We’ve been keeping a close eye on the whole “Fannie and Freddie receive unlimited funding” thing since we first found out about it. As soon as we heard the news we knew there was more to Washington’s motive of providing the GSEs with unlimited funding than merely a way to calm the markets.

On Monday we updated our original post on the subject, adding the opinion of one former Treasury official (which coincided with ours) that the reason Fannie and Freddie were given the unlimited credit line was because in the near future their losses would add up to more than the $200 billion each were previously given.

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According to National Mortgage News (NMN), the White House is still “mum” on whether or not lawmakers will vote to extend or expand the $8,000 first-time homebuyer tax credit.

If you’re still unsure about taking advantage of the credit, the clock is ticking. All the way back in August we warned borrowers that, with the November 30 deadline fast approaching, they needed to act A.S.A.P. “The mortgage process usually takes anywhere between 45 and 60 days,” advises HSH VP Keith Gumbinger.”

Over the last two days White House Press Secretary Robert Gibbs has addressed reporters’ questions regarding the credit’s extension. Yesterday, Gibbs confirmed that a decision hasn’t yet been made, and, according to NMN, Gibbs had the same to say during this morning’s briefing.

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Most of us are familiar with the high default rate that accompanies a large percentage of modified mortgage loans, but you may not have heard about the growing number of “zero pay” defaults on mortgages insured by the Federal Housing Administration. A “zero pay” defaults occurs when a borrowers fails to make even one payment on their loan. While the occurrence seems unlikely, it’s a growing concern that has many industry officials worried:

In the past year alone, the number of borrowers who failed to make more than a single payment before defaulting on FHA-backed mortgages has nearly tripled, far outpacing the agency’s overall growth in new loans, according to a Washington Post analysis of federal data.

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