WASHINGTON – Trying to curb home foreclosures, the Senate voted on Wednesday to make it easier for homeowners with risky credit to switch to a lower-cost mortgage backed by the government. The bill, passed 91-5, also would give banks a break by encouraging reduced fees they must pay for the government to insure deposits.

While both steps put taxpayer money on the line, lawmakers say the legislation is needed to prevent the economy from getting worse.
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Thornburg Mortgage Inc., the “jumbo” home lender racked by the collapse of U.S. mortgage markets, said it plans to file for bankruptcy protection and shut down.

Remaining assets will be sold or liquidated to pay bondholders and creditors, according to a statement today from the Santa Fe, New Mexico-based company.
Continue reading Thornburg Mortgage – Bankrupt!

Chase is adding another 24 mortgage counseling centers within the next four months bringing the number of such centers that provide face-to-face assistance to distressed homeowners in 14 states up to 51. These centers are located in Cleveland, Dallas, Houston, Boca Raton and Ft. Lauderdale in Florida, and Seattle. The addition, according to the head of retail financial services at Chase, Charlie Scharf, responds to the unusually high demand for loan modifications and follows the so far successful engagement of its initial 27 centers in providing a complete document packages looking for permanent payment relief. Borrowers can schedule appointments or walk in six days a week. Since they first opened 11 months ago, Chase centers have provided counseling for over 60,000 borrowers, the bank said. But Should I refinance home

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Five states hit hard by the mortgage crisis will soon share $1.5 billion in federal funds to help the unemployed and the underwater who owe more than their homes are worth.

The Treasury Department on Wednesday approved proposals by Arizona, California, Florida, Michigan and Nevada. The states will use the money primarily to subsidize homeowners’ monthly mortgage payments and to reduce their principal. Some of the funds will also go to paying off second liens or facilitating short sales.

When the stock market broke into the last week, hope was in the air for economic recovery. But a sunny outlook was missing for most of us, wrote New York Times columnist Floyd Norris. Economists, he said, were about the economy: “Having been embarrassed by , there is an understandable hesitation to appear foolishly optimistic again.” Today, the committee of economists who mark the end of recession announced its to mark the end of the downturn. Where does this leave the real-estate market? Are housing analysts also hesitant to express optimism? Most would agree that home prices hit bottom around April or May last year, since then the Case-Shiller index has risen every month through January, writes Robert Shiller in this weekend’s . Cause for optimism? Not for Mr. Shiller. Recent polls show that economic forecasters are largely bullish about the housing market for the next year or two. But one wonders about the basis for such a positive forecast. Momentum may be on the forecasts’ side. But until there is evidence that the fundamental thinking about housing has shifted in an optimistic direction, we cannot trust that momentum to continue.

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