BofA Selling REO to State, Local Governments - By DIANA GOLOBAY - … as part of its effort to “stabilize communities hardest hit by foreclosures,” according to an announcement Wednesday.  State and local governments receiving grants through the US Department of Housing and Urban Development’s Neighborhood Stabilization Program (NSP) may now purchase BofA’s real estate-owned (REO) properties. The new procedures allow municipalities to purchase foreclosed properties for resale to home buyers or for other community development needs. … -  housingwire
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good read - New face of default management: OUT WITH THE OLD, AND IN WITH THE NEW - JOSEPH C. SMITH II - MortgageOrb 
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Fannie Mae Discontinues CMT Based Reverse Mortgages- Fannie Mae announced that effective September 1, 2009, they will discontinue offering commitments to purchase CMT-indexed HECMs…. FNMA’s decision to discontinue CMT based reverse mortgages is intended to help standardize and simplify HECM product offerings, build liquidity for the product, and encourage a market shift toward securitization. - Reverse Mortgage Daily

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S&P Downgrades 59 US Prime RMBS Transactions to ‘D’ - Standard & Poor’s has lowered its ratings to ‘D’ on 66 classes of mortgage pass-through certificates from 59 U.S. prime jumbo residential mortgage-backed securities (RMBS) transactions from various issuers. - Research Recap