Global General Files Chapter 15 Bankruptcy in U.S.

http://www.businessweek.com/news/2011-01-31/global-general-files-chapter-15-bankruptcy-in-u-s-.html

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HAMP redefault Rates Low at One-Year Mark

The U.S. Treasury Department says that permanent modifications executed under the Home Affordable Modification Program (HAMP) are performing well over time. Of HAMP loan mods that became permanent in the fourth quarter of 2009, 15.3% were 90+ days delinquent one year later, according to the Treasury's latest servicer performance report, which covers data through December 2010.


By comparison, federal financial regulators' most recent Mortgage Metrics Report shows that nearly half (48.6%) of the loans modified by servicers in the first quarter of 2009 had redefaulted by the 12-month mark. HAMP loans that were modified in the third quarter of 2009 did not fare as well, falling into the 90+ day default bucket at a rate of 20.7%.

Approximately 521,600 permanent modifications were active as of the end of last year, the Treasury reports. More than 58,000 permanent modifications and 734,500 trial modifications have been canceled since the program began.

The Treasury Department's statement follows the Jan. 28 introduction of a bill in the House of Representatives that seeks to shut down HAMP. Rep. Jim Jordan, R-Ohio, told TheHill.com that HAMP was a "colossal failure," adding that the program was "one more example of why government interference in the private sector doesn't work."



SOURCE: U.S. Treasury Department

FHFA Plans to Consolidate Offices

The Federal Housing Finance Agency (FHFA) has announced that it will consolidate its three office locations into one location. Beginning in November, the FHFA will center its operations at Constitution Center, 400 Seventh St. S.W., in Washington, D.C.


"This move will improve efficiency and will allow for expansion in, and greater integration of, our examination and supervisory personnel and programs," says Edward J. DeMarco, acting director of the FHFA.



SOURCE: FHFA

Arizona Foreclosure Program Helps only ONE Borrower

This is just sad.

A $125 million program designed to help Arizona homeowners facing foreclosure has fallen significantly short of its goals: Since its introduction in September 2010, it has only helped a single homeowner.


The Phoenix Business Journal reports that the "Save My Home AZ" program's sole recipient will have $40,000 cut from a distressed home loan. The quantity of assistance is significantly smaller than the expected volume of aid originally envisioned by Arizona Department of Housing Director Michael Trailor when he unveiled the program last fall.

"At best, these funds will assist just over 4,000 households or around 11,000 individuals to remain in their homes," Trailor said, noting that Arizona had the nation’s second-highest foreclosure rate.

Why did the program fall 3,999 households short of its goal? One key stumbling block might be in how the program is coordinated: Eligible borrowers can receive up to $50,000 to pay off their principal only if their lender agrees to match the amount. So far, the National Bank of Arizona is the only lender participating in the program.



SOURCES: Phoenix Business Journal, Arizona Department of Housing

Homeownership Rate At Lowest Level Since 1998

The U.S. homeownership rate fell to 66.5% of all households in the fourth quarter of 2010, marking the lowest recorded homeownership level since 1998, according to data released by the U.S. Census Bureau.


The fourth-quarter rates were down 0.4% from the third quarter of 2010 and 0.7% from the fourth quarter of 2009. The highest recorded homeownership rate was 69%, which was reached in the fourth quarter of 2004.

The Census Bureau also reported that the homeowner vacancy rate increased in the fourth quarter to 2.7%, up from 2.5% in the third quarter, while the rental vacancy rate declined to 9.4% in the same period, down from 10.3% in the previous quarter.

SOURCE: U.S. Census Bureau

New Florida Homeowner Assistance Program Begins

A new program designed to help distressed Florida homeowners has begun operations.


Central Florida News reports that the Florida Hardest-Hit program will use $1 billion in federal funds to help struggling homeowners make their mortgage payments for up to 18 months or make a delinquent loan current. The funds will go directly to lenders and will not need to be paid back unless the home is sold within five years.

The program will begin taking applications from Lee County residents before rolling out across the entire state. An estimated 20,000 homeowners may be eligible for program assistance.


