Mortgage firms close units, fire workers

— -- The ruptures in the real estate market have caused layoffs in the mortgage industry to nearly triple this year, injecting further risk into the economy. The Federal Reserve on Friday cut the interest rate it charges banks, saying, "The downside risks to growth have increased appreciably," because of deteriorating financial conditions and tighter credit.

Senate Banking Committee Chairman Chris Dodd, D-Conn., will meet Tuesday with Fed Chairman Ben Bernanke and Treasury Secretary Henry Paulson to discuss what further steps might be taken to stabilize the mortgage and credit markets. House Financial Services Committee Chairman Barney Frank, D-Mass., said his committee will hold a hearing Sept. 5 to discuss "the current crises" and how consumers are being affected.

Countrywide on Monday ran full-page ads in some newspapers to reassure customers that deposits in Countrywide Bank are federally insured up to the $100,000 limit, thus unaffected by the company's liquidity problems and rising default rates.

But "loss of thrift deposits is a meaningful risk," said analyst Frederick Cannon of Keefe Bruyette & Woods, who cut his rating on the stock to "underperform."