Greenspan Has 'No Particular Regrets'

Treasury secretary suggests aid for prime-rate borrowers

(NEWSER) - Treasury Secretary Henry Paulson advised the mortgage industry today to give help to millions of financially stressed homeowners whose mortgages are set to rise. His comments signal that the Bush administration is starting to push lenders to expand relief beyond subprime borrowers to homeowners with other adjustable-rate loans, reports the Wall Street Journal. More»

(NEWSER) - The ongoing housing implosion poses “a significant risk” to the economy, Treasury Secretary Henry Paulson said in a speech at Georgetown University today, in a sobering about-face from earlier attempts to downplay the crisis. “The ongoing housing correction is not ending as quickly as it appeared,” he said. “It will continue to adversely impact our economy, our capital markets, and many homeowners for some time.” More»

Countrywide, WaMu got $35M as they upped risky loans

(NEWSER) - Rick Perry handed mortgage lenders millions to draw them to Texas—right when their risky lending practices surged. The governor gave Countrywide $20 million and Washington Mutual $15 million in what he called an exemplary job-creation move; in effect, that $35 million subsidized dangerous subprime lending, an AP analysis of data and records finds. And when some began to fear the impending mortgage crisis, Perry's rep shrugged off their concerns as “slightly alarmist.” More»

But regulatory agency disagrees, and nothing has yet been filed

(NEWSER) - The SEC is making moves toward charging current and former Fannie Mae and Freddie Mac executives, sources tell the Washington Post , but the Federal Housing Finance Agency disagrees with the move. The SEC has sent notices to at least four senior executives over the past eight weeks warning them they may face civil charges, although nothing has been formally filed and the SEC could still change its mind. The executives would be charged with violations related to the housing market collapse, including a failure to provide investors with necessary information about the companies' mortgage holdings. More»

Belief that God bestows riches may have duped faithful into dodgy mortgages

(NEWSER) - A fast-growing strain of Pentecostalism may have made its followers victims of the credit crisis by preaching that God's hand was behind dubious mortgages, Time reports. "Prosperity Gospel" preaches that God will "make way" for the poor to gain wealth, making believers easy prey for greedy mortgage brokers, says a scholar writing a book on black televangelism. More»