NYT: Bernanke Blames Self For Not Seeing Sub-Prime Mortgage Flaws
For more: http://s.nyt.com/u/mdCj
“This is my own fault, in a sense,” Mr. Bernanke said, adding that he was worried at the time about contributing to panic in the markets. “I regret not being more straightforward there.”

NYT: More Banks in Trouble, but Profits Are Rising
For more: http://s.nyt.com/u/mXXo
Even as the economy remains weak and the number of troubled banks creeps higher, the Federal Deposit Insurance Corporation’s quarterly report card on Tuesday showed that the banking sector is slowly starting to recover.

NYT: 2 New Federal Programs to Help Borrowers Pay Their Mortgages
For more: http://s.nyt.com/u/9-Ju
The Obama administration plans to take two new steps in the next few weeks to help struggling homeowners pay their mortgages, said Shaun Donovan, the secretary of Housing and Urban Development.

20m Borrowers Could Be Underwater before 2012: Deutsche Bank
For more: http://bit.ly/aY1DsY
The presence of negative equity goes hand-in-hand with an increased likelihood of strategic default, as borrowers sometimes may not be willing to pay when the house has lost substantial amounts of value.

NYT: Rethinking Adjustable-Rate Mortgages
For more: http://s.nyt.com/u/9-zj
With mortgage rates and many financial indexes low, and the economy showing no signs of a quick recovery, current ARM borrowers face an interesting choice. If they keep their loans, they may well have lower payments in the next year than those who have fixed-rate loans.