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Default Service Providers Step Up Offerings
While many providers of services for distressed mortgages focus on unloading and managing real-estate-owned properties, an emerging group is helping servicers comply with quickly escalating regulations. Technology is becoming a growing tool in the sector.
Earlier this month, Gateway Mortgage Group said it developed an in-house sub-servicing unit to provide specialty and default servicing for mortgages insured by the Federal Housing Administration or guaranteed by the Department of Veterans Affairs. Kevin Osuna was recruited to direct the new operation.
The privately held mortgage banker said that more stringent government lending requirements and increased regulatory oversight have left small servicers struggling with traditional sub-servicers.
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Generating and Managing Mortgage Leads
In addition to residential mortgage leads, loan originators now have access to leads for commercial mortgages, loan modifications and the federal refinance program. One lead generation firm recently started offering exclusive leads and a lead-scoring engine, while another is guaranteeing quoted rates for prospective borrowers. Two other lead firms recently merged.
HAMP Revitalized
A new round of enhancements to the government-funded loan modification program has been unveiled. In addition to extending the program by one year, the improvements include modifications on nonowner-occupied properties, more flexible debt-to-income ratios and a tripling of payments for mortgage investors.
BofA, Chase Each Could Lose Over $60 mil in HAMP Incentives
More than $100 million in payments due to JPMorgan Chase & Co. and Bank of America Corp. for modifications completed under the Home Affordable Modification Program could be withheld -- possibly permanently.
Proposed Servicer Settlement Not Good Enough for California
The latest rendition of a proposed settlement between servicers and state attorneys general just doesn't cut it, according to California's attorney general.
Fed Chairman Addresses Questions on Mortgages
The chairman of the Federal Reserve Board addressed a number of mortgage issues including principal forgiveness and the potential servicer settlement. He also discussed how the ailing housing market has curtailed the central bank's ability to bolster the economy.
Best Performing Servicers
Two of the country's biggest servicers of residential loans got low marks based on the volume of delinquent loans that were cured and cash flow from their loans. An emerging servicing giant has been modifying at a much faster pace than its peers.
BofA Moves Backwards With HAMPs
JPMorgan Chase & Co.'s servicing subsidiary turned in the best performance among mortgage servicers participating in the federal modification program. But somehow Bank of America Corp.'s servicing unit managed to lose more than 10,000 permanent modifications.
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Feds, States Stomp Out Foreclosure Rescue Services
Federal regulators are going all out to put a halt to firms that collect hefty fees while their clients still lose their homes. States including California, Florida and Illinois have also been busy eradicating companies that collect up-front fees in return for promises that foreclosures will be halted. Many of the schemes purport to provide an investor who will buy a distressed homeowner's property then instead use straw buyers and mortgage fraud to strip the equity.
Jumbo RMBS Pose Greatest Risk
A ratings agency outlook for the private-label market in residential mortgage-backed securities indicates that securitized jumbo mortgages pose the greatest risk of strategic default. In fact, nonprime loans pose less of a risk than jumbo mortgages. The report indicated that the level of re-defaults on modified loans is tapering off.
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