News

As of the third quarter of 2011, more than 300 sellers and/or servicers (counterparties) were placed in the high-risk category by Fannie Mae and Freddie Mac, according to a report from the FHFA Office of Inspector General. In addition, the report stated the GSEs ended business relationships with more than 40 servicers/sellers on their high-risk watch lists since 2007.

New York Attorney General Eric T. Schneiderman announced his state will spend $60 million on housing counseling and legal services for struggling homeowners. A portion of the funds are a result of the historic $25 billion national mortgage settlement, which was reached in February between the five largest mortgage servicers and state and federal officials and 49 states.

While this year's $25 billion mortgage settlement may have eased mortgage litigation in the first quarter, legal activity still remains relatively high, according to a report from Mortgage Daily. The site tracked 216 mortgage-related lawsuits that saw activity during the first quarter of 2012, a slight easing from activity in fourth-quarter 2011, during which 244 cases were tracked. The decline in activity was attributed mostly to changing standards brought on in response to the national mortgage settlement.

The popularity of FHA mortgages is slowing down, while the use of mortgage financing is growing overall, according to the Campbell/Inside Mortgage Finance HousingPulse Tracking Survey. FHA-backed transactions accounted for 25.9 percent of home purchase transactions in August, a decrease from 27.3 percent in January. Overall, mortgages were used to finance 68.9 percent of home purchase transactions in August, an increase from 67.5 percent in July.

According to data released Monday, the total delinquency rate (for loans 30 or more days past due but not in foreclosure) was 6.87 percent in August, down 2.3 percent from July. Year-over-year, delinquencies fell 10.6 percent. An estimated 3,430,000 properties were 30 days or more past due (but not in foreclosure) at the end of August. Approximately 1,520,000 were 90 or more days delinquent but not in foreclosure.

Four suspects were arrested and charged with securities fraud, conspiracy and elder abuse for their roles in a Ponzi scheme that cost investors $2.3 million, California Attorney General Kamala D. Harris announced Friday in a release.

Across the United States, 26 states recorded unemployment rate increases in August, while 12 states and the District of Columbia posted decreases. BLS also reported that non-farm payroll employment increased in 28 states, with Texas, Florida, and Missouri leading the pack in month-over-month increases. Meanwhile, Virginia, D.C., and Washington led the 21 states that saw a decline in employment. Colorado was the only state with no changes reported.

Owners of vacation rental properties reported higher occupancy rates this year compared to last summer, according to a report from HomeAway. The report found 72 percent of vacation property owners who consider summer to be their peak season saw occupancy rates at 76 percent or higher, up from 68 percent last summer.

FDIC announced Friday it is conducting a series of outreach workshops to provide information on investing in or purchasing assets retained from failed financial institutions.

The picture gets rosier for housing as home prices continue their climb back to the top. One recent price index puts the July increase for prices at 0.9 percent, with prices achieving their first sustained recovery on a year-over-year basis since the market went bust in 2007.