The Government National Mortgage Association (Ginnie Mae) recently released its issuance numbers for May, showing that it guaranteed more than $33.9 billion in mortgage-backed securities (MBS) during the month. In addition to reporting on its continued provision of liquidity to the secondary market, the corporation announced that in April, 1.79 percent of the single-family loans in Ginnie Mae guaranteed securities were 90 days or more delinquent, down from 1.85 percent in March 2010.

Potestivo & Associates, a legal services provider to the default servicing industry, recently announced the hiring of Kenneth A. Slusser as the firm's newest associate attorney. He joins the firm's growing Rochester Hills, Michigan group of attorneys and will represent clients in the litigation department.

Community Bank Mortgage, LLC, a subsidiary of the American Bankers Association, has renewed its relationship with Wells Fargo Funding Inc. Under the continued contract between the two companies, Wells Fargo Funding will act as a secondary market investor for loans originated by community bank owners.

Willis North America recently announced that it has formed a distressed asset practice in order to advise clients on managing the risks associated with financially distressed, foreclosed, or abandoned commercial properties and to provide a range of insurance solutions. According to the company, this new unit will coordinate specialist capabilities from across Willis' practice areas to structure insurance programs that respond to a range of risk management and insurance issues related to distressed assets.

More than 180 foreclosure rescue companies with customers in New York have been sent cease-and-desist letters from the office of state Attorney General Andrew M. Cuomo. These letters, which came as a result of Cuomo's ongoing investigation into the mortgage rescue industry, warn the companies to immediately end all misleading and illegal conduct. According to Cuomo, thousands of New Yorkers have been affected by foreclosure rescue scams.

Following a run of disappointing economic data - from housing, to jobs, to consumer spending - mortgage rates fell to record lows this week, Freddie Mac and Bankrate reported Thursday. The GSE says 30-year fixed-rate mortgages averaged 4.69 percent, while rates on 15-year mortgages have dropped to 4.13 percent. Bankrate says nervous investors around the globe are buying up Treasury securities, driving both bond yields and mortgage rates lower.

Diversified Field Solutions, which provides property preservation for foreclosed homes, has filed a lawsuit against Bank of America, alleging, among other things, breach of contract and fraud. Bank of America contracted with DFS to render property preservation services to foreclosed properties owned by the bank in 14 states, but DFS claims the bank failed to uphold the terms of this contract and says it was damaged as a result.

To sway homeowners from the growing trend of strategic default, Fannie Mae has announced several policy changes designed to encourage borrowers to work with their servicers and pursue alternatives to foreclosure. Under these changes, borrowers who strategically default will be ineligible for a new Fannie Mae-backed mortgage loan for a period of seven years from the day of foreclosure. In addition, Fannie Mae said it will take legal action to recoup the outstanding mortgage debt from strategic defaulters in jurisdictions that allow for deficiency judgments.

In response to the pressing need to provide housing-related assistance to stabilize communities affected by high levels of foreclosures, the federal bank and thrift regulatory agencies recently announced a proposed change to the Community Reinvestment Act regulations. This change, the agencies said, would specifically encourage depository institutions to support the Neighborhood Stabilization Program administered by HUD.

Following a 17.7 percent surge the week prior, mortgage loan application volume fell 5.9 percent for the week ending June 18, 2010, due to a drop-off in both refinance and purchase applications, the Mortgage Bankers Association (MBA) reported Wednesday. According to MBA's Weekly Mortgage Applications Survey, the refinance index tumbled 7.3 percent from the week prior, and the purchase index inched down 1.2 percent.