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Rep. Scott Garrett, chairman of the House subcommittee responsible for matters related to the nation's two largest mortgage financiers, says Fannie Mae and Freddie Mac are not only systemically dangerous to economic security, but their government-sanctioned structure is ""un-American."" Garrett has unveiled his plan for putting housing finance reform on the fast track by ensuring private investors are ready to take up the slack from the GSEs. The sheer dominance of the two companies, however, leads some in the industry to err on the side of caution.

Delaware Attorney General Beau Biden filed suit Thursday against MERSCORP and its subsidiary, Mortgage Electronic Registration Systems (MERS). Biden charges the company with violating Delaware's Deceptive Trade Practices Act. He alleges MERS violated the act in three major ways: by maintaining inaccurate information and withholding information from borrowers; by filing foreclosures without the authority to do so; and by not enforcing its own rules. MERS says there is ""no merit"" to Biden's accusations.

Clear Capital announced Thursday the appointments of Gabriel Nacht as CFO and Brian Wick as VP of marketing. Both individuals bring more than 24 years of experience to their positions with the company. A few weeks ago, Clear Capital also announced the appointment of Erik Lundquist to head its commercial valuations team, and the company says it's looking to add further to its staff, with a number of key positions currently available.

Despite indications of economic recovery -- such as job growth and some stabilization in home values -- pending home sales dropped for the third consecutive month in September, according to the National Association of Realtors (NAR). Pending sales of existing homes, including REOs and short sales, fell 4.6 percent from the previous month's reading. NAR describes current market conditions as ""a very strange situation,"" considering affordability is at a record-high, yet consumers are not responding.

Fixed mortgage rates showed little change for the second consecutive week amid mixed consumer confidence and housing data, and remain near their 60-year lows. Freddie Mac puts the average rate for a 30-year fixed mortgage at 4.10 percent for the week ending October 27, and the 15-year rate at 3.38 percent. Adjustable-rate mortgages (ARMs) exhibited slightly wider swings.

Auction.com announced this week that it achieved $453 million in sales - with over $600 million in unpaid principal balances sold - in its recent online auction of nonperforming notes and commercial REO properties located throughout the Southeastern United States. On behalf of its 10 institutional clients participating, Auction.com sold 187 assets, and garnered a purchase price-to-reserve rate of 111 percent.

The economic environment of the last several years has added to the ranks of first-time defaulters. According to a survey conducted earlier this year by Deloitte, 11 percent of bank customers fall into this category, meaning they have experienced their first default or serious delinquency because of the recent financial crisis and recession. Deloitte contends that servicing and default management strategies should be tailored to match these customers' needs to capture what will likely be a profitable segment over time.

Default rates for both first and second mortgages increased during the month of September, according to the S&P/Experian Consumer Credit Default Indices. First mortgage delinquencies rose from 1.92 percent in August to 1.99 percent last month. Second mortgages increased from 1.27 percent to 1.32 percent. Both rates, however, are lower than their levels one year ago when the agencies cited 3.02 percent of first mortgages as delinquent and 2.14 percent of second mortgages were reported delinquent.

Special servicers resolved $63.5 billion in distressed commercial mortgage-backed securities (CMBS) loans in the 18 months from January 2010 to June 2011, according to Fitch Ratings. This amount is more than three-fourths the amount resolved between 2007 and 2009. Modification is the most common resolution strategy for larger balance loans. Fitch reports that the recovery rate for CMBS loans resolved by special servicers has remained at or better than 86 percent since 2007.

Freddie Mac CEO Charles E. Haldeman Jr. has informed the GSE's board of directors that he plans to step down ""some time in the coming year."" The Federal Housing Finance Agency (FHFA) says Haldeman has assured the board and FHFA that he will remain as CEO until a succession plan has been put in place. Haldeman has stood at the helm of Freddie Mac since August 2009. He is the third individual to hold the chief executive position since the company was placed into conservatorship by the federal government in September 2008.