The Treasury Department late Friday unveiled a new plan to expand the Home Affordable Modification Program by increasing the incentive fees it pays investors -- including Fannie Mae and Freddie Mac -- for agreeing to reduce the principal amount of a mortgage.

The lending industry's troubles with a controversial type of insurance coverage appear to be spreading to new areas. In recent weeks New York State's Department of Financial Services has issued subpoenas to more than 20 mortgage servicers, a dozen insurers and 20 affiliated insurance agencies, according to someone familiar with the investigation.

The serious delinquency rate on the Federal Housing Administration's $1 trillion single-family loan portfolio edged closer to 10% in December as the pace of originations slowed in the fourth quarter.

Residential mortgages originated over the past two years are "among the best quality originations" on record, according to a new report from Lender Processing Services.

Amid lingering questions about the fate of a broad mortgage servicing settlement, many see the creation of a joint task force to probe mortgage abuses as hope that those negotiating the settlement can work out their differences.

Kinecta Federal Credit Union, Manhattan Beach, Calif., posted a $30.6 million loss for 2011, citing problems with its mortgage business.