Government

The state of New Jersey is trying a new and innovative approach to help streamline the foreclosure process and clear its backlog of cases. The state's court system is testing an electronic filing system for foreclosure actions. The New Jersey-based law firm of Parker McCay is one of 10 firms selected to participate in the pilot, which launches July 1st.

In an effort to help every qualified Mississippian own a home, the Mississippi Development Authority is overseeing a limited-time grant program. Authorized through HUD, the ""Home Buyer Advantage"" program provides one-time downpayment assistance grants ranging from $14,999 to $39,999 to individuals buying foreclosed property as a primary residence in Mississippi.

Oregon Housing and Community Services, one of five state housing finance agencies selected to receive foreclosure assistance funds through the second round of the administration's Hardest Hit Fund, has submitted a proposal to the Treasury Department detailing how it plans to use its $88 million allocation. The department said its proposal, which comprises five separate programs, will serve a minimum of 6,300 struggling homeowners.

Home loan servicers are continuing to step up efforts to put distressed homeowners into more sustainable mortgages, according to data released this week by HOPE NOW. The number of loan modifications offered to homeowners during the month of April - more than 172,000 - represents a 46 percent increase compared to a year earlier, when the industry completed nearly 118,000 loan mods. Nearly two-thirds of the April 2010 number were through servicers' own proprietary, non-government mod programs.

In an announcement Tuesday, Ginnie Mae described specific details surrounding two important operational changes to Ginnie II multiple-issuer pools. The program changes are aimed at minimizing financial risk for warehouse lenders and making the program more efficient for all lenders, the association said in a statement.

Fannie Mae and Freddie Mac both issued new guidelines to servicers Tuesday, which allow homeowners with GSE loans to pursue a short sale or deed-in-lieu of foreclosure if they are unable to secure a modification under the government's foreclosure prevention program. GSE loans were oddly excluded from the Treasury's Home Affordable Foreclosure Alternatives (HAFA) program when it was rolled out in early April, but by August 1, 2010, all Fannie and Freddie servicers must begin offering HAFA solutions to eligible borrowers.

The Federal Housing Finance Agency announced Tuesday that it has sent a proposed rule to the Federal Register implementing provisions of the Housing and Economic Recovery Act of 2008, which establish a duty for Fannie Mae and Freddie Mac to serve very low-, low-, and moderate-income families in three specified underserved markets -- manufactured housing, affordable housing preservations, and rural markets.

It looks as though escalating past due mortgages may be a thing of the past for the Federal Housing Administration (FHA). The federal mortgage insurer's delinquency rate dropped again in April, marking the third straight month of declines. According to FHA's latest operations report, as of April 30, 527,504 mortgages had spent at least 90 days in a delinquent status, yielding a serious default rate of 8.5 percent. That's down from 8.8 percent in March and 9.2 percent in February.

Five financial institutions - three in Florida and one each in California and Nevada - found regulatory officials at their doors Friday evening, discharged to close down their operations. This latest round of seizures brings the total number of insured-bank failures for the year to 78, and will cost the FDIC $317 million.

The Treasury's most recent Home Affordable Modification Program (HAMP) report shows ""extremely low conversion rates,"" with success just a 50/50 gamble, according to Moody's Investors Service. As of the end of April, servicers had converted almost 300,000 permanent modifications. However, they had also canceled 277,640 trial mods. Moody's says this represents approximately a 50 percent success rate. The report also shows 3,744 permanent modifications have been canceled.