News

Foreclosure activity was sluggish in June, dipping 14 percent from May and falling 35 percent from a year ago, according to RealtyTrac's most recent foreclosure report. With 127,790 properties receiving a foreclosure filing in June, RealtyTrac also revealed foreclosure activity is down to the lowest level since December 2006. Foreclosure starts also experienced a dramatic fall, decreasing 45 percent year-over-year in June to the lowest level since December 2005. While foreclosure activity dropped, foreclosure auctions in judicial states jumped 34 percent compared to a year ago.

The Federal Housing Finance Agency (FHFA) is facing a lawsuit from a housing group for allegedly failing to uphold the GSEs' obligations to make contributions to a housing trust fund. The National Low Income Housing Coalition announced the suit Tuesday. According to the group, Fannie Mae and Freddie Mac have not met their requirements to pay into the National Housing Trust Fund. Law requires the enterprises to transfer a portion of the value of their new business into the fund, though it was suspended in 2008.

Six financial regulatory agencies issued on Wednesday a proposed rule to exempt a subset of higher-priced mortgage loans from certain appraisal requirements. In a joint release, the agencies proposed to provide exemptions from Dodd-Frank appraisal requirements for loans of $25,000 or less, certain streamlined refinancings, and certain loans secured by manufactured housing.

The Mortgage Bankers Association has expressed support mixed with concern for the common securitization platform the Federal Housing Finance Agency is developing as part of its strategic plan for this year. While MBA condones the potential taxpayer savings and market efficiencies, the industry group continues to argue for more transparency and industry input in the platform development. In a paper released Wednesday, the MBA explained its vision for a successful common securitization platform.

Merscorp Holdings, Inc. announced it received another favorable ruling in a recording fee suit. The town of Johnston in Rhode Island brought suit against Merscorp, Mortgage Electronic Registration System (MERS), and other defendants, which included large banks and servicers, alleging the MERS system used for mortgages and mortgage assignments violated state law.

Overall, 44 percent of surveyed buyers said they did not consider a home in foreclosure, according to the NAR. When broken down by age group, however, only 31 percent of Millennials (32 and younger) said they did not consider purchasing a home in foreclosure compared to 65 percent for buyers aged 67 to 87. For buyers who considered foreclosed homes, 29 percent said they decided not to buy one because they could not find the right home.

More bank professionals expect mortgage delinquencies to decline over the second half of this year than to than to stay the same, according to a survey released by FICO. This is the first time in the quarterly survey's history the number of professionals expecting mortgage delinquencies to decline outpaced those who expect it to remain the same. Forty-seven percent anticipate a decrease in mortgage delinquencies over the last two quarters of the year compared to 41 percent who delinquencies to remain the same.

In separate statements Tuesday, the Office of the Comptroller of the Currency (OCC), FDIC, and the Federal Reserve Board (FRB) proposed a rule that would require insured depository institutions of certain banks to meet a 6 percent supplementary leverage ratio to be considered ""well capitalized."" The proposal would also require covered bank holding companies to maintain a tier 1 capital leverage buffer of at least 2 percent above the minimum supplementary leverage ratio requirement of 3 percent, for a total of 5 percent, the regulators stated.

According to Consumer Reports Index, Americans are facing significantly more financial troubles than in June. One index, the Trouble Tracker, climbed more than five points to 39.2 in July, ""an increase that was entirely fueled by an epic 23.3-point jump among those households earning $100,000 or more,"" the organization said. The tracker measures the proportion of consumers that have faced difficulties and the number of negative events they have encountered. Negative events include a missed mortgage payment and home foreclosure.

The National Association of Home Builders' (NAHB) Improving Markets Index (IMI) continued to elude any trends in July, slipping a bit after last month's increase. According to the association, a total of 255 metro areas made the list for July, down from 263 in June. The index improved for seven straight months before declining in April and May--only to turn around again at the start of summer. While July's report showed a decline month-over-month, the number of markets on the index was more than triple that of July 2012.