The U.S. Government Accountability Office (GAO) released a report evaluating the Treasury’s monitoring of state housing finance agencies’ (HFA) and their implementation of the Hardest Hit Fund. One area in which the GAO found Treasury lacked transparency was administrative costs. A chart from the report showed that 27 percent of states' total spending was for administrative expenses as of March 2012. Beginning with the third quarter of this year, Treasury officials said states would be required to publicly report administrative costs, according to the report.

Rep. Jerry McNerney (D-Stockton) recently introduced a bill to speed up the short sale process by requiring subordinate mortgage lien holders to make a decision on a short sale within 45 days. McNerney's bill proposes that if the lender does not make a decision within the given time period, the short sale will be approved on the 46th day. The bill, titled Fast Help For Homeowners (FHFH) Act, received strong support from the ""National Association of Realtors.

Moody's Investors Service is seeking comment on its updated approach for assessing residential mortgage servicers. Moody's is asking for the comments to be emailed by August 31, 2012.

DS News recently caught up with RealtyTrac VP Daren Blomquist to talk to him about short sales. Although data shows the alternative to foreclosure is becoming more widely used, anecdotal evidence points to frustration and difficulty when pursuing a short sale. So, we decided to have a conversation with Daren about the obstacles that get in the way of short sales, what can be done, and what the upcoming trends might be.

National Default Exchange selected John Smith to lead the company as chief operating officer (COO).

Servicers received higher scores from customers this year compared to 2011, according to a study from J.D. Power and Associates Thursday. On a 1,000 point scale, overall satisfaction with primary mortgage servicers increased to 725 from 718 in 2011. The study looks at four areas to gauge customer satisfaction: billing and payment process; escrow account administration; website; and phone contact. Overall satisfaction among customers who are considered to be at-risk improved the most, increasing by 27 points from last year.

Los Angeles' city attorney, Carmen A. Trutanich, announced his office filed a lawsuit against US Bank over allegations that the bank allows its foreclosures to deteriorate into slum conditions and executes illegal evictions, according to a release Tuesday. The complaint cites more than 170 properties as examples of US Bank's illegal conduct. US Bank denied its role in the complaints, stating, ""We are extremely disappointed that the City Attorney's office has chosen to file this lawsuit. The city attorney has chosen the wrong party - we are not the owners of the properties, nor are we responsible for the servicing of the properties.""

In the case Niday v. GMAC Mortgage LLC, the Oregon Court of Appeals ruled in favor of the plaintiffs regarding MERS' right to proceed with a non-judicial foreclosure.

The Securities and Exchange Commission (SEC) and the Amish Helping Fund (AHF) reached an agreement over allegations that the nonprofit's offering memorandum contained outdated and inaccurate information, the SEC announced Wednesday. AHF sells securities to fund mortgage and construction loans to young Amish families. The nonprofit was formed in 1995 by a group of Amish elders who wanted to support the Amish lifestyle. AHF funds its loans for Amish families by selling securities in the form of investment contracts. The SEC alleged that AHF's offering memorandum, which had not been updated for 15 years, had material misrepresentations about the fund and the securities being offered.

During a conference call Wednesday, Acting Federal Housing Administration (FHA) Commissioner Carol Galante announced applications are now being accepted for the Distressed Asset Stabilization Program, which is scheduled to hold its next sale in September. About 40 percent of the loan sale will be concentrated in four hard-hit metro areas: Chicago, Newark, Phoenix, and Tampa, where about 3,500 loans are to be sold. For the next round of sales, there will be new neighborhood stabilization requirements for the selected hard-hit metros. In those areas, no more than 50 percent of the loans may be sold as REOs.