The latest bill would allow lenders to reduce their exposure to foreclosures if they agree to cut the outstanding balance of an existing loan, thus allowing homeowners to refinance into a new loan that would be FHA insured. The reductions taken by lenders are substantial and must be based on new appraisals that should reflect current home pricing levels.

The Bush Administration has opposed the legislation even though Frank included two measures near and dear to the president's heart - a revamp of the FHA and greater government control over Fannie Mae and Freddie Mac.

The House late Thursday approved a narrowly focused bill that would provide $15 billion to the states to buy and spruce up foreclosed properties.

The bill is different from one that has been widely discussed that would enable to Federal Housing Administration (FHA) to ensure new mortgages where the...

The Federal Reserve and Federal Trade Commission proposed new rules on Thursday which would require lenders to inform consumers of unfavourable developments or changes to the terms of their loans.

Under the proposed regulations, the lenders would also have the option of divulging a consumer's credit risk rating.

The current pace of jobless claims is relatively low compared to the previous recession, some economists say. However, others note that the rise in continuing claims is consistent with a higher unemployment rate than its current 5.0%, suggesting more trouble in the labour market than the latest figures might indicate.

Surprising to the upside, seasonally adjusted consumer debt rose $15.3 billion in March, according to data released Wednesday from the U.S. Federal Reserve, which also showed that total consumer credit rose to 2.558 trillion.

Economists say the March report for pending home sales confirms what has been known for many months now: the U.S. housing market is still several months away from stabilizing.

Benjamin Reitzes, economist at BMO Capital Markets, said the report essentially gives no new data, just a confirmation of the longer- term trend. He explained that the U.S. housing market will take several more months until it recovers, and that...

Continued tight credit and worries about inflation worked to keep mortgage rates essentially locked into place during the week ended May 1 according to the Primary Mortgage Market Survey conducted by Freddie Mac.

MBA also reported that mortgage originations for commercial and multifamily properties were up 19 percent last year (2007) with lenders closing $507.7 billion in loans.

Increases were seen in originations for...

Fed Governor Randall Kroszner said rising mortgage foreclosures are an "urgent problem" and called on Congress to pass a Fannie Mae and Freddie Mac regulatory bill.

"As the Federal Reserve builds on its consumer protection efforts in order to mitigate foreclosures for current homeowners, we are also concerned about the...

Kansas City Fed President Thomas Hoenig (non-voter) says that inflation is becoming embedded in the economy and that may compel a significant interest rate hike. In a speech in Denver, Colorado, Hoeing that consumers are showing an "inflation psychology to an extent that I have not since the 1970s and early 1980s."

Weekly mortgage applications in the United States rose in the week ending May 2 following two weeks of declines, according to data from the Mortgage Bankers' Association (MBA) on Wednesday, which said applications increased by 15.6%.