New York Sues MERS, Members
New York's attorney general has filed a lawsuit against the three biggest lenders and the Mortgage Electronic Registration System Inc. alleging that the registry is a sham designed to deceive borrowers and the public and avoid recording fees. The state wants the system declared illegal and all resulting title defects cured.

Survey: Strip Off Jr Liens in Chapter 13 BKs
A majority of people in the legal community believe that a borrower should be able "strip off" a junior-lien mortgage in a bankruptcy payment plan even if the bankruptcy is not discharged.

Servicing Business Becoming Unprofitable
The cost of servicing residential mortgages has gotten so out of hand that it is starting to make sense for some firms to get out of the business.

Multifamily Business Strengthens at Freddie
Apartment lending took off last year at the Federal Home Loan Mortgage Corp., with the volume of multifamily activity leaping by nearly a third. Delinquency also improved.

Ally Struggles With Mortgage Ops
Losses from mortgage operations took a big bite out of Ally Financial Inc.'searnings. Still, the lender managed to increase quarterly originations and keep delinquency from rising.

Mass Refi Plan Unveiled for Non-GSE Borrowers
A massive refinance program for borrowers who don't have conventional agency mortgages was one of several initiatives announced Wednesday by President Obama. But the multi-billion-dollar tab for the program will be picked up by the nation's lenders.

REO-to-Rental Program Takes Shape
The much-anticipated program that will convert real-estate-owned properties into rentals is now underway.

Fannie Outperforming Freddie by a Long Shot
For five consecutive months now, Fannie Mae has managed to increase its secondary activity, contrasting last month's activity at rival Freddie Mac. Annual business, however, was lower at both firms. Fannie's residential delinquency didn't increase a single time last year, while late payments at Freddie have deteriorated each of the last several months.

Default Service Providers Step Up Offerings
While many providers of services for distressed mortgages focus on unloading and managing real-estate-owned properties, an emerging group is helping servicers comply with quickly escalating regulations. Technology is becoming a growing tool in the sector.