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Loss Mitigation

Judge Throws Out Case Against Countrywide

A New York judge threw out a case against Countrywide Financial by investors who wanted the company to buy back mortgages that it had reduced payments for. Investors claimed it is unfair for them to have to absorb the cost of modified loans, and that Countrywide was required under contract to buy back any mortgages that it modified. In 2008, Bank of America agreed to an $8.4 billion settlement with attorneys general from several states regarding predatory lending charges against Countrywide.

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Congressional Panel Sees Conflicts of Interest from TARP Contractors

The Congressional Oversight Panel has ""significant concerns"" related to accountability and conflicts of interest because of Treasury's extensive use of private contractors to carry out functions for the Troubled Asset Relief Program (TARP), particularly foreclosure prevention efforts. The largest TARP contracts were awarded to Fannie Mae and Freddie Mac. Fannie alone employs 600 workers on TARP's foreclosure programs, while Treasury has only 220 staffers working on all TARP programs combined.

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JPMorgan Posts $4.4B Profit, Expands Foreclosure Review to 41 States

JPMorgan Chase kicked off the third-quarter earnings season Wednesday, and the company says profits are up 23 percent from a year ago. JPMorgan brought in $4.4 billion in net income during the quarter, beating analysts' expectations. During a conference call with investors, CEO Jamie Dimon announced that the company has expanded its foreclosure review to 41 states and 115,000 loan files. He also said the bank will stop using the Mortgage Electronic Registration System (MERS).

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Report: 134,000 NY Homeowners Receive Pre-Foreclosure Notices

According to the New York State Banking Department, more than 76,000 New York homeowners have received 90-day pre-foreclosure notices since May 31, and a total of 134,000 pre-foreclosure notices have been sent to those who have fallen behind on mortgage payments since data collection began in February. The banking department says it is working with 10 non-profit housing counseling agencies throughout the state, which use the data to target their services to those homeowners most at-risk.

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Mortgage Contracting Services Launches Photo Inspection Capability

Mortgage Contracting Services LLC (MCS), a nationwide provider of property preservation, inspections and REO property maintenance, is now providing photo inspection services to supplement the traditional data required for valuations, proof of property condition, and other verification reporting.

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South Florida Housing Market Showing Signs of Recovery

It's no secret that the housing market in Southern Florida is bleak, but a new report from Condo Vultures, LCC reveals that things are looking up for the Sunshine State. The locally based tracking firm says lenders filed foreclosure actions on $3.5 billion in outstanding loans in South Florida during the third quarter, which is a 38 percent decrease compared to a year earlier. According to Condo Vultures, it looks as if 2009 could turn out to be the worst year for foreclosures in South Florida.

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HUD Proposes Tighter Rules to Recoup Losses from FHA Lenders

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.

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Equator Introduces Solution for Invoice Tracking and Approval

In an effort to simplify the invoicing process and expedite reimbursements for the servicing industry, Equator has created an invoice tracking system called EQ Invoice Module. The company says the system streamlines the approval process by allowing servicers to configure different rules per portfolio and communicate with agents and vendors online. All existing Equator clients have access to the new EQ Invoice Module.

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HUD to Roll Out Emergency Loan Program for Unemployed by Year-End

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.

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Unemployment Rate Holds at 9.6% as Economy Sheds 95,000 More Jobs

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.

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