News

On behalf of SEBA Professional Services, DebtX will sell a $1.7 billion portfolio of non-performing residential loans for HUD, DebtX announced Thursday. The portfolio, SFLS 2012-3, is made up of loans collateralized by homes across the country. It will be offered in standard national pools, as well as regional pools in support of HUD's Distressed Asset Stabilization Program (DASP).

Freddie Mac released its Primary Mortgage Market Survey (PMMS) Thursday, showing that the 30-year fixed-rate mortgage (FRM) inched up to 3.62 percent (0.6 point) for the week ending August 16. The 30-year fixed averaged 3.59 percent the previous week. The 15-year FRM also increased, rising to 2.88 percent (0.6 point) from 2.84 percent previously.

First time claims for unemployment insurance edged up 2,000 for the week ended Aug. 11 to 366,000, the Labor Department reported Thursday. Economists surveyed by Bloomberg had expected 365,000 initial claims. The prior week's total was revised up to 364,000 from the originally reported 361,000.

Despite continuing improvement in builder confidence, housing starts slipped in July to 746,000, with single-family starts accounting for decline, the Census Bureau and Department of Housing and Urban Development reported jointly Thursday. On the other hand, housing permits improved to 812,000, the highest level in almost four years. Economists surveyed by Bloomberg expected 750,000 starts and 766,000 permits in July.

A lawsuit against eight companies in the mortgage industry alleges the defendants used fraudulent mortgage documents to process foreclosures on Ohio homeowners and charged the foreclosed homeowners inflated, unfair fees. According to the lawsuit, the companies were involved in ""abusive foreclosure practices"" that involved preparing, executing, and notarizing fraudulent court documents and assignments of mortgages used to initiate and prosecute foreclosures.

Mortgage applications decreased 4.5 percent over the week last week with most of the decrease occurring among refinance applications, according to the latest survey from the Mortgage Bankers Association. (MBA). Refinance activity fell 5 percent compared to the previous week, while purchase activity declined 2 percent.

Hope LoanPort (HLP)announced the launch of the Bank of America-sponsored Servicer Portal 2.0 (Portal). The Portal is for mortgage servicers and functions as a platform for the secure submissions and to process foreclosure alternatives. The Portal contains features that reflect servicing requirements as outlined by national mortgage settlement.

Higher-risk mortgage loans may have a new set of rules to go by when it comes to appraisals. A proposed rule from six federal agencies would set out new requirements when conducting appriasals for higher risk mortgages. For example, the rule would require creditors to use a licensed or certified appraiser when preparing reports based on the physical inspection of a property.

The Consumer Financial Protection Bureau (CFPB) released Wednesday a new proposed rule that would require mortgage lenders to provide home loan applicants with appraisal reports to determine how the value of a property was determined. CFPB proposed the rule in response to a provision of the Dodd-Frank Act that requires creditors to provide mortgage applicants with a copy of written appraisals and home value estimates. The newly-proposed rule would require that creditors inform applicants of their right to receive a free copy of appraisal reports and home estimates.

An injunction granted to Allied Home Mortgage that offered the mortgage lender relief from a suspension was recently dismissed. In November 2011, Allied was barred by HUD from originating and underwriting new FHA insured-mortgages. HUD accused Allied of violating HUD/FHA requirements and committing fraud. Allied countered with its own lawsuit and filed for declaratory and injunctive relief. A federal judge in Houston provided Allied with the preliminary injunction, which was recently lifted by U.S. District Judge Gray Miller.