A federal law that goes into effect Friday is about to change the way mortgage brokers earn their pay. Advocates say the rule prevents mark-ups on loans that pad brokers' incomes, but critics argue the law hurts consumers by funneling more customers to fewer lenders.
The future of the government-backed mortgage finance giants Fannie Mae and Freddie Mac, which critics have accused of exacerbating the meltdown in the U.S. housing market, will be discussed next month at a conference sponsored by the U.S. Department of Treasury.
Despite getting an additional $3.8 billion last week in federal aid and a year-end rebound in car sales, GMAC still expects to post a $5 billion loss for fourth quarter 2009. Most of it stems from write-downs in residential real estate.
