In a move to further help out struggling homeowners, Fannie Mae and Freddie Mac unveiled a plan to cut payments for hundreds of thousands of struggling homeowners. Under the plan, homeowners who are spending more then 38 percent of their income on monthly payments could have their monthly payments reduced. Currently, Fannie Mae and Freddie Mac insure nearly 31 million mortgages, nearly 58 percent... More

Mortgage backers Freddie Mac and Fannie Mae are set to be removed the S&P 500 as the two companies no longer meet the market capitalization requirements. Shares of the two companies have plunged since Friday when the government announced its plans to take over the two companies.

President Bush's plan to bailout mortgage backers, Fannie Mae and Freddie Mac, is estimated to cost $25 billion. According to the Congressional Budget Office there is a 50 percent the bailout will not be necessary, and a 5 percent chance that associated bailout costs could rise as high as $100 billion.

Fannie Mae, the largest U.S. backer of home lones, reported a third-quarter loss of $1.4 billion and gave a warning about the rising number of loan delinquencies expected to default in 2008. Fannie Mae reported a Q3 loss of $1.56 per share, almost doubling last years loss of $0.79. The company also issued guidance stating that they do not expect home prices to stablize until 2009.