Government

A California real estate investor became the 26th person to plead guilty or agree to plead guilty as a result of antitrust investigations from the Justice Department into bid rigging and fraud at real estate foreclosure auctions in Northern California. The ongoing investigations are focused on real estate foreclosure auctions in San Francisco, San Mateo, Contra Costa, and Alameda counties. Norman Montalvo of Concord, California was charged with four felonies in San Francisco federal court, the Justice Department announced Thursday. Norman Montalvo, of Concord, California was charged with four counts of felony in San Francisco federal court, the Justice Department announced Thursday.

A survey of senior loan officers released by the Federal Reserve shows lending standards were mostly unchanged, but demand for residential real estate loans was strengthened. The October survey asked 68 domestic banks and 23 U.S. branches of foreign institutions about the lending standards and loan demand they've dealt with over the past three months. When asked about credit standards for prime mortgages, 59 out of 64 respondents said standards were largely the same. While 34 banks said demand for prime purchase mortgages was about the same, 21 reported ""moderately stronger"" demand, and four said demand was ""substantially stronger"" since July.

Friday morning's jobs report contained some good news with the bad, but analysts doubt there's enough strength in either direction to influence the upcoming presidential election. The Bureau of Labor Statistics reported the unemployment rate rose slightly to 7.9 percent in October from 7.8 percent in September. Even though the rate increased, the upward movement was due to a rise in entrants into the labor market, not a decrease in jobs. In a response from Capital Economics, economist Paul Ashworth wrote, ""Overall, this report is sure to be spun politically by both sides."" Economist Nigel Gault at IHS Global Insight said, ""Politically there was something for both presidential candidates to grab onto.""

The nation’s unemployment rate inched up to 7.9 percent in October as the economy added 171,000 jobs, the Bureau of Labor Statistics (BLS) reported Friday. The labor force--the sum of employed and unemployed--improved in October, causing the bump in the unemployment rate and signaling renewed confidence among those on the sidelines that jobs are available. Job creation for the two prior months was revised upward: 148,000 in September instead of the originally reported 114,000 and 192,000 instead of the 142,000 reported in August.

The Supreme Court of Ohio ruled Wednesday that in order to file a foreclosure against a homeowner, a lender must prove standing at the time they first file. The case, Federal Home Loan Mortgage Corp. v. Schwartzwald, was brought before the Ohio Supreme Court after a lower court ruled in favor of Freddie Mac's right to file foreclosure without proof of standing.

The mortgage market may be the largest market for consumer finance, but the sector lacks a comprehensive national database, according to the Federal Housing Finance Agency (FHFA) and Consumer Financial Protection Bureau (CFPB). This is why the federal agencies are coming together to create a national mortgage database. Borrower profiles, payment history, and the mortgage product and terms will be included in the database, which will be updated monthly.

A Texas judge granted a motion to dismiss a case filed against Mortgage Electronic Registration Systems, Inc. (MERS), and its co-defendants over county recording clerk filing fees. The dismissal was MERS' second victory of the week in Texas. One day earlier, MERSCORP announced that the Supreme Court of Texas denied a borrower's petition for review.

The Consumer Financial Protection Bureau (CFPB) released a Supervisory Highlights report Wednesday, providing an overview of its supervisory actions between July 2011 and September 2012. The agency found several instances in which financial institutions did not adhere to federal consumer financial laws. With regard to the Real Estate Settlement Procedures Act (RESPA), the CFPB noted instances in which institutions did not properly disclose transaction costs and did not properly complete good faith estimates and HUD-1 settlement statements.

Fixed mortgage rates fell back slightly to start November as investors anxiously wait for signs of which direction the economy is headed. According to Freddie Mac's Primary Mortgage Market Survey the average rate for a 30-year fixed-rate mortgage was 3.39 percent (0.7 point) for the week ending November 1, down from 3.41 percent in the previous week. The 15-year fixed average for the week was 2.70 percent (0.7 point), a slip from 2.72 percent in the last survey. Bankrate.com's weekly survey also demonstrated decreases all around.

First time claims for unemployment insurance fell 9,000 to 363,000 for the week ended October 27, the Labor Department reported Thursday. Economists expected 369,000 initial claims. It was the second straight weekly decline and the fourth drop in the last six weeks.