Secondary Market

A Bank of America case, two attorneys, and state legislation that made mortgage fraud felonious helped complete the MReport mortgage fraud blotter Friday. MReport sourced two stories from multiple news outlets, which found Bank of America gaining the upper hand in a fraud-related suit and two attorneys alternately disbarred and charged for their roles in scamming lenders and homeowners. Also: A new state law makes mortgage fraud a felony in Michigan.

President Barack Obama fielded HUD official Carol Galante as a new nominee to head up the Federal Housing Administration, even as the future for other federal nominees remains unclear. The White House announced the decision in a statement in which the president offered new names for other posts. It remains uncertain whether any of the current partisan wrangling over other nominees will impact the confirmation process for Galante. Also in line for his confirmation: Consumer Financial Protection Bureau director-nominee Richard Cordray.

A declaration by President Barack Obama to end the war in Iraq helped drown other news Friday, including apparent moves by the White House to float a housing finance stimulus plan in the next few weeks. Some of the initiatives currently under wraps include an expansion of the Home Affordable Refinance Program and a selloff in mortgage-backed bonds by Fannie Mae and Freddie Mac to invite private-sector investment back into the housing finance system. The Federal Housing Finance Agency plays a major role for either proposal.

A bill squeaked by the Senate Thursday that would reverse lower limits for conforming loans backed by the federal government and reinstate the $729,750 threshold until 2013. Lawmakers adopted the amendment to a federal spending measure by a count of 60 to 38, giving backers of the bill the supermajority needed to avoid wrangling over the issue. Multiple news outlets reported that Congress had allowed the higher limits for conforming loans to ease in October despite a massive lobbying effort by companies and trade groups.

Appraisers are faced with challenges on many fronts that require skills well beyond the ability to analyze three comparable sales; Mark Chapin shares his expert advice.

More than 2,000 multifamily lenders financed five-unit apartment buildings to the tune of $68.8 billion over the course of 2010, according to a Mortgage Bankers Association report released Wednesday. The MBA pooled data from the MBA 2010 Commercial Multifamily Annual Origination Volume Rankings, which it said covered $119 billion in commercial and multifamily loans over the course of last year. The trade group found a 31-percent increase in total dollar volume for the multifamily lending industry.

Gloom and doom seems all the rage for the housing market, but at least one real estate company bucked bad news with the announcement of a community achievement award. The Children's Miracle Network Hospital plans to recognize RE/MAX, LLC, founders Dave and Gail Liniger at an event Saturday for their role in inspiring more than $100 million in contributions from company personnel.

Lawmakers called into doubt the role of the historic 30-year fixed-rate mortgage Thursday, with Senate committee witnesses alternately arguing for and against it. At issue: whether the benchmark loan, available since the presidency of Franklin Roosevelt, stabilizes the housing finance system or weakens it. Witnesses alternately upheld and criticized the 30-year fixed-rate mortgage, with the former characterizing it a buttress of wealth for homeowners and the latter calling for more consumer choice and clarifying its role in the crisis.

Still-tight credit and failed contracts helped scuttle more hopeful forecasts for total existing-home sales, which fell by 3 percent this month according to NAR's survey.

Interest rates for mortgage loans hovered at around the same numbers this week seen last week, even while the construction sector celebrated with boons in starts and confidence. Freddie found the benchmark 30-year fixed-rate mortgage cresting at 4.11 percent, slightly down from 4.12 last week but not far from 4.21 percent seen during the same time last year. Bankrate.com disagreed with the mortgage giant by few turns, offering an increase from 4.21 percent to 4.37 percent this week.