Erin Lentz, director of Zillow Mortgage Marketplace, said mortgage rates will likely remain at low levels, particularly when the new HARP program takes effect, allowing more homeowners to refinance their loans and take advantage of the low rates. This can lead to hundreds or thousands of dollars of savings, which can be put back into the economy.

While mortgage rates stayed low, mortgage applications increased over the last week. The Mortgage Bankers Association's weekly survey found applications jumped 4.9 percent in the week ending October 21, compared to the week prior.

In addition, the refinance index increased 4.4 percent from the previous week, and the purchase index grew 6.4 percent. Refinancing accounted for 77.3 percent of total applications, down from 77.6 a week before, while the adjustable-rate mortgage share of activity increased from 5.8 to 5.9 percent of total applications.

National Mortgage Professional reported that Ocwen plans to pay for the sale with cash on-hand, cash from operations, credit and $1.1 billion in servicing advance facilities. Ocwen reported $122.5 million in revenue for the third quarter of 2011, a 28 percent increase compared to the third quarter of 2010. In the third quarter, Ocwen reported completing 15,743 loan modifications, with the Home Affordable Modification Program making up 16 percent of the modifications.

Michael Grondahl, an analyst for Piper Jaffrey, said many large banks are unable to service high-risk loans in a cost-effective way, opening the doors for mortgage lenders who handle subprime mortgages such as Ocwen.

"We believe there is approximately $1.4 trillion in distressed mortgage assets in the U.S., all of which need servicing, and potentially up for grabs," said Grondahl. "As such, OCN is in a unique position to benefit as a proven servicer of subprime mortgages."

 The Federal Housing Finance Agency recently released its house price index, which fell 0.1 percent in August compared to July, and 4 percent compared to August 2010. The current U.S. house price index is 19.1 percent below its peak in April 2007, and at the same levels reported in February 2004.

For homeowners who have experienced a decline in home price and home equity throughout the housing market's struggles, David Wolfe, from the law firm Skoloff and Wolfe, recently told MarketWatch about different ways owners can turn their decreased home values into tax relief.

According to Wolfe homeowners who are unsatisfied with an appraisal and want to challenge it should make sure they do not increase their tax liability by pointing out the appraisal is too low.

"If your property is under-assessed, your taxes could be increased by filing a tax appeal,” Wolfe said. “The fact that the market is down doesn’t mean that every property is over-assessed and entitled to relief.”

To avoid increasing tax liability, Wolfe recommends homeowners look for obvious errors in the appraisal, try to determine the home value on their own and speak with the assessor's office before doing anything drastic. Sometimes owners are able to resolve their issues with the assessor's office and can avoid going before a board of review to appeal.

The Washington Post reported that the two mortgage lenders expect to generate enough profits to start paying back taxpayers in the next couple years, but officials assert the companies will probably never repay all the money. If the economy dips again, the companies might require another $50 billion more in aid from the government, to help cover profit losses associated with more borrowers defaulting on their loans.

The most expensive legacy of the financial crisis to date, many policymakers are calling for the dissolution of Fannie Mae and Freddie Mac, in a push to eliminate the role of government in housing policy and have the housing market run in the private sector, the news source reported. However, the federal government and specifically the Obama administration continue to call on the lenders to help implement programs and initiatives aimed and helping struggling homeowners.

The Huffington Post reported the two lenders are required to pay 10 percent dividends on the government bailout money they received. The companies believe they will be able to maintain a payment schedule to payoff the money, due to fewer foreclosures and delays in foreclosure processing resulting from government investigations into mortgage lending practices, which will lead to fewer losses for the lenders.

In an interview with Reuters, Peter Bell, president of the National Reverse Mortgage Lenders Association, said when a borrower makes a reverse mortgage arrangement he or she usually borrows money against the home equity loan, and is not required to make payments on it until the home is sold.

The younger demographic that is applying for reverse mortgages can pay off the loan more quickly, and many are using the arrangement as a way to fund retirement. Some are choosing to live off the reverse mortgage funds in the beginning of retirement, then later sell their homes, pay off their loans and downsize to something more affordable, Bell said.

However, a reverse mortgage also comes with upfront fees and complexities that many borrowers are unaware of. The lack of borrower education on reverse mortgages has prompted a change in counseling guidelines and requirements that lenders must meet in order to make sure consumers understand the product before purchasing, Reverse Mortgage Daily reported.

Lenders must be licensed and provide certificates proving prospective borrowers have received an education on the financial product. But borrowers must still take responsibility for their lack of knowledge, and proactively educate themselves on the various complexities of reverse mortgages, the news source reported.

The triple dip decrease may be spurred by an increase in foreclosures and continued unemployment, which has stood firm around 9.1 percent for the past two years.

The first decrease came in 2009, when prices fell 31 percent below the 2006 peak, and the second came in 2010 when they slumped by 33 percent. After that dip, prices experienced a modest gain when banks put the breaks on foreclosure processing.

The news of an expected drop in prices is one of many signs that things may not get better in the near future. Earlier in October, RealtyTrac reported that foreclosure activity in the United States increased slightly in the third quarter of 2011.

