Kate Berry

Joseph Smith, who is monitoring the $25 billion national mortgage settlement agreement, says he is "encouraged" by banks' progress, but he cautioned that their numbers fail to take into account that short sales carry less weight in certain states.

An independent audit found that the Federal Housing Administration's capital reserve ratio fell into negative territory, meaning the agency may need a bailout from the Treasury Department for the first time in its 78-year history.

The lender said it has committed $500 million to refinance underwater borrowers and has fulfilled its obligation to provide relief in Florida and California.

Bank of America said that it has so far offered $15.8 billion in consumer relief under the national mortgage settlement and that it expects to meet all of its financial obligations by the end of February.

The agency's annual independent actuarial report is expected to show that its capital reserves have been depleted by rising levels of defaults. FHA could shore up its finances by increasing its enforcement against banks and other lenders, but it may also need to tap the Treasury for the first time in its history.

Coinciding with the Veterans Day holiday, mortgage-settlement monitor Joseph A. Smith invited members of the military and veterans to report their complaints of abuses by mortgage servicers.

Even as it continues to staff up to meet surging demand for refinancings, B of A is laying the groundwork for a return to traditional mortgage lending when the refi boom ends.

Astoria Federal Savings expects to reopen its Coney Island branch on a limited basis Wednesday to allow customers to view their safety deposit boxes.

Under the OCC, a complex foreclosure review process is funneling hundreds of millions of dollars to administrators and advertisements. Critics charge that banks and homeowners would be far better served by a simpler program.

Independent foreclosure reviews at the major banks were meant to compensate wronged homeowners and restore some faith in the integrity of mortgage servicing. Instead, the process has become mired in questions of objectivity.

Nine major U.S. cities now require banks to report on their lending activity under responsible-banking laws.

Ally Financial said Wednesday that it has repaid $2.9 billion of debt issued under the Federal Deposit Insurance Corp.’s Temporary Liquidity Guarantee Program.

They say including such data would allow independent monitor Joseph Smith to test if servicers are providing adequate relief in low-income communities, but Smith's hands may be tied by the language of the settlement agreement.

Lender Processing Services said Monday it will pay $1.8 million to settle claims by Colorado Attorney General John Suthers that it allowed unauthorized signatures and improper notarizations of mortgage documents.

The nation's top home lender has been mailing letters and refund checks to nearly 10,000 borrowers acknowledging that they received Federal Housing Administration loans when they would have qualified for less-expensive conventional financing.

The Mortgage Bankers Association on Tuesday upwardly revised its forecast for residential origination this year to $1.7 trillion, citing low interest rates that have sparked a massive refinance boom.

All banks are eager to boost wallet share, but a new survey shows that many are not doing such a good job of cross-selling one of the most basic products to their checking clients.

If proposed mortgage rules are too rigid, banks will have little choice but to restrict lending. But if they are ill-defined or too loose, banks say they face higher compliance costs and increased risk of litigation.

The Merrill Lynch litigation is settled, but an ongoing tiff with Fannie Mae means elevated repurchase claims could continue for several more quarters.

Citi, Wells and JPMorgan Chase have all taken substantial chargeoffs in response to new OCC guidance on treatment of home-equity loans, and several other large and regional banks are likely to do the same.