But if the loans insured by the FHA defaulted at an unexpectedly high rate, the costs to the government of covering these loans could increase.

FORBES: Paulson Boosts Housing Bill

The Budgets Committee has recommended that the administrative budget - covering the Parliament's internal costs - should not exceed the EU-wide inflation rate of 1.9%, which means a real terms freeze.

BBC: Budget debate

There is another wave of resets for option-rate mortgages and there are still many homeowners stuck with homes worth less than the mortgages covering them.

FORBES: FDIC's List of Troubled Banks Grows