News

The delinquency rate of first-lien residential mortgages increased to 8.44 percent of all loans outstanding as of the end of the second quarter of 2011, the Mortgage Bankers Association (MBA) reported Monday. Although the rate is down 141 basis points from a year earlier, it rose 12 basis points when compared to the first quarter of 2011. The biggest increase came from loans in the earliest stage of delinquency - just one installment, or 30 days past due. Analysts called this the ""most worrying"" aspect of the report.

The JPMorgan Chase Foundation is making a $1 million grant to help about 70 police officers and city employees move back to Detroit over the next two years. Mayor Dave Bing has launched several initiatives to strengthen Detroit's communities by bringing law enforcement and city employees into the areas where they work. Qualifying buyers will receive money for a down payment on vacant homes in select neighborhoods as part of the mayor's initiatives.

Housing has become an industry afraid of its shadows. That shadow inventory of repossessed and soon-to-be repossessed homes has professionals from every side of the business worried about the impact such a sizeable volume of distress will have on property values and overall market fundamentals. But according to Standard & Poor's, the obscurity hiding in the corner is getting smaller. The agency's current estimate of time-to-clear the market's distress is 47 months. That represents a five-month decline from its first-quarter estimate.

The Federal Housing Administration (FHA) released a notice outlining new guidelines for trial payment plans for FHA loss mitigation actions. The new rules go into effect October 1. When offering permanent modifications or partial claims, servicers must implement trial payment plans for any borrowers who have missed at least two payments in the past year; have failed a HAMP trial payment plan; have a net surplus income of less than 20 percent of their total net income; or whose mortgage was originated fewer than 14 months ago.

A report from Capital Economics states that housing values overall are undervalued by 20 percent, but Zillow says many metro price-to-income ratios are still above their historic averages. The current price-to-income ratio for the U.S. is 3.3 to 14 percent above the historical average, according to new research from Zillow. The company says more often than not, home values eventually come back in line with incomes. The most extreme over-corrections in home values have occurred in Detroit; Las Vegas; and Manchester, New Hampshire.

Bank of America has named Ron Sturzenegger to replace Terry Laughlin as head of the bank's Legacy Asset Servicing division, the unit that manages problem home loans and investors' mortgage repurchase claims. Laughlin has now officially assumed his new role as chief risk officer, as announced by the company last month. Sturzenegger joined Bank of America in 1998. He most recently has served as a catalyst team member for Project New BAC, focused on the company's home loans business.

California's attorney general and the state's Department of Justice have taken down a fraud ring of legal firms and attorneys that officials say swindled thousands of homeowners out of millions of dollars by convincing them to take part in mass lawsuits against their lenders. Attorney General Kamala Harris has sued three law firms, four lawyers, and 14 other defendants. Officials with the state and HUD have seized the defendants' assets and bank accounts.

Axios Valuation Solutions, LLC has just made the appraisal process smarter with the introduction of its new mobile application for smart phones and tablets. The new application will be offered to Axios' nationwide appraisal network and will allow the appraiser to receive, accept, or decline orders in real time. Appraisers can even view a map of the property location.

Freddie Mac's REO disposition unit HomeSteps rolled out a new program this week aimed at trimming its inventory of foreclosed condominiums. HomeSteps' Condo Cash is a special limited time offer that will provide eligible condominium buyers with up to $1,500 for standard condominium association dues. Offers must be submitted between August 15 and November 15, 2011 and close escrows by December 30, 2011.

REO Allegiance, a national property preservation firm headquartered in Bayonne, New Jersey, announced this week that it has been chosen as a premier inspection service provider for Atlas REO Services which is based in California and provides customized REO management and disposition services for lenders and servicers. The new program goes well beyond the services traditionally offered by asset management firms, according to the two companies, and saves clients time and money by putting properties back on the market faster.