Underwater borrowers have become a focus of numerous industry surveys and analyses, and a growing concern for market participants due to the potential of negative equity to trigger default. A recent study by CoreLogic delved deeper into the statistics to examine the distribution of negative equity by default status. Aggregate negative equity among mortgage borrowers was $750 billion as of the end of last year. CoreLogic says 8 percent of that total balance involved mortgages that were in foreclosure.

According to Freddie Mac's latest market outlook, over the first four months of 2011, sales of existing homes are up 5 percent from the pace of 2010 - in line with the GSE's earlier projections of a 5 percent annual increase in existing-home sales this year. Regardless, Freddie's economists say going forward, their forecast for sales growth remains dampened by declining consumer confidence and economic uncertainty. They point out that news of still-falling home prices has potential homebuyers waiting for a clear signal that home values have firmed.

Indiana has enacted a new foreclosure law surrounding the state's pre-judgment mediation program, outlining changes related to borrower notification and loss mitigation documentation. Senate Bill 582 passed both chambers of the state Legislature by a near unanimous vote, with only one senator casting a nay, and was quickly signed into law by Gov. Mitch Daniels. The law becomes effective for all new residential foreclosure filings as of July 1.

A dozen U.S. senators are pooling their influence to persuade federal regulators to work with state attorneys general and other federal agencies to ""fix the broken foreclosure process,"" as the lawmakers put it. In a letter to the OCC, the senators stressed that the regulators' consent orders do not preclude states' efforts to hold servicers accountable for any wrongful foreclosures. In a separate move, lawmakers have tagged a servicing regulation bill on as an amendment to the larger economic development legislation making its way through Congress.

Third-party investors are reselling foreclosure properties they've scooped up at auction at a rapid pace in states along the country's Western seaboard. In fact, they're moving distressed homes faster than lenders, according to a local tracking firm. ForeclosureRadar says the resell timeframe for foreclosure investors has dropped throughout its five-state coverage area. The company says it's partially due to spring selling activity, but more to do with a lack of quality, affordable homes for sale as a result of foreclosure delays.

JPMorgan Chase has dismissed David Lowman, who ran the bank's mortgage operations. Lowman joined JPMorgan in 2006 from Citigroup as chief executive officer of the bank's Global Mortgage division. He was promoted just three months later to chief executive officer of Chase Home Lending, where he was responsible for home equity and default, as well as all of Chase's consumer real estate business. He came under fire soon after evidence surfaced of flawed foreclosure paperwork and illegal seizures of servicemembers' homes.

Fannie Mae announced Tuesday that it is beefing up incentives to encourage sales of its HomePath REO properties to owner occupants. Selling agents representing an owner occupant buyer will get a $1,200 bonus. At the same time, qualified homebuyers can receive up to 3.5 percent of the final sales price to put toward closing costs. Eligible offers may be submitted any time after June 14, 2011 but must close by October 31, 2011. As of the end of March, Fannie's single-family REO inventory stood at 153,224 properties.

The nation's Capitol stands out as the ""shining star"" in nearly every market report that crosses the wire. Washington, D.C. has consistently resisted home price declines, sales activity bucks widespread trends, and foreclosure numbers, too, have been almost non-existent due to an unofficial moratorium. Is it the absence of foreclosure property that's behind D.C.'s defiant market performance and will it turn now that emergency mediation rules have been enacted to restart foreclosures? Local experts say no, D.C. is just a market to itself.

The Federal Housing Finance Agency (FHFA) issued its third report to Congress Monday, detailing the regulator's 2010 annual examinations of Fannie Mae and Freddie Mac. The GSEs' losses last year totaled $28 billion, versus $94 billion in 2009. The amount of taxpayer support needed by the two mortgage giants also narrowed, but FHFA says both Fannie and Freddie remain ""critical supervisory concerns,"" primarily because of continuing credit losses from loans originated during 2005 through 2007.

The Office of the Comptroller of the Currency and the Office of Thrift Supervision have extended the deadline for 12 of 14 mortgage servicers to submit their plans for conducting foreclosure reviews. Under April's consent agreements, servicers are required to retain independent consultants to review all residential foreclosures processed in 2009 and 2010. Initially, servicers had until May 31st to submit their plans for these reviews, but at the request of the U.S. Justice Department, the deadline has been extended by 30 days.