a mandatory surcharge on every Massachusetts mortgage loan, more than doubled over the last decade. The average borrower last year paid about $1,500 at closing.A chorus of critics, including state regulators and members of Congress, say the title insurance industry overcharges its customers. The industry says it offers a valuable service at a fair price, and it has opposed reforms with considerable success. But there is still an easy way to cut the cost of insurance in half.

State Senator Targets Fraud in Real Estate Appraisals
The Journal Record April 11, 2008
The numbers in Enid just don’t add up right, said state Sen. Patrick Anderson, R-Enid – not if real estate appraisers are placing a fair valuation on homes in the community. The Oklahoma Association of Realtors reported that home values in Enid increased more than 3 percent in 2007, while home values statewide increased by more than 4 percent, indicating that the state has been largely shielded from the national mortgage crisis that is driving down home values in other states.

Senate clears housing relief bill
The Christian Science Monitor | Apr 11 2008
After weeks of gridlock – and a presidential veto threat – the Senate passed a bipartisan housing package Thursday that Democratic leaders say President Bush will sign. The $15 billion Senate package includes tax breaks for home builders and homeowners, $100 million to boost mortgage counseling for families, and $4 billion in block grants for communities to purchase and rehabilitate foreclosed properties. It's one of several measures now on a fast track on Capitol Hill to show voters that Congress is capable of responding to a deepening housing crisis now affecting financial markets across the world.

IMF Puts Subprime Loss Near $1 Trillion
St Louis Today | Apr 10 2008
The International Monetary Fund estimated that the subprime mortgage crisis could suck almost $1 trillion from the world economy, a loss that is only just starting to ripple across America and could worsen as it moves deeper into the financial markets. Major financial services firms have reported losses of $193 billion. The IMF added up the batches of bad mortgages, suspect securities and other commercial loans to predict total losses of $945 billion.

Ginnie Mae And FHA Come Out To Play
Forbes | Apr 10 2008
Dowdy old Ginnie Mae and the staid Federal Housing Association have stepped up to the plate now that the subprime mortgage industry has struck out. With quietly expanded authority to support loans for borrowers far up the economic scale from their traditional low- and moderate-income mandate, the U.S. government-backed agencies are, at least for now, counteracting the downward pressure on American home prices.

Judge OKs Probe of Countrywide's Bankruptcy Tactics
FindLaw | Apr 10 2008
A Justice Department official can pursue her investigation into whether mortgage lender Countrywide Home Loans has serially cheated bankrupt borrowers in their bankruptcy cases, a Pennsylvania federal judge has ruled. Judge Thomas P. Agresti of the U.S. Bankruptcy Court for the Western District of Pennsylvania said U.S. trustee Kelly Beaudin Stapleton has the power to subpoena documents and question Countrywide officials under oath about questionable actions the lender allegedly took in a slew of borrower-bankruptcy cases. U.S. trustees are Justice Department officials charged with enforcing bankruptcy laws.

Merger Talks End At Home Loan Banks
The Chicago Tribune | Apr 08 2008
The Federal Home Loan Banks of Chicago and Dallas ended merger talks, failing to reach an agreement after eight months of negotiations. Chicago Chief Executive Officer Mike Thomas is leaving the bank, which is losing money because of derivatives trades, and a search committee was charged with finding a successor in the next six weeks. "This deal had been clearly in trouble for some time," said Bert Ely of Ely & Co., a bank consulting firm in Alexandria, Va..

Citigroup, Wells Fargo May Fuel Recession by Curtailing Lending
Bloomberg | Apr 08 2008
Bank holding companies including Citigroup Inc., Bank of America Corp. and Wells Fargo & Co. have the thinnest safety cushion against losses in seven years. The margin may erode further in coming weeks. Credit ratings on $704 billion of bonds have been cut this year following the collapse of the U.S. housing market. Sheila Bair, chairman of the Federal Deposit Insurance Corp., said last week that the downgrades may compromise bank capital ratios enough that some of the largest institutions will no longer be considered well capitalized.

Nutter: Federal Aid Needed During Housing Crisis
CBS News | Apr 8 2008
Philadelphia Mayor Michael Nutter says his city is facing a deluge of requests for homeowner assistance during the subprime mortgage crisis. Nutter testified at a Senate hearing that his city needs more federal housing aid.Nutter says cities could even see lower property taxes from reduced assessments as home prices continue to fall.

