News

Home prices for January 2012 dropped 0.9 percent, an even greater increase from the 0.4 percent drop in December 2011, according to Lender Processing Services' Home Price Index (HPI). For January, home prices averaged at $195,000, dropping from December’s average of $196,000.

Austin, Texas based-Field Asset Services (FAS) launched FAS Vendor University, an online course designed to help FAS vendors learn how to manage their businesses and improve their operations. The program lasts for six-months and also incorporates hands-on learning activities.

The Federal Housing Administration (FHA) rule that would delay potential borrowers with outstanding collections debt of $1,000 or more from getting an FHA-insured loan is on hold until July 1. The rule proposes that if a borrower has collections debt of $1,000 or more, a he or she must go on a repayment plan for the debt for a minimum of 3 months to be eligible. This would cause a delay from receiving approval for a loan for 90 days or more.

Mortgages are becoming more and more of a litigious matter, with the number of mortgage-related cases reaching an all-time high since being tracked in 2007, according to Mortgage Daily's 2011 fourth quarter Mortgage Litigation Index. At 244, the number of cases rose from 218 in the 2011 third quarter and from 151 over the same period a year earlier. Foreclosure-related litigation cases reached 99 and accounted for 40 percent of all cases. One attorney attributes the increase to a high level of awareness among borrowers that foreclosure-related issues can be litigated, sometimes successfully.

According to the March 2012 Fannie Mae National Housing Survey, 48 percent of Americans who responded expect rental prices to increase, and the expectation is that they will go up by 4.1 percent over the next 12 months, the biggest projected increase recorded to date. Also, 33 percent of respondents expect home prices to increase over the next 12 months. Americans project home prices will go up by 0.9 percent over the same time period. If respondents were going to move, 66 percent say they would buy a home.

The Obama Administration released its March Housing Scorecard Friday, which showed delinquencies on a downward decline, while modifications continue to help struggling homeowners through reduced monthly payments. Foreclosure completions were down though, but delays are expected to pick up due to the mortgage settlement, which just received approval from a federal judge Friday.

Mortgage lenders remain cautious in terms of credit quality, down payments, and valuations, as evidenced by the findings outlined in the new Origination Insight Report generated by Ellie Mae. The report series tracks the current lending environment for refinance and purchase mortgages, and it indicates the average credit score for loans approved and closed is steadily rising, while acceptable loan-to-value (LTV) ratios are declining. Ellie Mae says mortgage loans closed in February carried an average credit score of 750, with an LTV of 76 percent.

The Securities and Exchange Commission (SEC) filed a complaint against the former CEO and CFO of Franklin Bank for using loan modification programs to cover its non-performing loans. Franklin CEO Anthony J. Nocella and CFO J. Russell McCann applied loan modification programs during the third and fourth quarters of 2007, masking how many of Franklin's loans were actually non-performing and artificially boosting its net income and earnings, the SEC stated Friday in a release. By the end of September 2007, the two hid more than $11 million in non-performing single family residential loans and $13.5 million in non-performing residential construction loans.

The $25 billion settlement received approval from a federal judge Wednesday, but the announcement was not made public until Thursday, according to a Reuters’ article published Thursday evening. U.S. District Judge Rosemary Collyer approved the national, historical settlement, which was brought on by federal officials and 49 state attorneys general against the top five largest servicers – Bank of America; Citigroup, JPMorgan Chase; Wells Fargo and Ally Financial. Oklahoma was the only state to opt out of the agreement. In a statement Friday, HUD Secretary Shaun Donovan called the the approval ""a victory for American homeowners.""

The nation added 120,000 jobs in March, far below expectations of the fourth straight month of 200,000-plus payroll gains. Payroll gains for January and February were revised, adding 13,000 to the February numbers but subtracting 9,000 from January.