The Federal Open Market Committee answered the much-anticipated question—will they cut the federal funds rate again—this afternoon in a press release. The Fed decided to reduce the federal funds rate 75-basis points on Tuesday, causing it to rest at 2-1/4 percent.

Reuters news agency is reporting that Roland Arnall—the founder of Ameriquest Mortgage Co. and former U.S. ambassador to the Netherlands—passed away Monday. Reuters says Arnall, whose company was heavily involved in the subprime lending sector, died of cancer at UCLA Medical Center.

Bear Stearns, the embattled investment bank that’s receiving a lifeline from JPMorgan and the Federal Reserve, is now at the epicenter of a class action lawsuit filed by Coughlin Stoia Geller Rudman & Robbins, LLP.

Richmond, Virginia-based LandAmerica Financial Group Inc. has promoted Pam Saylors to the position of president of commercial services. Saylors will continue to serve as a consultant until the end of the year.

Cincinnati, Ohio-based eLynx, a company that provides electronic document communications, said this week that a new comprehensive on-demand loan modification service is now available to make the process of adjusting loan terms between lender, servicer and borrower that much easier.

U.S. Department of Housing and Urban Development (HUD) Secretary Alphonso Jackson is scheduled to meet with state officials in the Lone Star state today to launch the Texas Foreclosure Prevention Task Force.

The Home Valuation Code of Conduct (or Code) – a set of standards that was created to increase the amount of independence appraisers have in relation to clients – is now up for discussion in the mortgage banking industry, and government-sponsored enterprise Freddie Mac wants more feedback on the initiative.

Houston, Texas-based Integrated Mortgage Solutions (IMS), a company that specializes in collateral protection and property preservation, says business is growing, as evidenced by the company’s six new clients — all of whom signed on to receive IMS’ comprehensive inspection, preservation, hazard protection and loss mitigation services.

Scottsdale, Arizona-based Zaio Inc:http://www.zaio.com

The Bear Stearns Companies Inc. — a financial industry giant that has been subject to many market rumors related to its liquidity position — announced this morning that it has secured temporary liquidity from JPMorgan Chase & Co and the Federal Reserve Bank of New York.