The Mortgage Investors Coalition (MIC) issued a statement this week commending the efforts of the House and Senate in formulating changes to the Hope for Homeowners (H4H) program. The organization said the revisions made to the program will allow for more homeowners to obtain permanent, low-cost, fixed-rate home financing and pledged the investment community’s full support for the initiative.

A group of homeowners filed a class-action lawsuit on Thursday against KB Home, Countrywide Financial, and the bank’s affiliated LandSafe appraisal services, claiming the three conspired to systematically, artificially, and illegally rig home appraisals … to boost home values and sales prices.

According to an investigative report released this week by the Center for Public Integrity, the top subprime lenders whose loans are largely blamed for triggering the global economic meltdown were owned or backed by giant banks now collecting billions of dollars in bailout money.

Alan B. Krueger was confirmed by the United States Senate last night to serve as the Department of the Treasury’s assistant secretary for economic policy. In this role, Dr. Krueger is responsible for the review and analysis of both domestic and international economic issues and developments in the financial markets.

Guaranty Bank, FSB, of Milwaukee, Wisconsin, has announced plans to shut down its GB Mortgage subsidiary, the bank’s wholesale mortgage business, which originated loans from independent mortgage brokers outside the state.

After much buzz and some controversy, federal regulators released the findings of the bank stress tests Thursday afternoon. In total, 10 institutions need $75 billion in common equity to make up for existing shortfalls in capital reserves.

Freddie Mac released the results of its Primary Mortgage Market Survey on Thursday, which showed that mortgage interest rates rose this week for both long- and short- term home loan products. The GSE attributed the increase to recently issued reports which signaled optimism that the national economy may be starting to turn around.

The Senate passed the Helping Families Save Their Homes Act by a 91 to 5 vote on Wednesday, after shooting down the bill’s bankruptcy cramdown amendment last week. The legislation provides mortgage servicers with a safe harbor from investor lawsuits, expands HUD’s Hope for Homeowners (H4H) program, increases funding for foreclosure prevention efforts, establishes foreclosure protections for renters, and increases the FDIC’s line of credit with the Treasury to $100 billion.

The New York Federal Reserve Bank purchased $25.37 billion in mortgage-backed securities (MBS) from government agencies this week. Of the Fed’s new commitment to buy $1.25 trillion in MBS this year, its purchases now stand at $430 billion.

The mortgage default law firm of Martin, Leigh, Laws & Fritzlen, P.C. and its affiliate MoKan Title Services LLC recently reached a momentous milestone. Last month, the firm and title company celebrated their 20th and 10th anniversaries, respectively.