Lack of inventory continues to stunt pending home sales in California, according to the California Assocation of Realtors' (C.A.R.) most recent home sales report. The shortage has specifically impacted REO sales, which dropped both yearly and monthly.

The share of homeowners with underwater mortgages continued its decline in the second quarter, according to the Zillow Negative Equity Report. About 15.3 million homeowners with a mortgage were underwater, or 30.9 percent, a drop from 15.7 million or 31.4 percent. The report also revealed that negative equity more often affects younger age groups, with nearly half (48 percent) of borrowers under age 40 with an underwater mortgage.

Chrysalis Holdings announced the sale of its interest in LendingSpace Partners, LLC, the mortgage loan origination software solutions provider to Lender Processing Services (LPS).

Voyageur's Retreat partnered with EquityLock Solutions to offer two contracts to protect fractional resort home buyers from market downturns and job loss.

Secure Settlements Inc., an independent evaluation and risk management firm, announced its launch Wednesday.

The FDIC filed three complaints against financial institutions that were involved in the sale of mortgage-backed securities to the now defunct Guaranty Bank. The FDIC became receiver for the Austin-based bank when it failed in August 2009. In all three complaints, the FDIC claims the defendants made false or misleading statements when issuing, underwriting, or selling securities to Guaranty Bank.

U.S. households have found their way out of financial distress for the first time in nearly four years, with housing as the main reason for the improvement, according to the CredAbility Consumer Distress Index released Wednesday. Households found relief with their mortgages as homeowners refinanced and late payments hit a three-year low.

Loan Resolution Corporation (LRC) ranked 126 out of 500 on Inc. magazine's list of the fastest-growing private companies in the U.S.

Starting November 1, 2012, Fannie Mae and Freddie Mac will implement new short sale guidelines to make the approval process easier for eligible borrowers. The new guidelines include streamlining the approach for documents, having the GSEs waive their right to pursue deficiency judgments, and raising the offer to second lien holders up to $6,000.

Matt Martin Real Estate Management (MMREM) was recognized among the fastest-growing privately held companies in Inc. magazine's 31st annual 500|5000 list, the company announced Tuesday.