News

The Home Affordable Modification Program (HAMP) will fall far short of the administration's promise to prevent foreclosure for 3 to 4 million homeowners, according to one federal watchdog. Neil Barofsky, special inspector general for the Troubled Asset Relief Program, says HAMP's disappointing results have raised questions about the program's effectiveness. He's determined that Treasury has set targets that aren't ""meaningful"" and that HAMP is ""particularly vulnerable to re-defaults.""

Florida's existing home and condo sales rose on both a month-to-month and year-over-year basis in February, according housing data released Tuesday by Florida Realtors. Existing home sales increased 21 percent from February 2009, and condo sales surged 59 percent from a year ago.

MFS Supply LLC, an Ohio-based company that provides locks, lock boxes, and property management supplies to those in the real estate and general contractor industry, has opened a 10,500 square foot warehouse in Santa Fe Springs, California. The company says its new distribution center will greatly decrease ground shipping time and cost to West Coast customers. MFS is also offering free shipping on certain orders.

In an effort to encourage greater homeowner participation in modification programs, Bank of America has launched a new approach to modify severely underwater loans. The bank announced Wednesday that it will first look at principal forgiveness -- ahead of an interest rate reduction -- when modifying certain subprime and adjustable-rate mortgages (ARMs). BofA expects to slice off an estimated $3 billion from loan balances through this initiative.

Marking the second consecutive week of decreased activity, mortgage application volume fell 4.2 percent for the week ending March 19, 2010, the Mortgage Bankers Association (MBA) reported Wednesday. The slump coincided with 30-year mortgage rates inching above the 5 percent mark.

The Association of Community Organizations for Reform Now (ACORN) said Monday that it is closing down its operations. The organization's board, over the weekend, decided to dismantle the 40-year old grassroots activist group. ACORN's exit comes after Congress cut off the organization's federal funding and it began to experience trouble raising funds and donations, following a widely publicized scandal involving members posing as pimps and prostitutes, hidden cameras, and questionable ""advocacy.""

PMI Mortgage Assurance Co. (PMAC) has been approved by Freddie Mac as a direct issuer of mortgage guaranty insurance. Pursuant to Freddie Mac's approval, PMAC may write new mortgage insurance business in certain states in the event that MIC is required to cease operations in those states due to its inability to meet applicable regulatory capital requirements.

Homeowners in Washington are suing Bank of America, alleging the nation's largest lender is intentionally thwarting borrowers' requests to make loan modifications that would prevent homes from being foreclosed. As of the end of February, Bank of America had permanently modified nearly 21,000 mortgages under the Home Affordable Modification Program. Attorneys for the plaintiffs in the suit say BofA has made an affirmative decision to slow the loan modification process for reasons that are solely in the bank's financial interest.

Encore Retail, LLC, a subsidiary of Dallas-based Encore Enterprises, recently named Daniel Underwood as senior property manager of the firm. In his new position, Underwood will oversee the day-to-day property management services function of monitoring the physical operation and condition of each property, and he will be in charge of the coordination of tenant improvements, collection of revenue, expense control, and financial reporting for existing and new retail assets.

On Tuesday, Lenders Asset Management Corporation (LAMCO) announced the company's approach to help mortgage servicers fully comply with the federal government's Home Affordable Foreclosure Alternatives (HAFA) program, set to take effect April 5. In efforts to respond in a timely fashion to the inevitable influx of short sale requests expected as a result of HAFA, LAMCO says it is prepared to execute accelerated short sale transactions through its quality management system.