"The jury awarded $16 million but the judge still awarded $160,000 to someone who was not foreclosed on and that's significant," said plaintiff's attorney Stephen Foondos.
In a surprise victory for mortgage servicer PHH Corp., a California judge overturned a $16.2 million jury verdict awarded to a California homeowner in July for a botched loan modification.
BLINDSIDED: "Now we are rethinking whether we want to lend in Nevada," says Clem Ziroli, president of First Mortgage. "Our collateral has basically been robbed from us."
Mortgage lenders are threatening to halt lending on condominiums in Nevada after the state Supreme Court upheld a law allowing homeowners associations to foreclose ahead of first mortgage holders.

WIDESPREAD PROBLEM? "Ocwen must fix its systems without delay," Benjamin Lawsky said in a warning letter Tuesday to Ocwen Chairman William Erbey.
New York banking regulator Benjamin Lawsky is sending a new warning shot over the bow of Ocwen Financial, which has been scrutinized by regulators for more than a year.

Prices for Las Vegas homes are rising but not as fast as last year.
There has been a major shift from last summer when investor interest was so high it was outpacing inventory and blocking out other buyers.

Foreclosure dispositions shouldn't be grounds for investment-grade SFR ratings, Fitch's Dan Chambers said.
A regulatory mechanism designed to support unsolicited ratings includes obligations that complicate its use. Post-crisis single-family securitization sectors like the new rental market are instead drawing "unsolicited comments."

New rules are illuminating a once-shadowy market where servicers can be quick to modify loans and may have few qualms about principal reduction. Discounts or equity make such flexibility possible.
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