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General Motors Corp. (GM) had another bad day on Tuesday as its partially owned subsidiary GMAC Financial Services announced a major loss for the third quarter. GMAC is co-owned by GM and Cerberus Capital Management, a private-equity firm. While its original role was to finance the purchase of General Motors autos, over the years it has evolved into a major mortgage lender and insurance company. The company's losses have come from both its subprime lending and vehicle leasing operations and GMAC...

Lots of news on the mortgage front in the last few days.

...A second part of the proposed legislation is designed to "seal the cracks in our regulatory system to prevent future widespread lending abuses." The bill seeks to regulate mortgage brokers and lenders under the Truth in Lending Act. Among the proposals is...

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Freddie Mac and Fannie Mae may have recently come to appreciate the old saw "be careful what you wish for."

A year or so ago Federal Reserve Chairman Alan Greenspan was giving the two government sponsored enterprises (GSEs) a lot of grief about their loan portfolios, particularly in light of the trouble that both had gotten into with accounting irregularities and the regulatory requirements to increase their capital reserves. It is likely that the executives of both corporations were counting the days until Greenspan's scheduled retirement.

So, retire he did, only to be replaced by Ben Bernanke...

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