Bush Plans to Freeze Subprimes

Have you been praying for relief? Finally, the Bush administration should announce Thursday an arrangement of sorts with the mortgage industry.

The plan is to freeze interest rates for some subprime mortgages for 5 years. The plan includes a provision to fast track some borrowers toward refinanced loans.

The Bush agreement also will allow state and local governments to use more tax-exempt bond programs in order to assist with funding re-financings.

Many have been praying and it appears there is some relief in site. Tomorrow's plan comes amid concerns about rising home-foreclosure rates.

Is Fannie Mae Going Broke?

We've reported on the stance of Fannie Mae before and how the slippery slope of the credit market really is. And to know someone cares out there, about your Fannie Mae mortgage - well, that's downright nice.

Now, if you're an investor in Fannie Mae; you won't like this post.

But if you're like the majority, this comes are great news. Fannie Mae today announced that they are going to raise capital so that they will have more money to remain solvent.

They are also going to cut dividends. That hurts their shareholders, but these are desperate times, no?

Chief Executive Daniel H. Mudd said that selling off stock to raise some $6 billion is a step in the right direction.

Is the end in sight?