The share of mortgage borrowers in the United States 60 or more days behind on their payments dropped to 6.19 percent at the end of the first quarter of 2011, according to data released Monday by the credit bureau TransUnion. That's down from 6.41 percent at the close of 2010 and marks the fifth consecutive quarter that TransUnion has reported an improvement in the national delinquency rate. The firm says as home prices have declined further, delinquencies were expected to remain flat or at least slow in their decline, but that hasn't been the case.

Freddie Mac announced Monday the launch of a nationwide sales promotion for its inventory of foreclosed homes. Selling agents will receive a bonus of $1,200 for initial offers received between May 16th and July 31st with escrows closed on or before the final day of September. The extra incentive applies to Freddie Mac's HomeSteps properties sold to owner-occupant buyers. As of the end of the first quarter, Freddie Mac held 65,174 REO homes.

The Michigan Court of Appeals has ruled that MERS does not meet the requirements under state statute to foreclose by advertisement because the company does not own any interest in the debt. The judgment does not apply to judicial foreclosures conducted by MERS, but observers warn the decision could void thousands of foreclosures in the state, including properties that have already been sold to new buyers. Local reports say title companies are canceling closings on some bank-owned homes in light of the ruling.

President Obama has made a public call for mortgage lenders and servicers to provide struggling homeowners with longer-term modifications and principal reductions when it fits the situation. Referring to the bailout of the banking system, which the president described as probably the most unpopular thing the government has ever done, Obama said American taxpayers were there for the banks when they got into trouble, and now it's time for the banks to be there for the American people.

The law firm of McCalla Raymer LLC recently announced that Kent Altom has been named managing partner of the firm's Georgia and Alabama litigation and trial practice group. McCalla Raymer specializes in bankruptcy, foreclosure, REO, and eviction services throughout Alabama, Georgia, and Florida. Altom joined the firm's litigation and trial practice group in 2005 and is admitted to practice law in Alabama and Georgia.

Sales of previously owned homes - which in recent months have been buoyed by a growing share of distressed REO and short sales - are expected to remain on an upward, albeit uneven, track through this year and next, according to economists at the National Association of Realtors' midyear meeting. Lawrence Yun says if the first-quarter sales pace holds, the year will close with 5.1 million completed transactions, 4 percent above last year. Frank Nothaft expects the increase to be at least that much, perhaps a bit higher.

Nearly twice as many underwater borrowers think it is okay to walk away from their mortgage than harbored this sentiment a year ago, according to the results of a survey conducted by Fannie Mae. A separate academia study, however, found that the number of cases in which the homeowner defaulted even though they cold afford their payments - at least as perceived by their neighbors - appears to be trending down. The researchers also asked about respondents' feelings on robo-signing penalties.

The head of the FDIC says the regulatory investigation into the foreclosure processing issues raised by robo-signing allegations was ""narrow."" Sheila Bair says regulators do not yet really know the full scope of the problem, but she suspects the extent of the damages will take years to materialize. Bair described flawed servicing practices as one of the primary risks to the nation's financial system and stressed it's an issue that must be proactively addressed by the government.

Mortgage servicing in general, and default servicing in particular, is in for its own form of modification. Based on testimony given before a Senate subcommittee Thursday and comments from the senators themselves, national mortgage servicing standards are in the cards. The topic has taken center stage in light of recent documentation errors related to foreclosures, and a growing number of industry analysts and mortgage banking groups are voicing their support.

The city of Chicago is working to alleviate the impact of vacant foreclosure properties on its neighborhoods with a new program that has garnered participation from major mortgage servicers and local law firms. Bank of America has agreed to identify and register with the city 150 vacant properties in default under the Cook County ""Vacant and Abandoned Building Court Call."" The program will move empty homes through the foreclosure process more quickly in order to return them to viable housing or make way for new uses of the land.