mortgage market

Sales agreements for previously occupied homes rose 10.4 % in October. But that one spark of hope comes against a backdrop of declining prices, bulging inventories and ongoing legal issues around foreclosures. Don't count on a real estate recovery next year.

Wells Fargo still won't admit it, but its employees' testimony makes it clear that, like GMAC, JPMorgan Chase, Bank of America and OneWest Bank, they have a problem with their foreclosure documents. But the solution isn't just a better documentation process: It's time to bring back cram downs.

The Obama administration has for months pressured the mortgage industry to bail-out homeowners who have fallen behind in their mortgage payments. Now, it wants the industry to try harder. According to the Wall Street Journal, "The Obama administration is pressing mortgage-servicing companies to...