The country continues to experience uncertainty and volatility in the financial markets as a result of the crisis in the mortgage industry. Financial services companies have been hit hard. For example, Merrill Lynch announced an $8.4 billion writedown in October, and Citigroup received a $7.5 billion infusion of cash from investors in Abu Dhabi, United Arab Emirates.
For its part, Congress has been trying to help homeowners who face foreclosure or need help refinancing homes they can no longer afford. Developments in the mortgage market are fluid and the industry began taking corrective action to mitigate problems for some subprime borrowers. One housing advocate told The Wall Street Journal that some loan-service providers are “already freezing rates for five to seven years.”
