News

Sales of distressed properties surged in December as many banks resumed foreclosures following the suspensions prompted by robo-signing issues last fall, according to an industry study conducted by Campbell Surveys. The company's distressed property index jumped to 47.2 percent last month, reflecting the distressed share of home sales transactions. December's level was up from 44.5 percent in November and nearly matched the index's peak recorded in September, before the robo-signing controversy came to light.

In November, Texas representative Randy Neugebauer sent a letter to the Federal Housing Finance Agency (FHFA) requesting a report from Acting Director Edward DeMarco detailing how much taxpayer dollars are being spent on legal costs for former Fannie and Freddie execs. A report released last week details just that, and the results are eye opening. Currently the bill sits at a hefty $160 million and counting.

Merscorp Inc. (MERS) says its president and CEO, R.K. Arnold, who has been with the company since it was founded 15 years ago, has resigned. Paul Bognanno, former chairman of private mortgage insurer Radian Guaranty, will serve as interim president and CEO and lead the company's search for Arnold's permanent replacement. The executive shake-up is reportedly tied to the controversy surrounding the MERS System and whether or not it has the legal right to foreclose on properties on behalf of lenders and servicers.

Dallas-based 3Point Lender Services, a national property preservation, inspection, and repair and rehab company, has relocated its national headquarters to a larger facility in Addison, a Dallas suburb. The company says rapid growth and continued proximity to key clients was the driving force behind the move.

Fitch Ratings says approximately 2,000 commercial mortgage loans are due to mature over the next 12 months, representing an outstanding balance of $22.5 billion. According to a new report released Friday by the ratings agency, the maturing loans were originated between 1996 and 2007 and are predominantly secured by retail, office, and multifamily properties. Fitch says 30 percent are not expected to pass its refinancing test.

Fannie Mae has issued a notice to its servicers, instructing them to postpone foreclosure proceedings for unemployed homeowners who are receiving help through Hardest-Hit Fund programs run by state housing finance agencies. According to the GSE's newly released directive, if a housing finance agency (HFA) notifies a servicer that a borrower has been approved for assistance, the servicer must not refer the mortgage loan to foreclosure or conduct a scheduled foreclosure sale for 45 days.

The volume of distressed residential properties in the United States is the primary factor hindering a full recovery in the country's housing market, according to Standard & Poor's (S&P). Based on data through the end of the third quarter of 2010, S&P puts the principal balance of the nation's shadow inventory of distressed homes at more than $450 billion - a log jam that will take more than three and a half years to clear from the market, and that doesn't include GSE mortgages.

This week national organizations Women in Default Services (WinDS) and Women Impacting Public Policy (WIPP) signed an alliance agreement to enhance their nationwide representation of businesswomen and business growth. WinDS is an organization aimed at advancing the careers of women working in default services.WIPP represents 54 national women and small business organizations,advocating for and on behalf of women and minorities in business in the legislative process of the United States.

Wells Fargo will provide one-on-one consultation sessions for customers facing financial hardships January 25 and 26 in Brooklyn. Thousands of area homeowners are invited to the event, which will focus on avoiding foreclosure. The company says it is committed to helping people stay in their homes, and this workshop is another way for it to reach out to homeowners and provide answers on the options available for them.

For decades the GSEs have made it possible for many people to achieve their homeownership goals by reducing the cost of credit and making it more readily available. But in light of the recent financial meltdown, banks and other corporations are calling for reform that they say the Dodd-Frank Act didn't cover. The government is set to release a report on the future of Fannie and Freddie in the coming weeks, but market participants have low expectations for a definitive solution in the report.