If plans push through, home developers won’t be able to collect special fees from the sales of the properties they previously own.

The Federal Housing Financing Agency (FHFA) said it is considering prohibiting developers from including “private transfer fee convenants” in their sales contracts. The announcement came after the government agency, which regulates the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation, met a coalition of real estate agents, title companies, and consumer advocates that are against such a practice.

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The manager of the $20 billion fund for the victims of the country’s worst oil spill has met with realtors who are seeking compensation for their alleged losses of profit.

The meeting, held in Washington, was meant to discuss the possibility of realtors receiving compensation. Kenneth Feinberg, the appointed manager of the fund, held talks with the National Association of Realtors. The meeting also involved representatives from Texas, Louisiana, Mississippi, Alabama, and Florida – the Gulf of Mexico states affected the BP oil spill.

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Inventories of repossessed homes surged yet again last month, indicating that lenders are working double time to take back properties from delinquent borrowers.

Foreclosure listing firm RealtyTrac Inc. revealed that the number of houses lost to foreclosure climbed 6% to 92,858 properties last month year-on-year. The figure jumped 9% from June as banks stepped up efforts to prevent more bad loans from piling up. The number of properties that received an initial default notice also increased by 1% from June to July, but declined 28% from a year ago.

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“Hardest hit” states will receive another $2 billion from the federal government.

The Treasury Department said that the additional funds will help unemployed homeowners in 17 states pay their mortgages. Treasury spokeswoman Andrea Risotto said that the government will source the money from the $50 billion allocated for mortgage modifications under the Making Home Affordable program. The allocations per state, meanwhile, were based on unemployment rates.

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A recent report has revealed that more home sellers cut asking prices last month as the growing unemployment rate continues to drag down home values in many parts of the country. According to real estate website Trulia.com, owners slashed prices on about 25% of properties listed for sale in July. Data showed that sellers in the 50 largest cities reduced prices by $30.1 billion, up from $27.3 billion in June.

The San Francisco-based website blamed the weak job market for the continuous price cuts as the country’s unemployment rate inched closer to 10%. It added that despite low mortgage rates and real estate prices, many potential buyers are still reluctant to make a home purchase because of wage cuts, restrictive lending practices, and declining home values.

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A real estate tycoon known for his risky investments and whole neighborhood developments has passed away. Paul Milstein was 88.

Milstein, who dies in his home in New York City, was No. 237 among the Forbes’ world list of billionaires with a net worth of $3.8 billion. His career gave birth to 50,000 apartments, 8,000 hotel rooms, and 20 million square feet of office space. He was also responsible for some luxury buildings near the Lincoln Center.

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The Federal Home Loan Mortgage Corp. (Freddie Mac) has reported a quarterly loss of $6 billion. The troubled mortgage-finance firm is now seeking an additional $1.8 billion from the government to deal with the losses posted in the April-June period.

Freddie Mac attributed the $6.009-billion net loss to common stockholders in the second quarter of the year. It was a slight improvement from the previous quarter’s $7.980 billion loss but is and much higher than the $840 million loss posted by the government-sponsored enterprise (GSE) in the same quarter last year.

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The percentage of homeowners with “underwater” mortgages fell in the second quarter of the year as more properties entered the foreclosure process, latest data showed.

A report from real estate website Zillow.com revealed that the rate of single-family homes with mortgages in negative equity declined from 23.3% in the first quarter of the year to 21.5%. According to the website’s Real Estate Market Reports, the figure also fell from 23% from a year ago.

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Apparently, the government has underestimated the number of struggling homeowners that it has failed to help under its Home Affordable Modification Program (HAMP).

The Department of Treasury admitted that the number of homeowners who re-defaulted on their loans despite having mortgage modifications is considerably higher than the figure reported earlier. Officials said about 14.9% of the 4,764 borrowers who have had a permanent modification for at least nine months by the end of May are seriously behind their payments. The re-default rate is more than six times the 2.4% rate the department reported last month.

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The country’s two biggest mortgage guarantors are facing loss of political support as the government starts to overhaul the mortgage market.

An industry expert said that previously, Fannie Mae (Federal National Mortgage Association) and Freddie Mac (Federal Home Loan Mortgage Corp.) had a voice in the housing policy. “Fannie Mae and Freddie Mac marshaled armies of lobbyists, deep political connections and millions of dollars in contributions to get their way,” said “Washington Post” whiter Zachary Goldfarb.

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