News

Given the relative stability of Canadian housing markets, many observers try to draw comparisons between the housing finance policies of Canada and its southern neighbor the United States. Why is it the U.S. suffered through such a painful housing bubble and bust in the last decade, while Canada did not? Despite similarities in their homeownership rates and mortgage lending dominated by government backing, the fates of the two countries' housing markets took very divergent paths.

That dreaded shadow inventory of homes that has captured headlines and gripped the industry and market analysts with angst is beginning to make its way out of the darkness, according to John Burns Real Estate Consulting. The firm says loan modifications were successful in delaying the inevitable foreclosure. But homes that have been stuck in that neverland of somewhere between delinquency and repossession are now winding their way through the foreclosure pipeline at a quicker pace and will soon come out the other end as a short sale or REO.

Six community-based lenders found regulators at their doors Friday evening, preparing to shut down their operations - three in Georgia, and one each in Ohio, New Jersey, and Wisconsin. The failures are expected to cost the FDIC some $225 million. This latest round of closings pushes the FDIC's failed-bank tally for the year to 125. There were 140 bank closings in all of 2009. In 2008, there were 25. The FDIC recently reported that the names on its so-called ""Problem List"" of banks climbed to 829 at the end of the second quarter of this year.

Ohio Attorney General Richard Cordray's lawsuit against Barclays Capital Real Estate, dba HomEq Servicing, just took a legal step forward with a recent decision by a state court. This week, a Montgomery County judge overruled the defendant's motion to dismiss, clearing the way for Cordray's case to move forward, and the attorney general says, setting the stage for servicers to be held legally responsible for their actions in the aftermath of the foreclosure crisis.

Distressed homeowners looking for a way out of their mortgage that doesn't involve foreclosure may find relief is on the way from a new bill introduced in the U.S. House. Lenders have taken a lot of heat for elongated short sale timelines, with stories coming in from the field that potential buyers have walked away because they can't get an approval on a short sale price. The legislation would impose a deadline on lenders to respond to short sale requests, requiring them to return an answer within 45 days.

Fannie Mae says it is working with the Federal Housing Finance Agency (FHFA) to develop and adopt new appraiser independence requirements that will replace the controversial Home Valuation Code of Conduct (HVCC) enacted by the GSEs in May of last year. Until the revised requirements are released, the existing HVCC provisions are still in effect. Fannie Mae says it expects the new appraisal rules to be issued by October 21, but that they will be ""substantially similar"" to HVCC.

Arizona-based Sand Capital recently announced the company's acquisition of more than $100 million in distressed debt and REO properties. The company says the economic conditions present in the market for the last two years have created a once-in-a-quarter-century opportunity. Sand Capital has been acquiring commercial, residential, office, and industrial real estate assets since November 2008, has added 1.2 million square feet to its portfolio.

With housing woes capturing front-page headlines in the United States, the odds of distraught homeowners becoming even more frustrated and opting to abandon their mortgage obligations has become a growing concern within the industry. A survey by the Pew Research Center found that more than a third - 36 percent - of Americans believe the practice of ""walking away"" from their mortgage payments and their home is acceptable, at least under certain circumstances.

RES.NET has announced functionality enhancements to its landmark real estate management system, AMP. The platform was developed to improve the administrative and operational efficiencies of real estate professionals. Now, AMP boasts additional features that the company says will further streamline its use and enhance value, including a new ""buyers"" portal, a utilities section to manage and monitor recurring expenses, and a mobile application to expedite work in the field.

Oklahoma City's a la mode recently announced that Veros Real Estate Solutions has integrated their VeroSELECT and Valuation Risk Management products with the company's Mercury Network vendor management platform. The integration connects Veros' platform clients with one of the industry's largest networks of real estate appraisers and appraisal management companies, and provides electronic appraisal submission in full compliance with the GSE's Uniform Mortgage Data Program (UMDP) requirements.