The delinquency rate for mortgage loans on one-to-four-unit residential properties dropped to a seasonally adjusted rate of 9.85 percent of all loans outstanding as of the end of the second quarter of 2010, a decrease of 21 basis points from the first quarter of 2010, and an increase of 61 basis points from one year ago, according to the Mortgage Bankers Association's (MBA) National Delinquency Survey. The non-seasonally adjusted delinquency rate increased two basis points to 9.40 percent this quarter from 9.38 percent last quarter.Read more

Rep. Doris Matsui (D-CA) announced that the Government Accountability Office (GAO) has released a report on the current situation of mortgage foreclosure scams occurring around the country, and an analysis of the government’s efforts to prohibit such deceptive financial practices.Read more

The New York State Banking Department has issued new regulations that address the business practices of mortgage loan servicers and establish additional consumer protections for homeowners. Part 419 of the Superintendent’s Regulations, which go into effect Oct. 1, 2010, are a follow-up to the adoption of Part 418 in July 2009, which established standards and procedures for the registration of mortgage loan servicers in New York.Read more

Countrywide has agreed to pay more than $600 million in settlements to shareholder lawsuits, a record payout to date and the highest fine paid to date in the aftermath of the sub-prime meltdown. In Los Angeles, U.S. District Judge Mariana Pfaelzer handed down the judgement in a lawsuit alleging that Countrywide investors were misled about the mortgage lender's lending practices. Countrywide's accounting firm, KPMG, which signed off on Countrywide's financial statements from 2005 to 2006, agreed to pay an additional $24 million as part of the settlement. 

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The Securities & Exchange Commission (SEC) has accepted settlement offers from three former officers of New Century Financial Corporation: Brad A. Morrice, the former New Century chief executive officer and co-founder; Patti M. Dodge, the former chief financial officer; and David N. Kenneally, former New Century controller.Read more

The Securities and Exchange Commission has charged Citigroup Inc. with misleading investors about the company's exposure to sub-prime mortgage-related assets. The SEC also charged one current and one former executive for their roles in causing Citigroup to make the misleading statements in an SEC filing.Read more

New York State Comptroller Thomas P. DiNapoli, as trustee of the $132.6 billion New York State Common Retirement Fund, has filed separate lawsuits against Merrill Lynch & Company and Bank of America for violating federal securities laws.Read more

Wells Fargo & Company has announced the restructuring of its Wells Fargo Financial division, including closing its 638 Wells Fargo Financial stores across the U.S. and exiting the origination of non-prime portfolio mortgage loans. The remaining consumer and commercial loan products offered through Wells Fargo Financial will be realigned with those offered by other Wells Fargo business units and will be available through Wells Fargo’s expanded network of community banking and home mortgage stores.Read more

Attorney General Lisa Madigan has announced that she has filed a lawsuit against Countrywide, a subsidiary of Bank of America, for unlawfully discriminating against African-American and Latino borrowers in home mortgage sales, in violation of the Illinois Human Rights Act and the Illinois Fairness in Lending Act. The Attorney General filed her complaint in Cook County Circuit Court against Countrywide Financial Corporation; Countrywide Home Loans Inc.; and Full Spectrum Lending Inc., an arm of Countrywide that mostly sold sub-prime loans.Read more

Struggling homeowners in Florida will have limited ability to face any additional economic challenges brought on by the Gulf oil spill, according to Fitch Ratings. A recently completed study by Fitch shows half of all securitized non-agency mortgage loans in Florida are 60 days or more delinquent. Also among the study's more notable findings, "Florida already ranks the worst among all states in mortgage delinquencies across all product types," said Managing Director Roelof Slump.Read more