The Federal Trade Commission is mailing 450,177 refund checks worth almost $108 million to homeowners who were allegedly overcharged by subprime lender Countrywide. According to the FTC, homeowners who were in default were charged excessive and unlawful fees for services such as property inspections, lawn mowing, and other services meant to protect the lender's interest in the property. The agency alleges that Countrywide also added fees and escrow charges to the accounts of borrowers in bankruptcy without notice.

Lender Processing Services says data it's collected through the end of June show an abrupt increase in the industry's mortgage delinquency rate and a smaller uptick in the national foreclosure inventory. The company reports the share of home loans 30 or more days past due but not yet in foreclosure rose to 8.15 percent last month, while the foreclosure rate edged up to 4.12 percent. Altogether, there are some 6,452,000 mortgages going unpaid in the United States.

The Hopp Law Firm, LLC, a regional provider of commercial and creditor legal services, recently announced that Christina Puckett has joined its team as the operations manager in the firm's Denver, Colorado office. Puckett brings with her over 20 years experience in the legal field. Most recently, managed Fidelity National Title Clearance Center as CEO.

Foreclosures and short sales made up 30 percent of all existing-home sales in June, according to the National Association of Realtors. Overall sales volume slipped in June along with the share of distressed properties. Total existing-home sales declined 0.8 percent to an annual rate of 4.77 million, the trade group's lowest reading since last November. Without a strong rebound in the months ahead, 2011 is on pace to be the fourth time in the last five years where home sales have declined on an annual basis.

Wells Fargo says its second quarter expenses included $428 million of operating losses, substantially all driven by litigation accruals for mortgage foreclosure-related matters. Loan losses, though, were down substantially, supporting a 29 percent increase in net income to $3.9 billion for the three-month period. The company says credit quality continued to improve, marking its sixth consecutive quarter of declining loan losses and third consecutive quarter with fewer nonperforming assets.

A number of government and industry studies indicate housing counseling increases the odds a distressed borrower will receive a loan modification and oftentimes, more favorable terms. A survey conducted by the Homeownership Preservation Foundation found that counseling services can also boost ""financial optimism"" for borrowers, which can have an impact on future behavior. Nearly three-quarters of survey respondents said they are confident that they will be in their home in 12 months.

A new California law bars junior lien holders from pursuing borrowers to collect outstanding loan balances after a short sale has been completed. Gov. Jerry Brown has signed SB 458 into law, which requires all lenders that agree to a short sale to accept the approved sale price as payment in full of the outstanding balance of all first and secondary mortgage loans. Local Realtors are hailing the new law as a victory for California homeowners and the state's distressed property market.

Kirchmeyer & Associates, Inc., a national appraisal and valuation company, recently announced that Bill Waltenbaugh has joined its ranks as chief appraiser. Waltenbaugh is a certified appraiser with more than 20 years of appraisal experience and holds an SRA designation with the Appraisal Institute.

Bank of America says it is looking to downsize its mortgage servicing portfolio. Company executives told investors Tuesday that they will become more discriminating when adding mortgage servicing rights (MSRs) to their books and will be focused on selling off MSRs more aggressively. The company made roughly $70 million from MSR sales during the second quarter of this year, but on the whole posted its largest-ever three month loss - $8.8 billion - as a result of heavy losses within the consumer real estate services division.

DRI Management Systems, Inc. introduced a new technology module Monday to automate the process of remarketing REO assets. The company explained that its new DRI Broker system facilitates direct, electronic communications between real estate agents and lenders' REO departments, enabling asset managers to accelerate resolutions and lower servicing costs throughout the REO process.