News

Lender Processing Services Inc. (LPS) agreed to pay $35 million to resolve criminal fraud violations involving fraudulently signed and notarized mortgage documents, the Justice Department announced Friday. LPS entered into a non-prosecution agreement with the department and the U.S. Attorney's Office for the Middle District of Florida. Through the settlement, LPS announced it will pay $20 million to the United States Marshals Service and $15 million to the United States Treasury. In a statement, Hugh Harris, LPS president and CEO, said, ""[t]he conclusion of the Justice Department's inquiry is another positive step for LPS.""

Citing changes in regulatory reform due to Dodd-Frank as the driving factor, Edward Jones Mortgage, based in St. Louis Park, Minnesota, will close its doors permanently in April. Edward Jones Mortgage, which reportedly employs 214 people, is a joint venture between San Francisco-based Wells Fargo and Des Peres, Missouri-based Edward Jones. ""Regulatory reform stemming from the 2010 Dodd-Frank Act changed the rules for joint ventures of this type,"" said a spokesperson for Edward Jones.

Ally has satisfied its consumer relief obligations required under last year's National Mortgage Settlement (NMS), according to a report filed by settlement monitor Joseph Smith Jr. Smith filed his report with the Federal District Court for the District of Columbia, certifying that ""Residential Capital, LLC, Ally Financial, Inc. and GMAC Mortgage, LLC (collectively, Ally) have satisfied their consumer relief obligations."" According to the settlement terms, Ally was required to provide $200 million in relief to customers in the form of loan modifications, short sales, principal forgiveness, and other forms of relief.

MountainView Servicing Group announced it is managing the sale of two MSR portfolios totaling $369 million. One loan contains $237 million of total unpaid principal balance (UPB) and another $132 million of total UPB.

President Obama faces a budget obstacle in his plans to rebuild crumbling bridges and address other pressing infrastructure needs. Unlike many governments, the United States does not have a separate budget for capital spending, which means each tax dollar is as likely to go to the construction of, say, a courthouse, as it is to paying the salary of a judge or court clerk who works there. What would having a separate capital budget do for the country? For starters, it would rationalize our spending and make it more difficult for lawmakers to lard up spending bills with long-term projects.

The market is now poised for many banks to begin unloading nonperforming assets--particularly commercial real estate--in the form of bulk sales, according to Fitch Ratings. Tightening yield spreads in the commercial market, pressure from regulators regarding loss reserve positions, and limited financing will prompt banks to unload nonperforming commercial assets over the next 12 to 18 months, according to the ratings agency.

Certain states are seeing above average gains in home prices, but concerns have been raised that some states are seeing ""unsustainable, investor-fueled"" increases, Capital Economics pointed out in a recent report. In response to those uncertainties, the research firm conducted an analysis of seven states plus the District of Columbia to see if price gains are merely investor led or truly sustainable. Out of the 8 places covered, the firm concluded five states appear to be sustainable based on factors such as income and employment growth.

Median home prices in January continued to stay above year ago levels while falling month-over-month, according to a recent report from RE/MAX. At the same time, inventory remained low, causing a shortage in supply while pushing up home prices, RE/MAX explained. At $155,000, the median sales price in January sat 6.6 percent below December’s sales price, but was still 8 percent higher compared to January 2012. Inventory trended downward month-over-month for 31 consecutive months in January after falling 5.1 percent from December.

In his written testimony before the Senate Committee on Appropriations, HUD Secretary Shaun Donovan spoke on the potential impact to households across the nation if across-the-board automatic spending cuts were to take effect. The cuts are scheduled for March 1. Speaking from HUD's perspective, Donovan says the cuts, also referred to as the sequester, would be especially damaging on middle class families, communities, and the economy across the nation. More specifically, he warned the cuts would keep 75,000 households from receiving foreclosure prevention, pre-purchase, rental, or other counseling though HUD housing counseling grants.

Fixed mortgage rates continued to hold steady this week, according to data from Freddie Mac and Bankrate.com. Freddie Mac's Primary Mortgage Market Survey for the week ending February 14 showed no weekly changes in fixed rates: The 30-year fixed averaged 3.53 percent (0.8 point), while the 15-year average held at 2.77 percent (0.8 point). Meanwhile, Bankrate reported slight increases in fixed rates, though any movement was minor. According to Bankrate's survey, the average 30-year fixed-rate mortgage had a rate of 3.79 percent.