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By Jeff Horwitz and Kate Berry
JAN 31, 2010 4:50pm ET

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Another Source of Woe in FHA: Builder-Run Lenders

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One of the less-examined cracks in the foundations of the Federal Housing Administration is the lending done in recent years by home builders' financing arms.

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What the Mortgage Settlement Means to Banks
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The $25 billion mortgage robo-signing settlement is:
Political extortion from the banks in an election year
A slap on the wrist — the banks put reserves away for this long ago, they won't even feel it
A source of relief for both banks and homeowners that could help the housing market and economy recover

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