Loss Mitigation

The Federal Reserve announced Tuesday that it assessed a fine to MetLife for $3.2 million due to the life insurer's ""failure to adequately oversee its subsidiary bank's mortgage loan servicing and foreclosure processing operations.""

FHFA issued a notice Wednesday to warn of the controversial use of eminent domain proposed in San Bernardino County. In the notice, which was sent to the Federal Register, FHFA stated it had 'significant concerns"" about the use of eminent domain to revise existing contracts and alter the value of GSE or Federal Home Loan Bank securities holdings. FHFA said that in relation to the Fannie Mae and Freddie Mac, the use of an eminent domain program could result in a cost to taxpayers.

When including distressed sales, CoreLogic reported a 2.5 percent yearly increase in home prices in June, and a 1.3 percent increase month-over-month from May. The rise in home prices is the fourth consecutive increase on a yearly and monthly basis, and CoreLogic's Pending HPI is forecasting at least a 0.4 percent monthly increase in July. In response to CoreLogic's report, Capital Economics said that while the gain in June is strong, ""the latest rise was marginally weaker than we would expect in a typical June, meaning that seasonally-adjusted house prices actually eased a touch.""

Governor Deval Patrick of Massachusetts signed into law a bill Friday that will require lenders to first determine the value of modifying a loan before foreclosing on a home. If a modification will bring in a greater financial advantage, then lenders must opt for a modification over a foreclosure.

HUD and Treasury Department released the latest scorecard Friday, providing a look at a market in recovery but threatened by an expected increase in foreclosure activity. According to the report, foreclosure starts and completions both declined in June, painting a picture of continued recovery. However, officials expect foreclosure activity to pick up in coming months as firms lift delays in foreclosure processing.

The nation added a surprising 163,000 jobs in July but the unemployment rate ticked up to 8.3 percent as the number of people working actually declined, the Bureau of Labor Statistics reported Friday. At the same time, June's paltry job gains originally reported at 80,000 were reduced to 64,000 while May's job numbers edged up to 87,000 from 77,000.

The deadline to request an Independent Foreclosure Review got its second extension in less than two months. In late June, the deadline was pushed back from July 31 to September 30, 2012. Now, borrowers have until until December 31, 2012 to request a foreclosure review, the Office of the Comptroller of the Currency (OCC) and the Fed announced Thursday.

Servicers have three years to provide relief to homeowners as outlined in the $25 billion national mortgage servicing settlement. To raise awareness and alert homeowners of the help that is available, HUD Secretary Shaun Donovan and Iowa Attorney General Tom Miller announced during a conference call a new settlement PSA and online resources through the HUD website.

The National Association of Real Estate Brokers (NAREB) announced Wednesday that it is ready to launch the next phase of its foreclosure mitigation initiative, the Homeowner's Assurance Program (HAP).

First-time claims for unemployment insurance rose 8,000 for the week ended July 28 to 365,000, the Labor Department reported Thursday. Economists surveyed by Bloomberg had expected 370,000 initial claims. The prior week's total was revised up to 357,000 from the originally reported 353,000.