News

Last week, GMAC Mortgage called for a halt on foreclosures and REO sales in 23 states that may have been impacted by an internal procedural error. The incident could give cause for homeowners to file lawsuits against the lender, bondholders could be impacted, and the problem could reach beyond just GMAC since it also services mortgages for other firms, including the GSEs. A number of analysts have since weighed in on GMAC's foreclosure snafu. Attorneys general in several states are also launching their own investigations.

Legislation to stabilize the foreclosure crisis through the federal government's conservatorship of Fannie Mae and Freddie Mac was introduced in the U.S. House of Representatives Tuesday. The Housing Opportunity and Mortgage Equity (HOME) Act would require Fannie and Freddie to allow borrowers to refinance their mortgages by locking in today's record-low interest rates for longer fixed-term loans. The legislation would affect up to 30 million mortgages held or backed by the two GSEs.

New initiatives are under way in Washington to help service members who are struggling with their mortgage payments avoid foreclosure. The efforts include a mortgage payment forbearance of up to six months where the death or injury of an active-duty service member causes a hardship for military families with a mortgage obligation. Fannie Mae and the U.S. Army made the announcement at a Pentagon event Monday.

Home prices rose again in July, according to one of the industry's most closely watched gauges of property value trends. The S&P/Case Shiller Home Price Indices released Tuesday showed a 0.6 percent increase in the average price of a single-family home across the 20 major U.S. cities included in the study. S&P says, though, that annual growth rates have slowed considerably. During the month of July, 16 of the 20 metros saw their annual gains retreat.

Warren, Michigan-based Five Brothers, a nationwide provider of commercial and residential mortgage default management solutions, announced the release of its ClaimSys HUD claims processing system this week. ClaimSys acts as an enhancement to existing claims processing programs and expedites Federal Housing Administration (FHA) claims by allowing users to generate completed HUD claims A through E quickly and efficiently, according to the company.

The credit quality of first-lien mortgages serviced by the nation's largest banks and thrifts remained steady during the second quarter of 2010, according to a new regulatory report. Mortgage delinquency levels were relatively flat but elevated after rising for several quarters. Completed foreclosures were up by 7 percent from the previous quarter, but mortgage modifications increased 18 percent, and the report found that newer mods are showing significantly lower re-default rates.

Bank of America reports that it has provided mortgage modification assistance to more than 680,000 homeowners since January 2008, 79,859 of which have been completed through the administration's Home Affordable Modification Program (HAMP). According to the company, it leads the industry in HAMP modifications. BofA officials say HAMP results have slowed in recent months due to the implementation of a full documentation requirement prior to initiating a trial mod plan.

The Texas metro areas of Houston and Dallas show the strongest home price appreciation over the next 12 months in the most recent market forecast from Veros Real Estate Solutions. The company says its analysis shows Texas cities leading the nation, with home prices in these areas expected to post the biggest gains in the months ahead. Meanwhile, key markets in Florida and Nevada will likely see home prices drop another 6-7 percent over the next year.

The Work Number, an employment and income verification service of Equifax, recently launched a new product, Point In Time, which, according to the company, is a response to market demands for loan-level documentation to investigate repurchases and mortgage insurance rescissions. Designed to provide retro income verification services to validate and document a borrower's employment and income for loan funding, Point In Time was created to help lenders, insurers, and investors automate and streamline the quality assurance process.

ZipRealty, Inc., a full-service residential real estate brokerage based in California, recently promoted its EVP and CFO, Lanny Baker, to CEO and president, effective October 2. Baker, who will also be a member of the company's board of directors, will replace J. Patrick Lashinsky, who decided to step down from the position.