After declining between the first and second quarters of this year, Zillow says negative equity rose again in the third, reclaiming all of the previous quarter's decline and then some. Zillow's latest market analysis indicates 28.6 percent of American homeowners with a mortgage owed more on the loan than their home was worth as of the end of September. The company says a lower rate of foreclosure liquidations and relatively flat home values combined to increase negative equity over the three-month period.

The national mortgage delinquency rate edged up during the third quarter of 2011, marking the first increase in nearly two years, according to TransUnion. The credit bureau calculates the delinquency rate as the percentage of borrowers 60 or more days behind on their payments, excluding those that are already in foreclosure. The rate increased to 5.88 percent at the end of September. TransUnion expects the sudden upward movement to be a temporary one, driven by unanticipated financial shocks during the third quarter.

Lender Processing Services, Inc. (LPS) announced Monday that Nancy Murphy has joined the company as VP of investor relations. Murphy has 17 years experience as a finance professional. Her work includes financial strategy and analysis, business development, and relationship management. Most recently, Murphy directed investor relations for Stein Mart, Inc. and before that served as head of investor relations for Providian Financial Corporation.

While the roots of the financial crisis can be found in the nation's residential housing sector, it's now exposure to bad commercial real estate loans that's battering banks' balance sheets. The research firm Trepp LLC has released a new report on recent U.S. bank failures and the drivers behind their demise. In total, 11 banks failed during the month of October, collectively with $617 million in nonperforming loans. Commercial real estate loans made up 65 percent of the nonperforming balance, while residential real estate was 22 percent.

Zillow, Inc. has announced its acquisition of Diverse Solutions for $7.8 million in cash and stock. Diverse Solutions, headquartered in Irvine, California, helps real estate agents market their businesses and improve their personal websites. The company's software services include providing listings content and property search functionality for the Web and mobile platforms.

Financial Asset Services recently announced that the company has received its Woman Business Enterprise Certification (WBE) from the Woman's Business Enterprise National Counsel (WBENC). Financial Asset Services, based in Irvine, California, has been serving customers in the asset management, property disposition, and valuation services fields for 30 years. The company serves banks, mortgage companies, financial institutions, and servicers nationwide.

CoreLogic released its latest market analysis of residential property values Monday. The company's index shows U.S. home prices fell another 1.1 percent between August and September. It marks the second consecutive monthly decline recorded by CoreLogic and signals price depreciation is deepening. The company's previous report documented a 0.4 percent drop between July and August. CoreLogic says home prices are adjusting to correct the supply-demand imbalance, and as a result, declines will continue through the winter.

Effective solutions to revive the market will take time. Meanwhile, upholding the condition, value, and ultimately the marketability of REO properties, as well as protecting surrounding properties and minimizing REO portfolio losses will continue to pose a significant challenge for servicers and investors. Field service companies are critical partners in helping the mortgage industry address this challenge. Alan Jaffa and Kathy Cogan of Safeguard Properties offer up 10 field service approaches to protect the value of REOs.

Foreclosure starts among private-label residential mortgage-backed securities (RMBS) have been rising toward historic averages, which will lead to an influx of distressed properties bringing downward pressure to the housing market, according to Fitch Ratings. Foreclosure starts among loans that have been delinquent for six months or more have almost doubled in the past five months. Fitch says it's a sign that servicers are playing catch-up on actions that have been delayed over the past year.

Steven P. Turner, a partner at Texas-based Barrett Daffin Frappier Turner & Engel, LLP, has been selected by his peers for inclusion in the 2012 edition of ""The Best Lawyers in America"" in the area of bankruptcy and creditor debtor rights/insolvency and reorganization law. Selection is based on more than 3.9 million confidential peer-review evaluations. Turner is the firm's bankruptcy managing attorney.