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Administration’s Search for FHFA Head Begins Again

President Obama's nominee to take the role of Federal Housing Finance Agency (FHFA) director and lead the government's efforts to reform the housing finance system has pulled his name out of the running. Joseph A. Smith, Jr. has served as North Carolina's banking commissioner for the past eight years, and he was the White House's top pick to head the agency charged with overseeing Fannie Mae and Freddie Mac.

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Homeownership Levels Lowest Since 1998, More Declines Predicted

Homeownership levels posted Monday by the U.S. Department of Commerce are, at 66.5 percent, the lowest they have been since the fourth quarter of 1998. By contrast the rental vacancy rate decreased 0.9 percent from the rate in the third quarter of 2010, and is the lowest it has been since the first quarter of 2003. Analysts say the nation's homeownership rate is likely to fall further, as evidenced by a combination of weak housing demand and high supply.

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HAMP Reaching Underwater and Middle Class Borrowers: Report

Treasury and HUD released a new report Monday on the state of the housing market, including new metrics that provide a more granular view of the Home Affordable Modification Program (HAMP). Most program participants are moderate and middle income distressed homeowners, with a median credit score of 570, who are underwater on their mortgages. Borrowers in active permanent modifications have seen their monthly mortgage payment cut by a median of 40 percent.

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Initial Registration Period for SAFE Act is Now Open

On Monday, January 31, the federal bank, thrift, and credit union regulatory agencies, along with the Farm Credit Administration began accepting federal registrations for licensing under the Secure and Fair Enforcement for Mortgage Licensing (SAFE) Act. Under the SAFE Act, originators of residential mortgage loans employed by banks, savings, associations, credit unions, or Farm Credit System institutions must register with the registry, obtain a unique identifier from the registry and maintain their registrations.

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Bad Commercial Real Estate Loans Push Four More Banks into Failure

State and federal regulators seized control of four more community-based lenders over the weekend - in Colorado, New Mexico, Oklahoma, and Wisconsin. That brings the failed-bank tally to 11 for the year. Commercial real estate (CRE) woes remain front and center for failed banks, according to the analysts at Foresight Analytics. In fact, for 10 of the 11 banks that have been shut down since the beginning of the year, the company says CRE loans contributed more than half of the banks' nonperforming loans.

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FHA Extends ‘Anti-Flipping Waiver’ to Speed Sales of REO Homes

The Federal Housing Administration (FHA) announced Friday that it is extending the suspension of its 'anti-flipping rule' through the remainder of 2011. FHA Commissioner David Stevens says the temporary waiver will accelerate the resale of foreclosed homes in neighborhoods that are overrun with abandoned properties and blight. The move is intended to help stabilize home values and improve conditions in communities experiencing high foreclosure activity.

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Fed Publishes Guidance on Loan Officer Compensation

Heeding pleas from industry groups across the country, the Federal Reserve has issued additional guidance to help smaller mortgage lenders and loan brokers comply with new compensation rules that take effect April 1, 2011. Pay structures in which brokers and loan officers are compensated based on the interest rate have been blamed for pushing consumers into unsustainable mortgages and contributing to rising delinquencies. The new rule prohibits this practice to ensure consumers are not steered into loans they can't afford.

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Rural Communities in Virginia Facing Highest Rates of Foreclosure

A Virginia housing advocacy group released data this week that shows the housing circumstances in rural Virginia are arguably some of the direst in the nation. Key findings of the report say that the largest increase in foreclosure filings last year occurred in rural Virginia, easing only slightly when banks began moratoriums to review their foreclosure processes.

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HUD Terminates FHA Approval of 15 Lenders

HUD announced this week that it has terminated the Origination Approval Agreements of 15 mortgage lenders' Homeownership Centers due to poor performance and high default rates. In addition, the federal agency terminated eight lenders' Direct Endorsement (DE) approval. Lenders with Direct Endorsement agreements are authorized to both originate and underwrite an FHA loan. HUD's regulations permit the agency to terminate its agreement with any mortgagee whose default and claim rate exceeds a certain threshold based on their geographic area.

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Treasury Appoints General Counsel and Deputies for CFPB

On Wednesday, Treasury announced its newest appointments for the leadership team of the Office of the General Counsel within the Consumer Financial Protection Bureau (CFPB) implementation team. The CFPB will have statutory oversight of mortgage lending and the power to set new rules for home loans and other consumer-facing credit products. Len Kennedy will serve as general counsel, and Meredith Fuchs will serve as principal deputy general counsel. Roberto Gonzalez and Michael Gordon will serve as deputy general counsels.

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