•  President-elect Barack Obama said his economic recovery package will include a program to stem foreclosures along with new regulations to prevent the speculation and over-leveraging that fueled the housing boom.

•  The agency that oversees Fannie Mae and Freddie Mac, The Federal Housing Finance Agency (FHFA) will release "standards" for those servicing companies engaging in modifications of loans owned by Fannie or Freddie.

•  The Comptroller of the Currency reports that of the loans that do get modified a "remarkably high" number re-default.

•  The House Oversight Committee will hold hearings on the collapse of Fannie Mae and sibling Freddie Mac.  Rayburn House Office Building, Room 2154,   Washington, D.C.

Rates on 30 year fixed rate mortgages are poised to drop below 5%.

A number of factors have contributed to the recent plummet in rates:  the slowing economy and the desire for investors to protect their cash assets by stampeding into and buying US treasury notes and bonds stand as examples on their own.  But the biggest factor was perhaps the Treasury and now the Fed buying mortgage backed securities (MBS).

Today the Fed brought out the elephant gun and said it will use "all available tools" to jump-start the economy.

"As previously announced, over the next few quarters the Federal Reserve will purchase large quantities of agency debt and mortgage-backed securities to provide support to the mortgage and housing markets, and it stands ready to expand its purchases of agency debt and mortgage-backed securities as conditions warrant."

"The Federal Reserve will continue to consider ways of using its balance sheet to further support credit markets and economic activity."

•  Mortgage banker Fortes Financial of Dallas, which had hoped to grow its business by purchasing lending divisions jettisoned by struggling banks, has closed its doors reports MortgageWire. 

•  Loan brokers accounted for just 18.9% of all mortgages funded in the third quarter.

•  The FDIC estimates that 869,000 single family mortgages fell 60 day plus late during the third quarter.

•  Fannie Mae and Freddie Mac are considering waiving appraisals as a method to facilitate refinancings of those "underwater".  We'll keep you apprised of this developing situation.

•  Fannie and Freddie could have over $1 billion in buy backs forced onto lenders because or misrepresentation or fraud.

•  Mortgage Banker's Association sees a 203% increase in refi applications after the privately owned Federal Reserve's actions to buy mortgage backed securities (MBS).  Are you taking advantage of these lower rates?

•  The FHA's auditor expects the surge in FHA originations to continue.  When a borrower can do a 95% cash out refinance up to $729,750 of course the originations will continue.

•  FDIC's Sheila Bair has been discussing a loan guarantee program to facilitate loan modifications with the Obama transition team.  Reportedly, she is encouraged by president-elect Obama's commitment to foreclosure prevention.

•  If you want foreclosure prevention tips go to Times Square in New York City and rad them on the giant billboard.  This is not a joke.

•  More and more people are pleading guilty after getting busted for mortgage fraud: a real estate agent in Tuscon and a title agent in Delray Beach, Florida.

•  Investors have sued Countrywide Financial to prevent them from passing off losses from loan modifications to the buyers of mortgage backed securities.  Now that the privately owned Federal Reserve is buying the same, do you think the case will get some traction?