In subprime mortgage mess, Congress must act carefully - 2007-03-21
With rising worries over problems in the subprime mortgage market, Congress is expected to examine ways to toughen up on lenders. Lawmakers should proceed cautiously. Subprime loans make up 14 percent of the U.S. mortgage market, and many borrowers with weak or spotty credit assumed huge risks in signing on the dotted line. With home prices going up rapidly, lenders offered increasingly exotic deals, including loans with interest-only payments or no money down.
Read the full story at Belleville News-Democrat

Fannie Mae severing mortgage-selling deal with troubled lender - 2007-03-21
Fannie Mae will no longer permit New Century Financial Corp. to sell mortgage loans to the U.S. government-sponsored company, alleging the troubled lender has broken the terms of its contracts, New Century declared yesterday. Fannie Mae, formally known as the Federal National Mortgage Association, notified New Century last week that it had allegedly breached the contract, according to documents filed with the Securities and Exchange Commission.
Read the full story at Remote Access