Washington Mutual to Exit Wholesale Lending
The Housing Wire | Apr 08 2008
Housing Wire has learned that Washington Mutual (WM: 13.15, 0.00%) allegedly informed industry participants of its decision to exit wholesale mortgage origination on Monday evening, according to numerous sources. HW received a copy of an email allegedly sent to some brokers informing them of the move. “[C]onsistent with the company’s retail focused strategy, WaMu has made the very difficult decision to exit the Wholesale lending business,” the email said.

Ohio, Mortgage Co's Ink Foreclosure Prevention Deals
Reuters | Apr 7 2008
Nine mortgage companies have signed nonbinding agreements with Ohio to take steps to stem an avalanche of housing foreclosures in that state, the governor and other officials announced on Monday. "This is the first in the nation where a state has achieved signed agreements between the state and loan servicers. That's why I say this is a historic day in Ohio," Gov. Ted Strickland said at a signing ceremony for the compacts.

Fed's Rosengren Calls Delay in Housing Recovery a `Surprise'
Bloomberg | Apr 07 2008
Boston Federal Reserve Bank President Eric Rosengren said the delay in a rebound of U.S. home sales continues to ``surprise.' ``People have been expecting a recovery in housing much sooner than it has occurred and that's continued to surprise on the downside,'' Rosengren said in a telephone interview with Bloomberg News.

HUD Proposes a New Good Faith Estimate
Naples Daily News | Apr 07 2008
Getting a mortgage can be confusing and frustrating. To make it less so, the federal housing department has proposed an overhaul of the mortgage process, from application to closing. The proposed regulatory changes are designed to do a number of things: make it easier to compare mortgage offers while shopping, force lenders to estimate closing costs more accurately, and ensure that borrowers know the terms of their loans.

Investors, Not Fed, to Blame for Crisis-greenspan
Reuters | Apr 07 2008
Former Federal Reserve Chairman Alan Greenspan has defended himself from charges that easy U.S. monetary policy created the current credit crisis by inflating a housing bubble, and instead blamed professional investors. In an article in Monday's Financial Times newspaper, Greenspan wrote that the housing bubble which inflated between 2001 and 2006 had not been unique to the United States. "The U.S. bubble was close to median world experience and the evidence that monetary policy added to the bubble is statistically very fragile," Greenspan wrote.

Housing Crisis Hits Its Own
Washington Post | Apl 6 2008 (Registration Required)
A year ago, the Mortgage Bankers Association was thrilled to sign a contract to buy a fancy new headquarters building in downtown Washington. Interest rates were low, the group's revenues were steady and the prospects for quickly renting out part of the structure were strong. But since then, the association has fallen on tough times as many of the subprime mortgages dispensed by some of its members proved dicey. Borrowers discovered the loans were more costly than they had anticipated. Foreclosures soared, and cheap, inexpensive credit dried up, slowing the economy.

Bills Seek to Ease Crisis in Housing
The Baltimore Sun | Apr 04 2008
Gov. Martin O'Malley held his first bill signing of the year yesterday to enact a number of emergency bills designed to address the foreclosure crisis gripping the state. The Democratic governor approved three bills to lengthen the minimum length of foreclosure proceedings from 15 days to more than four months, to enact tougher criminal sanctions against mortgage fraud and to crack down on foreclosure-rescue scams in which troubled borrowers are duped into losing title to their homes.

Difficult Housing Market Hammers Ann Arbor-area Title Companies
Michigan Live | Apr 4 2008
Metropolitan Title Co. shuttered its Ann Arbor office in late March, evidence that the sluggish housing market is taking its toll on title insurance underwriters. Metropolitan Title, which maintains offices in Howell, Brighton and many other Michigan communities, isn't the only title insurance office that's hurting. Others report budget cuts, including staff reductions, but say they plan to weather the downturn.

in Today's Market, Mortgage Doesn't Come Easy
Macedonia News | Apr 04 2008
With falling housing prices, relatively low interest rates and an abundant inventory of properties to choose from, you'd think buying a home these days would be a breeze. That's until you start shopping for a mortgage. Stung by the subprime mortgage crisis, lenders have tightened their requirements considerably, giving even the most creditworthy borrowers a hard time when it comes to qualifying for a new mortgage or refinancing an existing one.

