News

Investigators are looking to determine whether Standard and Poor's (S&P) over-rated dozens of mortgage-backed securities prior to the financial crisis. The Securities and Exchange Commission has been investigating the matter for several months, and the Justice Department recently joined the investigation, according to media reports. The federal probe began before S&P downgraded the U.S. credit rating from triple-A status to double-A status. The SEC has reportedly also been investigating Moody's in regards to two mortgage-bond deals.

Investors' growing appetite for the safety of U.S. Treasury bonds in the wake of European debt troubles and a stagnant economic recovery here in the U.S. have driven mortgage interest rates to their lowest level in over 50 years. Freddie Mac says both fixed- and adjustable-rate mortgages have reached all-time record lows, providing further incentive for homeowners looking to refinance. By the GSE's assessment, the 30-year rate is now averaging 4.15 percent and the 15-year rate is at 3.36 percent.

At a town hall meeting this week in Atkinson, Illinois, President Obama said it will take more than federal action to address the still-suffering housing market. The president said his administration has made helping families stay in their homes a priority over the past two-and-a-half years. Obama conceded that the market appeared to be bottoming out until the recent conflict over the debt ceiling. He predicts it will take the next two years for the market to start slowly appreciating.

Sabal Financial Group, L.P., the financial services management firm formerly known as Milestone Asset Resolution Company, LLC, has appointed Kevin McKenzie as portfolio manager. McKenzie's expertise span investment, banking, advisory, development, and architecture. In his new role, he oversees the firm's growing commercial real estate portfolio of assets under management and will play a role in expanding the company's acquisition and valuation services platform.

There were 3.65 million existing-homes available for sale at the end of July, according to the National Association of Realtors (NAR). That tally is down 1.7 percent from June, but the time it will take to clear the supply from the market has lengthened to 9.4 months because sales have slowed considerably over the summer months. NAR says sales of existing homes fell 3.5 percent in July to an annual rate of 4.67 million. Short sales and REOs accounted for 29 percent of last month's volume.

ProVest LLC has announced the launch of a new service -- ProVest Information Services -- a solution to establishing a quality right party contact through the use of a best in class, data-driven, skip tracing waterfall. The newly released product is already receiving positive reviews from ProVest clients. In addition to skip tracing solutions, the new ProVest Information Services verifies phone numbers and addresses, monitors portfolios, and aids in loss mitigation.

Fitch Ratings has affirmed the long-term Issuer Default Ratings (IDRs) of Fannie Mae and Freddie Mac at 'AAA', citing the federal government's implicit guarantee that the mortgage giants will remain solvent and its explicit outlays of monetary support as key for the agency's decision. Fitch says the rating outlook for the two GSEs remains ""stable.""

A New Jersey judge has given the green light for five of six major mortgage servicers to resume uncontested foreclosures in the state after a formal review of their procedures demonstrated the ""reliability of their processes."" Bank of America, Citibank, JPMorgan Chase, Wells Fargo, and OneWest Bank have been granted permission to restart foreclosures. Ally's GMAC Mortgage is awaiting the court's decision. Since the beginning of 2011, just over 6,000 foreclosures have surfaced in the state courts, compared to 35,000 filings at this time last year.

Rep. Gary Ackerman of New York plans to propose a bill he says will reduce the housing glut, create jobs, and stimulate the economy. Deriving inspiration from the success of the Homestead Act of 1862 -- which offered 160 acres to Americans in order to promote Western settlement -- Ackerman's Homestead: Act 2 aims to get 3 million properties off an already depressed market by providing a subsidy of up to $20,000 for down payments on foreclosed homes and a tax break for investors who purchase foreclosures for rental properties.

Lenders continue to battle the headwinds of high unemployment, a stalled economic recovery, and a backlog of bad loans from the heyday of the housing boom - all playing into a marketplace stressed with high levels of delinquencies and complex resolutions. But the underpinnings of a new age of creditworthy, financially savvy borrowers are beginning to take shape. The counseling agency CredAbility says its Consumer Distress Index has improved for three consecutive quarters.