Commercial real estate prices in the U.S. rose 2.4 percent between July and August, Moody's Investors Service reported Monday. The agency's index has risen in each of the last four months, and that monthly boost pushes its reading 15.3 percent above this cycle's low set in April 2011. Much of the improvement in August came from a reduction in the share of distressed deals changing hands, which were 21.7 percent of transactions. That's the lowest distressed reading since January of 2010.

Morgan Stanley has announced the sale of Saxon Mortgage Services to Ocwen Financial Corporation. Ocwen has agreed to acquire Saxon for the base purchase price of $59.3 million. The deal also includes an estimated $1.4 billion for servicing advance receivables outstanding. The transaction is expected to close in the first quarter of 2012. This marks Ocwen's third major acquisition over the past year.

Gerner & Kearns, Co., L.P.A. has announced the appointment of Susan B. Klineman, Esq. as a senior associate in the firm's default services practice group. Klineman will also serve as managing attorney over the firm's newly opened office in Indianapolis, Indiana. Klineman has an extensive history in the practice of creditor's rights law. She received her J.D. from the Indiana University School of Law in 1993 and is admitted to practice law in the states of Indiana and Ohio.

It's official. The Federal Housing Finance Agency (FHFA) has unveiled a new, revamped government mortgage refinancing program. The initiative involves a series of rule changes to the Home Affordable Refinance Program (HARP) to allow more underwater homeowners to reduce their mortgage debt by taking advantage of today's rock-bottom interest rates. Under the revised HARP guidelines, the 125 percent loan-to-value (LTV) ceiling has been removed, and risk-based fees have been adjusted.

HUD has approved a program aimed at putting foreclosed homes back into the hands of owner-occupant buyers. In select states, from now into October of next year, buyers need a down payment of only $100 to purchase a HUD-owned REO home. The buyer must be an owner-occupant, utilizing financing insured by the Federal Housing Administration (FHA). Contacts in the field say one of the most exciting features of this incentive program is that it can also be applied to an FHA 203k loan, which can be used to fund repairs and renovations on the home.

Clayton Holdings announced the formation of a new securitization group dedicated to helping the private market prepare for the return of non-agency residential mortgage-backed securities (RMBS). Clayton Holdings provides customized risk analysis, loss mitigation, operational solutions, and staffing services to the mortgage and fixed income industries. The firm's new securitization group will offer consultative services, as well as loan reviews and due diligence services in readying the secondary market for greater private sector involvement.

Looking Glass Group, a provider of professional consulting services to the financial services industry, has added three mortgage industry veterans to its team: Rebecca Walzak, Melissa Hill, and Janet Peters. Walzak has been named president of the mortgage consulting firm, and Hill and Peters are senior partners. Each brings over 25 years of front line mortgage experience to Looking Glass Group, expanding the firm's ability to support clients in the areas of risk management, quality control, and audits.

How many homeowners in the United States are behind on their mortgage payments? It's 6,373,000, according to Lender Processing Services (LPS). The number is staggering, but it's actually on the decline, down from 6,397,000 as of the end of August, and 6,538,000 at the end of July. LPS has released a few high-level numbers from its mortgage performance report due out later this month, and there's evidence that servicers are pushing loans that have been languishing in non-payment status through the pipeline at a faster pace.

Investors opposed to the $8.5 billion settlement reached between Bank of America and securities trustee Bank of New York Mellon will get their day in federal court. The settlement was originally filed in New York state court. A band of dissenting investors going by the name of Walnut Place moved the action to federal court, and BNY Mellon has been pushing for the case to revert back to the state. U.S. District Judge William Pauley denied BNY Mellon's motion this week.

Average mortgage rates were relatively unchanged this week amid mixed economic and consumer sentiment reports, according to Freddie Mac. Adjustable mortgage rates were mixed while fixed mortgage rates held steady remaining near their 60-year lows. The GSE's study puts the average 30-year fixed-rate mortgage at 4.11 percent, down slightly from 4.12 percent last week. The 15-year fixed rate rose one basis point to 3.38 percent.