Servicing

Housing starts rose 1.5 percent in January to 699,000, compared with market expectations for a smaller increase to 675,000. Housing starts are 9.9 percent above their year ago level but still 69.2 percent below their January 2006 peak. Single-family housing starts fell 1.0 percent to 508,000. Starts fell month-month in the colder northeast and Midwest but increased in the south and west. Single-family starts are 16.2 percent above levels of a year ago but still 72.1 percent below their January 2006 peak. Single-family starts have averaged 491,000 per month.

Mortgage application volume fell 1 percent from the week before, according to the Mortgage Bankers Association. Releasing the latest weekly figures, the trade group said that mortgage applications remained unchanged on a seasonally unadjusted basis.The Refinance Index went up by 0.8 percent to crest at the highest level since August last year, while the Purchase Index contracted by 8.4 percent from the week before. It fell by 3.3 percent on an unadjusted basis.

The mortgage subsidiary for Citigroup settled claims that it misrepresented government-backed loans Wednesday by agreeing to pay $158.3 million in damages. The payout means that CitiMortgage acknowledges that it qualified nearly 30,000 bad loans for government insurance, a move that bilked the Federal Housing Administration out of millions of dollars as more than 30 percent of the mortgages went into default. The settlement resolves a suit filed by the civil fraud unit at the office of Manhattan U.S. attorney.

Modifications to the Home Affordable Refinance Program will likely benefit small loan originators this year, even while refinance share of activity beats market expectations, FBR Capital Markets said in a note Wednesday. Paul Miller, an analyst with the research arm of the investment bank, attributed the information to D.C. insiders and government contacts, which hold that approximately 3.5 million to 4 million loans will enter the refinance program this year.

The National Home Builders Association released a housing market index that improved to 29 in February, its highest level since May 2007, with all three of the components showing new strength. The trade group said that it was the fifth consecutive monthly increase, the longest stretch of consecutive monthly increases since April- October 1995. The current conditions index rose to 30, a five-point jump, the largest month-over-month gain since April 2010. The forecast component, assessing conditions six months out.

Carrington Capital Management has finalized a legal agreement with American Home Mortgage Servicing, Inc. The transaction concludes a lawsuit filed by Carrington against AHMSI in 2009.The terms of the settlement are confidential and no additional details were made available regarding the closure of the legal matter. In an official statement from Carrington Holding Company, LLC, the company noted that the recent deal "resolves the disputes reflected in the action, along with any other disputes between the parties in the past."

Avison Young is starting the new year with the addition of two new principals to the company's Illinois-based operations. The commercial real estate services firm has hired data center experts Jim Kerrigan and David Horowitz to bolster its brokerage activities in Chicago.

In Pennsylvania, Brentwood Bank is launching a consumer-focused division targeting small to mid-sized businesses. The financial institution recently announced the addition of its Relationship Banking Unit, which will be dedicated to securing opportunities for the bank within the local business community. Through its new segment, Brentwood Bank will provide a relationship banker for borrowers and customers, ensuring that the same professional will handle the client's needs during the lifespan of the consumer's transactions.

Initiating a major expansion into four new regional markets, Caliber Funding LLC recently announced the hiring of more than 300 mortgage professionals. Caliber's personnel additions will serve to staff the company's operations in New England; the Great Lakes area; the Philadelphia, New Jersey, Delaware area; and greater Washington, D.C. Caliber's aggressive march into new markets will enhance its presence around the U.S., positioning Caliber for what the company hopes will be a pattern of significant growth during the year ahead.

Cornerstone Real Estate Advisors has named a new CEO for the company's European operations. The real estate investment group recently announced the appointment of Charles Weeks to the executive role.