Foreclosure

Bank of America is expanding its foreclosure freeze from the 23 judicial states to include all 50 states. Consumer advocacy groups, state attorneys general, and federal lawmakers are all calling for GMAC Mortgage and JPMorgan Chase to also extend their foreclosure moratoriums nationwide. PNC Financial has reportedly become the fourth major lender to institute a foreclosure suspension in the judicial states. An announcement is expected to come as early as Tuesday of a joint investigation by attorney general offices in as many as 40 states.

The Florida-based law firm of Shapiro & Fishman won a victory in court this week when a Palm Beach County judge quashed the state attorney general's subpoena to examine the firm's foreclosure practices. Judge Jack S. Cox ruled in favor of the firm's motion to halt the investigative subpoena issued by Florida Attorney General Bill McCollum on August 6th. Judge Cox said the attorney general had no jurisdiction to regulate or discipline the conduct of attorneys. He called the subpoena ""overbroad, vague, and unduly burdensome.""

JPMorgan announced it will hire as many as 175 full-time employees in its Cleveland, Michigan mortgage operation center and as many as 125 in its Columbus, Ohio center by year-end, thanks to a successful summer in its mortgage sector. The company reported a net income of nearly $5 billion for the second quarter of 2010, which was up from both Q1 2010 and Q2 2009.

The New York State Division of Housing and Community Renewal on Wednesday awarded $848,384 to the Center for New York City Neighborhoods (CNYCN) and the New York City Department of Consumer Affairs Office of Financial Empowerment (DCA's OFE). The money has been allotted to provide free financial counseling and to expand CNYCN's call center operations for at risk homeowners, which takes calls from New York City's general information line.

New data released by the HOPE NOW Alliance Thursday shows that during the month of August, mortgage servicers completed approximately 116,000 proprietary loan modifications for homeowners and 33,000 mods under the Home Affordable Modification Program (HAMP), for a total of 149,000. The report also shows that foreclosures are continuing to increase, despite the strides made in foreclosure prevention efforts. In August, new foreclosures were initiated on 245,015 properties, while foreclosure sales were completed on 101,780.

A controversial notary bill has flown under the radar amid reports of servicers' ""robo-signers"" who reflexively shoveled foreclosure cases through the pipeline without having the documents properly notarized. The bill would require state and federal courts to recognize any notarization made by a licensed notary public in any state. Critics say it would make it harder for borrowers to contest the legality of a foreclosure on the grounds of improper documentation. The bill has passed both chambers of Congress, but President Obama says he will not sign it.

Wells Fargo & Co. announced this week that from December 18, 2010, through June 30, 2013, Wachovia Pick-a-Payment customers who are at-risk of default may be eligible to earn principal forgiveness by making on-time mortgage payments. The company says it has already written mortgage principals down by a total of nearly $3.4 billion for Pick-a-Payment customers. The bank will also contribute $24 million to eight states to help with customer outreach and alleviate the impact of foreclosure in local communities.

Data released by Clear Capital Thursday shows that quarter-over-quarter home prices were down 0.2 percent in September compared to the previous month's reading. It's the first time in months the company has seen national home prices slip into negative territory. Clear Capital says signs of a slowdown are apparent and likely mark an early onset of the typically weaker winter season. However, the company says home prices are still 10 percent above their 2009 lows, so the risk of carving out a new trough this year remains small.

The foreclosure paperwork gaffe at GMAC Mortgage has garnered heavy attention from the highest legal counsels in states across the country, and at least one attorney general is pressing charges. In a lawsuit filed Wednesday against GMAC Mortgage and Ally Financial, Ohio Attorney General Richard Cordray accuses the loan servicer and its agents of filing fraudulent affidavits in an attempt to mislead Ohio's courts. He is seeking a preliminary foreclosure injunction, $25,000 for every violation, and consumer restitution.

According to recently released reports from the Nevada Title Company, the closing price for homes in Las Vegas Valley was $135,000 in September, down $5,000 from the closing price in August and down $3,000 from September 2009. Last month, 984 REO homes and 734 short sales were closed, making up 40 percent and 31 percent of all closings in the Valley, respectively. The latest figures from Nevada Title suggest that REO inventory, although high, may begin to steady in coming months.