REO

States and metro areas known for being risky when it comes to mortgage fraud seem to be repeat offenders, according to the 2011 Annual Mortgage Fraud Risk report released by Interthinx. The top six states with the highest levels of mortgage fraud risk in 2010 maintained their spots as the riskiest states into 2011, a trend also seen when looking at data for fraud in Metropolitan Statistical Areas (MSAs). Nevada, Arizona, Florida, California, Colorado, and Michigan were the six riskiest states for 2011 and 2010.

Overall, little change was reported in the performance of first-lien mortgages serviced by national and federal savings banks during the 2011 fourth quarter, but the percentage of initiated foreclosures did see a steep drop, according to the Office of Comptroller of the Currency (OCC) Mortgage Metrics report. The percentage of current and performing loans decreased to 87.9 percent, a mere 0.1 percentage point drop from the previous quarter, but a 0.4 percent increase compared to the same period a year ago.

Standard & Poor's reported Tuesday that it's closely watched Case-Shiller index declined in January for the fifth straight month. But according to John Burns Real Estate Consulting (JBREC), that's stale news and doesn't reflect what's actually happening in the market right now. In fact, the independent research company says home prices are rising. JBREC conducted its own analysis of home prices in 97 markets and found that over the January-to-March period prices are up in 90 of them, with an average increase of 1.1 percent.

After a forecast from Moody's Analytics hinted that the Federal Housing Administration (FHA) is at risk of requiring a taxpayer bailout, the FHA released a myths and facts sheet and categorized speculation about a bailout as myth. ""Sweeping changes enacted by FHA since 2009, including an important series of recent steps such as the enforcement actions that resulted in over $900 million in compensation to FHA from settlement agreements with major banks, and further increases to FHA's insurance premiums, it is unlikely that FHA would require additional resources from the U.S. Treasury in FY 2012,"" the FHA stated.

In California, the sale of distressed properties slowed down as equity sales picked up in February after two months of decline, the California Association of Realtors (C.A.R.) reported this week. ""A lack of inventory in the bank-owned (REO) and short sale market was a contributing factor to the decline in share of distressed sales in February,"" said C.A.R. President LeFrancis Arnold. The share of distressed properties that sold statewide decreased to 48.9 percent in February, down from January's 50.1 percent and from 55.2 percent a year ago in February 2011.

The Case-Shiller Home Price Indexes fell for the fifth straight month in January, with the 10- and 20-city composites each dropping 0.8 percent from December, Standard & Poor's, which compiles the indices, reported Tuesday morning. The 10-city index slid to its lowest level since May 2003 and the 20-city index dropped to its lowest level since December 2002. Home prices fell in 16 of 19 major cities during the month of January.

The FHA released two notices to mortgagees and servicers on Friday regarding new policies in effect. Safeguard Properties aslo posted the announcement on their website. The first reminder is on escrow funds/payoff statements and states that escrow funds should not be used for outside purposes.

Investors are making it a practice to endure through obstacles that come with the discounted price of short sales and pursued them at a greater pace in February compared to previous months, according to the latest results of the Campbell/Inside Mortgage Finance HousingPulse Tracking Survey. The percentage of investors buying homes climbed from 20.9 percent of all transactions in September 2011 to 24.2 percent in February 2012, according to the survey. The investor share of short sales also rose, going from 25.9 percent to 30.6 percent during the same six-month period.

In select hard-hit markets, Bank of America is introducing a program that will give some of its customers who are facing foreclosure the option to remain in their homes as a tenant rather than as a homeowner. The Charlotte, North Carolina based-bank made the announcement Thursday in a release. The program, called Mortgage to Lease, will solicit fewer than 1,000 customers who qualify; there will not be opportunities to volunteer or apply for the program.

Last year was a good year for home bargain-hunters, according to the latest data from Radar Logic. The firm's January report revealed a 5.42 percent decline in prices from January 2011 to January 2012 and a simultaneous 7.7 percent increase in transactions. The 5.42 percent price decline over the year brought Radar Logic's composite to its lowest rate since July 2002. Radar Logic predicts prices will remain flat this year and next before increasing ""at an accelerating pace"" in 2014 and 2015.