Government

Recent Home Mortgage Disclosure Act (HMDA) data released by the Federal Financial Institutions Examination Council (FFIEC) revealed that 11 percent of lenders doubled their volume during the 2009 calendar year. Of those lenders, 40 percent use HMDA and compliance software from QuestSoft. One San Diego-based lender says QuestSoft's technology has cut the time needed to geocode and prepare its quarterly regulatory reports by 90 percent.

The Federal Reserve says economic recovery is continuing but at a rate that has been insufficient to bring down unemployment. Following its monetary policy meeting Tuesday, the central bank called progress toward its objectives of creating jobs, stabilizing prices, and fostering economic growth ""disappointingly slow."" Fed officials voted to keep the target range for the benchmark federal funds rate at 0 to 0.25 percent, and reiterated their commitment to purchase another $600 billion in long-term Treasury securities by June 2011.

The Obama administration's signature foreclosure prevention program will help only 700,000 Americans save their homes, according to a scathing report released Tuesday by the Congressional Oversight Panel. The group's assessment falls far short of the 3 to 4 million homeowners that the president pledged would receive more sustainable mortgage loans when the Home Affordable Modification Program (HAMP) was launched in March of last year, and is well below the 8 to 13 million foreclosures expected by 2012.

The average American's financial situation improved during the third quarter, according to data released by the Federal Reserve. The news is seen as a positive sign for the nation's mortgage markets, which have been stressed by an elevated number of borrowers struggling to fulfill their mortgage obligations because of deteriorating personal finances. The Fed says household wealth grew by 2.2 percent, or $1.2 trillion, during the third quarter as stock market gains offset the $700 billion that was lost on real estate assets.

A judge last week declined to issue a temporary restraining order against GMAC Mortgage's foreclosure and eviction procedures in Maine. This decision frees the mortgage servicer to proceed with foreclosure sales and evictions it had temporarily halted as part of an agreement with Maine Attorney General Janet Mills in November.

Interthinx was awarded a Federal Supply Schedule contract by the General Services Administration (GSA) to sell its products and services directly to federal government organizations. The contract streamlines the government procurement process and allows government customers to buy offerings at pre-negotiated rates. Interthinx will offer government customers access to mortgage risk mitigation tools.

After a three-week lull, bank closings have returned. State and federal regulators shut down two community-based lenders on Friday, one in Michigan and one in Pennsylvania. There have been 151 bank failures so far this year. The FDIC said last month that its list of so-called problem banks has grown. There are now 860 insured financial institutions under greater scrutiny from the federal agency because capital levels have fallen dangerously low.

With property values still tumbling, it's no surprise that nearly a quarter of the nation's mortgage borrowers owe more than their home is worth. Industry studies support the consensus that the farther a borrower sinks into negative equity, the more likely they are to throw in the towel. The severity of this catch-22 is now top-of-mind for government officials. The administration is reportedly pressuring Fannie Mae and Freddie Mac to make principal write-downs a key component of their foreclosure prevention efforts.

On Wednesday the House Republican Conference elected Rep. Spencer Bachus, (R- Alabama), to serve as chairman of the House Financial Services Committee for the 112th Congress. Bachus will replace Rep. Barney Frank (D-Massachusetts) as chairman when Congress convenes in January.

The Mortgage Bankers Association sent a letter to the Federal Housing Administration this week, expressing criticism of a proposal that would increase indemnification requirements on lender-issued loans. The proposed regulation would allow FHA to require lenders to compensate the agency for losses incurred on certain loans. Traditionally the FHA can only request such recompense. MBA feels the federal agency would use the policy to find ""small, inconsequential reasons"" to require indemnification.