Government

The Federal Housing Finance Agency has sent a proposed rule to the Federal Register to establish a framework for conservatorship and receivership operations for Fannie Mae, Freddie Mac, and the Federal Home Loan Banks. Several key issues are addressed within the proposed rule, including the status and priority of claims, the relationships among various classes of creditors and equity-holders, and the priorities for contract parties and other claimants under conservatorships or receiverships.

As part of outreach through the National Stabilization Program, HUD recently announced an agreement with foreclosure-rocked Cuyahoga County in Cleveland, Ohio. Under this new agreement, HUD will sell homes to the Cuyahoga County Land Reutilization Corporation (CCLRC) for deeply discounted prices, which the CCLRC can then repair and resell in an effort to prevent neighborhood blight through the county. HUD said this agreement is similar to another successful program run in Cleveland where HUD sold 441 properties to the city at reduced prices.

Hawaii Gov. Linda Lingle has joined lawmakers and governors in 13 other states across the country who are taking action to protect American homeowners from losing equity in their homes. Lingle has signed a new state law that places a ban on Wall Street Home Resale Fees, also known as private transfer fee covenants. These fees are sometimes worked into the language of home purchase contracts and require that a percentage of the sales price be paid to the original corporate owner of a property every time the property is sold, typically for 99 years.

The government's bailout of just two companies - Fannie Mae and Freddie Mac - has surpassed what it cost to put the nation's sprawling banking system back on solid footing. As problems in the housing market pushed the two mortgage giants farther and farther into the red, the federal government stepped in, placing the companies in conservatorship in September 2008. So far, the two GSEs have been given $146 billion to stay afloat. And recent estimates from the Congressional Budget Office put the tab for subsidizing Fannie and Freddie at $389 billion, when all is said and done.

Troubled homeowners seeking foreclosure assistance now have more resources available to them than ever before, according to the Center for American Progress. In a report released in late June titled ""Now We're Talking-A Look at Current State-Based Foreclosure Mediation Programs and How to Bring Them to Scale,"" the Washington, D.C.-based think tank reveals that the number of jurisdictions with foreclosure mediation programs is double what it was a year ago, rising from only 11 to 21.

Two of the most recognizable law firms involved in public policy combined yesterday, as Washington, D.C.-based Patton Boggs LLP acquired the Breaux-Lott Leadership Group. Patton Boggs has played a key role in every major piece of legislation and regulatory decision for nearly half a century, while the Breaux-Lott Leadership Group was one of the nation's fastest growing lobbying boutiques.

Green River Capital, an REO asset management and loss mitigation firm based in Utah, recently announced that it has been awarded a contract from the U.S. Government Services Administration to provide its services to government agencies. The companys said it completed a lengthy and rigorous application process to demonstrate the intrinsic value of its services, its compliance with Federal Acquisition Rules, and its willingness to provide best pricing for federal customers.

It's official--on Friday morning, President Obama signed legislation to extend the closing deadline for homebuyer tax credit recipients. The estimated 180,000 buyers at risk of missing out on the credit can now breathe a sigh of relief. The president's approval of the Homebuyers Assistance and Improvement Act of 2010 extends the closing date from June 30, 2010 to September 30, 2010, giving qualified buyers an extra three months to complete their closing.

The nation's unemployment rate fell to 9.5 percent in June, down slightly from May's rate of 9.7 percent, the U.S. Department of Labor reported Friday. Total nonfarm payroll employment declined by 125,000 in June, reflecting the departure of 225,000 temporary Census 2010 workers from federal government payrolls. Private-sector employment continued to inch up, though, as 83,000 new jobs were added over the month.

In a 237 to 192 vote Wednesday night, the House declared themselves in favor of the Dodd-Frank Wall Street Reform and Consumer Protection Act--more commonly known as the Financial Reform Bill. Having passed the House, the bill must now be approved by the Senate, a vote which is not expected until later this month. If it succeeds in the Senate, this legislation aims to curb the practices that helped lead to a national mortgage crisis.