A look at stories across HousingWire’s weekend desk, with more coverage to come on bigger issues: Treasury Department Secretary Timothy Geithner said on Sunday’s Meet the Press the recovery stalled in the first half of 2011 as shown in June’s disappointing employment numbers. “The recovery is not going fast enough,” Geithner said. He pointed to rising gas prices due to turmoil in the Middle East, poor weather cramping construction spending, the catastrophe in Japan and lingering concerns in Europe as a large reason for the recent slowdown. He then admitted the administration is running out of options. “We don’t have the ability because of the housing inventory and problems in the financial sector to engineer artificially a stronger recovery,” Geithner said. While he pointed out many economists forecast a renewed recovery in the back half of 2011 and into 2012, he braced the American people of more struggles to come. “That is the tragic effect of a crisis this deep and this bad caused by a long period of lost opportunities to make the country stronger,” Geithner said. On Tuesday, the House Financial Services Committee will vote on seven more bills addressing reform of the government-sponsored enterprises. House Republicans announced this second wave of new GSE legislation in May, bringing the total number to 15. The latest bills address a variety of topics such as subjecting Fannie Mae and Freddie Mac to Freedom of Information Act requests, capping the total dollar amount of bailouts for these two companies, prohibiting future taxpayer funding for former executive legal fees and others. Terry Laughlin will become the new chief risk officer of Bank of America (BAC) as part of an executive shake-up announced late Friday. During a transitional period, Laughlin will continue to run the Legacy Asset Servicing division, a recently formed branch that is handling delinquent and discontinued mortgages along with other risks such as buying back soured mortgage-backed securities. Paula Dominick will serve as the interim CRO during that time. Chuck Noski will assume a new role as vice chairman and will engage in resolving these legacy issues. Bruce Thompson, the former chief risk officer will move to chief financial officer of the company. And Gary Lynch will join BofA as the global head of legal, compliance and regulatory relations on July 11. “Terry is steeped in the issues that represent the most significant risk we face, and his ultimate transition into the chief risk officer position reflects that and his deep industry expertise,” said BofA CEO Brian Moynihan. “While there is more work ahead, in a relatively short period of time, Terry has helped us make significant progress on our legacy mortgage issues.” JPMorgan Chase (JPM) analysts estimated the recent BofA settlement with residential mortgage-backed securities investors to pay back roughly 10% of the losses on the 530 Countrywide Financial Corp. trusts. The bank reached the $8.5 billion agreement with Bank of New York Mellon (BK) in June. BNY is the trustee on those bonds, which totaled more than $424 billion in principal. “Subsequent recoveries are pretty much a positive for all Countrywide bonds,” JPMorgan analysts said in a research note released over the weekend. Stewart Lender Services acquired a majority interest in the REO outsourcing and subservicing company PMH Financial. The deal allows the company to move into the REO, short sale and servicing business to go with its core title operations. Executives told HousingWire the new firm will manage roughly 6,000 properties scattered across the U.S. Prudential Mortgage Capital Company, the commercial lending arm of Prudential Financial (PRU), formed a joint venture with several funds under Perella Weinberg Partners’ Asset Based Value Strategy to originate commercial mortgages for future securitization. Loans will be originated on the Prudential origination platform, warehoused and securitized by the joint venture. Prudential Asset Resources will service the loans. The joint venture targeted more than $1 billion per year in new fixed-rate commercial mortgages. “Participation in the re-emerging CMBS market is critical to maintaining our leadership position in the commercial mortgage arena,” said David Twardock, president of Prudential Mortgage Capital Company. PSM Holdings acquired St. Louis-based Founders Mortgage. For the last five years, Founders originated between $5 million and $7 million in new mortgages per month. The larger PSMH is licensed to write mortgages in 19 states in 30 branches. “The acquisition of Founders will add significant value to our company and shareholder base,” said PSMH CEO Ron Hanna. Regulators closed three banks over the weekend, bringing the total number of failed institutions to 48 for 2011. Closures should not reach the 157 peak last year. The most recent closings over the weekend will cost the Federal Deposit Insurance Corp. $590.4 million. The Illinois Department of Financial and Professional Regulation closed First Chicago Bank & Trust.  As part of the agreement with the FDIC, Northbrook Bank & Trust Company will assume all $887.5 million in deposits and roughly $880.7 million of the $953.3 million in assets. The FDIC estimated the closing to cost the deposit insurance fund $284.3 million. The Colorado Division of Banking closed Colorado Capital Bank. North Carolina-based First-Citizens Bank & Trust Company agreed to assume all $672.8 million in deposits and purchase essentially all $717.5 million in assets. The closing is expected to cost the DIF $283.8 million. The Colorado Division of Bank also closed Signature Bank. The Points West Community Bank agreed to assume $64.5 million in deposits and purchase essentially all $66.7 million in total assets. The FDIC estimates the closing to cost the DIF $22.3 million. Write to Jon Prior. Follow him on Twitter @JonAPrior.

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