According to the Federal Housing Finance Agency Office of Inspector General (FHFA-OIG), FHFA's examination process is not up to par. FHFA-OIG says it has identified shortfalls in the agency's examination coverage, particularly in the areas of real estate owned (REO) and default-related legal services. In fact, the inspector general says FHFA has not conducted an examination of the GSEs' management of their REO inventories, despite the surging number of foreclosures, since 2007.

Equator, a Los Angeles-based provider of ecommerce, data, and professional services to the default servicing industry, is releasing a new product designed exclusively for real estate agents. ""This is the first time there's an enterprise-level solution for agents,"" Chris Saitta, CEO of Equator told DSNews.com. Currently, most agents rely on a variety of software, but REvolution will them to manage all their daily tasks through one program.

Commercial real estate prices have increased for three consecutive months, according to Moody's/REAL Commercial Property Price Indices. Prices are now similar to levels recorded two years ago. In July, the national index posted a 5 percent increase. It's now 12.6 percent above its post-peak low, however, it is 42.5 percent below its peak. Moody's sees the latest gain more as a continuation of the bottoming process than as a harbinger of recovery. Sales of distressed assets made up 28 percent of the market in July.

The three major banks that received downgrades from Moody's this week responded with assertions of their value. Bank of America's and Wells Fargo's long-term credit ratings were downgraded, while Citigroup was hit with a downgrade of its short-term credit rating. Moody's says the downgrades stem from its belief the government is more likely now than during the financial crisis to allow a large bank to fail. The banks say that assessment is more a reflection on systemic support than their own liquidity profiles.

Home prices are expected to grow at an average annual rate of just 1.1 percent through 2015, according to a survey released Wednesday by the research firm MacroMarkets. The company polled 111 individuals, ranging from economists and real estate experts to investment and market strategists. In addition to documenting home price projections, the survey asked respondents about the government's role in the housing market. Half say further government intervention is ""unnecessary.""

Mortgage delinquencies rose to 6.62 percent in August, according to a report from CreditForecast.com, supported by Moody's Analytics and Equifax. This is up from 6.54 percent in July. Delinquencies for both first mortgages and home equity loans posted increases for the month, rising to 6.85 percent and 4.14 percent, respectively. However, the CreditForecast.com report predicts the delinquency picture will improve later in the year with a return of economic growth.

The Consumer Financial Protection Bureau (CFPB) is working alongside other federal agencies to create ""common-sense national servicing standards,"" according to the Treasury's advisor on the bureau Raj Date. One of the issues Date plans to address through national servicing standards is what he says has been a lack of incentive for originators and others involved in the front end of the lending process to ensure a borrower has the ability to repay their loan.

At a Senate hearing titled, ""New Ideas to Address the Glut of Foreclosed Properties,"" industry experts shared varying opinions on the concept of Fannie Mae and Freddie Mac conducting bulk sales of REOs to investors, but most agreed that long-term investors from the private sector should be part of the solution. One analyst with Amherst Securities says investors are the only potential buyers for many distressed homes likely to hit the market over the next five to six years.

The Office of the Comptroller of the Currency (OCC) is calling for independent reviews of almost 4.5 million loans. After examining 200 loans from each of 14 major servicers, regulators determined enforcement actions were necessary, but said their review was not nearly enough to answer all questions. In addition to assessments of individual cases, the OCC is implementing a complaint process for borrowers who feel they faced financial harm as a result of an improper foreclosure action.

A recent study by Jihad C. Dagher and Ning Fu of the International Monetary Fund (IMF) found a correlation between the increase in originations from ""lightly regulated"" non-bank lenders and the rise in foreclosures and unemployment in the United States. The authors believe stricter regulation of non-bank mortgage originators could have prevented the housing crisis altogether or at least averted some of the volatility seen in the current housing environment.