Fed decides to help homeowners

With many mortgages about to reset soon with higher rates, the federal reserve is coming to the rescue. Homeowners who are able to afford there current mortgage payment and rates will soon have there interest rate frozen for 5 years. If you can't afford your current payment plan with your bank or lender you may be out of luck. Whether this will help the current sub-prime banking mess and homeowner defaults is too early to tell.

Mortgage Problems? Welcome to the club

Citigroup and other major lenders are facing pressure to help struggling homeowners with more favorable terms on their existing loans or face major foreclosures. With 600 billion in loans ready to reset next year, will we be able to fix this mess created by sub prime mortgages? Only time will tell, but the clock is ticking!

Morgage Rates Now Lower

With Ben Bernake and the federal reserve unanimously lowering interest rates several weeks ago, it seems that the mess created by the sub-prime morgage fiasco and the subsiquent credit crunch has come to an end. Rates for 15 and 30 year morgage loans have gotten lower and according to Bankrate, the rates for a 30 year fixed jumbo mortgage loan is now 6.78%, a whole lot better than the 8 percent rates being quoted a month ago from the likes of Wells Fargo.

Countrywide CFC deposits rebounding

WSJ reports the co's savings bank is attracting deposits at a pace of more than $50 mln a day, David Sambol, president and COO, said in an interview. The co is counting on deposit growth to provide funding for its mortgage lending in the wake of turmoil in the credit mkts. In August, Countrywide suffered net outflows of deposits for more than a week as depositors, fretting about the company's financial health, lined up at branches to ask about deposit insurance and in some cases yank out their money.