Real Estate News – June 29, 2011

Bank of America and its Countrywide unit will pay $8.5 billion to settle claims that the lenders sold poor-quality mortgage-backed securities that went sour when the housing market collapsed (via

U.S. borrowers are making more timely mortgage payments, and the number of new foreclosures dropped sharply in the first quarter, according to a government report.  Tempering that bit of good news, however, are legal uncertainties that are complicating banks’ abilities to clear out troubled mortgages (via

Shiller Says U.S. Housing Market `Stuck in the Doldrums’ (via

A Homeowners Association has told a disabled man in Florence that he has 10 days to move out of his house because he violated the community’s age requirement (via

Twin Cities home prices plunged 11 percent in April compared with a year ago, continuing to lead declines among major cities as the nation’s housing market flounders in a double-dip fall (via

Mortgage servicers who have delayed the foreclosure process for delinquent borrowers may now get fined. Fannie Mae announced it will retroactively fine mortgage servicers for failing to process severely aged loans in foreclosure, HousingWire reports (via REALTORMag):