News

Having risen for the previous four months, mortgage interest rates stumbled in October, according to data from the Federal Housing Finance Agency (FHFA). Using data on more than 5,700 loans from 33 different lenders, FHFA calculated a composite contract rate of 4.32 percent for loans closed in late October, a decline of 4 basis points from September.

Home price gains decelerated on a monthly basis in September in 19 of the 20 cities tracked by the S&P/Case-Shiller Indices, with Las Vegas and Tampa experiencing the greatest slowdowns. All 20 cities reported annual growth, and 13 fared better than they did in August. Cleveland posted the strongest yearly gain, though it remains the second-worst performing city, beating only New York.

For the first time in more than four years, banks insured by the Federal Deposit Insurance Corporation (FDIC) reported an annual loss, according to the regulator's Quarterly Banking Profile released Tuesday. At $36 million, the net income of FDIC-insured banks in the third quarter is $1.5 million below earnings reported in the third quarter of last year.

Mortgage originators and servicing companies are facing the reality of decreasing new loan volumes and the entrance of new players to the industry, forcing them to reassess where the best sources of revenue can be found. Following an abrupt drop in its stock price, Nationstar recently announced the sale of its wholesale channel, indicating a shift toward its servicing business, and others appear to be following suit.

Lenders Compliance Group Inc. announced the appointment of Michael J. Wallace Esq. to the position of director of marketing compliance. Wallace has spent more than 20 years counseling clients on federal and state industry laws and regulations regarding mortgage acts, practices, and marketing.

Fannie Mae and Freddie Mac announced changes to their Servicing Guides Monday aimed at helping more borrowers avoid foreclosure through short sales and deeds-in-lieu of foreclosure (DILs). Some of the changes are to align with certain Consumer Financial Protection Bureau (CFPB) rules and regulations that implement the mortgage servicing provisions of the Dodd-Frank Act, and some are simply to ease eligibility requirements for liquidation workout options.

A former U.S. Bank executive plead guilty to receiving bribes from Oxford Collection Agency over the course of several years in exchange for business, according to the Office of the Special Inspector General for the Troubled Asset Relief Program. Wilbur Tate III served as the assistant VP at U.S. Bank from January 2004 through February 2011. He allegedly accepted bribes from Oxford starting in 2008--bribes which began as expensive cigars and escalated to cash payments disguised in cigar boxes.

Pending sales of existing homes fell a bit further in October, according to the National Association of Realtors (NAR). The trade group's Pending Home Sales Index is a forward-looking indicator; derived from contract signings, rather than closed sales, pending sales figures typically lag actual sales by one to two months. October's reading was the lowest recorded by NAR since last December and marked the fifth consecutive monthly decline.

LoanLogics, a provider of loan quality management and performance analytics, announced the unveiling of its MERS Independent Third Party Performance Monitoring and Annual Review service. The specialty audit practice reviews and tests MERS controls and processes so servicers can ensure they are compliant with MERS regulations and avoid scrutiny.

LRES, a California-based company specializing in commercial and residential valuations and asset management, announced it has received a Certificate of Authority to conduct business in the U.S. Virgin Islands. With the certificate, LRES is officially authorized to do business within 54 U.S. states and jurisdictions.