Last week's announcement by the Federal Housing Finance Agency regarding its economic assessment of a proposed principal reduction program set off another round of debate over the merits of such programs. Whether a policy of forgiving principal can address problems in the housing market appears to be lost in the rhetoric from both sides of the issue. Answers to four key questions on principal reductions can clarify many misconceptions...

MetLife Inc., the insurer seeking an exit from banking to limit U.S. regulation, was penalized $3.2 million by the Federal Reserve for lapses tied to the servicing of loans and handling of foreclosures.

MetLife is among companies scrutinized by U.S. authorities including the Fed and Justice Department for abusive foreclosure practices stemming from the collapse of the housing bubble. Five larger home lenders, including Bank of America Corp., reached a $25 billion deal this year with states and the U.S. to end a probe, while reviews continued for smaller lenders...

MetLife Inc. (MET) (MET), the insurer seeking an exit from banking to limit U.S. regulation, was penalized $3.2 million by the Federal Reserve for lapses tied to the servicing of loans and handling of foreclosures.

MetLife is among companies scrutinized by U.S. authorities including the Fed and Justice Department for abusive foreclosure practices stemming from the collapse of the housing bubble. Five larger home lenders, including Bank of America Corp., reached a $25 billion deal this year with states and the U.S. to end a probe, while reviews continued for smaller lenders...Click to continue

GoldenTree Asset Management LP, the $15.7 billion hedge fund specializing in corporate credit, hired Goldman Sachs Group Inc. (GS) trader Deeb Salem as the firm expands its mortgage-bond team.Click to continue

Redwood Trust Inc. (RWT), the dominant issuer of home-loan securities without government backing since the financial crisis, plans to jump into the market backed by taxpayer-supported Fannie Mae and Freddie Mac.Click to continue

"Positive Housing News Keeps Rolling In,” exclaimed the headline of a July 24, 2012, Wall Street Journal story by Steven Russolillo. The author found much to praise. One gloomy Gus could not help but conclude otherwise. Old Gus holds the house market at bay, one reason being the great unknown of what will happen to house prices when Fannie and Freddie are no more. The GSEs (Government Sponsored Enterprises) are still a massive presence in the home mortgage market. Their full faith is due to the implicit U.S. government guarantee...

Fannie Mae and Freddie Mac are fighting all sort of battles but a big one with Bank of America might be easing up a little.

The issue has been over mortgages sold by BofA that the government sponsored entities say were sold under false pretenses. The GSEs want the bank to buy them back and have been trying to come to an agreement with little progress–until now...

In the wake of the biggest housing bust ever, it's hard to imagine that we would be walking right back into a housing bubble.

But that's just the nature of bubbles: you don't know if you're in one until after the fact.

Robert Shiller, the economist who famously predicted the dotcom and housing bubbles, was on Fox Business News discussing the Case-Shiller home price index, which recently rose faster than expected...