There are a growing number of distressed commercial real estate assets trading as bank regulators put more pressure on lenders to deal with nonperforming loans, according to Price waterhouseCoopers LLP.

Putting struggling borrowers into mortgages with more manageable monthly payments via a loan modification is a key element of the industry's effort to cut the nation's foreclosure crisis short. A recent study by the Office of the Comptroller of the Currency (OCC) and the Office of Thrift Supervision (OTS) took a look at loan performance post-modification. The regulators found that more recent modifications have performed better than earlier modifications, reflecting an increasing emphasis on lower monthly payments and sustainability.

As the second year of CMBS 2.0 begins, credit ratings agencies say they are taking stock of where credit quality stands and where it may be headed from here. With that assessment, conflicting views persist on the strength of the underwriting behind new commercial mortgage-backed securities (CMBS). While the real estate and financial crises invoked a tightening of credit and lending criteria, some say questionable practices, particularly related to appraisal assessments, have begun to make their way back into the picture.

With delinquent mortgages at unprecedented levels, sheer market conditions command a staff the size of a small army dedicated to working with distressed borrowers. Servicers have added thousands to their loss mitigation teams over the past few years and most are still recruiting. JPMorgan Chase has added more than 10,100 new employees nationwide to the default and loss mitigation organization since 2008, almost doubling its staff. Chase has partnered with HOPE NOW, nonprofits, and state agencies conducting over 1,500 local events through April.

With mortgage delinquencies at unprecedented levels, it's become clear that the current servicing-fee model is lacking. The GSEs and Ginnie Mae are in the process of developing new servicing compensation structures to provide greater flexibility for the servicing of nonperforming loans. As deliberations move forward, the Mortgage Bankers Association is recommending they consider the idea of a new ""reserve account"" strategy to cover the higher expenses associated with default servicing.

RE/MAX Excalibur Realty, RE/MAX Fine Properties, and RE/MAX Professionals have ranked among the top residential real estate brokerages in the state of Arizona based on ""The List"" survey published annually by the Phoenix Business Journal. RE/MAX was the only company to place three brokerages in the top 21 rankings based on 2010 local residential sales volume. Forty-four percent of the brokerages' sales last year were bank-owned and HUD-owned foreclosures.

The national unemployment rate edged up in June to 9.2 percent, as the economy added just 18,000 jobs. The numbers were worse than market forecasts. Economists were expecting the rate to remain unchanged at 9.1 percent and job gains to be between 85,000 and 100,000. Declines in the labor market have added significantly to the volume of seriously delinquent mortgages. On Thursday, the administration announced that it was extending the mortgage forbearance period to 12 months for unemployed homeowners in government programs.

Data released by Clear Capital Friday show home prices at the national level posted their first quarterly gain in June after nine months of declines. The company says the 0.9 percent increase is an encouraging sign that the markets are capable of positive price growth despite continued economic and foreclosure pressures. But even with the second-quarter uptick, U.S. home prices lost 3.2 percent during the first half of 2011, and Clear Capital is forecasting another 2.4 percent drop for the second half of the year.

A group of mortgage-bond investors has filed a petition with the New York Supreme Court requesting to be cut loose from the $8.5 billion settlement proposed last week by Bank of America. The settlement would resolve nearly all of the lender's repurchase exposure stemming from legacy first-lien residential mortgage bonds issued by Countrywide. Eleven of the companies to be compensated by the arrangement, though, say BofA's proposal is ""inadequate.""

After changing little over the past month, both long- and short-term mortgage rates rose this week, with some loan products increasing in the range of 10 basis points. The 30-year fixed rate averaged 4.60 percent, while the 15-year fixed came in at 3.75 percent. Adjustable-rate mortgage also headed higher. Freddie Mac explained that mortgage rates followed Treasury yields higher this week, but the company says borrowing costs remain quite affordable by historical standards.