Government

Modified mortgages held by Fannie Mae and Freddie Mac could go up for sale at some point, according to the companies' regulator. Since the GSEs were seized by the government, they have completed modifications on 849,000 mortgages. The sale of these assets is one option being discussed as part of a strategy to shrink their portfolios. The head of the Federal Housing Finance Agency told lawmakers that they are looking at a range of possible structures for disposing of certain assets, which could include non-performing and modified loans.

Four senators have drafted a letter they intend to send to key policymakers advocating for the return of federal dollars to HUD's housing counselor program. Congress eliminated funding slated for the federal program, which supports counseling efforts for foreclosure prevention, back in April as part of the 2011 budget resolution. Sens. Akaka, Menendez, Snowe, and Rockefeller are asking that $87.5 million be included in the 2012 budget to fund the HUD program, and they're soliciting their Senate colleagues for additional support.

Potestivo & Associates, P.C., a legal provider in the real estate finance and credit industry, will represent the FDIC as outside counsel in Michigan and Illinois, according to a statement from the firm. The AV-rated firm, which includes more than 100 team members, handles all aspects of default servicing, including residential and commercial foreclosures, bankruptcies, landlord tenant, title resolution, home retention services, REO disposition, and litigation.

The attorneys general for the states of Illinois and California are casting a wider net in their investigations of faulty foreclosure paperwork, issuing subpoenas against two Florida-based firms that provide mortgage servicing support to lenders and servicers across the country. The state counsels say they have received reports of robo-signing practices on the part of the two firms - LPS and Nationwide Title. Statements from the AGs indicate that the reach of both companies and their extensive client bases have put them on the radar.

Bank of America will leverage the federal government's Hardest Hit Fund (HHF) through participation in unemployment assistance programs in all 18 eligible states and the District of Columbia. The HHF targets states with sustained unemployment rates at or above the national average and falling property values. Collectively, state housing finance agencies have about 2,700 applications for unemployment assistance in process for BofA customers and have provided $2.8 million toward mortgage payments for the benefit of more than 700 customers.

The Ohio Attorney General's office and Ohio Department of Commerce have announced an assurance of voluntary compliance (AVC) with Carrington Mortgage Services, LLC to resolve a 2009 lawsuit. The AVC will also provide relief to Ohio homeowners facing foreclosure. The three parties agreed to several mortgage servicing standards that will apply to all Ohio loans serviced by Carrington Mortgage Services, including providing borrowers who complete a modification application with a single point of contact.

Oklahoma Governor Mary Fallin recently signed legislation to restrict Wall Street home resale fees, also known as private transfer fees. The fees require that a private third party receive a percentage of the final sale price of a home every time the property is sold, typically for 99 years. Oklahoma is the 30th state to restrict their use. On the federal level, the Federal Housing Finance Agency has issued a proposed rule that would prevent Fannie Mae and Freddie Mac from investing in mortgages with these fees.

GMAC Mortgage said Tuesday that the company has signed contracts with all states participating in the Treasury Department's Hardest Hit Fund (HHF). The HHF program was established to provide targeted aid to homeowners in states hit hard by the economic and housing market downturn, specifically, states where unemployment rates are above 12 percent and home prices have experienced the steepest drops.

Negotiation talks continued this week between state attorneys general and the nation's largest mortgage servicers to settle robo-signing allegations, and those on the states' side of the table began throwing out big numbers to convince servicers they should ante up. Attorneys general advised representatives from the five largest servicing shops that they would be on the hook for at least $17 billion from civil lawsuits alone if the two parties don't reach a settlement agreement.

Quandis, Inc., a provider of default management technology solutions, recently launched a service that runs searches on active military personnel. The technology was developed to allow mortgage servicers to comply with the Servicemembers Civil Relief Act (SCRA), which dictates that servicers and foreclosure attorneys must follow certain processes before foreclosing on an active person in the U.S. military.