The Mortgage Meltdown: Can Anyone Stop It?

Fifteen months into the worst credit crisis in decades, major banks and the federal government are coming together on a solution for struggling mortgage borrowers.

The goal is to hasten the process for renegotiating hundreds of thousands of delinquent loans, either those held by major banks or held by Fannie Mae and Freddie Mac, the mortgage finance giants that faltered and were taken over by the government this summer.

Renegotiating loans for struggling homeowners has taken on more urgency as jobless claims rise and the economy declines. Housing prices continue to fall, leaving many with mortgages greater than the value of their homes, and banks continue to suffer major credit losses as a result.

The Federal Housing Finance Agency, the regulator for Fannie and Freddie, has announced its own sweeping plan.

The agency is targeting delinquent borrowers who haven't filed for bankruptcy. The goal is to modify mortgages for borrowers who can support payments but make sure those payments don't make up more than 38% of their income.

James Lockhart, head of the agency, urged U.S. mortgage servicing firms–companies that process payments of loans rather than owning them outright–to adopt the plan as a national standard.

For the government, halting the steady slide in housing prices is the holy grail of all of its big plans to prop up the ailing banking system. It is throwing trillions of dollars at shoring-up banks caught in the housing mess, but nothing has, so far, put a floor under the plunging housing prices at the heart of the credit crisis. Going at the problem from the perspective of a borrower is yet another way to achieve that end.

We'd love to know your opinion. Do you think this latest plan will do anything to halt this mortgage meltdown? Use the "comment" link below to tell us what you think.

The Bailout Bill: Did It Do Anything?

One thing it did was lower your taxes. Money Editor Stacy Johnson explains… (video runs 1:15)…

What do you think? Other than the tax breaks mentioned in the video, is the bailout bill a good thing, or a bad thing? Give us your comments by clicking the "comment" link below. your email address will NOT be published at this site!

Pending Home Sales Fall in September

The Pending Home Sales Index for the month of September fell 4.6% to 89.2 after climbing 7.4% in August, according to the National Association of Realtors (NAR). Still, the index was up 1.6% from a year ago.

The NAR report said the dip in sales was tempered by a sharp decline in prices, which fell 9% year-over-year in September. Also propping up sales to some extent were affordable mortgage interest rates, which dipped below 6% for a 30-year fixed-rate loan during the month, according to Freddie Mac.

One bright spot: NAR reports that the drop in home prices, combined with low interest rates, have brought home buying affordability to 2003 levels.

We're interested in knowing what you think about the current real estate trends, and whether current trends will be affected at all by the recent elections, and if so, how. Use the comment link below to tell us what you think.

Safer Online Shopping

Online shopping has become a staple for many Americans, and that's especially true when the holidays roll around. But with that extra convenience can come extra risk. Money reporter Stacy Johnson has some tips to keep your online shopping safe. The video runs 1:31…

What about you? Where do you plan to do most of your holiday shopping? In stores, or online? We'd love to hear your plans. Just click the comment link below and sound off. Your privacy is 100% guaranteed, as we NEVER publish email addresses on this site.

Dollar Store Deals

A dollar certainly doesn't buy what it used to. But it can still fetch you a bargain or two, if you look in the right place. Money Editor Stacy Johnson explains… (video runs 1:33)…

Know of any other ways to save a dollar during these tough times? Share them with our readers by using the "comment" link below. We'd love to hear from you.