Thursday, February 24, 2011

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Obama pulls defense for law banning gay marriage (Reuters)

Posted: 23 Feb 2011 04:15 PM PST

WASHINGTON (Reuters) – President Barack Obama's administration will no longer defend a 15-year-old U.S. law that defined marriage as between a man and a woman, a major policy shift in favor of gay rights.

The issue of gay marriage has been a major personal conflict for Obama -- he has opposed it and instead favored civil unions -- and his policy reversal drew criticism from conservatives who said the move was a political one.

Attorney General Eric Holder announced the change on Wednesday after a detailed review in recent weeks.

He said the government now agreed with a U.S. judge in Boston who ruled in 2010 that banning gay marriages was unconstitutional.

Previously, the Obama administration had appealed, stating that it was obligated to defend U.S. laws.

The hot-button issue of same-sex marriage has been the focus of many judicial and political battles across the country. Gay marriage has only been legalized in the District of Columbia and five of the 50 states -- Connecticut, Massachusetts, Iowa, New Hampshire and Vermont.

Some states have allowed same-sex civil unions, which Obama has supported, but he has opposed full marriage rights for gays and lesbians. In December Obama said that his views about it were "constantly evolving" and "I struggle with this."

Gay rights advocates praised the reversal, including Edith Windsor, who successfully challenged the law in Massachusetts.

She called the decision the "right thing" to do and that "my only regret is that my beloved late spouse, Thea Spyer, isn't here today to share in this historic moment."

The decision is the second major victory for gay rights groups in recent months. In December, the Obama administration successfully lobbied Congress to lift a ban preventing gay people from openly serving in the military.

"DEEPLY DISTURBING"

Holder said although the administration would not defend the 1996 Defense of Marriage Act from court challenges it would enforce the law until it was either repealed or struck down.

The judge in Boston had found that the federal law defining marriage as between a man and a woman, effectively barring gay marriages, violated the U.S. Constitution's provisions granting equal protection under the law and protecting states' rights.

Obama's move drew a rebuke from conservative Republicans who argued that he could not pick and choose the laws to defend and some termed his decision partisan politics.

Mike Huckabee, a 2008 presidential candidate who may run again in 2012 told reporters that Obama's decision "was an absolutely boneheaded political move. I think it was a boneheaded policy move."

Republican Senator Orrin Hatch of Utah said the Justice Department had an obligation to defend the law in court. "It is deeply disturbing to see politics further distort the Department of Justice," he said.

Obama has also expanded benefits for same-sex partners of federal employees including healthcare benefits, sick leave and family assistance services.

The move by the Obama administration came as supporters of gay marriage in California pressed a federal appeals court to lift its stay that prevented such unions. A California judge had ruled a statewide ban was unconstitutional.

Opponents of the ban, known as Proposition 8, said that Obama's move could help their case. "We think that will be very persuasive in the courts that are handling our case," said Ted Olson, a lawyer representing two same-sex couples in the case.

(Additional reporting by Steve Holland and Thomas Ferraro in Washington and Dan Levine in San Francisco; Editing by Alistair Bell and Eric Walsh)



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Obama pushes multibillion-dollar mortgage pact: report (Reuters)

Posted: 24 Feb 2011 12:05 AM PST

NEW YORK (Reuters) – The Obama administration is trying to push a settlement that could force the largest U.S. banks to pay for reductions in loan principal worth billions of dollars following breakdowns in mortgage servicing, The Wall Street Journal said.

Should a settlement be reached, some state attorneys general are also pushing for banks to pay more than $20 billion of civil fines or to fund a similar amount of loan modifications for troubled borrowers, the newspaper said on Wednesday, citing people familiar with the matter.

Regulators are looking to settle with as many as 14 servicers, including three of the nation's four largest banks: Bank of America Corp, JPMorgan Chase & Co and Wells Fargo & Co, the newspaper said, citing people familiar with the matter.

The administration wants a commitment from loan servicers to reduce loan balances for borrowers who owe more than their homes are worth, and that such costs would not be borne by investors who bought mortgage-backed securities, the newspaper said, citing people familiar with the matter.

It would thus force servicers that mishandled foreclosure procedures to bear losses by writing down loans they service on behalf of clients such as Fannie Mae, Freddie Mac and other investors, the newspaper said.

A settlement would let banks devise their own modifications or use existing government programs, and require them to reduce second-lien mortgages when primary mortgages are modified, the newspaper said, citing people familiar with the matter.

Terms remain fluid and have not been presented to banks, the newspaper said, citing people familiar with the matter.

Bank of America, JPMorgan and Wells Fargo declined to comment to the newspaper. None could be immediately reached after-hours for comment.

(Reporting by Jonathan Stempel in New York; Editing by Ramya Venugopal)



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Foreclosure home sales fall in 2010: RealtyTrac (Reuters)

Posted: 23 Feb 2011 10:20 PM PST

NEW YORK (Reuters) – Sales of foreclosed homes fell in 2010 as the market struggled with weak demand, though they still represented more than a quarter of total sales, according to a RealtyTrac report released on Thursday.

Sales of these distressed properties also fell in the fourth quarter, hurt by continued weakness from the expiration of the homebuyer tax credit and temporary halts in foreclosure sales from several major lenders.

Sales of homes owned by banks or in some stage of foreclosure decreased 31.1 percent in 2010 from 2009 to 831,574 and were down 13.8 percent from 2008. Sales of homes that were not in foreclosure also decreased for the year, down nearly 19 percent from 2009, RealtyTrac said.

Sales of foreclosed homes made up 26 percent of all home sales, down from 29 percent in 2009 and up from 23 percent in 2008.

"We're still seeing the volume of sales activity on these types of properties way beyond what we would normally see in a given year, but it's not keeping pace with how quickly the industry is creating the inventory," said Rick Sharga, senior vice president at RealtyTrac.

The glut of inventory on the market -- and more coming with fresh foreclosures -- is one of the biggest challenges for the struggling housing market. However, demand remains weak, pushing prices down further. The average sales price on foreclosed homes was 28.1 percent below the average of regular properties in 2010, compared to 27 percent the year before.

In the fourth quarter, foreclosure sales were down 22 percent from the previous quarter and down 45.4 percent from the fourth quarter 2009. Sales volume fell to its lowest level since the first quarter of 2008.

(Reporting by Leah Schnurr; Editing by Andrew Hay)



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