Thirteen words in President Barack Obama's 2012 Budget proposal could threaten the mortgage interest deduction for some taxpayers. Those words: "across-the-board 30 percent reduction in itemized deductions for high-income taxpayers." While not mentioning the mortgage interest deduction specifically, experts agree that this item in the budget could mean that at least some homeowners would not be able to count mortgage interest as a deduction on their taxes. We asked our users what they thought of this in our most recent newsletter, and the overwhelming response was to leave the mortgage interest deduction alone. View poll results.

On a side note, we set up the poll to accomodate 3,000 responses, and we easily received that many responses in the first few hours after sending it out, indicating many people feel strongly about this issue. So thanks for all the responses, and sorry to those who were not able to vote because the poll had already closed.

A Swift Deal May Not Be a Sound One
March 13, 2011, New York Times

One crucial reason the nation’s mortgage industry ran itself — and the entire nation — off the rails was its obsession with speed. Mortgages had to be approved chop-chop, loans pooled instantly. When it came to foreclosure, well, the quicker the better. So it is disturbing that the same need for speed is at work in the bank settlement being devised by state attorneys general relating to improper loan-servicing and foreclosure practices. When Tom Miller, the Iowa attorney general who leads the talks, announced initial terms of a deal on Monday, he said, “We’re going to move as fast as we can.”

Settlement Could Put Real Muscle Behind Efforts to Prevent Foreclosure
March 14, 2011, San Jose Mercury News (Editorial)

Even as some in Congress are vowing to gut the Obama administration's foreclosure prevention programs, which admittedly have been lackluster, a real remedy is on the horizon. A settlement that state attorneys general and federal regulators are negotiating with lenders could at long last bring relief to the 4 million families facing the loss of a home this year.

A Foreclosure Settlement Plan Might Make Matters Worse
March 14, 2011, Washington Post (Editorial)

The nation’s mortgage companies have engaged in questionable practices - or worse - regarding loan modifications and foreclosures. Even now the banks have not entirely conquered the scandal that erupted last fall over alleged widespread errors, procedural irregularities and outright misrepresentations - including the notorious "robo-signing" of foreclosure documents. The resulting confusion and controversy forced some banks to halt foreclosures, then start them again, adding a new element of uncertainty to an ailing housing market.

More Mortgage Mischief
March 15, 2011, Wall Street Journal (Opinion)

The new federal Consumer Financial Protection Bureau's website proclaims that no financial company "should be able to build, or feel pressure to build, a business model around unfair, deceptive, or abusive practices." How ironic, then, that the bureau itself is trying to extend its reach by extorting billions of dollars from private mortgage servicers, regulating their business by fiat, and stalling a U.S. housing market recovery

Alabama's Spencer Bachus Leads GOP Push to Gut Mortgage Relief Program
March 14, 2011, Birmingham News

House Republicans, led by Rep. Spencer Bachus, are halfway toward their goal of killing four federal programs meant to prevent home foreclosures. The U.S. House voted Thursday and Friday to end the Emergency Mortgage Relief Program and the FHA Refinance Program. Votes next week are scheduled on ending the Home Affordable Modification Program and the Neighborhood Stabilization Program.

Another Inside Job
March 13, 2011, New York Times (Opinion)

Count me among those who were glad to see the documentary “Inside Job” win an Oscar. The film reminded us that the financial crisis of 2008, whose aftereffects are still blighting the lives of millions of Americans, didn’t just happen — it was made possible by bad behavior on the part of bankers, regulators and, yes, economists. What the film didn’t point out, however, is that the crisis has spawned a whole new set of abuses, many of them illegal as well as immoral.

GOP Set to Begin Chipping Away at Mortgage Giants
March 14, 2011, Wall Street Journal

Republican lawmakers are preparing this week to introduce a series of legislative proposals to gradually reduce the role of Fannie Mae and Freddie Mac. The effort represents a tactical shift from the comprehensive approach for a speedier wind-down of the mortgage-finance giants that Republicans backed during last year's negotiations on the Dodd-Frank Act. Some of these ideas were embraced by the White House in its "white paper" released last month on the future of housing finance.

