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Foreclosure starts in California showed a huge increase since the beginning of this year, but the long-term trend still points to an overall decrease, ForeclosureRadar reported. In the Golden State, Notices of Default (NOD), or the first stage of the foreclosure process, increased 14.2 percent month-over-month in March. Since January, NODs have surged 72.5 percent. Despite the significant year-to-date increase, ForeclosureRadar reported foreclosure starts were still down 63.8 percent from a year ago.

Rep. Maxine Waters (D-California), who has been outspoken in her criticism of the Independent Foreclosure Review (IFR) process, announced the introduction of legislation addressing the use of independent consultants in banking regulation and enforcement processes.

As the housing market recovers from the impact of foreclosures, the New York and northern New Jersey region is still struggling with a growing backlog of foreclosures, according to a blog from the Federal Reserve Bank of New York.

Fixed mortgage rates plummeted this week following the release of disappointing employment data for March. According to Freddie Mac's Primary Mortgage Market Survey, the 30-year fixed-rate mortgage (FRM) averaged 3.43 percent (0.8 point) for the week ending April 11, down from 3.54 percent last week. A year ago, the 30-year FRM was averaging 3.88 percent. The 15-year FRM this week averaged 2.65 percent (0.7 point), down from 2.74 percent in the last survey.

The Center for Responsible Lending and the Consumers Union, two consumer advocacy organizations, are calling on national lawmakers to create a Homeowner Bill of Rights in order to prevent ""unnecessary foreclosures."" The two groups pointed out in a recent policy brief that most states continue to experience serious delinquencies at a rate of between 1 in 10 and 1 in 20 homeowners. While the CFPB has released national guidelines, the groups see a few holes and are calling on lawmakers to establish new rules.

The Federal Housing Finance Agency (FHFA) granted the Home Affordable Refinance Program (HARP) a two-year extension, the agency announced Thursday. Under the direction of FHFA, Fannie Mae and Freddie Mac's regulator, the program will live on until December 31, 2015. ""More than 2 million homeowners have refinanced through HARP, proving it a useful tool for reducing risk,"" said FHFA Acting Director Edward J. DeMarco. ""We are extending the program so more underwater borrowers can benefit from lower interest rate.""

After spiking one week ago, first-time claims for unemployment insurance fell sharply to 346,000 for the week ending April 6, a drop of 42,000, the Labor Department reported Thursday. Economists expected claims to fall to 365,000. Initial jobless claims for the week ending March 30 were revised up to 388,000 from the originally reported 385,000, increasing an unexpected 31,000 from one week earlier.

The Obama administration released Wednesday its budget proposal for fiscal year (FY) 2014, revealing that the Federal Housing Administration (FHA) may require a bailout of up to $943 million to reinforce its capital reserves. The agency has drawn fire in recent months over the losses it took from insuring risky loans before the crisis. In a conference call with reporters, HUD Secretary Shaun Donovan explained the ground gained from the estimated $16.3 billion shortfall to today's estimated $943 million deficit is the result of newer, safer business expected this year.

The number of permanent mortgage modifications completed during the month of February rose 6 percent from January, according to the latest report from HOPE NOW. At the same time, foreclosure sales decreased and foreclosure starts increased, according to the industry group. More than 81,300 homeowners received permanent loan modifications in February, according to HOPE NOW. HOPE NOW also observed a 21 percent decrease in foreclosure sales in February. Foreclosure starts, on the other hand, increased 16 percent in February, rising to 193,860 for the month.

A judge in Rhode Island ruled in favor of Mortgage Electronic Registration Systems, Inc. (MERS) and co-defendants and dismissed arguments of wrongful foreclosure from the plaintiff.