Dreary appraisal by Fed chairman
Philadelphia Inquirer | Apr 3 2008
For the first time, Federal Reserve Chairman Ben S. Bernanke acknowledged that the United States could be propelled into recession by the housing, credit and financial crises. With home foreclosures swelling and job losses rising, Bernanke offered Congress an unflinching assessment yesterday of potential damage to the economy. "A recession is possible," he said. "Our estimates are that we're slightly growing at the moment, but we think that there's a chance that for the first half as a whole, there might be a slight contraction."

As Downturn Rages On, Lenders Consider eMortgages
National Notary | Apr 3 2008
Funny thing about the mortgage meltdown; despite it, the industry is finally embracing the promise of electronic mortgages, a technology movement that began during the boom but never really fully took off. Until now.In the worst origination market in memory, the technology that was pushed as the future of mortgages a few years back appears as if it’s finally being adopted by some of the industry’s meaningful players.Seattle-based DocuSign said Wednesday that it was selected as an approved electronic signature vendor for Wells Fargo, and will provide its service to major correspondent lenders working with the bank. DocuSign provides a on-demand platform for electronic signatures of key disclosure documents, including truth-in-lending notifications and 1003 applcations.

Bipartisan Effort Aims to Ease Housing Crisis
Las Vegas Review Journal | Apr 02 2008
Under pressure from voters to address the nation's housing crisis, Senate Republicans agreed Tuesday to work with Democrats on a compromise plan to stimulate sagging home sales and help distressed homeowners avoid foreclosure.The agreement calls for Chairman Christopher Dodd, D-Conn., and the committee's ranking Republican, Sen. Richard Shelby of Alabama, to lay out a bipartisan substitute today for a Democratic housing bill that is opposed by the Bush administration and was blocked in February by Senate Republicans.Although the two sides had not agreed on the specifics of a compromise Tuesday, both offered proposals that would strengthen truth-in-lending laws for the mortgage industry, provide counseling to homeowners facing foreclosure and help some borrowers refinance their homes.

Fannie Mae Takes Another Step to Ease Capital Need
Reuters | Apr 1 2008
Fannie Mae, the largest provider of funding for U.S. residential mortgages, has extended forbearances for troubled homeowners in a move the company expects to ease stress on its capital. Giving homeowners greater leeway will help Fannie Mae limit the costly process of purchasing bad loans out of the $2.5 trillion in mortgage-backed securities it guarantees. Under standard accounting rules, buying mortgages out of MBS trusts forces the company to revalue the loans at market levels, which last year boosted fair value losses sevenfold to $1.4 billion.

Bernanke Says Recession Possible, Defends Bear Bailout
Forbes | Apr 02 2008
The U.S. economy will not grow much in the first half of 2008, and could even contract, Federal Reserve Chairman Ben Bernanke told the Joint Economic Committee of Congress April 2. It was about as close as he has gotten to saying the U.S. economy was flirting with recession without using the word. He said the outlook had weakened from the Fed's projections in January. By the second half of 2008, he expected the economy to strengthen and said his long-term outlook on the economy remained positive. Bernanke did not announce plans to further lower interest rates.

Questions Remain Over New Aid Plans
The Mercury News | Apr 01 2008
As Treasury Secretary Henry Paulson proposed overhauling the regulatory framework for the financial system, Democrats in Congress on Monday said it was far more urgent to try and quickly stabilize the housing market. But even as Democratic lawmakers pledged to move swiftly on a plan to have the government guarantee $400 billion in troubled mortgages, industry experts said that help might come too late for many strapped borrowers.

Federal Insurance Regulation Proposed Again
MarketWatch | Apr 1 2008
The idea of regulating the insurance industry on a federal rather than state level has emerged again, this time as part of the U.S. Treasury's response to the financial crisis. However, some say the insurance industry should be left out of the proposals because most of the industry hasn't been hit that hard by the credit crisis.

On Paper, Wall Street Gets Its Way
NYTimes.com/Yahoo | Apr 1 2008
More than a year ago, when the markets were flying high, a chorus of alarm went up on Wall Street. Talk spread that the United States risked losing its edge in the financial world. But the threat that many executives saw was not the credit crisis then looming — it was the threat of excessive litigation and overregulation. Wall Street urged Washington to lighten up.

Some U.S. Homes Now Worth Less Than Their Copper Pipes
Insurance News | Apr 1 2008
Shards of broken glass outside the basement window of 31 Vine Street (Brockton, Mass.) hint at the destruction inside the three-story home. Thieves smashed the window to break in and then gutted the property for its copper pipes -- a crime that has spread across the United States as the economy slows and foreclosed homes stand empty and vulnerable.