Bank of America Unit Tried to Hide Foreclosure Information, Hackers Say
March 14, 2011, New York Times

A hacker organization known as Anonymous released a series of e-mails on Monday provided by a former Bank of America employee who claims they show how a division of the bank sought to hide information on foreclosures. The bank unit, Balboa Insurance, was acquired by Bank of America when it bought the mortgage lender Countrywide Financial in 2008.

California Assoc. of Realtors Push for Easier Short Sales
March 10, 2011, Los Angeles Times

Even as home seizures stall nationally with big banks facing a potential overhaul of the foreclosure system, California’s real estate agents want to see an alternative to foreclosure made simpler. The short sale, in which a lender allows a borrower to sell their property for less than what is owed, remains doggedly difficult to do, the California Assn. of Realtors contends in an open letter published Thursday in seven major California newspapers, including the Los Angeles Times.

`Dozen' States Don't Back Foreclosure Plan
March 11, 2011, Bloomberg

Virginia is among “at least a dozen” U.S. states that don’t back a proposal submitted last week to resolve a nationwide probe of foreclosure and mortgage- servicing practices, Virginia Attorney General Kenneth Cuccinelli said. There isn’t consensus among all 50 state attorneys general about the terms of the settlement proposed to U.S. banks, Cuccinelli, a Republican, said today in a telephone interview.

Foreclosure activity drops sharply nationwide
Los Angeles Times — March 10, 2011

Big banks put the brakes on foreclosure activity last month as the American foreclosure system faced a major overhaul and homeowners challenged their lenders in court.

Foreclosure Settlement Plan Flawed, U.S. House Republicans Say
Bloomberg — March 9, 2011

U.S. House Republicans criticized a proposed federal-state settlement of flawed foreclosure practices and questioned whether the Consumer Financial Protection Bureau has authority to participate in the talks.

Forecast: Housing will continue to lag recovery
Inman News — March 10, 2011

The U.S. economy is growing and employment should soon pick up steam, but housing will continue to lag behind other sectors, economists at the UCLA Anderson Forecast said in their latest report.

Poll Finds ‘Half-Full’ Housing Outlook
The Wall Street Journal — March 10, 2011

Dire news about falling home prices abounds, but a new poll finds that a surprising percentage of potential buyers and sellers believe that the market is headed for an upswing.

House committee votes to end HAMP and NSP
HousingWire — March 9, 2011

The House Financial Services Committee voted Wednesday in favor of two bills that would terminate both the Home Affordable Modification Program and the Neighborhood Stabilization Program.

Foreclose Deal Near, State Officials Say
New York Times — March 7, 2011

WASHINGTON — A broad agreement could be struck within two months to overhaul how millions of foreclosures are handled by the nation’s biggest banks and to expand the use of home loan modifications, according to Tom Miller, the attorney general of Iowa.

Short sales fluster California Realtors
Inman News — March 8, 2011

Four out of 10 California Realtors say the last short sale they handled didn't close, and most are frustrated at how long it takes lenders to respond to offers and other inquiries.

Palm Beach County foreclosure activists joining statewide rally today in Tallahassee
The Palm Beach Post — March 8, 2011

Palm Beach County homeowner advocates have organized a bus trip to Tallahassee this week hoping to raise awareness about the ongoing plight of people in foreclosure and concerns they have about how banks are repossessing homes.

Research Firm Says U.S. Housing Has Never Been This Undervalued
DSNews — March 7, 2011

The continuing depreciation of residential property values at the end of last year has made housing look more undervalued relative to income than ever before, according to analysts at the research firm Capital Economics.

U.S. Home Sales Accelerate as Prices Decline Amid Rebound
Bloomberg — March 7, 2011

The third decline in U.S. home prices in three years is driving a pickup in sales as bargain hunters rush to buy before mortgage rates rise, even as values may slump further.