CNN reports that Bank of America will eliminate all but the most sound mortgage products as it attempts to complete its takeover of Countrywide. Countrywide was made famous by its option ARM and other non-traditional products which have clearly back-fired. Which begs the question - why Countrywide mortgage at all?

The mortgage crisis is impenetrable. One day, people can borrow all the money they want for houses whose values are skyrocketing. The next day, it's all over. Bad behavior is somehow involved.

The OECD (Organisation for Economic Co-operation and Development) reported that the losses related to the subprime mortgage bust could hit $420 billion based on an ultimate recovery of mark-to-market assets to 40 to 50% of their initial value.

RealtyTrac ( realtytrac.com ), the leading online marketplace for foreclosure properties, today released its March 2008 U.S. Foreclosure Market Report™, which shows foreclosure filings — default notices, auction sale notices and bank repossessions — were reported on 234,685 properties nationwide during the month, a 5 percent increase from the previous month and a 57 percent increase from March 2007. The report also shows one in every 538 U.S. households received a foreclosure filing during the month.

The demand for new home may take 2 years more to return to the normal rate, in the prevailing situation. This is the concern expressed by the Head of National Association of Home Builders.

The housing bill, passed by the U.S. Senate, designed allegedly to ease the crunch on foreclosures and encourage growth in the housing sector is nothing more than a Democrat driven hand out to those with money, with banks possibly making even more money off of those that cannot afford to keep their homes. In a worst case scenario, it wil create an over abundance of homes on the market and drive prices further down.

IMF says Credit crisis spreads to other mortgage, corporate debt markets. Crisis creating serious macroeconomic feedback effects. Most emerging markets so far insulated from effects of turmoil. Despite the deteriorating credit situation in the United States, some lenders are still advertising attractive rates for mortgage borrowers.

Homebuyers would get income tax relief under legislation approved Thursday trying to boost the state's ailing housing market.

Hillary Clinton proposes Alan Greenspan to lead a “foreclosure group” which is supposed to determine whether the government should buy up houses to stem the housing crisis:

Mizuho Financial Group Inc. had to postpone a takeover creating Japan's third-biggest securities firm for the second time due to losses related to the U.S. mortgage crisis.

I recently got a chance to read a very interesting book that tells the full story about subprime and the crazy days of the last real estate boom. The name of the book is “Greed, Fraud & Ignorance: A Subprime Insider's Look at the Mortgage Collapse” by Richard Bitner, a 14-year veteran of the mortgage industry.

Are you having trouble keeping up with your mortgage payments? Have you received a notice from your lender asking you to contact them?