Two real estate investors are pleading guilty to mail fraud and bid rigging at public foreclosure auctions in Northern California, according to the Department of Justice. The investors conspired with others to quash competition for properties at foreclosure auctions in Alameda and Contra Costa counties in 2009 and 2010. The duo also admitted to committing mail fraud by using mail to organize their own private auctions open only to co-conspirators.

Equator, a California-based provider of default servicing technology, has supported 1 million short sales through its EQ Platform since its launch in November 2009, according to the company's third quarter report. ""Short sales continue to be a viable option to foreclosure,"" Chris Saitta, CEO of Equator said. In addition, Equator's Loan Segmentation Module has processed more than 500,000 loans this year. Short sales continue to be a viable option to foreclosure, Chris Saitta, CEO of Equator said.

Zillow announced Thursday the release of a new component to its Zillow iPhone App. Zillow Mortgage Marketplace is now available through the Zillow iPhone App, allowing shoppers to access mortgage rates and other information as they shop for homes. Potential homebuyers can browse homes and compare mortgage rates from one app. Features of Zillow Mortgage Marketplace include a payment calculator to estimate monthly payments on a home and an affordability calculator that helps home shoppers find homes within their budget.

Federal housing programs came under attack during a congressional hearing Thursday titled ""The Obama Administration's Response to the Housing Crisis."" Members of the Senate challenged witnesses with questions about the effectiveness of several programs, including the Neighborhood Stabilization Program and the Home Affordable Modification Program. Industry experts also discussed the potential of new initiatives, such as the REO rental proposal.

With an estimated 250,000 foreclosed homes on Fannie Mae's and Freddie Mac's books, the government is considering inventive ways to divulge excess inventory and return stability to the housing market. The administration sent out a request for information (RFI) in August asking how a government REO rental program might work. The industry has responded with enthusiasm, submitting a slew of proposals now under consideration. Suggestions include lease-to-own options, rent-and-hold, and joint profit sharing.

The current compensation structure for mortgage servicing needs to be revised so servicers' incentives will align with those of borrowers and investors, stated Federal Reserve Governor Sarah Bloom Raskin in a speech Tuesday. Raskin says it is imperative that servicers have adequate incentives to perform payment processing efficiently on performing mortgages, and to perform effective loss mitigation on delinquent loans. She also believes investors need methods to allow them to monitor servicer performance.

The Federal Housing Administration's (FHA) reserves have fallen below legal limits, and the agency now holds $4.7 billion against a $1 trillion portfolio. According to reports recently released by FBR Capital Markets & Co. and HUD's Office of Inspector General (OIG), FHA may crack down on lenders and servicers and may not be paying out default claims quite as generously as in the past. FBR says FHA claim denials could cost the industry as much as $13.5 billion.

California has withdrawn from settlement negotiations between the 50 state attorneys general and the nation's top servicers regarding robo-signing and other foreclosure-related violations. California's Attorney General Kamala Harris says progress has been made in identifying common-sense reforms to mortgage servicing, but she believes the current settlement proposal is ""inadequate"" for California homeowners. As the state with the highest incidence of defaults, California has been a significant participant in the negotiations.

If all of Fannie Mae's and Freddie Mac's borrowers paying interest rates that are higher than the median rate were to refinance at 4 percent, the savings would total $63 billion. While such an option would not bring the total $63 billion in savings to fruition, Moody's chief economist, Mark Zandi, says ""even a fraction would be a big plus."" According to Zandi, the single most effective policy move for the housing market would be to facilitate more mortgage refinancing.

A former Countrywide employee is now behind bars and being forced to pay $1.2 million in restitution for stealing and dispersing confidential customer information, including social security numbers. A U.S. district judge sentenced 39-year-old Pasadena resident Rene Rebollo to eight months in prison and 10 months in a community corrections facility. Rebollo, who served as a senior financial analyst in Countrywide's subprime mortgage division, pled guilty to the charges.