News

Home prices, which have been sputtering along for much of the year, are likely to dip further by the end of 2011, according to the results of a nationwide industry survey of real estate agents. Factors cited as driving an expected decline include restricted financing for real estate investors, a large gap between the supply of distressed properties and demand from first-time homebuyers, and the shadow inventory of both foreclosed and short sale properties.

WFG National Title Insurance Company has added Stephen Sklamba and Liz Pecoraro to its Louisiana agency division. Sklamba will serve as a VP and Louisiana underwriting counsel for the Louisiana agency group. He will be based in the New Orleans area. Pecoraro will serve as Louisiana state sales manager and will be based in the Baton Rouge area.

State and federal regulators closed the doors on three lending institutions over the weekend -- LandMark Bank of Florida, Southshore Community Bank also in Florida, and Bank of Choice out of Colorado. This latest round of closings brings the number of lenders on the FDIC's failed-bank list to 58 for the year. Together, the three seizures are expected to cost the federal agency $256 million.

HUD and NeighborWorks have extended the deadline for homeowners who have experienced a loss of income to apply for the Emergency Homeowners' Loan Program (EHLP). The new deadline is Wednesday, July 27. The cut-off date had originally been set for Friday, July 22. EHLP assists homeowners who are at risk of foreclosure due to involuntary unemployment or underemployment as a result of the economy or a medical condition. Qualifying homeowners are awarded an interest free loan to pay a portion of their monthly mortgage for up to two years.

Less than half of homeowners - 49 percent - currently believe their home is worth more than the amount they still owe on their mortgage. July marks the second month in a row but only the third time since late 2008 that the Rasmussen Reports rate has fallen below 50 percent. High-income homeowners were more confident in their home values that low-income homeowners, and investors were more confident than owner-occupants. One-third of homeowners believe they are underwater with their mortgage, and 18 percent of respondents weren't sure.

Treasury is currently reviewing a proposal to aid distressed homeowners by allowing a short sale of mortgage notes from mortgage-backed securities (MBS) trusts to new investors. The proposal was put forth by American Home Mortgage Servicing. The company says this strategy could be key to unlocking principal reduction modifications, which could save hundreds of thousands of homes from foreclosure and reduce losses for both investors and underwater borrowers.

Default rates on first and second mortgages dropped between May and June, and both measurements are down sharply from year-ago readings, according to S&P Indices and Experian. Their monthly assessment shows the default rate on first mortgages fell 7 basis points month-to-month and is 125 basis points below June 2010. Second-mortgage defaults slipped 2 and 101 basis points for the month and year, respectively. The results are based on consumer credit data from 11,500 banks and mortgage companies.

Scott French has joined Old Republic Default Management Services as SVP of REO management services. In this role, he will oversee REO services for the company's Dallas, Texas, and Orange, California, offices. Over the past 25 years, French held VP positions with two international financial firms managing various default functions, including REO, foreclosure, and valuations.

Wells Fargo & Company has reached an agreement with the Federal Reserve that resolves allegations that its former Wells Fargo Financial unit, which was closed in July 2010, did not adequately detect and prevent instances of fraudulent loan applications and that the unit's employees steered prime borrowers into more costly subprime loans. The Fed has assessed an $85 million civil money penalty against Wells Fargo. In addition, the order requires the company to compensate affected borrowers.

Chase has opened its newest Homeownership Center near the U.S. military base in Fort Hood, Texas, to provide one-on-one help for homeowners struggling with their mortgage payments. It is Chase's first Homeownership Center near a military base. The bank plans to open five other centers this year near military bases in Virginia, North Carolina, Tennessee, and Washington state.