A look at the stories on HousingWire’s weekend desk…with more coverage to come on bigger issues:

President Barack Obama in his weekly address Saturday indicated the global financial system is due for a "checkup" at the meeting of the G-20 nations that begins this week in Pittsburgh. He touted US efforts to unlock frozen credit markets and rekindle demand for homes, which helped to stop the "economic freefall."

But it's not enough to prevent another crisis going forward, as Obama said the G-20 nations will discuss some steps needed to safeguard the global financial system and reform financial regulation. He had this to say in his weekly address:

"Central to these reforms is a new Consumer Financial Protection Agency. Part of what led to this crisis were not just decisions made on Wall Street, but also unsustainable mortgage loans made across the country. While many folks took on more than they knew they could afford, too often folks signed contracts they didn’t fully understand offered by lenders who didn’t always tell the truth. That’s why we need clear rules, clearly enforced. And that’s what this agency will do.

Consumers shouldn’t have to worry about loan contracts written to confuse, hidden fees attached to their mortgages, and financial penalties – whether through a credit card or debit card – that appear without a clear warning on their statements. And responsible lenders, including community banks, trying to do the right thing shouldn’t have to worry about ruinous competition from unregulated and unscrupulous competitors."

Buzz continued into the weekend around changes to the Federal Housing Administration's credit policy with the mortgagee letter set to take effect Jan. 1, 2010. FHA commissioner David Stevens said the changes include FHA-approved lenders to submit audited financial statements.

The new rules aim to make FHA lenders "assume liability for all the loans they originate and/or underwrite." Correspondent lenders -- or brokers -- can originate FHA loans, although the new rules indicate they are no longer required to receive FHA approval to do so. These changes may mean a potential increase in the number of brokers eligible to originate FHA-insured loans, indicating a move for a greater presence of FHA loans in the mortgage market.

FHA also plans to increase the net worth required for FHA lenders. The requirement, which is set at $250,000, has not been increased since 1993. The Department of Housing and Urban Development (HUD) is proposing an initial increase of $1m, which would be in place within a year of the new rule's enactment. HUD may also propose further increases to a level similar to that at the government-sponsored entities (GSEs), which will ensure FHA lenders have sufficient capital and will decrease risk to the FHA insurance fund.

Any risk posed now to the FHA's fund does not seem of concern to Mortgage Bankers Association (MBA) chairman David Kittle, according to a statement issued Friday in response to Stevens' announcement.

“It is important to note that FHA is not in financial trouble," Kittle said. "It has been impacted by the housing market, just as most lenders and mortgage insurance companies have been. Today’s announcement shows that FHA intends to take significant steps to strengthen its risk management processes and enhance its future financial stability.”

The increased net worth requirement for lenders may help the FHA's future stability by ensuring lenders operate with adequate capital reserves.

"It is important that lenders and brokers be made to have sufficient financial backing so they can be held accountable in the event of problem loans," Kittle said. "At the same time, it is just as important that any new requirements be reasonable, and not unduly hamper competition."

Friday marked another two bank failures, bringing the yearly total to 94. Regulators shut down Kentucky-based Irwin Union Bank and Indiana-based Irwin Union Bank and Trust Co. on Friday. The institutions -- both banking subsidiaries of Irwin Financial Corp. -- present an estimated $850m cost to the Federal Deposit Insurance Corp.'s (FDIC) deposit insurance fund.

First Financial Bank assumes all $2.5bn of deposits -- $2.1bn from Irwin Union Bank and Trust Co. at a 1% premium and $441m from Irwin Union Bank with no premium. First Financial Bank also assumes "essentially all" $3.2bn of assets -- $2.7bn from Irwin Union Bank and Trust Co. and $493m from Irwin Union Bank. The FDIC entered a loss-sharing transaction with First Financial Bank on about $2.5bn of the assets.

Write to Diana Golobay.