The Modification President A stimulus plan proposed to Congress by President-elect Barack Obama calls for his cabinet to use its existing authority to step up loan modifications. It also proposes that servicers not be held liable for modifications and that bankruptcy judges be empowered to modify loan balances. The Obama-Biden economic stimulus plan was presented to lawmakers yesterday, according to an outline of the plan provided by Canfield & Associates Inc. The upcoming administration called the current environment the most serious economic crisis since the Great Depression. read full story

Obama Nominates HUD Secretary President-elect Barack Obama has named a former commercial mortgage executive as his choice to head the U.S. Department of Housing and Urban Development. It's the second time around at HUD for the nominee.

Merger Activity Strong
As a U.S. congressman attempts to block an acquisition of a struggling bank, several other mergers appear to be progressing smoothly.

CPP Journal
A new watchdog has been confirmed to oversee the $700 billion Troubled Asset Relief Program -- which has seen plenty of action recently.

Treasury Secretary to Hit Ground Running President-elect Obama's choice for U.S. Treasury secretary has already worked under three prior presidents and has the support of the Bush administration. He has been involved in the creation of major bailout programs and is well suited to oversee the massive packages.

DLJ Buys $50 Million in Bogus Loans
In a lawsuit filed earlier this month, DLJ Mortgage Capital Inc. claims it was defrauded on $50 million in loans. The bad loans were not uncovered for several years because the defendants allegedly made payments on the fake loans. The mortgage banker who served as the ringleader is currently in prison for bribing a U.S. congressman.

Lenders Testify Against Cramdowns
Mortgage bankers reiterated their opposition to cramdowns in testimony before Congress. They warned that allowing bankruptcy judges to modify mortgages could lead to tighter standards, higher interest rates and lower loan-to-values -- even on government programs.

Banks Grab TARP Capital
More than 1,000 financial institutions have applied for or received capital investments from the Troubled Asset Relief Program, according to Congressional testimony. Funds from the program will be used to support lending and acquire other banks.

TARP Czar Defends Decision to Divert Funds From Mortgages Despite the Bush administration's decision to divert Troubled Asset Relief Program funds from troubled mortgage assets to investments in banks, the Treasury's man running TARP promises help with loan securitzations.

3 Brokers Elected to Fla Legislature Three mortgage brokers were elected to Florida's legislature. The trio attribute their success to political activity, volunteer work and professional experience.

GSE News
Coverage of government sponsored housing enterprises including Fannie
Mae, Freddie Mac and the Federal Home Loan Banks. Stories about the
Office of Federal Housing Enterprise Oversight, or OFHEO, and FM Policy.

Political Mortgage News
Mortgage people in politics. Political contributions by
mortgage companies. Coverage of political support
by lenders and executives. GSE lobbying and issues.