At a Congressional hearing of the House Financial Services Committee on Tuesday, speakers explored ways to clear up the subprime mortgage mess.

ARMs (Adjustable Rate Mortgages) have fueled the foreclosure increase when, after the initial fixed part of the loan ends, rates balloon into payments borrowers can no longer afford.

In addition to setting up a rescue fund for borrowers who face short-term problems due to illness or job layoff, recommendations included establishing a bond fund to help pay for borrowers switching out of their ARMs and into traditional fixed-rate mortgages. In cases where consumers fall victim to predatory lenders, the government would refinance loans through Fannie Mae.

Lenders may be willing to go along with these recommendations due to the cost of foreclosures. Typically, a bank loses money on a foreclosure because of costs involved in keeping the house on the books, maintenance and sales commissions. Additionally, houses that have been foreclosed upon sell for less than market value.

Panelists at the hearing included spokesmen for the FDIC, HUD, Fannie Mae and Freddie Mac, various consumer groups and lenders.

The Governors of the US Postal Service have approved another hike in the price of a stamp, raising the cost of a First-Class Stamp from 39 cents to 41 cents. At the same time, they approved the issuance of the “forever” stamp.

The “forever” stamp will sell at the 41 cent one-ounce letter rate but will remain good regardless of any future price changes. The value of the “forever” stamp will always be the one-ounce letter rate, and can be used on any future one-ounce letter mailing without extra postage even if the rate has increased.

If you still write letters and send them snail mail or if you still pay some or all of your bills by mail, this might be a no-brainer of an investment. The “forever” stamp costs the same as a regular postage stamp but will be good even if you use it ten years from now. Chances are you will still be paying bills ten years from now and it’s certain that the price of postage will go up in that time.

An article at Consumer Affairs.com points to a growing number of financial aid scams targeting college-bound students and their parents. Some of these companies charge high fees for “insider information” about getting financial aid when, in fact, most of these services are offered for free by government agencies, colleges and high schools.

If you are considering applying for government grants, loans or other financial aid, you can also get more information at www.ed.gov.

The Fair Debt Collection Practices Act exists to protect consumers from unfair, deceptive and abusive debt collection actions. The Federal Trade Commission has filed a lawsuit against a Florida operation that it alleges violated the act with illegal and abusive debt collection practices.

The FTC’s complaint claims that the operation used misleading and threatening letters and telephone calls. They collected debts for beauty schools, truck driving schools, bail bondsman, fitness centers and other small businesses. According to the complaint, consumers were falsely threatened that lawsuits were being filed against them, that their property would be seized and wages garnished and even threatened that consumers would be arrested. The debt collectors often erupted into shouting and profanity during telephone calls to consumers.

The defendants operated from Florida using a series of names and mail drops in other states as well as Florida. They are charged with violating Section 5 of the FTC Act and the Fair Debt Collection Practices Act, which bars deceptive, unfair and abusive debt collection practices.

The defendants are Rawlins & Rivera Inc. of Florida, Rawlins & Rivera Inc. of Georgia, Ryan & Reed Inc. of Florida, Ryan & Reed Inc. of Georgia, RRI Inc., their officers, Janis Brust, Joe L. Hunt, Sr., Joe L. Hunt, Jr., and Shannon Hunt, and a Florida lawyer, Robert W. Bird, whose letterhead was used for many of their collection letters.