After seeing months of consistent decreases, May turned out to be a busy month for foreclosure activity. Foreclosure filings, which include default notices, scheduled auctions, and bank repossessions, were up 9 percent in May from the previous month of April, but still down 4 percent from a year ago, according to RealtyTrac's U.S. Foreclosure Market Report for May 2012. Foreclosure filings were reported on 205,990 properties in May after two consecutive months below 200,000, but activity levels were still down on a yearly basis for 20 consecutive months now. In April, foreclosure filings totaled 188,780.

Fannie Mae and Freddie Mac have and will continue to realize credit losses due to mortgages originated years before the conservatorship when the GSEs were deemed critical supervisory concerns, FHFA stated in its annual Report to Congress. In 2011, Fannie and Freddie borrowed $33.6 billion from Treasury, an increase from the year before when $28 billion was drawn. Of the $33.6 billion, $16.1 billion was used to fund dividend payments back to Treasury. The losses leading to the $17.5 billion drawn from Treasury were due to business decisions made by the GSEs in the pre-conservatorship days. Overall, the GSEs have drawn $187.5 billion from Treasury as of the end of 2011.

Investors and lenders should expect loans currently originated to have a 20 percent higher chance of default than those originated in the '90s due to current economic conditions, according to the University Financial Associates (UFA). The UFA Default Risk Index rose slightly to 120 in the second quarter of 2012 from 119 compared to the previous quarter. While loans currently originated are more likely to default than those from the '90s, loans originated today are still much less likely to default compared to vintages from 2006 to 2008.

With vacancies declining and rental prices rising, the climate in the housing industry is clearly warming up to rental properties. According to Moody's Analytics, ""weak income gains, favorable demographics, and the foreclosure crises"" are all causing people to choose renting over buying, and demand for rent will remain solid over the next two years.

Through National Foreclosure Mitigation Counseling (NFMC), more than 1.3 million homeowners have received foreclosure prevention counseling by local nonprofits and state housing finance agencies since March 2008, NeighborWorks America announced Monday. So far, the NFMC has also received six appropriations from Congress totaling $619.87 million. According to a report, NFMC clients who had their payments modified saved an average of $176 more per month, and those who received help were nearly twice as likely to obtain a modification.

If fraudulent documents are found in a foreclosure case, should banks be able to voluntarily dismiss the foreclosure then re-file the case after fixing the error? The answer to this question is currently being decided by the Florida Supreme Court, which heard arguments May 10 for a case titled Roman Pino v. Bank of New York Mellon. If the court does rule in favor of Pino, this would mean servicers would no longer be able to fix documents and refile foreclosures, which would stall or lead to the dismissal of foreclosure cases and make it even more difficult for the judicial state to proceed with foreclosures. While a decision has not been made, Moody's Analytics said the ruling is not likely to fall in favor of the defendant Pino, who is the homeowner the bank tried to foreclose on using a fraudulent assignment of mortgage.

Wilson & Associates, P.L.L.C . named Ted Cummins as an associate partner. Cummins first joined the firm in April of 2007 and his areas of focus include bankruptcy and eviction laws. Cummins was admitted to the Tennessee Bar in 2005 and is a member of the Memphis Bar Association. He was recently admitted to practice in the United States District Court for the Western District of Tennessee.

Vice chairman of Stewart Information Services Corp.Stewart Morris Jr. was appointed to the American Land Title Association (ALTA) Board of Governors. The association's Board of Governors is tasked with creating policies and maintaining the financial health and overall welfare of the association.

Declines in the share of REO properties and in the months' supply of unsold inventory are all leading to a revival in home prices, and these drops are being driven, in part, by negative equity, CoreLogic concluded in a report. Prices rose by 1.1 percent in April compared to the year before and 2.2 percent from the month before in March. One factor helping boost prices is the decreasing months' supply of homes. While a lower supply during a time of increasing demand is a positive for home prices, Sam Khater, chief economist for CoreLogic and author of the report, explained negative equity is the main reason behind the low supply, not an increase in sales. Negative equity not only makes consumers more reluctant to buy, but it can also discourage homeowners from selling, leading to a smaller number of homes listed on the market.

Negative reports on the economy may be shaking up confidence, but Capital Economics released a report Friday stating that in their view, the foundations for a sustainable recovery are still in place. The employment situation in the U.S. and issues overseas such as the euro-zone crises are all taking a toll on the economy and consumer confidence. Yet, there are still reasons to make the argument that the recovery is not going to be derailed. Home sales and prices have increased, and mortgage affordability continues to be at an all-time high.