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The Department of Housing and Urban Development is planning to expand the services offered by the Federal Housing Agency in order to provide high-risk customers with an alternative to the high interest rates offered by mortgage banks.

Caroline Herron, a former contractor with the Federal National Mortgage Association, has sued the mortgage bank for firing her, alleging that the company dismissed her because she was critical of the government's Home Affordable Modification Program, and because she pointed out several wring steps made in the mortgage-modification program.

Homeowners who face foreclosure will be allowed to remain in their homes under a 'Deed for Lease' Program by the Federal National Mortgage Association that will let them rent the homes for up to a year, with the possibility of extensions. The homeowners will pay the market rents, which are less than the mortgage payments.

House Oversight and Government Reform Committee Chairman Edolphus Towns says he will issued subpoenas for the records of a mortgage program of Countrywide Financial Corp. The so-called 'VIP' program for high-level clients, known as 'Friends of Angelo' (referring to ex-chief executive Angelo Mozilo), has been the subject of controversy after it was revealed that some high-level legislators were recipients of the program. Towns originally opposed the subpoena, saying it wasn't a top priority. He has been fought by Rep Darrell Issa, who has pushed for an investigation.