October busiest month for Fannie Mae since May

Government-chartered mortgage repurchaser Fannie Mae expanded its loan-purchase, guarantee and securitization business at an annual rate of 20 percent in October -- the fastest rate of growth since May.

The rapid expansion in Fannie Mae's "book of business" -- the sum of loans it holds as investments, guarantees or securitizes -- was driven by 16.8 percent annual growth in loans guaranteed or securitized, to $2.34 trillion.  more...

Lenders weigh plan to freeze rates on ARM loans

Lenders and loan servicers who have signed onto the Bush administration's HOPE NOW initiative to improve communications with troubled borrowers may be prepared to take a more radical step -- freezing the interest rates on some subprime loans scheduled to reset.

When launched in October, the HOPE NOW initiative was a partnership between the Treasury Department, U.S. Department of Housing and Urban Development, and 11 loan servicers that handle 60 percent of U.S.  more...

Index report: Home values drop steeply in Sacramento

The price per square foot of homes in Sacramento, California's capital city, dropped 14.8 percent during a 28-day period ended Sept. 30 compared to the same period last year -- it was the most dramatic decline among 25 U.S.  more...

Bernanke leaves door open for Dec. 11 rate cut

Federal Reserve Chairman Ben Bernanke said Thursday that the Fed must remain "exceptionally alert and flexible" in its monetary policy decisions, and warned that renewed turbulence in financial markets "partially reversed" improvements in September and October.  more...

Subprime investments prompt run on Florida fund

Florida officials voted to halt withdrawals from a $27 billion local government fund Thursday to stop a run that's drained nearly half of the fund's assets.

The run has been fueled by fears that the Local Government Investment Pool -- used as a sort of interest-bearing savings account by local governments and schools -- has too much exposure to risky securities backed by subprime mortgages and corporate debt.  more...

Overnight real estate rates in 4-day slide

Long-term mortgage interest rates fell for the fourth night Thursday, and the benchmark 10-year Treasury bond yield dropped to 3.94 percent.

The 30-year fixed-rate average sank to 5.73 percent, and the 15-year fixed rate dipped to 5.31 percent. The 1-year adjustable slipped to 5.49 percent.

The 30-year Treasury bond yield was down at 4.34 percent.

Rates and bonds are current as of 7:15 p.m. Eastern Standard Time.

Mortgage rate figures are according to Bankrate.com, which publishes nightly averages based on its survey of 4,000 banks in 50 states.  more...

Mortgage fraud spree nets 26-year prison sentence

Matthew Bevan Cox, who eluded authorities for nearly three years before pleading guilty in April to mortgage fraud charges in three states, has been sentenced to 26 years in prison and ordered to pay $5.9 million in restitution to more than 100 victims.  more...