Government

In Fannie Mae's monthly National Housing Survey, more than half of those surveyed (51 percent, up from 48 percent in March) said they expect home prices to climb in the next year, while 10 percent--flat for the fourth straight month--expect declines. Thirty-five percent expect no changes. April's report marks the first time in the survey's three-year history that more than half of respondents projected price gains.

A majority of real estate experts responding to a recent Zillow survey expressed some concern that the Federal Reserve's current policies could lead to another housing bubble. Only 4 percent of respondents are not at all worried about a bubble resulting from the Fed's monetary policy that is keeping mortgage rates down. However, 48 percent see the Fed's policies as ""a little risky,"" and the remaining 48 percent categorized the risk as ""moderate to high risk."" Experts also expect prices to end this year 5.4 percent higher than their level at the start of the year.

Refinances through the government's Home Affordable Refinance Program (HARP) remained strong as mortgage rates stayed near record-low levels, according to the Federal Housing Finance Agency's (FHFA) most recent refinance report. In February, 97,738 Fannie Mae and Freddie Mac loans were refinanced under the program, bringing the total to 2.3 million since HARP's April 2009 inception. Underwater borrowers also continued to represent a large share total HARP refinance volume. Year-to-date through February, borrowers with LTVs beyond 105 percent accounted for nearly half of all HARP refinances.

Hiring fell 4.3 percent in March, the same month in which payroll job growth plunged, the Bureau of Labor Statistics (BLS) reported Tuesday in its monthly Job Openings and Labor Turnover Survey (JOLTS). Data from the report indicated there were 11.2 unemployed construction workers for every available job in March, up from 9.0 in February. By industry, the number of unemployed persons per job opening also increased in the manufacturing and information sectors.

Flagstar Bancorp, Inc., and MBIA Inc. announced a settlement between the two companies related to transactions on securities that flopped during the housing crisis. Under the terms of the agreement, Flagstar will pay MBIA $110.0 million, an amount ""consistent with [MBIA's] recovery expectations,"" CEO Jay Brown said. Flagstar does not expect any significant financial impact as a result. According to a statement from the company, MBIA will use the cash received to pay a portion of its secured loan from National Public Finance Guarantee Corp.

The percentage of banks reporting stronger demand for mortgage loans rose in the second quarter, the Federal Reserve reported Monday, with more banks easing lending standards. Those results, revealed in the Fed's Senior Loan Officers Opinion Survey, are consistent with reports that mortgage loans are becoming easier to obtain. While the results suggest a trend in lending standards, they could be misleading: A bank which has tightened standards as much as possible may not necessarily ease them.

Seven people based in Wichita, Kansas were charged for their alleged roles in a mortgage fraud scheme that involved the use of straw buyers and sellers, as well as false loan applications and documents submitted to lenders, U.S. Attorney Garry Grissom announced.

The Federal Housing Finance Agency (FHFA) has directed Fannie Mae and Freddie Mac to limit future loan purchases to those that meet the Consumer Financial Protection Bureau's (CFPB) criteria for ""qualified mortgage"" loans. In a release, FHFA said that beginning January 10, 2014, the GSEs will no longer purchase loans subject to CFPB's ""ability to repay"" rule if those loans are not fully amortizing, have terms of longer than 30 years, or include points and fees in excess of 3 percent.

A bill introduced in January to speed up Florida's foreclosure process passed both the House and the Senate and made its way to Gov. Rick Scott's desk Friday. H.B. 87, introduced by Rep. Kathleen Passidomo (R-Naples) would require lenders to prove they have the appropriate paperwork showing they have the right to foreclose on a property before entering the foreclosure process. Supporters of the bill champion its efforts to speed up the state's lengthy judicial foreclosure process, while outspoken opponents claim it infringes on homeowners' rights.

New York Attorney General Eric T. Schneiderman revealed plans Monday to take legal action against Bank of America and Wells Fargo for allegedly violating terms under the national mortgage settlement reached in February 2012. Schneiderman's office is accusing the banks of 339 servicing violations related to the timeline for processing mortgage modifications. ""Attorney General Schneiderman has referenced 129 customer servicing problems which we take seriously and will work quickly to address,"" a BofA spokesperson stated in an email.