After a net loss of $2.2 billion in 2010, Bank of America reported net income of $1.4 billion, $0.01 per diluted share, for the year in 2011, according to the company's earnings report released Thursday. On a fully taxable-equivalent basis, net interest expense declined 15 percent for the year arriving at $94.4 billion. BofA's mortgage servicing portfolio is on the decline. The $1.8 trillion portfolio reported at the end of the year is down from $1.9 trillion in the previous quarter and $2.1 trillion a year ago.

After estimations that state attorneys general would reach a settlement with banks by Christmas failed to pan out, word today is the settlement is weeks away. Negotiation talks between state counsels and the nation's five largest servicers are entering their second year, and a few attorneys general have already left the table. The parties are supposedly ""very close"" to a settlement that would provide 1 million homeowners with principal reductions, according to remarks from HUD Secretary Shaun Donovan on Wednesday.

Freddie Mac expects a 2 percent to 5 percent increase in home sales in 2012 amid moderate economic growth over the year, according to the GSE's U.S. Economic and Housing Market Outlook for January. Approaching the year with ""cautious optimism,"" Freddie Mac's chief economist Frank Nothaft says there are some positive signs in the job market and consumer confidence levels, and even housing is starting to raise hopes for a continuing, gradual economic recovery.

The U.S. economy is projected to grow 2.3 percent for the year, according to Fannie Mae's latest outlook. The GSE says growth will be affected by fiscal policies and political uncertainty. The upcoming presidential election, healthcare debate, and sovereign debt crisis in Europe are three wild cards causing concern for Americans. Recent improvements in employment, however, have elevated consumers from their ""summer rut,"" and the housing market is showing some positive indicators.

Wells Fargo & Company ended the year with record earnings in the fourth quarter, reporting a net income of $4.1 billion, up from $3.4 billion in the third quarter. The San Francisco-based bank reported year-end profits of $15.9 billion, demonstrating a 28 percent increase from yearly earnings in 2010. Wells Fargo holds a residential mortgage servicing portfolio totaling $1.8 trillion in value. As of year-end, the balance of loans 90-plus days delinquent stood at $22.4 billion.

Despite a decade-long trend making winter the slowest homebuying season for the Las Vegas area, the region saw an increase in existing home sales for the month of December, finishing the year strong enough to break the metro's yearly existing-home sale record from 2009, according to the Greater Las Vegas Association of Realtors. The 2009 record was set with the sale of 46,879 homes, and 2011 surpassed this milestone with 48,186 sales. REOs made up 46 percent of December's transactions. Short sales accounted for nearly 27 percent.

Following an expiration of federal funding for foreclosure prevention in New York, state Attorney General Eric Schneiderman allotted $1 million to provide assistance to homeowners facing foreclosure. Schneiderman's office will distribute the funding to nonprofit and legal aid services aimed at helping distressed homeowners. Schneiderman released a request for applications for the state funding last week. Currently, about one in 10 mortgages is at risk of foreclosure in the state of New York.

West coast states saw a decline in foreclosure starts in December, according to new data from the research firm ForeclosureRadar. In fact four of the five states tracked by ForeclosureRadar's monthly survey saw double-digit declines. The exception was Oregon, where foreclosure starts rose by 5 percent. Foreclosure sales in the West coast states were mixed but down far less than ForeclosureRadar says it was expecting, given lender announcements of holiday moratoriums at the close of last year.

Michigan is taking a strong stand on mortgage fraud. New state laws that went into effect at the start of the year have redefined mortgage fraud in the eyes of the law and outline strict consequences for perpetrators. Residential mortgage fraud is now considered a felony in Michigan, and punishment includes up to 20 years in prison and fines up to $500,000. The new laws define mortgage fraud itself as a criminal act, whereas previously, mortgage fraud fell into the categories of false pretenses and forgery.

A group convened on the steps of the South Carolina State House Thursday to express their support of homeownership and opposition to policy changes that might threaten the American Dream. The outlook expressed at the rally mirrors widespread sentiment uncovered in a recent industry survey. About three-fourths of American voters said it is ""appropriate and reasonable"" for the federal government to promote homeownership through tax incentives.