News

Following a surge in activity at the end of 2009, pending home sales dropped in January, and due to abnormal weather conditions this winter, additional declines are anticipated in the coming months, the National Association of Realtors said Thursday.

Two subsidiaries of American International Group Inc. have agreed to pay a minimum of $6.1 million to resolve allegations that they engaged in a pattern of discrimination against African American homebuyers. The Justice Department claims that the two companies ""looked the other way"" when mortgage brokers they contracted with charged higher fees to blacks. Federal officials say this marks the first time a lender has been held responsible for failing to monitor its brokers to ensure equal treatment.

DebtX, a Boston-based loan sale advisor, recently announced that it plans to sell two portfolios of nonperforming loans, totaling more than $410 million - one for HUD and one for a lender in the western U.S. The company also reported that commercial real estate loan prices increased in January.

Lender Processing Services (LPS) is putting down stakes in the nation's Capitol. The mortgage technology and services company said Thursday that it has just opened a new Washington, D.C. office to better serve the contractual relationships it already has with a number of federal agencies and pursue opportunities with new government partners.

New data released by Clear Capital Thursday shows that home prices nationally are up 5.0 percent compared to February 2009. It's the second straight month that year-over-year price variations have been in positive territory. Clear Capital also reported that REO saturation increased in February, but that was expected with the typical winter slowdown in sales. Regarding the threat of a shadow inventory, the company suspects this inflow will arrive with a stronger springtime and summer buying season, helping to ease the shock to the marketplace.

The Federal Reserve Board's No. 2 has submitted his resignation. Donald L. Kohn said Monday that he will step down from his post as vice chairman when his current term expires on June 23. Kohn, 67, has been a member of the Fed board since August 2002 and served as its second-in-command since June 2006.

In response to the new regulations under the Real Estate Settlement Procedures Act (RESPA), Accurate Title Group, LLC (ATG), a full-service appraisal, title insurance, closing, and settlement provider based in Huntersville, North Carolina, recently announced the release of its TAG Good Faith Estimate Calculator (TAG GFE).

To better market its foreclosure listings, Highlands Ranch, Colorado-based Specialized Asset Management LLC (SAM), a national provider of asset marketing and disposition services to mortgage lenders, servicers, and investors, recently partnered with RealtyTrac, an online foreclosure marketplace headquartered in Irvine, California.

Ocwen Financial has one of the industry's most impressive track records when it comes to restructuring loans under the Home Affordable Modification Program (HAMP). The company is converting trials to permanent mods at a rate that is 10 to 20 times higher than some of the biggest banks, and its re-default rate is under 5 percent. Based on his company's success, Ocwen's president has proposed several changes to improve HAMP, including principal writedowns and requiring underperforming servicers to outsource their HAMP processes.

Jersey City, New Jersey-based Verisk Analytics, Inc., a provider of risk assessment solutions, recently purchased Strategic Analytics, a Santa Fe, New Mexico-based provider of credit risk and capital management solutions to consumers and mortgage lenders. As a result of this acquisition, Strategic Analytics will be part of the Interthinx business unit, a subsidiary of Verisk Analytics and a provider of risk mitigation and regulatory compliance tools for the financial services industry.