News

Speaking on behalf of the Financial Stability Oversight Council, Treasury Secretary Timothy Geithner made recommendations before the Senate Banking Committee on reforming the housing finance system. Specifically, Geithner called for establishing national standards for mortgage servicers, which the committee believes will ""realign incentives and help reestablish confidence in the integrity of the housing market."" Geithner also stressed the importance of reducing the government's role in the housing market.

The national homeownership rate fell by 1.1 percentage points between 2000 and 2010. The U.S. Census Bureau says it's the steepest drop since the period from 1930 to 1940. Housing woes are, without question, taking a bite out of the American Dream. Unprecedented levels of foreclosures have forced more than 3 million homeowners out of their homes over the past four years. And with $7 trillion in home equity wiped out since 2005, many are leery of putting their hard-earned dollars toward an investment that is still depreciating.

Two real estate investors are pleading guilty to mail fraud and bid rigging at public foreclosure auctions in Northern California, according to the Department of Justice. The investors conspired with others to quash competition for properties at foreclosure auctions in Alameda and Contra Costa counties in 2009 and 2010. The duo also admitted to committing mail fraud by using mail to organize their own private auctions open only to co-conspirators.

Equator, a California-based provider of default servicing technology, has supported 1 million short sales through its EQ Platform since its launch in November 2009, according to the company's third quarter report. ""Short sales continue to be a viable option to foreclosure,"" Chris Saitta, CEO of Equator said. In addition, Equator's Loan Segmentation Module has processed more than 500,000 loans this year. Short sales continue to be a viable option to foreclosure, Chris Saitta, CEO of Equator said.

The nation's unemployment rate remained at 9.1 percent during the month of September, as employers added a net of 103,000 new jobs to their payrolls, according to the U.S. Department of Labor. Since April, the rate has held in a narrow range from 9.0 to 9.2 percent. Government data shows that there are 14 million people out of work in the United States, and one in three of those have been without a job for more than a year. Job loss - long-term unemployment especially - is now the biggest driver of mortgage defaults.

The analysts at Fitch Ratings warn that before the housing market pulls out of this downturn, half of prime borrowers could wind up underwater on their mortgage. Data released last month by CoreLogic shows that one in five of all residential mortgages in the U.S. is in a negative equity position. But segment out just those homeowners with prime mortgages, and Fitch says one in three currently owe more on their mortgage than the home is worth.

Home prices in the U.S. slipped 0.4 percent between July and August, CoreLogic reported Thursday. It marks the first time in four months the company's index has recorded a decline. Based on CoreLogic's assessment, national home prices were down 4.4 percent in August when compared to a year earlier. That figure includes distressed sales, such as short sales and REO transactions. Take the distress factor out, and prices are down by just 0.7 percent year-over-year.

Zillow announced Thursday the release of a new component to its Zillow iPhone App. Zillow Mortgage Marketplace is now available through the Zillow iPhone App, allowing shoppers to access mortgage rates and other information as they shop for homes. Potential homebuyers can browse homes and compare mortgage rates from one app. Features of Zillow Mortgage Marketplace include a payment calculator to estimate monthly payments on a home and an affordability calculator that helps home shoppers find homes within their budget.

Federal housing programs came under attack during a congressional hearing Thursday titled ""The Obama Administration's Response to the Housing Crisis."" Members of the Senate challenged witnesses with questions about the effectiveness of several programs, including the Neighborhood Stabilization Program and the Home Affordable Modification Program. Industry experts also discussed the potential of new initiatives, such as the REO rental proposal.

The average rate for the conventional 30-year fixed mortgage has dropped below the 4 percent mark for the first time in history, according to numbers released Thursday by Freddie Mac. The GSE's market analysis also shows that the 15-year fixed rate - which has become a popular refinancing option among existing homeowners - fell to its lowest level on record for the sixth consecutive week. Freddie's national survey puts the average rate for a 30-year mortgage at 3.94 percent and the 15-year rate at 3.26 percent.