This article appeared in the NY Times (printable version here) this past March and covers some steps taken by NY Attorney General Andrew Cuomo, Fannie Mae and Freddie Mac to address the mess.

I am cynical about steps the government takes to address problems in Industry; I view Uncle Sam’s cures to be too often symbolic and meddlesome. In this case however, Coumo deserves credit in my view.

Mortgages are, essentially, collateralized loans. The valuation of the collateral (the home) is utterly crucial, especially when the loans are highly leveraged, made to the credit-challenged, or both. Since bad appraisals contributed to the current crisis and the industry has proved twice in 20 years that it cannot regulate itself, I have to grudgingly admit that the government has to step in. What a shame!