Servicing

At a House of Representatives hearing titled Appraisal Oversight: The Regulatory Impact on Consumers and Business Thursday, lawmakers reviewed testimony on recent and impending changes in the appraisal industry. One of issue of focus during the hearing was the rise of appraisal management companies and their validity and necessity in the market. According to a recent report by the Government Accountability Office, AMCs have grown from 15 percent market share to between 60 and 80 percent market share.

The CFPB released a report Thursday showing that although reverse mortgages are meant to help borrowers in retirement, they are in fact causing problems for many who don├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ót fully understand them. A reverse mortgage is a type of home loan that lets older homeowners access the equity they have built up on their homes and defer loan payment until they sell the home, move out, or pass away. The original purpose of reverse mortgages was to allow these homeowners to convert home equity into retirement income.

Mortgage rates remained somewhat flat for the week ending June 28, according to Freddie Mac├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ós Primary Mortgage Market Survey. Average fixed mortgage rates remained largely unchanged, helping to keep affordability high for buyers in the market to purchase a home or looking for a refinance. The 30-year fixed averaged 3.66 percent (0.7 point), staying level with the all-time low that was achieved the previous week. At this time in 2011, the 30-year fixed averaged 4.51 percent. The 15-year fixed averaged 2.94 percent (0.7 point), down slightly from 2.95 percent the previous week.

The US economy grew at an annual rate of 1.9 percent in the first quarter, the Labor Department said Thursday. The BEA report was consistent with market expectations but emphasized a moribund economy. The economy had expanded at a 3.0 percent pace in the fourth quarter of 2011. In economic measurement terms, these data are ancient economic history, since the second quarter ends Saturday. The advance first quarter GDP report will be released on July 27. The data released so far for April, May, and early June suggest second-quarter 2012 economic activity may have grown even less rapidly.

Mortgage applications decreased 7.1 percent over the week last week with an 8 percent decline in refinance applications contributing largely to the decrease, according to the Mortgage Bankers Association's Weekly Mortgage Applications Survey. The decline was the same for an unadjusted and seasonally adjusted index. The percentage of mortgage applications made up by refinance applications fell slightly from 80 percent the previous week to 79 percent for the week. Interest rates for 30-year fixed-rate loans ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô with both conforming and jumbo loan balances ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô increased slightly for the week.

The Consumer Financial Protection Bureau faces a new legal challenge as a Texas community bank and two conservative groups launch a lawsuit to undo it and the financial reform law that created it two years ago. The Big Spring, Texas-based State National Bank recently paired with the Competitive Enterprise Institute and 60 Plus Association to sue the embattled consumer bureau in federal court. The suit challenges the constitutionality of the CFPB and Dodd-Frank Act, as well as Richard Cordray's appointment.

LenderLive Network Inc. is welcoming a new client for its loan fulfillment program. The company recently announced that Illinois-based Alliant Credit Union has selected LenderLive's end-to-end mortgage servicing platform, eOriginator.

Legendary Hollywood couple Warren Beatty and Annette Bening are selling their Beverly Hills home. The Beatty-Benings put their luxury pad up for for lease last year, but after failing to snag an interested tenant, they've listed the property, which is located on famed Mullholland Drive, for $6.995 million.

SIGTARP announced Tuesday that a Virginia man was sentenced earlier in the week to more than seven years in prison for running a fraudulent mortgage-rescue business. Howard R. Shmuckler of Virginia Beach, Virginia, was sentenced to 90 months in prison followed by three years of supervised release. He was found guilty of running a mortgage-rescue business that received substantial amounts in fees but only modified clients├â┬ó├óÔÇÜ┬¼├óÔÇ×┬ó mortgages in a few cases. Shmuckler pleaded guilty to six counts of wire fraud on April 10.

The Pending Home Sales Index rose a strong 5.9 percent in May to 101.1, returning to its level of March, the National Association of Realtors said Wednesday. The index had slipped in April to 95.5 after reaching its highest level since April 2010. The index is up a solid 13.3 percent since May 2011. The report is another in a string of positive signs for the housing sector. Pending home sales are counted when sales contracts are signed, and are viewed as a leading indicator of existing home sales, according to NAR.