As American homeowners fall behind on their mortgages in growing numbers, bankers and policy makers worry that while many of these people cannot pay, some simply will not.

Stewart Information Services Corp., a real estate information and title insurance provider, said Friday its losses during the first quarter were larger than originally reported because of a previously missed charge of $4.6 million.

Microsoft Corp.'s withdrawal of its $47.5 billion bid for Yahoo Inc. dominated headlines at the beginning of the week, sending shares of the iconic Web content provider plunging $4.30, or 15 percent. The stock closed Monday at $24.37 in more than six times the normal trading volume.

Fannie Mae priced $4.5 billion of securities on Thursday to shore up the balance sheet of the biggest provider of financing for U.S. home loans as it grapples with the worst housing slump in decades.

Fannie Mae said late Thursday it will sell about $4.5 billion of common stock and preferred stock to raise cash after posting a $2.2 billion loss for the first quarter.

Two former owners of a defunct mortgage firm were charged on Thursday with stealing $44 million from Fannie Mae and forging paperwork in loan sales to Credit Suisse.

The worst of the nation's credit crisis may have passed, Treasury Secretary Henry Paulson said Wednesday, though he acknowledged rising gas prices will blunt the effect of 130 million economic stimulus checks.

Treasury Secretary Henry Paulson on Wednesday endorsed moves by Fannie Mae and Freddie Mac to expand their roles in the stricken mortgage market while pressing for greater oversight of the struggling government-sponsored companies.

Pending home sales dropped to a new low in March, an industry group said Wednesday, signaling the housing slump has yet to bottom out even as the spring sell season gets under way.

Financial markets expect Fannie Mae, the biggest provider of funding for U.S. home loans, can reverse losses by applying $6 billion in fresh capital toward profitable investments, the company's federal regulator told CNBC on Wednesday.

Financial markets believe Fannie Mae, the biggest provider of funding for U.S. home loans, can reverse losses by applying fresh capital of $6 billion toward profitable investments, the company's federal regulator told CNBC on Wednesday.

BOSTON (Reuters) - Financial markets believe Fannie Mae, the biggest provider of funding for U.S. home loans, can reverse losses by applying fresh capital of $6 billion toward profitable investments, the company's federal regulator told CNBC on Wednesday.

U.S. Treasury Secretary Henry Paulson said U.S. financial markets are emerging from the credit crunch that many economists believe has pushed the country to the brink of recession, according to The Wall Street Journal.

NEW YORK (Reuters) - U.S. Treasury Secretary Henry Paulson said U.S. financial markets are emerging from the credit crunch that many economists believe has pushed the country to the brink of recession, according to The Wall Street Journal.

Standard & Poor's Ratings Services may downgrade Freddie Mac ratings on concerns the government-backed mortgage lender's losses will continue to mount amid a worsening housing crisis.