"U.S. foreclosure activity has been mired down since October of last year, when the robo-signing controversy sparked a flurry of investigations into lender foreclosure procedures and paperwork,” said James Saccacio, chief executive officer of RealtyTrac. “While foreclosure activity in September and the third quarter continued to register well below levels from a year ago, there is evidence that this temporary downward trend is about to change direction, with foreclosure activity slowly beginning to ramp back up." 

In an interview with C-SPAN, DeMarco said the $141 billion the enterprises received from the government was supposed to help them out, not bail out the entire industry.

"FHFA has been aggressively trying to assist the housing market to ensure that the country continues to have a liquid and stable and functioning secondary mortgage market," DeMarco said. "Some of those things that are being advocated for us to do really go beyond what Congress has given us the authority to do and the funds that have been provided," he said.

Last week, FHFA announced that home prices fell in August for the first time in four months, adding that prices have declined more than 19 percent from the industry's peak in April 2007. The decline reversed the 0.8 percent gain experienced from June to July 2011.  

Many homeowners have refinanced their mortgages to take advantage of lower interest rates, but as they have continued to see rates go down, they might be considering another round of refinancing. This raises the question of how often it's possible – and wise – to refinance a home loan.

Fees

Dropping interest rates certainly incentivize mortgage holders to refinance; however, there are other reasons homeowners might need to think about multiple refinances. A divorce, a new job, the loss of a job or another unforeseen life change might present the homeowner with the need to obtain cash by tapping into home equity or provide a reason to alter a loan from a 30-year to a 15-year term.

Especially if a homeowner has already refinanced a mortgage recently, it's important to not let the stress or excitement of the current situation cloud the decision-making process about refinancing again, because the fees associated with refinancing make each round less economical. Every time a mortgage is refinanced, there are inevitable charges associated with the transaction that can run to thousands of dollars. Multiplied too many times, these costs can significantly erode whatever savings a homeowner might gain due to a lower interest rate.

Seasoning

While closing costs and other fees discourage too many rounds of refinances, homeowners are free to refinance as many times as they want, provided they can find a willing lender. However, seasoning rules can limit a homeowner's ability to rapidly obtain multiple refinances. Some mortgage lenders require a loan to be "seasoned" for a particular amount of time, usually between three months and a year, before considering it eligible to be refinanced. For example, a borrower becomes eligible for certain Federal Housing Authority refinancing programs only after making six payments on a current mortgage.

Exercise caution

Not all lenders require a loan to be seasoned in order to refinance, which can benefit borrowers who want or need to refinance a new or newly refinanced mortgage. However, some predatory lenders encourage rapid multiple refinances to boost their business. A Demand Media report in the Houston Chronicle cautioned borrowers to be especially wary of lenders who offer a poor or mediocre loan with a promise to improve the terms with future refinances. Borrowers with a troubled credit history or an urgent need for a loan might be tempted to trust these lenders but could find themselves victimized.

While it's necessary to carefully weigh the pros and cons of refinancing a loan more than once or twice during its lifetime, there can be benefits to multiple refinances. A trusted lender can help mortgage holders consider their options and provide on-point advice about the best course of action. 

The HSH.com Weekly Mortgage Rate Radar found the average rate for conforming 30-year fixed-rate mortgages dropped 3 points to 4.23 percent, and the conforming 5/1 hybrid ARM rates dropped 3 points as well to 3.08 percent.

Keith Gumbinger, vice president of HSH.com, said homeowners are in need of refinancing options in order to avoid foreclosure, which would also help stabilize the market. The Obama Administration recently announced a new program to help homeowners stay current on their home loans.

"The expansion of the Home Affordable Refinance program, coupled with the near-record-low interest rates, mean borrowers trapped in higher-rate mortgages may find real opportunities for savings," Gumbinger said.

But a recent survey from Home Value Insurance Company found 72 percent of homeowners in Ohio feel declining home market value is the biggest risk to their property, while only 12 percent were concerned about fires, 10 percent about tornadoes and 5 percent about floods.

Scott Ryles, CEO of Home Value Insurance Company, said the results illustrate how consumer confidence, particularly in the housing market, is extremely low, and the importance of owning a home is dropping.

The Dow Jones Newswire reported Old Republic is seeking approval from Fannie Mae, Freddie Mac and state insurance regulators to re-start its practice using new capital and its old mortgage insurance subsidiary.

In the first nine months of 2011, Old Republic, like many other mortgage insurance companies, suffered significant losses in its mortgage insurance unit, totaling $515 million. Mortgage insurance providers collectively have suffered billions of dollars in losses on policies issued right before the housing crisis hit, the news source reported.

Despite having stopped its mortgage insurance practice, Old Republic posted a third quarter loss of $116.5 million in 2011, due to a rise in claims in the mortgage guaranty segment, compared to a $38.9 million loss in the third quarter of 2010. But the company's general insurance and title insurance units have performed better in 2011 than 2010, increasing revenue 29.1 percent and 5.9 percent, respectively, Housing Wire reported.