Source: Sue Kirchhoff & Adam Shell, USA Today

Underscoring the depth and breadth of the housing crisis and the risk it poses to financial markets and the economy, federal officials continued working furiously Monday on a dual track to prevent future abusive lending and to soothe current financial turmoil.

The Federal Reserve approved tough mortgage lending rules designed to prevent a repeat of recent excesses that led to the most serious housing downturn since the Great Depression. Meanwhile, federal officials pushed Congress to quickly approve a separate emergency plan to shore up troubled mortgage giants Fannie Mae (FNM) and Freddie Mac.(FRE)

“It doesn’t mean the problems with mortgage defaults and foreclosures are going to go away,” says Hugh Johnson, chief investment officer at Johnson Illington Advisors.

Read Full Article: Officials work fast to shore up mortgage system