Government

The Federal Trade Commission (FTC) has initiated rulemaking proceedings to address loan modifications and mortgage servicing. The agency’s Mortgage Assistance Relief Services rulemaking addresses the proliferation of loan modification and foreclosure rescue services in the current economy.

The Federal Housing Administration (FHA) laid out the details of a new policy Mortgagee Letter 2009-15 ] on Friday that will allow first-time homebuyers to apply the $8,000 federal tax credit toward the purchase costs of an FHA-insured home.

Bank of America says it modified more than 64,000 Countrywide mortgages between December and March. The workouts are part of the bank’s agreement with 42 state attorneys general to settle predatory lending charges against its Countrywide subsidiary.

The federal district court for the Southern District of California in San Diego has denied Countrywide Financial Corp.‘s motion to dismiss a consolidated class action complaint against the lender, which challenges Countrywide’s subprime mortgage marketing and lending practices.

The FDIC has certified Next Wave Advisors Inc. to assist the agency with a variety of real estate services, including lender workouts, asset valuation, and disposition of property acquired through bank takeovers and liquidations.

As more people struggle to pay their mortgages, large and small banks alike have taken the hit. The FDIC reported on Wednesday that 305 banks have made the agency’s high-risk list, and more are expected as the recession and housing crisis continue.

Freddie Mac released the results of its Primary Mortgage Market Survey (PMMS) on Thursday, which shows that interest rates increased across the board this week. According to Freddie Mac’s VP and chief economist Frank Nothaft, mortgage rates followed long-term bond yields higher, with only the one-year adjustable-rate mortgage coming in lower than it was last week.

On May 8, the Federal Reserve Board finalized its early disclosure rules within Regulation Z (Truth-in-Lending Act – TILA) that are set to take effect July 30 and are meant to ensure consumers receive disclosures explaining the cost of a mortgage earlier in the lending process.

Some financial institutions are petitioning federal regulators to let them wear two hats to the administration’s Public-Private Investment Program (PPIP). They want to be able to use public money from the government to help them buy back the so-called toxic assets that they and other banks put up for sale.

At the Federal Trade Commission’s (FTC’s) request, a federal district court recently issued an order to stop an Internet-based operation that pretends to function as MakingHomeAffordable.gov, the official Web site of the federal housing relief program for free mortgage loan assistance.