News

Foreclosure starts rose for the first time in eight months in May but there is still reason to be optimistic about the United States housing market according to the latest Mortgage Monitor Report of the latest available data released by Black Knight Financial Services. The report indicated that foreclosure starts nationwide rose by 9.5 percent.

Risk of fraud in property valuations spiked in the first quarter, according to a report released Wednesday by risk analytics firm Interthinx. Analysts for Interthinx attribute the increase in valuation fraud risk to a rise in buyers purchasing and listing multiple properties in the same neighborhood.

Citing people familiar with the matter, the Wall Street Journal reported Tuesday that Nationstar, a large mortgage processor with millions of mortgages in its portfolio, was temporarily suspended from buying the rights to home loans backed by Fannie Mae and Freddie Mac because of concerns that the servicer was under capitalized.

Employment in the private sector rose in June at the highest rate in nearly two years, according to the ADP National Employment Report issued Wednesday for the month of June. By ADP's calculation, private sector employment rose by 281,000 new jobs created, surpassing most already optimistic projections.

Equifax announced more good news for the housing market on Wednesday, signaling that the broader United States economy may be on the rebound despite a disappointing first quarter 2014. In its latest National Consumer Credit Trends Report, the company reports that home finance write-offs year-to-date in May had to $43.5 billion, a decrease of more than 37 percent from the same point in time just one year ago.

One of the country's leading home price measures continued to push up in May, though gains have now slowed to a single-digit annual pace. CoreLogic reported an 8.8 percent year-over-year increase in its May Home Price Index (HPI), marking 27 straight months of annual improvement. As of the latest report, half of all states and the District of Columbia are now at or within 10 percent of their peak home price appreciation.

Four American communities are getting a facelift. HUD Secretary Shaun Donovan announced Monday that the department was awarding four cities a combined $119.7 million to redevelop and bring revitalization to blighted areas. The award is the latest extension of the department’s "Choice Neighborhoods Initiative," which attempts to take a comprehensive approach to struggling neighborhood revitalization.

Fay Servicing, a Chicago based diversified mortgage company, announced intentions to expand its portfolio by launching an REO division. Glenn Brooks has been selected to head up the new department, serving as Senior Vice President. In that role, Brooks will provide strategic direction and manage outside relationships vital the division’s success.

HSBC has reached a settlement with the federal government related to its failure, prior to 2011, to oversee the reasonableness of the third party foreclosure related fees that it submitted to the Federal Housing Administration (FHA) and the Fannie Mae for reimbursement. The servicer will pay a $10 Million penalty.

The National Association of Realtors lent its support to the Homeowners Armed with Knowledge pilot program but has concerns that it will not do enough to lower insurance premiums for homebuyers. FHA announced the program in May as part of its "Blueprint for Access," outlining additional steps that the agency is taking to expand access to credit for underserved potential borrowers.