Fannie, Freddie Pressed on Mortgages .

http://online.wsj.com/article/SB10001424052748703963704576005990436624546.html?mod=yahoo_free_middle

This means, Congress is wasting money by checking it out now, when the conflict of interest was obvious before the start.
But they passed it anyway.
Another fine example of Joke exposure.

The ongoing discussions underscore the sometimes awkward relationship between the Obama administration and FHFA, which has overseen Fannie Mae and Freddie Mac since their takeover in September 2008 and is charged with stemming taxpayer losses. An FHFA spokeswoman said participation in the FHA and Treasury loan-modification efforts is under review.

I wouldn't give up my rights either if I was Freddie or Fanny, or the home owner.
Especially not with the mortgage securities fraud situation.
If Justice actually does still serve the rule of law
The banks are going to have to eat most of those loans back if not all, and all of the people involved arrested.

In addition, Fannie Mae and Freddie Mac, along with other mortgage investors, are reluctant to approve principal reductions if banks that own second mortgages on the same properties also don't take losses.

Unlike most loan-modification efforts, the FHA program is open only to borrowers who aren't behind on their payments

.

Oh and look who's involved
Little Timmy
Giving more money to the banks as an incentive, and absoluely jack shit to you.
Home values have fallen more than 15% already, so this is a joke.
Mark to market would be a better deal if they were actually going to give you something, because the market is flooded and your home is worth squat.
There is a 9 year ready supply on the market right now, and that's not even counting those held up or pending foreclosures.

The Treasury Department initiative to reduce loan balances builds on HAMP, in which

banks reduce monthly payments for distressed borrowers by lowering interest rates and extending loan terms.

Starting in October, banks were able to receive additional subsidies if they first write down loan balances for borrowers owing at least 15% more than their home's current value. Fannie Mae has said it won't participate in the Treasury program. Freddie Mac says it is still reviewing whether to join.

Chase Branches Loses FHA Approval

http://all-about-home.tipsonclicks.com/home-and-garden/chase-branches-loses-fhaapproval

I'm pretty sure this is the equivelent of "the shit hitting the fan" for JP Morgan Chase.
Don't think I didn't just hear you laughing because I did.

JPMorgan Chase Bank, N.A., lost its origination approval agreement with the Federal Housing Administration for an office that operates within the jurisdiction of an Atlanta field office, according to the U.S. Department of Housing and Urban Development.

In addition, a Chase office was terminated by HUD’s New Orleans office.

A Chase spokesman declined to comment on the terminations.

FHA Digging Out After Loans Sour

http://online.wsj.com/article/SB125729000674726513.html#articleTabs%3Dcomments

Here comes another bailout. Do you really think they don't know what they're doing?

Last fall, as the financial system was teetering and the biggest banks were tightening credit, Karen DeForte couldn't find a lender to refinance the two mortgages on her New York home, until she received a phone call from Lend America.

Most banks rejected Ms. DeForte because her debt level was too high and her credit score too low. But Lend America put Ms. DeForte into a $402,000 loan backed by the Federal Housing Administration, a New Deal-era agency that Washington and Wall Street were relying upon to pick up the slack in the mortgage market as private lenders pulled back. Ms. DeForte fell behind on payments six months later and is seeking a loan modification. Taking the loan was "a stupid mistake," the 46-year-old office manager said.

In late 2007 and early 2008, thousands of borrowers with marginal credit were allowed to refinance via the government-insured FHA program, just as home-price declines began to accelerate. Policy makers were urging the agency to fill the gap left by the exit of private lenders, refinancing subprime borrowers out of loans that threatened to reset to unaffordable payments.

Although the FHA has tightened credit standards, many of the 2007 and early 2008 mortgages are going bad. The agency expects defaults on 24% of all loans insured in 2007, and 20% of those backed in 2008. "The orders from Congress and us were clear: We want to save as many families as we can, recognizing that a lot of loans people were looking to refinance out of should never have been made in the first place," said Brian Montgomery, who served as the agency's commissioner for four years ending in July.

FHA Shortfall Seen at $54 Billion May Lead to Bailout

http://www.bloomberg.com/apps/news?pid=20601087&sid=aOmu318hOZr4


The Federal Housing Administration, which insures mortgages with low down payments, may require a U.S. bailout because of $54 billion more in losses than it can withstand, a former Fannie Mae executive said.

“It appears destined for a taxpayer bailout in the next 24 to 36 months,” consultant Edward Pinto said in testimony prepared for a House committee hearing in Washington today. Pinto was the chief credit officer from 1987 to 1989 for Fannie Mae, the mortgage-finance company that is now government-run.