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The Federal Housing Administration (FHA) has announced new measures to strengthen standards for the lenders it works with - measures the agency says will help it better manage the risk that comes with insuring mortgages against default. The new regulations raise the bar in terms of lender performance when it comes to seriously delinquent and claim rates, and shores up the agency's processes for requiring lenders to cover losses from insurance claims paid on mortgages that involve fraud or don't meet FHA's underwriting guidelines.

Americans have lost $7 trillion in home equity in the past five years, and nearly 12 million homeowners are currently underwater. The Progressive Policy Institute says these issues deserve just as much attention in the upcoming presidential election as the issue of unemployment, and in a January report, the institute offers a few suggestions to improve the housing market and ultimately, the economy at large, including shared appreciation mortgages and down payment savings accounts for first-time buyers.

The delinquency rate on loans included in commercial mortgage-backed securities (CMBS) transactions increased by five basis points in December to 9.32 percent, according to Moody's Investors Service. At the same time, the rate of loans in special servicing declined by 13 basis points. December was the 12th consecutive month that CMBS delinquencies have been above 9 percent, by Moody's assessment. Bank of America Plaza in Atlanta, Georgia, with an outstanding balance of $363 million, was the largest newly delinquent loan in December.

Oregon Attorney General John Kroger has issued a public warning to consumers in the state to be on the lookout for scammers portending to offer independent foreclosure reviews as part of the mandate to major mortgage servicers issued by the OCC and Federal Reserve. Servicers have begun offering case reviews to consumers who faced foreclosure between January 1, 2009 and December 31, 2010. Kroger says scam artists are also contacting Oregon consumers, offering to conduct an ""independent foreclosure home loan review"" or a ""securitization review"" for a fee.

The long-awaited housing recovery is beginning to blossom, according to industry experts taking a look at recent existing-home sales data. While admitting home sales are ""still very low,"" the chief economist at Capital Economics says it is clear the housing recovery is now well underway. The evidence: home sales have been on the rise for the past three months, posting a 5 percent increase in December, according to the latest market study released by the National Association of Realtors.

The Securities and Exchange Commission (SEC) on Wednesday charged the holding company for one of Florida's largest banks and its top executive with misleading investors about growing problems with the company's loan portfolio early in the financial crisis. The SEC alleges that BankAtlantic Bancorp and its CEO and chairman Alan Levan made false statements in public filings and earnings calls in order to hide the deteriorating state of its commercial residential real estate land acquisition and development loans.

As of the end of December, Lender Processing Services (LPS) counted 6,167,000 borrowers behind on their mortgage payments, including those already in the process of foreclosure. That tally is the culmination of a steady decline over the last year, with both the national delinquency rate and foreclosure rate down when compared to their December 2010 readings. Delinquencies dropped by 7.7 percent from their year-ago level, while foreclosures declined by 1.0 percent.

Maryland Attorney General Douglas Gansler and Wells Fargo have reached an agreement to settle allegations that two companies Wells acquired in 2008 - Wachovia and Golden West - used deceptive practices to market adjustable-rate mortgages (ARMs). In addition to loan modifications for certain consumers, Wells Fargo has agreed to pay $940,056 to the attorney general's office for restitution to affected borrowers who lost their homes in foreclosure.

Principal reductions - the merits of which have been debated strongly in recent years - are gaining support from lawmakers. Two congressmen are pushing to subpoena the Federal Housing Finance Agency (FHFA) for its analysis of the potential effects of principal reductions by the GSEs. Reps. Elijah Cummings of Maryland and John Tierney of Massachusetts sent a letter Wednesday to the chairman of the House Oversight Committee urging him to issue a subpoena after several failed attempts to procure the desired information from FHFA.

Credit conditions may be tight, but for those who do qualify for a new home loan, the cost of borrowing has never been lower. Data released Thursday by Freddie Mac shows the average rate for a 30-year fixed mortgage edged down to 3.88 percent this week to hit a new all-time low. The 30-year rate has come in below the 4.00 percent mark for seven consecutive weeks now. The 15-year rate edged up just one basis point from its record low to 3.17 percent.