Government

Unexpectedly positive employment and spending data drove mortgage rates to their highest level since August in the last week, according to reports from Freddie Mac and Bankrate.com. Freddie Mac's Primary Mortgage Market Survey showed the average interest rate for a 30-year fixed-rate mortgage (FRM) rose to 3.63 percent (0.8 point) for the week ending March 14, up from 3.52 percent last week. Bankrate reported even more dramatic shifts this week, with the 30-year fixed average climbing 12 basis points to 3.85 percent.

In January, servicers completed about 78,400 modifications, bringing the total since 2007 to 6.15 million, according to data from HOPE NOW. The number of completed short sales in January slowed to 29,244, down from 34,909 in December 2012. As of December 2009, the industry has completed 1.18 million short sales. When combining foreclosure prevention solutions through loan modifications and short sales, the cumulative total is about 7.33 million.

First-time claims for unemployment insurance fell 10,000 to 332,000 for the week ending March 9, the Labor Department reported Thursday. Economists expected 350,000 initial unemployment claims. The drop in filings--the third in the last four weeks--resumed a downward trend in layoffs.

About 4.2 million eligible borrowers should expect to receive a check ranging from hundreds of dollars to $125,000 in the next few months as part of the new agreement that replaced the Independent Foreclosure Review (IFR), regulators announced during a call Wednesday. Suzanne Killian of the Federal Reserve and Ted Wartell of the OCC explained Rust Consulting, the paying agent, will send the 4.2 million borrowers a postcard notifying them of eligibility at the end of this month, and then additional correspondence and a check should follow in 4-8 weeks.

According to FHFA, nearly 1.1 million HARP refinances were completed in 2012, bringing total volume to 2.2 million since the program's implementation in April 2009. The top five states for HARP refinances (since 2009) are California (which has reported 301,327 refinances under the program), Florida (175,686), Illinois (147,252), Michigan (144,709), and Arizona (106,387). In December, 18 percent of HARP refinances for underwater borrowers were for 15- and 20-year mortgages, which build equity faster than the traditional 30-year mortgage.

The Los Angeles Times obtained more than 1,600 pages of FDIC settlements from 2007 through 2013 addressing a variety of behaviors (ranging from reckless lending to inflated appraisals). According to the report, many of these settlements went unannounced, sparing the institutions from negative attention. These ""no-press-release arrangements"" sometimes help FDIC close deals with defendants in the least costly manner possible.

Led by a surge in gasoline prices, retail sales rose 1.1 percent in February, the Census Bureau reported Wednesday. Economists had expected an increase of 0.5 percent. In January, retails sales rose 0.2 percent. Gasoline station sales rose 5.0 percent in February after a 0.7 percent increase in January.

As the industry prepares to implement the Consumer Financial Protection Bureau's (CFPB) new ability-to-repay rules, Federal Reserve Governor Elizabeth Duke warns new consumer protections may come at a cost to the industry as lower-quality-credit borrowers are precluded from the housing market. As the broader economy continues to improve, household formation will increase, according to Duke, ""but if credit is hard to get, these will be rental rather than owner-occupied households.""

Richard Cordray, director of the Consumer Financial Protection Bureau (CFPB), sat once again on Tuesday in front of the Senate Banking Committee, this time to present his case to continue leading the consumer agency. While some had expected a contentious round of questioning from Republicans critical of CFPB in its current form, the proceedings were generally cordial. However, Sen. Mike Crapo did take the opportunity to voice his concerns about the agency's structure and about Cordray's controversial recess appointment, which was called into question earlier this year.

Nonprofits such as Rebuilding Together, Habitat for Humanity, NeighborWorks America and others play a critical role in the home improvement and repair industry, according to a study from the Harvard Joint Center for Housing Studies. The report found that while the private sector spends about $300 billion a year to improve and repair homes, nonprofits support the home remodeling industry by fulfilling a need unmet by the private sector. By maintaining and improving homes for vulnerable populations, nonprofits help groups such as the elderly and disabled by creating a safer residence for those who may not be able to undertake crucial home repair projects.