Foreclosure

A total of 25,485 suspicious activity reports (SARs) involving mortgage fraud were submitted to the Financial Crimes Enforcement Network in the first quarter, up 31 percent from a year earlier. The agency attributes the increase to more demands from investors for lenders to repurchase poorly performing mortgages, which have prompted additional loan reviews. Officials also found a number of incidents involving foreclosure rescue scams, false claims of identity theft, and property flopping.

Financial Literacy Solutions LLC (FLS) is providing a video solution for loan mediation to Consolidated Credit Counseling Services, Inc. FLS offers Web-based custom videos and automated forms and materials that enable the borrower to learn about the mediation process. Consolidated Credit says as more states across the nation enact regulations that require mediation as part of the default process, it has seen demand for counseling services rise dramatically.

One in 10 residential mortgages in New York City is more than 90 days delinquent or in foreclosure, according to an analysis conducted by the Federal Reserve Bank of New York. The study also revealed that the ratio of New York City borrowers at least three months behind on their payments, but not in foreclosure, has improved from 5.4 percent in February 2010 to 3.8 percent as of March 2011. Mortgage performance statistics were also released for Long Island and Hudson Valley.

Florida's Second District Court of Appeal has denied a petition brought by the American Civil Liberties Union (ACLU) alleging that the state's special ""mass foreclosure docket"" established to help clear Florida's case backlog doesn't allow homeowners an opportunity to defend their homes against foreclosure. The case before the appellate court was viewed as a pivotal one by the advocacy group, although state legislators did not renew funding for these special courts for the 2011-2012 fiscal year, which begins in July.

Tight credit conditions for first-time buyers and a foreclosure pipeline full of homes bought with subprime loans mean that house prices at the low end of the market will continue to fall at a faster rate than prices at the middle and high end, according to Capital Economics. The bulk of these low-end homes consists of distressed properties, which already carry steep discounts as lenders and investors try to capture a piece of the limited demand out there to get these homes off their books and back into the hands of responsible homeowners.

Bendett & McHugh, P.C. recently announced that it has promoted Renee Bishop to the position of attorney manager and department head of the firm's real estate, REO, and eviction departments. Bishop has performed management responsibilities in these areas at the firm for a number of years now. She has been with Bendett & McHugh for nine years and has almost 15 years of real estate and eviction experience.

Housing counseling increases the likelihood that a homeowner will be granted a loan modification by 200 percent, according to a research study from the Federal Reserve. The central bank also found that counseled borrowers received more favorable terms on their loan modifications compared to borrowers who go it alone. The Homeownership Preservation Foundation says these, among other findings, show that mortgage counseling works, but the availability of these services are in jeopardy due to federal budget cuts.

The nation's second largest mortgage company has again reported a decline in the percentage of loans it holds that are 90 or more days past due and in foreclosure. Freddie Mac says its serious delinquency rate for single-family mortgages dropped to 3.53 percent in May. That's down four basis points from 3.57 percent the month before and down 53 basis points from 4.06 percent in May 2010. May's rate was the lowest it's been since September of 2009.

Woodward Asset Capital recently announced improvements to its OfferSubmission and VerifiedShortSale products, which were developed to speed transaction times, prevent fraud, and ensure loss recovery for asset owners. Updates include rules-based offer routing and decisioning, enabling the loan servicer, senior management, outside third-party investors, and mortgage insurers to weigh-in on sale negotiations between the asset manager and buyer's agent in real time, shaving days off the sales cycle.

Backlogged foreclosures, severe oversupply, and negative equity are pulling home prices down further, according to Radar Logic. The company tracks 25 major metropolitan areas across the country. Its latest index recorded a decline in the composite reading of 5.1 percent in April when compared to April 2010. The monthly sales rate remained more than 9 percent below April 2010. While sales of non-foreclosed homes increased more quickly than sales of foreclosed homes, RadarLogic says foreclosures are selling at an average discount of 39 percent.