Government

The economy added just 69,000 jobs in May compared with a revised 77,000 in April down from the originally reported 115,000, the Bureau of Labor Statistics reported Friday. The closely watched unemployment rate inched up to 8.2 percent - a function of an increase in the nation's labor force to the highest level ever. Economists surveyed by Bloomberg had expected the number of jobs to increase by 150,000 and the unemployment rate to remain at 8.1 percent.

The Consumer Financial Protection Bureau (CFPB) is reopening a comment period regarding proposed ability-to-pay rules. The bureau reopened the comment period until July 9, 2012 to receive feedback on new data and information it received. The original comment period to the proposed rule closed on July 22, 2011.

California attorney general Kamala Harris announced Wednesday that the state Assembly and Senate each passed components of the California Homeowner Bill of Rights designed to protect homeowners from scams. One of the passed bills, AB 1763/SB 1474, allows the use of special grand juries to prosecute financial crimes that occur across multiple jurisdictions. Under current California law, crimes involving fraud victims across the state require separate grand juries and separate charges filed in each county where the crime was committed.

The U.S. economy grew at a disappointing 1.9 percent in the first quarter slower than the initially calculated 2.2 percent annualized rate, the Bureau of Economic Analysis reported Thursday. The BEA report was consistent with market expectations but emphasized a moribund economy.

First time claims for unemployment insurance rose to 383,000 up from the prior week's 373,000, revised up from the previously reported 370,000, the Labor Department reported Thursday. Economists had expected the report would be unchanged at 370,000 initial claims.

Through a state foreclosure prevention effort known as the Mortgage Payment Program (MPP), the State Employees' Credit Union (SECU) announced it has helped nearly 500 members receive program benefits. MPP was formed through the N.C. Foreclosure Prevention Fund and helps struggling homeowners who are falling behind on payments due to no-fault job loss or other hardships such as divorce, illness, or death of a co-signer. As part of the program, homeowners are offered zero-interest loans for a maximum of $36,000 to cover mortgage and related expenses up to 36 months.

As debate continues over California Attorney General Kamala Harris' Homeowner Bill of Rights, members of the California Democratic Congressional Delegation are questioning involvement by the Federal Housing Finance Agency (FHFA). A letter issued from the delegation Wednesday criticized another letter sent to the California State Legislative Conference Committee from FHFA general counsel Alfred Pollard on May 11.

In accordance with an agreement made with Memphis and Shelby County, Wells Fargo announced Tuesday it is investing $7.5 million into the area as part of new recovery efforts. Under the agreement, Wells Fargo will provide $4.5 million in grants for mortgage down payment and home renovation assistance. The agreement comes after months of negotiations and dismisses a lawsuit filed by Memphis and Shelby County against the bank at the end of 2009. The city and county alleged that Wells Fargo was engaging in discriminatory and deceptive lending practices and had violated the Fair Housing Act.

The MAA, an advocacy branch of the Mortgage Bankers Association (MBA), issued a call in support of the California MBA's efforts to stop legislation it said would cause serious damage to lenders, servicers, and California's economy. The bill in question would amend California's foreclosure laws to implement and permanently set servicing standards and other provisions of the settlement between the country's attorneys general and the five largest mortgage servicers. It is currently under review by the six-member Legislative Conference Committee on the California Foreclosure Crisis.

A foreclosure prevention agency found that the pending expiration of the Mortgage Debt Relief Act of 200 is prompting struggling homeowners to strategically default on their loan. YouWalkAway.com conducted a national survey and found 34 percent of respondents indicated that the act, which is set to expire December 31, 2012, contributed to their decision to walk away sooner rather than later from their property. The Mortgage Debt Relief Act releases homeowners from the obligation of paying taxes on mortgage debt forgiven from a short sale, foreclosure or modification.