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The delinquency rate among commercial mortgage backed securities (CMBS) rose in eight of 12 months in 2011, according to a report released Wednesday by Trepp. Most recently, the rate rose seven basis points to 9.58 percent for the month of December. That's up from 9.2 percent one year ago. Trepp views this as the first of a six to twelve month stretch where the rate could increase by 75 basis points in aggregate, as loans originated in 2007 begin reaching their balloon dates.

Pending home sales continued to rise in November, reaching their highest level in 19 months, the National Association of Realtors reported. The trade group's index of signed sales contracts jumped 7.3 percent between October and November and is 5.9 percent above its level a year earlier. The last time the index was higher was in April 2010 as buyers rushed to beat the deadline for the homebuyer tax credit. Analysts say the results are likely to feed the view that there is a recovery going on in the housing market.

Serious delinquencies are on the decline, according to a recent report from Foreclosure-Response.org, a joint venture of the Local Initiatives Support Corporation, the Urban Institute, and the Center for Housing Policy. Among the 100 largest metropolitan areas, the study found serious delinquencies declined from 10.4 percent at their December 2009 peak to 9.3 percent by mid-2011. At the same time, foreclosure completions have steadied at 5.5 percent - but this leveling could prove problematic for recovery.

First American Title Insurance Company announced Tuesday the availability of Quick Start HARP - a title, signing, and settlement program that features proprietary technology to facilitate the processing of refinance closings under the newly revamped Home Affordable Refinance Program, more commonly known as HARP 2.0. Program changes are expected to help lenders reach a previously untapped population of American homeowners, and First American says its new solution will improve pull-through and closing times.

The two-month extension of the Temporary Payroll Tax Cut, signed by President Obama December 23, holds immediate implications for the GSEs. The law requires the Federal Housing Finance Agency (FHFA) to increase Fannie Mae's and Freddie Mac's guarantee fees by at least 10 basis points over the 2011 average for all single-family mortgage-backed securities. FHFA says the increase will be remitted to the U.S. Treasury, rather than retained as reserves by the two mortgage financiers.

Data released last week by Standard & Poor's indicates the fourth quarter of 2011 started with broad-based declines in home prices. The 20-city composite of S&P's closely watched Case-Shiller index was down 1.2 percent in October versus September. Home prices dropped in 19 of the 20 cities covered by the S&P/Case-Shiller Index. Phoenix was the only metro to see a month-over-month increase. Looking at the year-over-year comparisons, S&P says home prices are down more than 3 percent.

The Federal Housing Administration (FHA) is extending the temporary waiver of its property anti-flipping rule. FHA rules typically prohibit insuring a mortgage on a home owned by the seller for less than 90 days. In 2010, however, the agency waived this regulation, and later extended the waiver through 2011. This latest extension permits the use of FHA-insured financing for HUD-owned and bank-owned properties, no matter how long the homeowner has held the title, through December 31, 2012.

Mortgage rates will likely remain very low, at least through mid-2012, according to Freddie Mac. Rates on 30-year conforming mortgages have hovered around 4.0 percent or lower for the past quarter. The GSE says that in large part due to the Federal Reserve's program for extending the maturity date for mortgage securities it holds. This program is expected to continue through the middle of next year and should keep fixed rates for 15- through 30-year mortgages elatively low during the first half of the year.

Sen. Scott Brown of Massachusetts says the civil lawsuit filed by the Securities and Exchange Commission (SEC) last week against six former executives of Fannie Mae and Freddie Mac ""does not go nearly far enough."" Brown is pressing the Department of Justice and the SEC to immediately open criminal investigations into Fannie and Freddie. The senator says authorities need to take a closer look at the GSEs' business dealings prior to the housing collapse and their disclosure of subprime mortgage holdings.

Despite record low mortgage rates, 2011 has seen a surprisingly high level of cash home purchases, according to the real estate research firm Hanley Wood Market Intelligence. Analysts with the company say between tight lending standards and a desperate search for yield by investors, cash purchases of homes - particularly for distressed properties - are becoming more common. The company's study found 38 percent of homes purchased in 2011 were bought with all cash.