News

The Federal Housing Administration (FHA) announced Friday that it is extending the suspension of its 'anti-flipping rule' through the remainder of 2011. FHA Commissioner David Stevens says the temporary waiver will accelerate the resale of foreclosed homes in neighborhoods that are overrun with abandoned properties and blight. The move is intended to help stabilize home values and improve conditions in communities experiencing high foreclosure activity.

A survey of 100 distressed debt investors found that this year many will increasingly devote their money to real estate. The survey polled investors from companies such as hedge funds, private equity firm, bank props or trading desks. The study showed that respondents allocated 26 percent of their investments to real estate in 2010, and plan to allocate 48 percent of their investments to real estate this year.

Heeding pleas from industry groups across the country, the Federal Reserve has issued additional guidance to help smaller mortgage lenders and loan brokers comply with new compensation rules that take effect April 1, 2011. Pay structures in which brokers and loan officers are compensated based on the interest rate have been blamed for pushing consumers into unsustainable mortgages and contributing to rising delinquencies. The new rule prohibits this practice to ensure consumers are not steered into loans they can't afford.

Google has announced that it will be retiring the ability to find properties for sale or rent on Google Maps. The feature is available in the United States, as well as in Australia, New Zealand, the United Kingdom, and Japan and will be discontinued on February 10, because of what the company describes as ""low usage.""

A Virginia housing advocacy group released data this week that shows the housing circumstances in rural Virginia are arguably some of the direst in the nation. Key findings of the report say that the largest increase in foreclosure filings last year occurred in rural Virginia, easing only slightly when banks began moratoriums to review their foreclosure processes.

For the second week in a row, mortgage interest rates have edged up, according to Freddie Mac. The average rate on a 30-year fixed mortgage climbed to 4.80 percent, while the 15-year rate increased to 4.09 percent. The GSE's chief economist attributed the rise to positive news on the economic front that suggests the recovery is gaining some traction and consumers are more confident in the job market. Bankrate reported that the larger jumbo 30-year fixed rate increased to 5.53 percent, after falling for three weeks in a row.

HUD announced this week that it has terminated the Origination Approval Agreements of 15 mortgage lenders' Homeownership Centers due to poor performance and high default rates. In addition, the federal agency terminated eight lenders' Direct Endorsement (DE) approval. Lenders with Direct Endorsement agreements are authorized to both originate and underwrite an FHA loan. HUD's regulations permit the agency to terminate its agreement with any mortgagee whose default and claim rate exceeds a certain threshold based on their geographic area.

The number of contracts signed for purchases of previously owned homes rose again in December, according to data released by the National Association of Realtors (NAR) Thursday. The trade group's pending home sales index increased 2.0 percent compared to its November reading. NAR says this forward-looking indicator typically signals where existing-home sales levels should be within one or two months. It marks the third consecutive month NAR's gauge of home sales to come has climbed higher.

Texas-based Halo Companies, Inc. has acquired Equitas Asset Management, LLC and Equitas Housing Fund, LLC (the Fund). The $20 million Fund is a real estate venture that invests in single-family residential real estate across the United States. It primarily invests in undervalued or distressed properties at or below replacement cost through bank-owned real estate and non-performing mortgages.

C-Metric, a business process solutions company, has announced the opening of a new onshore facility in Cherry Hill, New Jersey. The company says much of its work in recent years has been in the mortgage servicing industry, especially with law firms and title companies, handling over 100 different processes from file intake to data entry and document and image indexing.