Government

The federal government's Troubled Asset Relief Program (TARP) officially hit its expiration date last week. For the past two years, the controversial $700 billion bailout package has drawn the ire of critics from nearly every corner. In an op-ed piece, Treasury Secretary Timothy Geithner sets out to dispel what he says are the five most popular myths surrounding TARP, including the cost to taxpayers and the idea that it was a carefully wrapped gift for Wall Street.

HUD is recommending new regulations to force lenders to reimburse the Federal Housing Administration (FHA) for insurance claims paid on mortgages that don't meet the agency's underwriting guidelines. The proposed rule would also require all new and existing FHA lenders to meet stricter performance standards to gain and maintain their approval status. FHA, at its own discretion, without any judicial or administrative action necessary, will have the authority to immediately withdraw a lender's ability to insure mortgage loans.

Last Tuesday's conference titled Through the Lens of Housing: New England Economic Recovery hosted by the Federal Home Loan Bank of Boston yielded some interesting answers from polled attendees. The attendees were asked questions to determine what they felt would help lead to an economic recovery in the New England area.

To help counter the effects of the still-deteriorating job market on the housing industry, the Dodd-Frank Reform Act provided $1 billion to HUD to implement the Emergency Homeowners Loan Program. The initiative provides eligible borrowers in 32 states and Puerto Rico with a ""bridge loan"" to continue making their mortgage payments for up to 24 months. HUD expects to begin taking applications from borrowers for assistance by the end of the year.

Getting more people back to work is key to not only the nation's economic recovery, but to a recovery in housing as well. The nation's high level of unemployment has become one of the primary triggers of default among struggling homeowners. But figures released Friday show that job creation remains an elusive ideal here in the United States. In September, 95,000 jobs were lost. The decline was far more than analysts were expecting, although the unemployment rate held steady at 9.6 percent.

The city of Belen, New Mexico has planned their first-ever statewide Code Enforcement Summit, designed to benefit the code enforcement community by building relationships with field services companies who perform preservation services. The summit will take place Wednesday, Oct 13 and Thursday, October 14 at the Holiday Inn Express Conference Center in Belen.

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.