There have been never-ending efforts to prevent foreclosures, as if that were a good thing. All it did was to postpone the inevitable. Is it finally time to face the music?

U.S. District Court Judge Jed Rakoff handed down an order for Bank of America to pay $1.27 billion to Fannie Mae and Freddie Mac for restitution of losses from defective mortgages sold by the former Countrywide Financial Corp. which was merged into BofA in 2008.

The National Association of Liars (Realtors) reported existing home sales this morning and they continue to blather about weather and a glorious future. Meanwhile, existing home sales have plunged by 7.5% in the last year and are now at a 21 month low.

For years mortgage rates on "jumbo" loans have been higher than for traditional (conforming) mortgages. Since jumbo loans were larger than the upper limit permitted to be packaged and sold to Fannie and Freddie, banks would typically charge a premium for "illiquidity" on these products.