Government

The long-awaited definition of the Consumer Financial Protection Bureau's (CFPB) ability to repay rule and qualified mortgage standards have been unveiled, and Capital Economics says the new rules will not hamper the housing recovery. Previously, some concern circulated the industry that the qualified mortgage rule would be too limiting, possibly shutting reasonably safe borrowers out of the market and stalling a market recovery.

Economic activity expanded in the closing weeks of 2012, the Federal Reserve said in its periodic Beige Book released Wednesday, reflecting a slow but steadily declining unemployment rate and low rates of inflation--conditions the Fed said would have to be met before it raises interest rates. According to the Beige Book, districts reported stronger consumer spending--about 70 percent of the nation's GDP--with holiday sales ""modestly higher"" than in 2011. At the same time, the report said business contacts were ""citing concerns that consumers will spend cautiously due to ongoing fiscal uncertainty.""

RE/MAX co-founder and chairman Dave Liniger says he expects the national housing market's rebound in 2012 to not only continue into 2013, but he also thinks the year could be the best the industry has seen in a very long time. Liniger also offered his top 10 predictions for the year in a video presentation. According to the RE/MAX research team, Liniger's predictions for 2012 were 85 percent accurate.

A three-panel judge representing the United States Bankruptcy Appellate Panel of the Tenth Circuit sided with Mortgage Electronic Registration Systems (MERS) in a case involving a split-the-note theory.

The deadline to file a claim as part of the $25 billion national mortgage settlement is fast approaching. Eligible borrowers have until Friday, January 18 to submit their claim, which can be filed online.

In a report released Monday, ForeclosureRadar boldly asserts that foreclosures are helping mend the market in California, and the government--backed by the banking industry--has created foreclosure delays to help bank balance sheets. ForeclosureRadar argues ""the real problem continues to be the negative equity created during a massive and unsustainable credit bubble,"" not foreclosures, which are helping homeowners ""escape a prison of debt.""

The $8.5 billion foreclosure settlement on January 7 led to the conclusion of the Independent Foreclosure Review, and it also led to the layoff of more than 800 contract workers at JPMorgan Chase, according to a report from the Wall Street Journal. The Journal first reported 839 workers were laid off, including 529 in Brooklyn and 310 in Florence, South Carolina. Companies involved in the settlement were first required to hire third party consultants to review foreclosure actions that occurred in 2009 and 2010 as part of consent orders from regulators in 2011.

Carrington Mortgage Services, LLC will offer a loan program that allows homebuyers to finance property repairs before moving in. Carrington announced FHA's Streamlined 203k loan program will be available through the company's retail and wholesale businesses.

Total retail sales rose 0.5 percent from November to December, the Department of Commerce reported Tuesday. The increase was twice the rate economists forecast.

Less than a week after turning away from a lawsuit against the government over the terms of its bailout, American International Group (AIG) Inc. filed a suit against the Federal Reserve Bank of New York over its right to sue other institutions. AIG's suit seeks no money for damages. Rather, it revolves around an asset purchase agreement (APA) made in 2008 between itself and Maiden Lane II, a vehicle specially made by the New York Fed to purchase RMBS and take off some of AIG's financial burden.