The budget resolution approved by Congress to keep the federal government running through September includes a package of cuts to federal agency budgets, one of which is HUD's Housing Counseling Program. In lawmakers' efforts to trim agency expenditures, $88 million slated to fund counseling efforts on foreclosure and reverse mortgages has been zeroed out. A HUD spokesperson described the curtailment as ""painful cuts,"" noting that the program provides grant funding to about 2,000 agencies across the country.

Fannie Mae announced the opening this week of two facilities in Florida to provide free education and counseling services to struggling homeowners - the Tampa Mortgage Help Center and the Jacksonville Mortgage Help Center. Available to borrowers with Fannie Mae loans, the centers offer one-on-one consultations with experienced housing counselors to review mortgage loans and financing options, explain the range of options available, and help borrowers apply for loan workouts and other alternatives to foreclosure.

LCS Financial Services Corporation, a nationwide provider of receivables management for mortgage lenders, announced this week that Jordan Stastny has joined the company as SVP of national sales. In this role, Stastny will develop and execute sales strategies to grow all lines of business within the company. He brings to the company nearly 30 years of experience in new client development, best practices, executive leadership, sales training, and sales management.

The delinquency rate on loans included in U.S. commercial mortgage-backed securities (CMBS) conduit/fusion transactions inched down 2 basis points in March to 9.16 percent, Moody's Investors Service reported Thursday. More significantly, the agency says the total dollar balance of delinquent loans declined in March, slipping to $56.5 billion from $56.8 billion the month before. It's the first monthly decline in the balance since October 2007.

The retrospective foreclosure reviews mandated in the consent orders issued to servicers this week will help regulators evaluate the extent of the problem and determine the amount of monetary fines that should be assessed, according to John Walsh, head of the Office of the Comptroller of the Currency. Walsh says in addition to these punitive penalties, servicers will have to absorb ""substantial expense"" to fix their problems and are obligated to provide restitution to borrowers who suffered financial harm ""with no dollar cap.""

Two lawmakers, one Republican and one Democrat, have joined forces to push federal legislation through that would facilitate wider use and shorter transaction timelines for a foreclosure alternative that some say could be a lifeline for millions of underwater homeowners while drastically reducing the number of empty, repossessed homes lining U.S. neighborhoods - the short sale. The bill would impose a deadline of 45 days on lenders to give an approval, disapproval, or status of a decision on an offer for a short sale.

Interest rates on home loans headed higher this week, marking the fourth consecutive increase recorded. Still, rates remain extremely low by historical standards - a selling point market players hope will buoy activity as we move into the spring home buying season. Freddie Mac reports that rates on a 30-year mortgage are now averaging 4.91 percent, while the 15-year rate came in at 4.13 percent. Adjustable-rate mortgages are also slowly increasing.

Chicago-based Pierce & Associates P.C., a provider of legal services to the mortgage banking community, has announced the appointment of Ralph Gerardi as director of foreclosure operations. Gerardi previously served as VP at Chase Home Finance and as VP of First American National Default Outsourcing.

RealtyTrac says processing delays have reduced foreclosure activity to its lowest level since the first quarter of 2008. New data released by the tracking firm shows that foreclosure filings were reported on 681,153 U.S. properties during the first three months of this year. That represents a 15 percent decline from the previous quarter and a 27 percent drop from a year ago. Declines were steepest in states where a judicial foreclosure process is used, but looking at the nationwide data for March, RealtyTrac's report indicates that activity is already beginning to pick up some.

The Federal Reserve released a new rendition of its market-gauging Beige Book Wednesday. Economic activity on the whole has improved, but residential and commercial real estate were again branded as hindering growth and recovery. Half of the 12 Fed districts reported pockets of weakening in their single-family markets. Most signs of improvement came from agents and brokers in Florida and Philadelphia. Seven of the districts described commercial real estate as improved but only slightly, while five districts noted that their markets were flat.