SOURCE: Central Florida News

FLORIDA FORECLOSURE BACKLOG DIMINISHING SLOWER THAN HOPED

Last year the Florida State Courts Administration asked its legislators for $9.6 million to try to clear its massive backlog of foreclosures. Since the courts received the money and began working through the backlog in July 2010, the state has cleared more than 110,000 foreclosures from its system. That, however, leaves more than 350,000 foreclosures to work through.


http://www.dsnews.com/articles/florida-foreclosure-backlog-diminishing-slower-than-hoped-2011-02-02



REG Z Rule Making

http://www.mortgageorb.com/e107_plugins/content/content.php?content.7711

FEDERAL RESERVE STEPS BACK ON NEW MORTGAGE DISCLOSURE RULES

The Federal Reserve said this week that it "does not expect" to finalize three pending rule changes under TILA that would have mandated new consumer disclosure requirements for mortgage loans. The Fed began crafting the new regulations more than a year ago in response to claims that borrowers did not understand the terms of the loans they were signing. However, rulemaking authority for TILA and jurisdiction over consumer disclosures is scheduled to transfer to the new Consumer Financial Protection Bureau within a few months.


http://www.dsnews.com/articles/federal-reserve-steps-back-on-new-mortgage-disclosure-rules-2011-02-02

Servicers Completed 1.24 Million Non-HAMP Loan Mods in 2010

http://www.dsnews.com/articles/servicers-completed-176-million-non-hamp-loan-mods-in-2010-2011-02-02



Though servicers seem to be having minimal success with the Home Affordable Modification Program (HAMP), final 2010 data released by HOPE NOW shows that its members completed 1.24 million proprietary loan modifications last year. That number is more than double the 512,712 HAMP modifications completed by servicers last year. HOPE NOW's data show that there were 1.06 million foreclosure sales in 2010, compared to 1.76 million total loan modifications.

FTC Seeks Return of More Than $275 Million in Billing Scheme

A federal court has frozen the assets of corporations and an individual behind a vast Internet enterprise that allegedly made more than $275 million after luring consumers into "trial" memberships, and bogus government-grant and money-making schemes, Collections & Credit Risk reported on Tuesday. The court froze the assets of 61 corporations (collectively known as "I Works") and their alleged leader, Jeremy Johnson. It placed assets for these defendants under the control of a court-supervised receiver to help ensure that funds are available for consumer restitution when the case is concluded.


http://www.collectionscreditrisk.com/news/ftc-seeks-return-of-more-than-in-massive-billing-scheme-3004892-1.html?zkPrintable=true

BP Mediator Feinberg Cannot Call Himself Independent, Judge Says

A federal judge said that Kenneth Feinberg, the lawyer paying victims of BP Plc's Gulf of Mexico oil spill, cannot identify himself as an independent administrator of a $20 billion settlement fund, Bloomberg News reported today. U.S. District Judge Carl Barbier in New Orleans concluded yesterday that Feinberg must fully disclose his ties to BP when communicating with potential claimants. Lawyers for oil-spill victims had questioned Feinberg's handling of the $20 billion trust fund, known as the Gulf Coast Claims Facility (GCCF). "A full disclosure of the relationship between Feinberg, the GCCF, and BP will at least make transparent that it is BP?s interests" that Feinberg is promoting in his role as head of the fund, the judge said in a 15-page ruling


http://www.bloomberg.com/news/print/2011-02-02/bp-mediator-can-t-identify-himself-as-independent-court-rules.html

Treasury: U.S. to Hit Debt Limit in April/May

The United States will hit a $14.3 trillion statutory limit on its debt slightly later than previously estimated, the Treasury said yesterday as it unveiled a still-hefty debt auction schedule, Reuters reported yesterday. Treasury officials said that the limit would now be hit between April 5 and May 31, versus a previous estimate of end-March to mid-May. The later time frame reflected an upward revision to estimates of tax receipts and a downward revision to projected borrowing from the Social Security and Medicare trust funds. The officials said that they were proceeding with borrowing plans under the assumption Congress will raise the limit without a protracted battle, an assumption financial markets share.


http://www.reuters.com/article/2011/02/02/us-usa-debt-limit-idUSTRE7118FT20110202?feedType=RSS&feedName=businessNews

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