Fed stays aggressive, cuts rates a half-point

Move follows last week’s cut in attempt to stabilize economy, markets

Associated Press

WASHINGTON - The Federal Reserve on Wednesday cut a key interest rate for the second time in just over a week, reducing the federal funds rate by a half point. It signaled that further rate cuts were possible.

Read more at MSNBC.

Federal Reserve Proposal Addresses Appraisal Coercion

Appraisal Institute

The Federal Reserve Board recently proposed prohibiting creditors and mortgage brokers from coercing real estate appraisers to misstate a home's value on all mortgages. The announcement was part of the Fed’s December 18 proposed changes to Regulation Z (Truth in Lending), which would restrict certain practices and require certain mortgage disclosures to be provided earlier in the transaction.

Read more at the AppraisalInstitute.org

Fed Rate Cut Halts Market Free Fall, But Recession Fears Are Mounting

Wall Street Journal

Ben Bernanke blinked.

The Federal Reserve chairman, who normally tries to avoid reacting directly to financial markets, saw global markets in free fall, and yesterday abruptly orchestrated the single deepest cut in the Fed's main interest-rate target in more than two decades.

The move shored up confidence, at least for the moment. U.S. and many global markets quickly rebounded from huge losses in response to the three-quarter percentage-point cut in the target for the federal-funds rate, to 3.5%.

But in a sign that risks to the U.S. and global economy remain strong, the Fed hinted another rate cut next week is likely. The central bank's moves may be too late to stop the U.S. from entering recession, as many economists now forecast, but it may make one milder and shorter.

Read full article at the Wall Street Journal.

Mortgage Fraud News, January 2008

Here are this month's links to mortgage fraud news articles:

• Mortgage Fraud Blog
  California Appraiser Sues WaMu


• Mortgage Fraud Blog
  Michigan AG Announces Second Foreclosure Forum


• Mortgage Fraud Blog
  Loan Originator Pleads Guilty To Mortgage Fraud Scheme


• Mortgage Fraud Blog
  Lender Seeks Declaratory Judgment as to Scope of Coverage

Bank of America to Buy Countrywide

Bank of America Corp on Friday said it agreed to acquire struggling mortgage lender Countrywide Financial Corp for about $4 billion in stock, a move that could help avert one of the biggest collapses in the U.S. housing crisis.

• Reuters
  Instant View: Bank of America to buy Countrywide

Industry News - January 2008

Here are this month's links to appraisal news articles:

• Business Week
  Dirty Deeds: The mortgage crisis has blighted the landscape with boarded-up houses.


• Mortgage Fraud Blog
  Ohio Appraiser and Sister Indicted