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American Home v. Ohio AG v. American Home
American Home Mortgage Servicing Inc. and Ohio Attorney General Richard Cordray are suing each other allegations of poor servicing practices.
A complaint was filed in a Franklin County, Ohio, court today against Ohio's attorney general by the Coppell, Texas-based servicer.
American Home claims the state made unsupported allegations about its alleged servicing practices in a letter from Cordray's office.
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HAMP Good News, Bad News
Two firms are reporting exceptional performance in helping servicers offer, process and complete loan modifications under the Home Affordable Modification Program. But even after completion, many modifications may still fail.
Special Servicer Sees Success
A Texas-based servicer of distressed mortgages that launched only late last year expects to hire more than 100 employees during the next 12 months. The high-touch servicer is seeing big success with its modifications -- which are re-defaulting are a far lower rate than the rest of the industry.
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Mortgage Bankers Meet in San Diego
The nation's mortgage bankers are converging this week in Southern California for their annual shin dig. Other upcoming mortgage-related events include a workshop for government modifications, two events exclusively for chief executives and a conference in Las Vegas.
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Modification Firms Face Federal, State Suits
A rash of federal, state and local lawsuits have been filed against a host of loan modification firms. Civil litigation has been filed in Missouri, New York and Ohio, while a criminal action was filed in California.
Morgan Stanley Unit Best HAMP Servicer
Morgan Stanley's subprime servicing unit has initiated trial payment plans on a higher share of its borrowers who are eligible for the government's loan modification program and any other servicer. The company helped the Obama administration achieve a key objective a month early.
The HAMP Monitor
Negative equity is expected to drive re-defaults higher on loans modified under the Home Affordable Modification Program, according to one ratings agency. Despite the grim outlook, however, trial payments plans under the program recently tripled. In other HAMP activity, Freddie Mac has made changes to its guidelines and forms.
Modification Statistics and Such
The volume of loan modifications had been heading down as the government's program was kicking in. But the number recently rose. Meanwhile, credit unions were advised to consider modifications to offset rising delinquency, and two companies hope to help servicers with their modifications.
Retail Mod Services Sprouting Up
As up-front fees become more difficult to collect on loan modifications, fewer new modification firms are emerging. But a cottage industry of free and paid services is emerging to help borrowers complete modifications themselves.
Pace of Modifications Slowing
Financial institutions completed 25 percent fewer loan modifications in the second quarter than in the first quarter, though trial modifications are gaining steam, according to a new government report. Re-defaults improved for the second consecutive quarter, and portfolio loans had a re-default rate that was around half the level of the rate on loans serviced by third parties.
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