A new federal program to support state and local housing finance agencies is expected to involve more than $29 billion in government support, Fannie Mae and Freddie Mac disclosed Thursday.

The foreclosure crisis likely will persist well into next year as high unemployment pushes more people out of homes, pulls down housing prices and raises concerns about the broader economic recovery.

Government programs don't help the market, one economist says, because they don't "get rid of the fundamental problem: There's still a glut of houses.”

By Rachelle Younglai and Kim Dixon

Hedge fund manager Edward Lampert cut his stakes in housing and financial stocks during the third quarter, possibly suggesting he does not see a quick recovery following last year's financial crisis.

Former Bank of America general counsel Timothy Mayopoulos said he was 'stunned' to be fired as the bank was trying to wrap up its purchase of Merrill Lynch, after being told he would become the combined company's new general counsel.

The Federal Reserve is proposing to exempt some investors from a requirement that consumers receive notice within 30 days after their home loan is sold or transferred to a new mortgage company.

By Kim Dixon and Rachelle Younglai

Federal Housing Administration Commissioner David Stevens said Saturday that concerns the agency is headed for the same financial trouble that snared Fannie Mae, Freddie Mac and the subprime sector are unwarranted.

The Federal Housing Administration's financial cushion has fallen to a dangerously low level, but government officials maintain the agency should avoid a taxpayer bailout under "most economic scenarios."

The swift acquittal of two Bear Stearns executives in the government's criminal case tied to the financial meltdown likely will force prosecutors to rethink the evidence they planned to present in a raft of cases that have yet to go to trial, legal experts say.

After a slow start, the Obama administration's mortgage relief program has reached one in five eligible homeowners, a government report says.

The Obama administration's mortgage relief program has reached one in five eligible homeowners, a government report says, but most of those borrowers are on temporary trial plans that have yet to be made final.

Fannie Mae said Monday it may have to ask the government for more financial assistance because the company cannot sell $5.2 billion in tax credits.

The Obama administration on Friday rejected a proposal by Goldman Sachs to buy as much as $1 billion in tax credits from Fannie Mae, saying the deal would have amounted to a net loss for taxpayers, the New York Times reports.