What is being proposed by the US Government?
It is seeking approval from Congress for $700 billion to buy home and commercial mortgages that are now worth less than their face value from American banks and other financial institutions, as well as foreign banks with US operations, over the next two years.
Why is this necessary?
The dramatic [...]

Fewer applicants sought mortgages last week, with the volume of applications down a seasonally adjusted 1.5% compared with the last week of July, the Mortgage Bankers Association reported on Wednesday.

Fannie Mae, the largest U.S. mortgage-finance company, reported a $2.3 billion loss for its second quarter, as credit costs swelled to $5.3 billion stemming from higher loan loss provisions and charge-offs amid challenging conditions in the housing and mortgage markets. The company also trimmed its quarterly dividend. Shares of the company were trading down more [...]

Tamalpais Bank (NASDAQ:TAMB) today announced a strategic relationship with Petaluma-based First California Mortgage Company to immediately begin offering residential home purchase and refinance loans of up to $10 million.
Tamalpais Bank CEO/chairman/president Mark Garwood said, “We are heeding the call of Fed chief Ben Bernanke. He has suggested that community banks play a more prominent role [...]