Goldman Sachs' global real estate investment fund has seen its assets drop from a high of $1.8bn to a current value of $30m, a disclosure by the division has revealed.

Whitehall Street International wrote to its investors to tell them of the situation and placed the blame on the state of a market "where estimated asset values have declined materially."

The fund, which was formed in 2005, has more than 50% of its capital invested in the US, with other property investments in Germany and Japan, reports the Financial Times.

Whitehall noted that its precarious situation may not improve in the near-future, warning that any recovery will be dependent on the "approach of lenders and regulatory agencies towards upcoming troubled debt maturity issues."

General Growth Properties is seeking a higher price, fewer stock warrants or both from Brookfield Asset Management after its bankruptcy exit plan was matched by Simon Property Group Inc., a person with knowledge of the discussions said.

General Growth, the second-biggest U.S. mall owner, also is continuing to talk with larger rival Simon, said the person, who asked not to be named because the discussions are private. General Growth needs to decide if it will continue to back Brookfield’s plan before a bankruptcy court hearing on the competing proposals, scheduled for April 29.

Simon, whose $10bn takeover offer for General Growth was turned down as too low in February, earlier this week pledged to invest $2.5bn in a reorganization of the company and match the terms of a plan by Brookfield and partners Fairholme Capital Management and Pershing Square Capital Management.

Three US senators are asking Fannie Mae and Freddie Mac for the same six-month mortgage relief being offered to Virginia homeowners struggling with Chinese drywall.

Florida Sens. Bill Nelson, a Democrat, and George LeMieux, a Republican, and Sen. Mary Landrieu (D-La.), wrote a pair of letters Wednesday asking for the assistance for Florida and Louisiana victims.

Last week, Fannie Mae waived mortgage payments for the Virginia homeowners in response to a request from US Sen. Mark Warner (D-Va.).

Many drywall victims are unable to afford both rent and their mortgage if they want to escape their homes until they can be repaired and cleaned.

It is the tip of what could prove to be a very large financial fraud iceberg.

Jackson County prosecutors and federal officials said Thursday that they have filed criminal charges in a fraud scheme involving the government-sponsored reverse mortgage program — only the second such case filed nationally.

But they warned that criminals are looking for ways to cash in as the reverse mortgage program gains popularity.

“It’s more of an emerging trend,” said Michael Powell of the US Department of Housing and Urban Development’s office of inspector general. “We’re starting to see it as a bigger problem.”

Gov. Jennifer Granholm and the Michigan State Housing Development Authority announced on Wednesday how $154.5m in federal funding would be spent to keep unemployed and underwater borrowers in their homes.

The measures include payment assistance, rescue funds for those who have fallen behind, and matching funds to lower the principal. Banks and credit unions would work with borrowers to determine eligibility and best available options.

While previous assistance programs — such as loan modifications — have helped some borrowers, they haven't addressed those who are unemployed or owe more on their homes than what they are worth.

The Obama administration announced the program two months ago, saying five states hardest hit by the housing crisis would share $1.5bn in funding.

Federal agents in Northern California arrested 18 people Wednesday on charges of defrauding banks and lenders with bogus mortgage loan applications.

The losses totaled at least $10m from 2005 through 2009, said FBI spokesman Joseph Schadler.

Those arrested included a mortgage broker, eight real estate agents and three former employees of financial institutions, said US Attorney Joseph Russoniello's office in San Francisco.

Schadler said the defendants are accused of misrepresenting buyers' incomes, identities and other information to obtain or arrange loans, which later defaulted.