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Software provider TAZA Systems announced that it is offering a sophisticated software system to track and manage Other Real Estate Owned (OREO) cycles and provide necessary tools for portfolio management.

In a commentary, Fitch stated the proposed uses of eminent domain in California could negatively affect private label RMBS performance. Recently, the board of supervisors of San Bernardino County voted to form a joint powers authority with California cities Fontana and Ontario to look into the option of using eminent domain to seize underwater mortgages. Fitch said one proposal, which is of particular concern, indicates that only current and delinquent mortgages, not those in foreclosure, would be eligible. Thus, borrowers who would have stayed current on their payments could have their mortgage seized by the local, state, or county government. If eminent domain was to be used in such a way, then holders of the seized homes could experience losses, Fitch said.

In Philadelphia, about 1030 African-American homebuyers may be eligible to receive funds from the $175 million discrimination settlement with Wells Fargo, the Pennsylvania Human Relations Commission announced Thursday.

Top executives and favored borrowers faced indictment by a federal grand jury on Wednesday for their role in a massive fraud that led to the biggest Virginia bank collapse since 2008. According to a release on Thursday from SIGTARP, the accused are charged with masking non-performing assets at the Bank of the Commonwealth in Norfolk, Virginia.

ForeclosureRadar issued its Foreclosure Report for June on Wednesday, revealing that foreclosure sales fell significantly in the three largest foreclosure states in the company's coverage area. According to the report, foreclosure sales in California were down 13.4 percent over May and 48.8 percent over June 2011. Arizona and Nevada also saw a downturn in sales, showing month-over-month decreases of 18.5 percent and 14.6 percent, respectively. Year-over-year, Arizona's foreclosure sales were down 42.1 percent, while Nevada's sales fell 72.1 percent.

While negative equity still continues to hinder the housing market's recovery, CoreLogic reported Thursday that the share of underwater mortgages declined. In the first quarter of 2012, the total number of underwater homes was 11.4 million, accounting for 23.7 percent of all residential properties with a mortgage. In the fourth quarter of 2011, 12.1 million properties, or 25.2 percent, were underwater. In addition, more than 700,000 households saw their equity move into the positive territory in the first quarter of this year.

U.S. District Judge Ann D. Montgomery ordered a Minnesota-based attorney to pay $75,000 for continuing to file and litigate show-me-the-note lawsuits designed to thwart foreclosure proceedings, MERSCORP Holdings announced Thursday.

Wells Fargo wrote a check for $175 million on Thursday to settle claims that independent brokers drove a disproportionate number of otherwise creditworthy minority borrowers to higher-priced variable mortgages in the lead-up to the financial crisis. The payout will tie off a suit filed by federal authorities earlier Thursday that claimed discriminatory practices from 2004 to 2009 had negatively impacted more than 34,000 black and Hispanic borrowers. Wells Fargo denied any of the claims and took action Thursday to stop originating loans with independent mortgage brokers by Friday.

Scam Detector Inc., developer of a fraud prevention app that shares the company's name, announced Thursday the launch of its app for the Android platform.

The number of markets showing sustained and measurable improvements rose to 84 in July from 80 in June, according to the First American Improving Markets Index (IMI) released from the National Association of Home Builders (NAHB). July's IMI includes 73 metros from June's list and 11 new additions. New list entries noted by NAHB were Prescott, Arizona; Springfield, Massachusetts; St. Cloud, Minnesota; and Houston, Texas. ""The modest increase in the July IMI is encouraging because it indicates that individual housing markets continue to regain their footing despite some recent reports of weakening in the broader economy,"" said NAHB Chief Economist David Crowe.