News

A new study from PMI Mortgage suggests home prices have found their bottom. The company's data shows that residential property values began stabilizing considerably during the middle part of last year. PMI says the likelihood that home prices will drop lower over the next two years is diminishing for most large metro markets, but the company cautioned that high unemployment rates and rising foreclosures continue to threaten a full recovery.

According to a recent company announcement, Matt Vernon has been named short sale and real estate owned (REO) executive for Bank of America Homes Loans. In his new position, Vernon will develop and implement initiatives to manage and streamline the bank's efforts to use short sales and other property liquidation tools to prevent foreclosures. In addition, Vernon will oversee the management and marketing of properties in the bank's REO portfolio.

State Street Bank and Trust agreed Thursday to pay the Securities and Exchange Commission (SEC) $313 million to settle claims that it misled a select group of investors about their exposure to subprime mortgages. The company assured certain investors that fund assets were diversified, but at the same time, disclosed to more elite clientele that the fund's subprime investments were a money-loser and advised them to get out early.

As the real estate market begins to recover, new research from the Urban Land Institute (ULI), a nonprofit education and research group, says the ""old normal"" will not be returning. According to a new study released by the organization, emerging trends in demographics and consumer behavior will become major drivers of new housing opportunities, resulting in a residential market vastly different from the one that existed prior to the recession.

The Federal Trade Commission has proposed a new rule that would prohibit third parties, including loan modification specialists and loss mitigation attorneys, from collecting payment for foreclosure prevention services until after they obtain a documented offer from a lender or servicer for a modification or other form of mortgage relief.

As foreclosures continue to plague the nation, many at-risk homeowners are seeking help through home preservation events sponsored by the HOPE NOW alliance, the Obama administration's Making Home Affordable Program, and NeighborWorks America.

U.S. Rep. Judy Biggert of Illinois has introduced new legislation designed to ramp up congressional oversight of the government-controlled mortgage giants Fannie Mae and Freddie Mac. The bill would require the two companies to submit regular reports to Congress and the public disclosing the intricacies of their businesses, including executive bonuses, foreclosure mitigation, and investments.

A new study developed by TransUnion confirms that the ""new"" payment hierarchy -- where consumers pay their credit cards prior to their mortgages -- is continuing. The company's latest study found that the hierarchy reversal has become widespread, with the shift even more pronounced in states such as California and Florida that experienced a more severe housing bubble effect.

In an announcement Thursday, Fiserv, Inc., a global provider of financial services technology solutions, said its clients can now update attorney communications via a new Loan Servicing Platform interface with the LenStar default attorney communications network offered by ISGN, a provider of mortgage technology and services.

Although government-approved programs and bailouts are in place for many sectors of the battered economy, the resources and solutions for property owners and investors in the heavily-distressed commercial real estate market are lacking. Help is available to commercial property owners, but it is not widely known about. As a result, commercial properties continue to face foreclosure, and commercial real estate is expected to remain a drag on the U.S. economy through 2010 and beyond.