Housing Market, Real Estate | featured news

Bank of America Corp. violated Arizona's consumer fraud law by misleading consumers who tried to reduce their mortgage payments so they could keep their homes, state Attorney General Terry Goddard said Friday as he filed a civil lawsuit against the bank....

Regulators have opened a new line of inquiry in their mortgage foreclosure probe and are asking big Wall Street banks about the beginning stages of mortgage securitization, two sources familiar with the probe said.

Bank of America Corp has started negotiating with powerful mortgage investors that accused the bank of failing to buy back bad home loans, in an apparent shift in the lender's stance.

The percentage of U.S. consumers who are delinquent on their mortgages could fall to about 5% by the end of 2011, from an expected 6.2% at the end of this year, according to a leading credit bureau. But it would still be well above historical levels.

Prices in San Francisco and Los Angeles, which had been increasing, both fell in August from July. Home prices are falling faster in the nation's largest cities, and a record number of foreclosures are expected to push prices down further through next year.

Mortgage rates jumped dramatically this week amid a sell-off of all kinds of bonds, according to data released Thursday.

Changing the face of foreclosure in America will take some time, several state attorneys general said Wednesday, cautioning that an agreement with major lenders over revamped foreclosure practices was not imminent. "We want to move as quickly as possibly but it has to be done right," said Roy Cooper, the attorney general of North Carolina. "We have plowed this ground before."Ever since the law enforcement officials from all 50 states signed on last month to a highly publicized investigation of big mortgage lenders, there has been a public tug of war.

The number of U.S. homes taken over by banks fell 9 percent in October as foreclosure processing was stalled by questionable paperwork, real estate data company RealtyTrac said on Thursday.

The jump from the previous quarter is the first time the measure has increased since early 2009, according to data from MDA DataQuick. However, the numbers are down from the same period last year.

Shares were down after a disappointing report on home prices. Traders also took in a mixed batch of earnings in the United States and Europe.