Officials File Civil Lawsuit against 3 Former Florida Insurance Companies
Insurance Journal | Apr 1 2008
The Florida Department of Financial Services filed a civil lawsuit against the officers, directors and affiliates of three former Florida insurance companies, according to Chief Financial Officer Alex Sink. Lawyers for DFS, the court-appointed Receiver of Atlantic Preferred Insurance Co., Florida Preferred Property Insurance Co. and Southern Family Insurance Co. (Poe Companies), have now determined the state has the right to recover additional money.

HUD Secretary Jackson Resigns Amid Federal Probe
Bloomberg | Mar 31 2008
U.S. Housing and Urban Development Secretary Alphonso Jackson quit following calls by lawmakers for him to step down amid a federal criminal probe into contracts the agency awarded.

As Owners Default, Lenders Move in
Chicago Tribune | Mar 31 2008
Chicago-based Harris Bank's REOs grew to $11.5 million at the end of 2007, up from $4.9 million at the end of 2006, according to documents filed with the Federal Deposit Insurance Corp. That includes commercial and residential properties.

U.S. Treasury Pitches Regulatory Overhaul
Reuters | Mar 31 2008
reasury Secretary Henry Paulson revealed sweeping plans on Monday for streamlining a hodgepodge of regulations that are blamed for allowing the U.S. mortgage crisis to balloon into a full-blown economic threat. The proposals, in the form of a 218-page "blueprint" that was started before markets unraveled last August, offer no quick fix for the credit contraction that threatens to tip the U.S. economy into recession..

Arming against foreclosure: Should bankruptcy laws be tweaked to help homeowners avoid foreclosure?
MarketWatch | Mar 31 2008
For many people, filing for bankruptcy is seen as a scary, worst-case scenario, but consumer advocates say this last resort could be a real help for beleaguered homeowners. There is no shortage of proposals in Congress to address the housing crisis: the Depression-era Federal Housing Administration is up for a makeover, and there are other plans to ease the stress of pricey mortgages. Under veto threat is a proposal that consumer advocates see as key to helping more people stay in their homes: allowing bankruptcy courts to modify troubled mortgages on primary residences.

Bush Seeks Financial Regulation Overhaul
The Acccounting Pro | Mar 31 2006
The Bush administration is proposing a sweeping overhaul of the way the government regulates the nation's financial services industry from banks and securities firms to mortgage brokers and insurance companies. The Fed would be given broad authority to oversee financial market stability. That would include new powers to examine the books of any institution deemed to represent a potential threat to the proper functioning of the overall financial system.

Treasury Reforms Little Help For Current Crisis
Miami Herald | Mar 31 2008
The U.S. Treasury secretary's reforms for financial markets increase regulation but do little to relieve the current crisis.

Fidelity National critiques new mortgage rules
MarketWatch | Mar 28 2008
Financial-data processing company Fidelity National Information Services Inc. said new government regulations that prohibit lenders from using in-house appraisals when assessing loan values could substantially harm its business.

FDIC to Boost Staffing in Bank Failures agency Says it Has No New Information About Failures
MarketWatch | Mar 26 2008
Federal banking regulators will hire 140 new employees in an effort to reassure the public they are well-positioned to deal with a possible increase in bank failures over the next year, the Federal Deposit Insurance Corp. said Tuesday.The agency will increase the staff of the Division of Resolution and Receiverships by 60%, most of who would be temporary and based in Dallas.

KPMG Allowed Fraud At New Century, Report Says
Reuters | Mar 27 2008
Auditor KPMG (KPMG.UL) either initiated accounting fraud at New Century Financial Corp (NEWCQ.PK) or stood idly by as the failed subprime mortgage lender committed fraud in 2005 and 2006, an independent report requested by the U.S. Department of Justice shows. Once the second-largest U.S. subprime lender, New Century filed for Chapter 11 bankruptcy protection last April 2, and was one of the first major casualties of the current U.S. housing crisis, which has roiled global financial markets. It had been one of the largest U.S. providers of home loans to people with poor credit.

New Insurance Policy Targets Property Values
The Day (CT) | Mar 27 2008
A new insurance policy being offered in Connecticut and most other states pledges to protect people, for the first time, against one of the top impacts they cite when a neighborhood-changing development or project comes to town: declining property values. Inspired by the U.S. Supreme Court's 2005 Kelo v. New London decision, the policy won't actually apply to those whose property is targeted by the government for eminent domain acquisition. But it will be offered to their neighbors. The new policy is intended for property owners who don't get any government reimbursement even though their property values are affected.

