Foreclosure Class Action Against WaMu
A Massachusetts couple claim they were just following the advice of Washington Mutual Bank when they stopped making their mortgage payments so they could qualify for an assistance program being promoted by the bank. But following the foreclosure of their home, they became lead plaintiffs in a class action against the company.

In a class-action lawsuit alleging bad faith foreclosure tactics, borrowers Lori and Mark Pestana sued WaMu for negligent misrepresentation.

The borrowers also brought individual claims, including wrongful foreclosure, against the thrift and its foreclosure law firm.
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HUD Eases Loan Modification Procedures
The U.S. Department of Housing and Urban Development has made it easier for servicers to modify delinquent loans insured by the Federal Housing Administration.

IndyMac Pursues Wide-Scale Alt-A Modifications
The chairman of the Federal Deposit Insurance Corporation, who has been calling on servicers to make more loan modifications, is putting U.S. and investor money where her mouth is.

Massive Foreclosure Prevention Efforts Underway
Members of Congress are prodding servicers to hold off on foreclosures while new legislation is implemented, while a group of nonprofits is working to ensure foreclosure funds designated by the new law are put the highest and best use. In Chicago, the price of holding a vacant property rose, and the cost for foreclosure consultation from a Phoenix attorney fell. Two firms have automated the process of identifying foreclosure prospects and recommending solutions.

Florida Firm Growing, Hiring
A Florida-based company that helps servicers with real estate owned has added nearly 100 employees this year and has plans to add more.

California Mortgage Layoffs
Hundreds of California servicing employees were laid off earlier this month by Fremont Investment & Loan.

Positive IndyMac Update
IndyMac Federal Bank FSB, which still employs many of the people who worked there before it was taken over by government regulators, is operating under the Federal Deposit Insurance Corporation with fewer capital restraints in an environment with higher morale than in its final days as an independent company. The servicing unit is among the company's most valuable remaining assets.

Impaired Loan Secondary Market Expands
The market for impaired mortgages continues to grow as investors and servicers see opportunity to bring defaulted loans into a re-performing status. Other secondary marketing activity includes the development of warehouse lines for home-equity conversion mortgages.

Foreclosures Up Over 50% From 2007
Monthly foreclosures jumped, while filings are up more than 50 percent from a year ago.

Record Foreclosure Activity
The latest foreclosure report indicates filings have reached the highest level ever.