Real Estate News – November 23, 2011

Eitan Maximov, 39, a citizen of Israel and lawful permanent resident of the United States, was convicted yesterday after a six day jury trial on one Count of Conspiracy to Commit Wire and Bank Fraud and one count of Wire Fraud as a result of his leadership in a cash back mortgage fraud scheme that took place during 2006-2008 (via

Mortgage insurer PMI Group Inc. filed for Chapter 11 bankruptcy protection Wednesday after an Arizona judge rejected its bid to overturn the October seizure of its mortgage-insurance unit by state regulators (via

The leader of a $6.7 million mortgage fraud scheme involving a home in Gates Mills, Ohio, was sentenced to more than 12 years in prison, said Steven M. Dettelbach, United States Attorney for the Northern District of Ohio (via

U.S. home prices will stagnate through next year and only start recovering in 2013, according to economists polled by Reuters who also felt the stimulus options being floated will not do much to reinvigorate the market (via

Foreclosure Law Firm That Mocked Victims Closing (via

More than 20 lawmakers in the House of Representatives this week called on Fannie Mae and Freddie Mac to reduce the mortgage principal of borrowers who owe more on their home than it is currently worth (via REALTORMag):

Texas Couple Fined $7,000 for Posting Sign in Yard (via

American International Group Inc.’s mortgage-guarantee unit will make concessions to help borrowers refinance home loans under a U.S. program after the bailed-out insurer had said it was concerned it would have to pay for lenders’ faulty underwriting (via

Mortgage Servicers Make Progress to Fix Flawed Foreclosures (via

Bank of America Corp. told Fannie Mae it won’t cooperate with the U.S. mortgage firm’s new stance on loan buybacks, setting up the lender for a potential surge in claims and penalties (via

As of Jan. 1, Freddie Mac will require parties involved in a short sale to sign affidavits that will make them liable for any negligent or intentional misrepresentations in the transaction, HousingWire reports. Mortgage servicers are being urged to implement the change immediately before the Jan. 1 mandate, however (via REALTORMag):