Agencies Issue Final Appraisal and Evaluation Guidelines - Press Release FR Board     Link to guidelines

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Banks’ legal right to foreclose is questioned in testimony before House panel - By Ariana Eunjung Cha -  … Winslow, academics and attorneys defending homeowners described a fundamental problem …  They said there is a much broader question about the legality of designating a single company, Mortgage Electronic Registration Systems (MERS), as the holder of mortgages and then trading these loans to investors around the world without updating the ownership documents in local clerk offices.  They said it is unclear whether using this system has stripped those investors of the right to foreclose on homeowners who miss their payments. … - Washington Post

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The Impact of the Originate-to-Distribute Model on Banks Before and During the Financial Crisis by Richard J. Rosen - The growth of securitization made it easier for banks to sell home mortgage loans that they originated. I explore how mortgage sales affected banks in the years leading up to the financial crisis that began in 2007 and how their pre-crisis mortgage sales affected banks during the crisis - FRB Chicago Working Paper

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One mortgage servicer, 250 different foreclosure affidavit forms  - by JON PRIOR - … Williams pointed out that Fannie Mae and Freddie Mac, who outsource servicing rights to thousands of companies including these largest servicers, require them to use a network of law firms and other real estate service providers, creating "a panoply of documents used in their mortgage foreclosure process." … -  HousingWire

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Value Sinking Fastest on Homes Priced Low to Start - By FLOYD NORRIS - DURING the great housing bubble, it was the least expensive homes whose prices went up the most. And now it is those homes that are suffering the most. “That is where the most creative lending was,” said David Blitzer, the chairman of the index committee at Standard & Poor’s  - NY Times

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Will Thousands of Foreclosures Be Voided Because Non-Lawyers Prosecuted Them? - Yves Smith - If you though robo signing was bad, you ain’t seen nothin’ yet.  The website 4ClosureFraud presents the gory details of a potential major new front in the foreclosure mess. A Pennsylvania foreclosure mill, Goldbeck McCafferty & McKeever, is accused by Patrick Loughren of allowing non-attorneys to file and prosecute foreclosures. A DailyFinance story gives the overview: … If Loughren prevails, this case will prove to be vastly more significant than robo-signing. - more details - Naked Capitalism

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Wells Plan Throws Risk Retention for a Loop - By Cheyenne Hopkins, American Banker - As regulators try to collaborate on new securitization rules, a fissure has emerged in bankers’ own thinking on the subject.  A united industry had lobbied Congress to exempt extra-safe loans from retention requirements in the Dodd-Frank Act. But an idea from Wells Fargo & Co. to limit that to loans with more money down has inflamed concerns that just a few large banks could enjoy the exemption.  "All other things being equal, a narrow definition will result in further consolidation in the mortgage marketplace to the benefit of large players and to the detriment of smaller lenders and consumers," said Karen Thomas, the senior executive vice president of government relations and public policy at the Independent Community Bankers of America. - Bank Investment Consultant

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Fannie, Freddie get OK to buy more mortgages - Federal regulator Ofheo loosens capital requirements to prop up market -  The federal government loosened strict capital requirements on Fannie Mae and Freddie Mac on Wednesday, allowing them to inject billions of dollars into the nation’s sagging mortgage market by stepping up their purchase of more loans.  The Office of Federal Housing Enterprise Oversight said it is reducing Fannie Mae’s and Freddie Mac’s capital-surplus requirement to 20% from 30% previously. The companies will be clear to invest the additional capital in mortgages and mortgage-backed securities - MarketWatch