While recent data points to a pickup in sales activity, sales prices are down, and though mortgage rates remain at record-lows, few people are qualifying for loans. Overall, confidence in the housing market has been shaken. Add to that list the woes of agents and other professionals whose job security depends on the success of the housing market. According to the Bureau of Labor Statistics, the unemployment rate in the real estate subsector has risen from 6.6 percent in October 2010 to 8.3 percent in January 2011.

Despite an increase in new and existing home sales, home prices in 2010 slumped to their lowest point in December, according to a recent report by mortgage technology company FNC. The FNC Residential Price Index (RPI) attributes the decline in part to increased sales of foreclosed properties, and higher distressed-property discounts. According to the index, home prices declined for the seventh straight month in December, ending the year with the biggest one-month drop of 2010.

After paying a $22.5 million fine, and after Bank of America footed the bill for a $45 million settlement on his behalf, former Countrywide CEO Angelo Mozilo has had his name cleared. Criminally, at least. In October Mozilo settled a civil lawsuit with the Securities and Exchange Commission for $67.5 million, while not admitting or denying fault for his actions, which the SEC says helped bring about the financial meltdown. The Justice Department has reportedly closed its investigation of Mozilo that began in 2008, determining that those same actions were not criminal.

A new study by analytics firm Interthinx says mortgage fraud risk has been spreading from ZIP code to ZIP code. The company's quarterly Mortgage Fraud Risk Report covers data collected from the fourth quarter of 2010 and tracks overall and type-specific mortgage fraud risk. It provides an in-depth analysis of fraud risk from specific ZIP codes. The report shows that previously localized risks in one or more ZIP codes are in danger of spreading throughout a metropolitan area.

Rep. Darrell Issa, on Wednesday asked that a subpoena be issued to Bank of America, requesting the company hand over any documents related to the ""Friends of Angelo"" program formerly offered by Countrywide Financial. The VIP program was dubbed Friends of Angelo because it was headed by former Countrywide CEO Angelo Mozilo. The program is said to have offered preferential loan terms and conditions to its participants but did not offer them to the public.

Last week a New York judge ruled that the relationship between Mortgage Electronic Registration Systems (MERS) and its members is not one in which the company can act on behalf of the lenders in filing documents and proceeding with foreclosures. But judges that same week in Kansas and Massachusetts ruled the connection between the company and its members does allow for such actions. MERS issued a statement Wednesday saying it plans on making some changes so that members are not allowed to foreclose in MERS' name.

The Association of Mortgage Investors (AMI) said on Wednesday they consider the Obama administration's GSE reform white paper a good start, but the organization says the plan is missing a key ingredient: transparency. The consensus among industry experts, White House officials, and lawmakers is that private capital must return to the market, but AMI says it sees a number of omissions in the proposal that will frustrate the success of a private market revival.

On Wednesday a House subcommittee held a hearing to examine private sector involvement in the housing market, in order to determine if the high amount of government participation is a hindrance to the sector's recovery. Rep. Judy Biggert, subcommittee chair, said government intervention in the housing market reached record levels during the financial crisis, resulting in a cost to taxpayers of hundreds of billions of dollars. The hearing examined options for removing barriers to private investment in the housing market.

A New York judge has ruled that Mortgage Electronic Registration Systems, Inc. (MERS) does not have the right to transfer mortgages on behalf of its members, meaning it does not have the right to file foreclosures on behalf of lenders. The company has recently been under fire for the practice, but the company defended its actions saying that borrowers are required to sign documents stating that MERS can assume rights and responsibilities on behalf of creditors.

In late January it was revealed that taxpayers have spent more than $160 million defending former Fannie Mae and Freddie Mac executives in court, with $132 million of that money going to the defense of Fannie execs. This week at a congressional hearing, members of several government agencies defended the spending, claiming a refusal to cover the court costs would have been illegal. But Ohio Attorney General Mike DeWine condemned the use of taxpayer dollars to defend executives he says defrauded the system and broke the rules.