home subscribe advertise reprints e-mail help RSS about us LOG IN

Mortgage News

 

Mortgage News

HOT Topics

production

servicing

compliance

legal

fraud

secondary

jobs

appraisal

site map

www.loan-academy.com/
twitter linkedin
facebook google+
Search:

Mortgage News

News by Subject
Complete list of specialty news sections.

Purchase Subscription
Subscribe to MortgageDaily.com and get immediate access to all news, statistics and archives.

Mortgage Advertising
Reach mortgage executives, loan originators and other people tied to mortgage industry.

Consumer Mortgage News
Free mortgage news for prospective borrowers.

Mortgage Newsletter
Free e-mail newsletter with the latest headlines from MortgageDaily.com.

Mortgage News Reprints
Put entire MortgageDaily.com stories in your online or printed newsletter or publication.

Mortgage Feedget RSS code
Condensed MortgageDaily.com stories free on your Web site or for your RSS reader.

News Archives
Archive of MortgageDaily.com stories by month going back to 1999.

Press Releases
Reports and announcements from MortgageDaily.com.

Mortgage Statistics
Data and statistics for real estate finance.

Mortgage Directories
Directories of lenders, branch operators and mortgage service providers.

Mortgage Graphs
Directories of lenders, branch operators and mortgage service providers.

Foreclosure News | Foreclosure Resources

Foreclosures Overwhelm Servicers

Group releases report based on January data

April 23, 2008

By MortgageDaily.com staff


A new report found that rising delinquency is offsetting increasing efforts by overwhelmed servicers to prevent foreclosures.

Those were the findings from Analysis of Subprime Mortgage Servicing Performance announced Tuesday by the State Foreclosure Prevention Working Group. The report analyzed subprime servicing data from January 2008.

Data was collected from 13 of the largest 20 servicers that represent around 60 percent of subprime mortgage loans serviced.

The group was formed in September 2007 to work with subprime servicers to reduce foreclosures. Included in the group are attorneys general from Arizona, California, Colorado, Iowa, Illinois, Massachusetts, Michigan, New York, North Carolina, Ohio and Texas. In addition, banking regulators from New York and North Carolina are among the ranks.

"Industry measures to keep homeowners out of foreclosure are barely keeping pace with the rising rate of homeowners in trouble," the announcement stated. "The number of borrowers in loss mitigation has increased ... but those gains have been matched by an increasing level of delinquent loans."

The group released a report in February that analyzed data from October 2007. That study found seven out of ten seriously delinquent loans were not in any sort of work-out process. The latest report indicated the share hadn't changed and, "in major respects," the data was unchanged from October to January.

"The number of borrowers in loss mitigation has increased, but it has been matched by an increasing level of delinquent loans; thus, the relative percentage has remained about the same," the group wrote.

Servicers' loss mitigation departments are overwhelmed with the current workload, according to the study. Nearly two-thirds of loss mitigation efforts are not completed within one month of starting.

"The burgeoning numbers of delinquent loans that do not receive loss-mitigation attention are clogging up the system on their way to foreclosure," the authors wrote. "We are concerned that servicers overall are not able to manage the sheer numbers of delinquent loans."

The report noted that many servicers are moving toward loan modifications and away from repayment plans on borrowers who do receive loss mitigation help.

The report indicated "millions of unnecessary foreclosures" will not be prevented as a result of inadequate efforts.

The group called on more servicers and the Comptroller of the Currency to join the 13 servicers who are sharing data. It also called for a more systematic approach to replace the more labor-intensive case-by-case loss-mitigation approach.

read full Analysis of Subprime Mortgage Servicing Performance report from April 2008

read full Analysis of Subprime Mortgage Servicing Performance report from February 2008

Servicing News | Servicer Ranking | Delinquency Statistics
Stories about mortgage servicers, delinquency and f o r e c l o s u r e s. Coverage of servicing lawsuits and loan servicing technology.



SUBSCRIBERS: Edit Subscription | Subscription Help | or call 214.521.1300

Subscribe Contact Us Site Map

Copyright © 2017 Mortgage Daily, D a l l a s
Subsribers Only:

AMC directory

ARM indexes

mortgage company directory

mortgage regulations

net branch directory

p r i c i n g engine directory

wholesale lender directory

More Mortgage News Resources (full site map):

advertising news

appraisal news

bank news

biggest lenders

commercial mortgage news

corporate mortgage news

credit news

FHA news

financial regulation news

foreclosure news

GSE news

jumbo mortgage news

interest rates

loan modification news

loan originator survey

LOS Newsletter

MBS

mortgage associations

mortgage-backed securities

mortgage books

mortgage brokers

mortgage compliance

mortgage conferences

mortgage directories

mortgage education

mortgage employment

mortgage employment index

mortgage executives

mortgage fraud

mortgage fraud blog

mortgage fraud local news

Mortgage Fraud Index

Mortgage Graveyard

mortgage insurance news

mortgage lawsuits

mortgage leads

mortgage lender ranking

mortgage licenses

mortgage litigation

Mortgage Litigation Index

Mortgage Market Index

mortgage mergers

mortgage news

mortgage politics

mortgage press releases

mortgage production

mortgage public relations

mortgage rates

mortgage servicing

mortgage statistics

mortgage technology

mortgage video

mortgage Webinars

net branch

net branch directory

nonprime news

origination news

originator tools

real estate news

refinance news

reverse mortgage news

secondary marketing

social media

servicing news

subprime news

wholesale lenders