Today’s News Synopsis:
Realty Times reported that over 100 realtors will be traveling to Washington D.C. this week to discuss several issues ranging from Fannie Mae and Freddie Mac to mortgage interest deduction. The Los Angeles Times reported an improvement in the housing market for the month of June with an increase of 11.6% in home sales. According to Bloomberg, a lawsuit against Bank of America was dropped, leading to an increase in shares for MBI.
In The News:
Inman - “Fidelity pays $4.5M to settle kickback allegations” (7-12-11)
“Fidelity National Financial Inc. has agreed to pay federal regulators $4.5 million to settle allegations that it paid illegal kickbacks to potentially hundreds of real estate brokerages for referring title insurance, home warranty and other business to the company through a Web-based transaction management platform, TransactionPoint.”
DS News - “Ohio Representative Calls for Temporary Foreclosure Moratorium” (7-12-11)
“Rep. Marcy Kaptur, D-Ohio, submitted a resolution (H.Res. 344) calling for a temporary foreclosure moratorium to the House Financial Services Committee Friday.”
Bloomberg - “MBIA Gains on Speculation of Accord with BofA on Mortgage-Debt Protection” (7-12-11)
“MBIA Inc. (MBI) shares surged after the bond insurer agreed with Bank of America Corp. (BAC) to dismiss a lawsuit over protection against mortgage-debt defaults, prompting speculation that the two firms are near a wider settlement of claims tied to soured subprime home loans.”
Housing Wire - “Lawmakers to investigate foreclosures on military members” (7-12-11)
“Sen. John Rockefeller (D-W.Va.) and Rep. Elijah Cummings (D-Md.) convened a forum with the Consumer Financial Protection Bureau Tuesday to examine how many improper foreclosures were carried out on military service members.”
Realty Times - “FHA is Still Greatly Needed” (7-12-11)
“This week (July 11) hundreds of Realtors® are flying in to Washington, D.C. to engage in a “full court press” lobbying effort on behalf of the National Association of Realtors®’ (NAR) legislative agenda.”
“Homeowners living in houses worth over $417,000 can live in their homes mortgage-free without fear of foreclosure for more than a year, but those in the less valuable homes are getting thrown out in 300 days or less.”
Los Angeles Times - “Southern California housing market improves slightly in June” (7-12-11)
“The Southern California housing market showed some signs of stabilizing last month with sales popping up more than average from May to June, a real estate data firm reported Tuesday.” (Bruce Norris featured on photograph)
The Wall Street Journal - “U.S. Tackles Housing Slump” (7-12-11)
“The Obama administration is ramping up talks on how to revive the housing market, which is weighing on the economic recovery—and possibly the president’s re-election in 2012.”
San Francisco Chronicle - “Settlements, lower trading to hurt 2Q bank earns” (7-12-11)
“The largest U.S. banks — from JPMorgan Chase to Bank of America — have been busy settling lawsuits with investors in the second quarter, casting a pall over their upcoming financial results.”
The Wall Street Journal - “Riskier Loans Make a Comeback, as Private Firms Take the Field” (7-12-11)
“After years as the lending market’s undesirables, aspiring home buyers with less-than-stellar credit are being offered home loans again—with some of the same conditions and catches critics say tripped up subprime borrowers five years ago.”
A study from Wells Fargo suggested that California may not experience a double dip in the real estate market. FICO Inc reported 25.5 percent of customers had a credit score of 599 or below. HUD offered a 10 percent discount on its REO properties for non-profit buyers. Orange County housing inventory inflated by 48% since the beginning of 2010.
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