Government

The Federal Housing Finance Agency (FHFA) plans to change the guarantee fees (g-fees) the GSEs charge on single-family mortgages. Starting in 2013, g-fees will be higher in some states than others, according to a notice sent to the Federal Register. Currently, g-fees are the same throughout the country. However, the FHFA has noticed ""a wide variation among states in the costs that the Enterprises incur from mortgage defaults,"" according to its notice to the Federal Register.

Despite a $355 billion increase in the value of household real estate, household net worth fell $322 billion in the second quarter, the Federal Reserve reported Thursday in its quarterly Flow of Funds report. And, while the value of owner-occupied household real estate increased in the second quarter, total residential mortgage debt fell almost $51 billion. As a result, owners' equity increased just over $406 billion and owners' equity as percentage of the value of the real estate rose to 43.1 percent, the highest level since Q2 2008, according to the report.

A Washington state judge dismissed a borrower's wrongful foreclosure and Washington Consumer Protection Act (CPA) violation complaint, ruling in favor of defendants Fannie Mae, Northwest Trustee Services, and Mortgage Electronic Registration Systems, Inc.

First-time claims for unemployment insurance fell 3,000 to 382,000 for the week ended September 15, the Labor Department reported Thursday, topping market expectations. The previous week's report was revised upward to 385,000 first time claims from the originally reported 382,000 which, the department said, included 9,000 claims attributable to hurricane Isaac.

As part of its High Touch Servicing Program, Fannie Mae entered a deal with Bank of America in July 2011 to purchase mortgage servicing rights (MSR) for about 384,000 high-risk loans the GSE guaranteed. The Federal Housing Finance Agency Office of Inspector General (FHFA-OIG) recently reviewed the deal and the program in general.

The data showed that the total number of originated loans of all types and purposes fell by about 780,000 - 10 percent - from 2010 to 2011, partly because of a 13 percent decline in refinancings. The overall drop in refinancings was the result of declines in conventional and FHA activity, as data revealed that VA-related refinancing activity actually rose 41 percent.

Single family starts increased 28,000 in August to 535,000, the highest level since April 2010, the Census Bureau and Department of Housing and Urban Development reported jointly Wednesday. Despite the increase total, housing starts improved just 17,000 as multi-family starts fell.

Calculations for REO discounts can differ on extreme levels. In a mortgage market note from FHFA, the agency explained common reasons behind the variations. FHFA stated there are at least six reasons to explain why REO discounts vary so greatly. The first three are the condition effect, characteristics effect, and market effect. Those explanations are directly related to the property value of houses.

A nonprofit was recently established with the purpose of making homeowners aware of the $7.6 billion available through the Hardest Hit Fund (HHF).

Two mortgage loan officers are suing Sterling Savings Bank, based in Washington and with operations in Washington, Oregon, Idaho, Montana, and California, for allegedly violating federal and state labor laws. According to the complaint filed in an Oregon federal court, Sterling Savings Bank and Golf Savings Bank denied mortgage loan officers and other mortgage origination employees overtime pay they are due under the federal Fair Labor Standards Act (FLSA).