Foreclosure

HUD recently announced the availability of $79 million in grants for a broad range of housing counseling programs to help families find and preserve housing. This represents an increase of $21 million, or 27 percent, over last year's funding. According to HUD, these grants will be awarded competitively to approximately 550 HUD-approved counseling agencies and state housing finance agencies across the nation to help families stave off foreclosure, avoid mortgage scams, and improve their credit scores.

A new report published by RealtyTrac Thursday shows that 75 percent of the nation's largest metro areas posted increases in foreclosure activity during the first half of 2010. RealtyTrac says it's seeing early signs that foreclosures may have peaked in some hard-hit markets, but with three-quarters of the nation's most populated metros showing continued increases in foreclosure filings, the numbers illustrate just how fragile the housing recovery really is.

The PMI Foundation, the philanthropic arm of the PMI Group, Inc., has awarded a $50,000 grant to the Consumer Credit Counseling Service (CCCS) of San Francisco. The grant will support continued funding for CCCS of San Francisco's nationwide mortgage default counseling program and homebuyer education initiatives.

U.S. Reps. John Lewis, David Scott, and Hank Johnson have joined forces with HUD, the U.S. Department of Treasury, the HOPE NOW Alliance, and NeighborWorks America for an upcoming event aimed at helping financially troubled homeowners in the Atlanta area. The event, dubbed the ""Help for Homeowners"" project, is scheduled for July 30 and July 31. Nearly 20 of the area's top lenders will be available at the event to meet one-on-one with area residents who are struggling to pay their mortgages. The event, dubbed the Help for Homeowners project, is scheduled for July 30 and July 31.

As part of an ongoing effort against scams that target financially distressed consumers, the Federal Trade Commission (FTC) has banned several marketers from selling mortgage modification or foreclosure relief services. According to the FTC, the marketers allegedly charged homeowners up-front fees and falsely claimed they could get their mortgage modified or prevent foreclosure on their homes. Settlements regarding these allegations have been met through three separate actions.

Faced with growing criticism of its Making Home Affordable foreclosure prevention program, the Obama administration is turning to the tried and true method of advertising to raise public awareness of the program and encourage homeowners who are struggling with their mortgage payments to seek assistance from the federal government. The Advertising Council, in partnership with the U.S. Treasury and HUD, announced plans Wednesday to launch a national public service announcement (PSA) campaign about the Making Home Affordable program.

Fannie Mae and Freddie Mac are beginning to initiate foreclosures at a faster pace. According to a new study from Lender Processing Services (LPS), GSE foreclosure starts have been accelerating and are currently at all-time highs. From May to June, foreclosures initiated by Fannie and Freddie jumped 21 percent. LPS says the recent momentum coincides with Home Affordable Modification Program (HAMP) cancellations, with most of the increase and volume concentrated in the very late stages of delinquency.

The National Association of Real Estate Brokers (NAREB), a Washington, D.C.-based trade association composed of minority professionals in the real estate industry, has formed strategic partnerships with PartnerFirst, LLC, and Integrated Mortgage Solutions (IMS). NAREB teamed up with PartnerFirst to create a certified, nationwide, and multicultural short sale agent network that it says will help minority communities across America avoid foreclosure. And the association joined forces with IMS to engage minority business as subcontractors.

Prommis Solutions, LLC, an Atlanta-based provider of technology-enabled solutions to the mortgage banking industry, has appointed John Marecki as a VP within the company's East Coast foreclosure operations unit. In this new role, Marecki is responsible for managing a multi-state foreclosure platform with an immediate focus on spearheading the company's Florida expansion efforts.

Last month, Fannie Mae announced new policy changes intended to deter financially competent homeowners from walking away from their mortgage obligation by imposing stiffer penalties for strategic default - a phenomenon that has become increasingly more common as home prices have plummeted and more and more borrowers find that they owe more on their mortgage than the home is worth. But the analysts at Moody's Investors Service say the GSE may encounter snags ahead since figuring out who to penalize for strategically walking away will be a significant challenge and implementing the policy could be difficult.