Examiner Faults New Century's Accounting
Associated Press | Mar 27 2008
Bankrupt mortgage lender New Century Financial Corp. used improper accounting practices while making risky loans, creating "a ticking time bomb" that led to the company's rapid downfall, a court examiner said in a report released Wednesday. Michael J. Missal concluded that New Century engaged in at least seven improper accounting practices that led the company to report incorrect financial information to Wall Street for fiscal 2005 and the first nine months of 2006.

US Mortgage Aid Plan Sees Role for Fannie, Freddie
Reuters | Mar 27 2008
Fannie Mae and Freddie Mac would have to meet new goals to invest in troubled loans and erase some mortgage debt for borrowers facing foreclosure under legislation contemplated by a leading Democratic lawmaker. The two biggest sources of U.S. mortgage financing would be required to buy troubled loans that had undergone a reduction in their principal amount and could be forced to hold larger reserves against those loans going bad, according to the summary of a bill being drafted by Senator Christopher Dodd, chairman of the Senate Banking Committee.

Fannie Mae Tightens Loan Restrictions
The Boston Globe | Mar 26 2008
Fannie Mae, the largest provider of money for US home loans, tightened an exception to a policy reinstated last year to limit credit losses, potentially making it harder for consumers to refinance lower-cost loans. Fannie Mae will no longer allow homeowners to refinance loans it either owns or has packaged into bonds at typical loan-to-value ratios in areas with falling home prices if they're going to use proceeds to pay off a second mortgage.

New-Home Sales in U.S. Fall to Lowest in 13 Years
Bloomberg | Mar 26 2008
Sales of new homes in the U.S. fell in February to the lowest level in 13 years as tighter loan restrictions and the prospect of even lower prices kept buyers away. Sales dropped 1.8 percent from the prior month to an annual pace of 590,000, the least since February 1995, the Commerce Department said today in Washington. January purchases were revised higher. The median price decreased 2.7 percent from a year earlier.

Q&A on Fed Plans to Ease Credit Crisis
Associated Press | Mar 26 2008
Think of the Federal Reserve as a sort of uber lender for banks and investment houses. In the past weeks and months, the Fed has created a number of innovative — some unprecedented — lending programs to open up the nation's credit spigots, which were in danger of running dry. The free flow of credit is essential to keeping the country's financial and economic wheels turning.

HUD seeks to change lending disclosures, fees
San Francisco Chronicle | Mar 24 2008
Almost anyone who's bought a house or taken out a mortgage in recent years knows the problems: -- Lenders' good-faith estimates of loan and settlement fees provided at application too often are off the mark. Eleventh-hour surprise charges can add hundreds...

Wall Street CFOs See Opportunities in Crunch
Reuters | Mar 25 2008
Wall Street's biggest firms, battered by the breakdown in mortgage and other debt markets, say there's money to be made among the wreckage.

A Ray of Light for Housing?
The Baltimore Sun | Mar 25 2008
U.S. home sales increased unexpectedly last month for the first time since the middle of last year, a sign that homebuyers are taking advantage of big drops in prices. Figures released yesterday by the National Association of Realtors show the median price of an existing home fell more than 8 percent last month from a year earlier, the largest decline since the trade group began tracking the market in 1968. Sales, on the other hand, rose in February over January, breaking a six-month downward streak.

Mortgage Securities Lure Pensions
Allentown Morning Call | Mar 24 2008
The subprime mortgage crisis has yielded at least one benefit for states: Mortgage-related investments have become so cheap that they are luring some pension funds to buy.

KB Home Sued Over Appraisals
San Francisco Chronicle | Mar 23 2008
In a time when tens of thousands of people are losing their homes to foreclosure, house prices are falling and the mortgage industry is being criticized for its part in the credit crisis, it's not surprising that some disputes end up in court. But until now, I've written about precious few of them. Why? So many of them just don't inspire me enough to put pen to paper.

Qualified Borrowers Face Credit Squeeze
The Boston Globe | Mar 23 2008
Lenders are rejecting more loan applicants with strong credit scores, the latest indication the nation's credit crunch is deepening and further depressing the housing market and the economy. Mortgage companies are growing more cautious and