'F@$%! I Wish I'd Refinanced My House'

49 states sign on to deal with nation's top 5 banks

(NEWSER) - America's five biggest banks have hammered out a $26 billion settlement for their role in causing the mortgage meltdown, reports the Wall Street Journal . The deal—the biggest of its kind since 1998's $206 billion settlement with the tobacco industry—was hammered out during almost a year of negotiations between the banks and all 50 state attorneys general, reports the New York Times . The money will go to some 2 million homeowners affected by the crisis. More»

Has financial stake in limiting refinancing for struggling people

(NEWSER) - Freddie Mac was designed to help homeowners—but in 2010 and 2011 it wagered billions against them. The company invested in security packages that meant more cash for Freddie when homeowners couldn't refinance their mortgages. But Freddie itself regulates refinancing—and in fact has been increasingly denying refinances to struggling homeowners—prompting questions over a conflict of interest, reports NPR and ProPublica . "We were actually shocked they did this," says an exec at a firm that trades in mortgage-backed securities. "It seemed so out of line with their mission, out of line with what Congress wanted them to do." More»

Proposal could save homeowners $85B annually

(NEWSER) - Help could be on the way for struggling homeowners with government-backed mortgages: The Obama administration is considering a proposal that would allow such homeowners to refinance their mortgages at today's interest rates, which hover around a low 4%. Many homeowners can’t currently refinance because they owe more than their house’s current value or have poor credit. Such a move could impact millions of homeowners and save them an estimated $85 billion a year, thus stimulating the economy by freeing up that money to be spent in other areas, the New York Times notes. More»

Obama administration wants to get out of the mortgage market

(NEWSER) - The Obama administration will propose dissolving Fannie Mae and Freddie Mac and reducing the federal government’s role in the mortgage market, sources tell the Wall Street Journal . The White House is set to release three plans for moving forward without the government-owned mortgage giants, which originated nine out of every 10 loans last year. Advancing all three plans might prevent an all-out partisan brawl between conservatives, who blame Fannie and Freddie for the financial crisis, and liberals, who say borrowing costs will skyrocket without government help, according to one former Obama treasury official. More»

Felix Salmon isn't thrilled with Fed chief's op-ed

(NEWSER) - The Fed's controversial plan to buy $600 billion worth of Treasuries to stimulate growth has brought the phrase "quantitative easing" out from the obscurity of financial blogs. Will it work? Two columns today on the subject from Ben Bernanke himself in the Washington Post and Felix Salmon at Reuters :

• Bernanke: The Fed chief offers three examples of how the move will help: It will lower mortgage rates and thus help prospective homebuyers or those who want to refinance; it will encourage business investment by lowering corporate bond rates; and it will raise stock prices, which will in turn boost consumer wealth, confidence, and spending "in a virtuous circle."