AP: Sen. Charles Schumer on Sunday defended himself against claims by regulators that he was partially to blame for a run on IndyMac Bancorp Inc. that led to the bank’s takeover by the government Friday.

The Times: The US Government took dramatic steps to prop up America’s financial system last night, announcing that it was prepared to pump billions of dollars into the country’s mortgage market in a desperate measure to prevent the economy going into a tailspin.

Reuters: The U.S. Treasury and Federal Reserve on Sunday unveiled sweeping steps to support Fannie Mae and Freddie Mac if needed to bolster confidence in the troubled mortgage financing giants and head off a potential meltdown in global financial markets.

Telegraph: Foreign exchange mortgages can help you reduce your monthly payments because lower interest rates are available, but they are also more risky because the value of sterling can fluctuate, meaning your payments can rise sharply – as euro borrowers have recently learned the hard way.

Chicago Tribune: To get out from under the burden of bad consumer debts and to keep new ones from cropping up, HSBC Finance – is overhauling its business model in subprime mortgages, credit cards and auto financing.

Bloomberg: Newly delinquent mortgage borrowers outnumbered people who caught up on their overdue payments by two to one last month, a sign that nationwide efforts to help homeowners avoid default may be failing.

Motley Fool: The credit crunch and liquidity squeeze cause lenders one big problem — they can’t borrow funds easily or cheaply. So there is not as much money to lend and far fewer products on the mortgage market. Last year there were 15,000 mortgage products available and now there are just 4,000.

Reuters: Defaults on privately insured mortgages rose sharply in April, showing homeowners continue to struggle to keep up with loan payments.

The New York Times: The regulator who oversees national banks is protesting an agreement by the mortgage buyers Fannie Mae and Freddie Mac to stop buying loans involving lenders’ in-house appraisers, a deal intended to protect buyers from fraudulently inflated home prices.

Motley Fool: In today’s difficult economic climate, lenders are being overwhelmed with demand for the best deals – which means these are being pulled fast. So you have to act quickly to get the cheapest rate.