AP - Wells Fargo & Co. has become the second bank to sign up for a government program to modify second mortgages.

AP - The federal bank bailout watchdog is planning to scrutinize the formula used by mortgage companies to evaluate borrowers for the Obama administration $75 billion mortgage relief program.

Reuters - Fannie Mae, the largest provider of U.S. residential funding, on Wednesday slashed its forecast for residential investment this quarter following a setback in home sales, and warned on its impact on the economic recovery.

BusinessWeek - After the housing bubble nightmare, does it still make sense to invest in real estate?

BusinessWeek - The government keeps promoting programs designed to help existing homeowners refinance their mortgages at a lower rate, as well as get perspective buyers into homes. In other words, Uncle Sam says he's here to help. Phooey, say homeowners and prospective homeowners, who keep complaining that it is ridiculously hard to get a mortgageor refinance one. Can both sides be right? Unfortunately, yes. But if you are willing to do a bit more work than in the past, it is possible to lower your mortgage rate to 5% or arrange to buy your first home. It is clear that there is pent-up demand to do both.

BusinessWeek - Over the last several months, I've written a lot about the current state of residential real estate, and the opportunities made available by the combination of lower housing prices and falling interest rates. As we approach the end of this year's residential real estate buying-and-selling season, this is a good time to start thinking about what might lie ahead.

AP - A former executive of KB Home testified Tuesday against former chairman and Chief Executive Bruce E. Karatz, who is accused of bilking shareholders out of millions of dollars by backdating stock options.

AP - The number of new cases in federal courts related to consumer issues surged in the year ended last Sept. 30 as Americans battered by the recession fought foreclosures and downgraded debt ratings, data released Tuesday show.

The end of the Federal Reserve's program of purchasing $1.25 trillion of mortgage-backed securities at the end of March is a form of tightening monetary policy, the chief of the largest U.S. bond fund manager said on Tuesday.

Construction of new houses in the United States slumped in February on freezing temperatures across the nation, breaking a rally that spurred hopes of a rapid recovery for the battered sector.