Mortgage Servicing News articles from August 2003

Mortgage Servicing News archives from August 2003

Critics Take Aim at More Lenders.
August 1, 2003... Two consumer advocates who brought the nation's largest subprime servicer, Fairbanks Capital Corp., to its knees, are preparing to target other subprime servicers if they are not willing to reform their practices. "There are a lot of...

Fairbanks Serves as Warning.(Fairbanks Capital Corp.)
August 1, 2003... Fairbanks Capital, under fire from politicians, regulators and consumer advocates, may hold some lessons for the entire mortgage lending industry. And with servicers facing increasing scrutiny in the wake of the Fairbanks case, they are...

B&C Loans Withstand Pressure.
August 1, 2003... The unemployment rate has continued to edge up, but so far the weak job market has not done much damage to subprime mortgage portfolios. Data from several sources show that subprime delinquency rates are holding steady or improving. ...

MBA Data Suggests Fewer B&C Borrowers are Falling Behind: Subprime Loans 30-Days or More Late.(Brief Article)
August 1, 2003... 1st Q 2003: 12.40% 4th Q 2002: 13.29% 1st Q 2002: 14.01% Copyright 2003 Thomson Media Inc. All Rights Reserved. http://www.thomsonmedia.com http://www.mortgageservicingnews.com

Ocwen Gets REO Deal.(Veterans' Affairs real estate-owned inventory)
August 1, 2003... The Department of Veterans Affairs is preparing to turn over its foreclosed properties to Ocwen Federal Savings Bank in mid-August. Ocwen, based in West Palm Beach, Fla., won the bidding to manage and sell VA's real estate-owned inventory,...

CSFB Looking At GMAC-CM?(Brief Article)
August 1, 2003... Investment banker Credit Suisse First Boston is conducting due diligence on GMAC Commercial Mortgage here, the nation's largest commercial loan servicer, sources told Mortgage Servicing News. According to one commercial official, "CSFB is...

Special Report: Bundled Services.(Brief Article)
August 1, 2003... Lenders increasingly want all or most of their service providers to be from the same team. That trend is likely to accelerate if HUD's proposed RESPA reform rules are promulgated. Page 21 Copyright 2003 Thomson Media Inc. All Rights...

Top Subprime Servicers at 3/31/03.
August 1, 2003... (Dollars in Millions) (part 1 of 2) Rank Organization Name Location 1 Fairbanks Capital Corp. Salt Lake City, UT 2 CitiFinancial Baltimore, MD 3 ...

Insurance Grabs Attention of CRE Servicers.(commercial real estate and terrorism and mold insurance issues)
August 1, 2003... Commenting on how insurance concerns have come to occupy center stage in today's servicing environment, Robert P. Vestewig, noted, "A couple of years ago, you got a certificate, checked it off and put it in a file. It is not so anymore." ...

MERS for CRE Coming Soon.(Mortgage Electronic Registry System for commercial real estate)(Brief Article)
August 1, 2003... It is anticipated that the Mortgage Electronic Registry System for the commercial sector will start to register loans later this summer. The system will benefit users by eliminating the need to do assignments, thereby reducing costs,...

Commercial Lenders Worried by Shortage Of Bids on CMBS Deals.
August 1, 2003... A concern that the servicing industry might be developing into an 'oligopoly' (with only a few major players) surfaced, at a panel session during the Commercial Mortgage Securities Association's annual convention. Stacey Berger, executive...

WaMu Pursues $1 Trillion.(Washington Mutual Bank)
August 1, 2003... Washington Mutual here has always been an ambitious company, but now the company is preparing to cross a threshold that was unimaginable just a few years ago. Within three years, WaMu hopes to service $1 trillion in mortgage loans, the...

Western States Show Arrives in Las Vegas.(Brief Article)
August 1, 2003... The eighth annual Western States Conference comes to the Bellagio in Las Vegas this month. The show, which runs Aug. 10 through Aug. 12, is managed by the California Mortgage Bankers Association. Fidelity National Financial is the...

Litigation Worries.
August 1, 2003... If you haven't had a "litigation checkup" recently, now might be a good time to think about having internal and external attorneys take a look at your loan servicing practices. Nobody likes having lawyers meddle with established business...

Research Bears Out Subprime Pricing.
August 1, 2003... Mr. Pennington-Cross, a senior economist at the Office of Federal Housing Enterprise Oversight, authored a working paper to address loss distributions between subprime and prime mortgage loans. The following is an excerpt from the working...

The Freddie Scandal: Follow the Money, or the Accountants, or Both.
August 1, 2003... Here's what the Freddie Mac "restatement scandal" really boils down to: who in their right mind at the company was supporting the concept of hiding or smoothing out the firm's stellar earnings? That's what it's all about. Oh, there are...

June Data Shows Accelerating Prepayment Speeds after Lull in May.
August 1, 2003... Prepayment rates for Fannie Mae and Freddie Mac mortgage-backed securities surged in June for recently originated 30-year 5.5% coupons, following a May report that had been termed "the calm before the storm." Speeds for Fannie Mae '03...

DataSynapse Teams with Hanover.(Brief Article)
August 1, 2003... DataSynapse, a provider of self-managed, grid computing software, and HanoverTrade have unveiled an integrated, grid-enabling version of the Hanover/Busch Analytics portfolio valuation technology. The companies said that one large financial...

TransUnion Expands Service to Offer Speedier Cross-Sell Data.
August 1, 2003... TransUnion, an information services company, has introduced two new prospecting solutions to acquire new customers and enhance existing relationships. The Rapid Notify Account Acquisition and Rapid Notify Cross-Sell services are designed...

Mortgage Pioneer David Loeb Dies.
August 1, 2003... David S. Loeb, the co-founder and former chairman of Countrywide Credit Industries Inc. (now Countrywide Financial Corp.) died on June 30 at his home here. He was 79. Mr. Loeb, along with Angelo Mozilo, co-founded the Calabasas,...

Fitch Streamlines and Revamps Foreclosure and Loss Model.
August 1, 2003... Fitch Ratings has updated its model for forecasting foreclosure frequency and loss severity on loans pooled into residential mortgage-backed securities. Fitch officials said the new models reflect an increasing availability of mortgage...

Default Activity Is Rising In NYC.(Brief Article)
August 1, 2003... A foreclosure advisory and data firm here says that foreclosure activity is rising in the New York City metropolitan area. "New York City is one of the five most troubled housing markets in the nation," said Alexis McGee, president of...

Jumbo Lenders See Signs of Fraud.
August 1, 2003... It's generally assumed in housing finance circles that the U.S. likely will not experience a housing price "bubble," but some jumbo and "superjumbo" lenders are quietly tightening their underwriting guidelines. One high-end lender,...

Ratings Roundup: Centex Praised for Early Collections, Loss Mitigation.(Brief Article)
August 1, 2003... Fitch Ratings has upgraded Centex Home Equity Co.'s rating for primary servicing of subprime home loans to "RPS2-plus" from "RPS2," citing the company's early collections and loss mitigation practices as primary reasons for the higher rating....

NovaStar Also Upgraded.(NovaStar Mortgage)(Brief Article)
August 1, 2003... Standard & Poor's Ratings Services has raised its ranking on NovaStar Mortgage, a wholly owned subsidiary of NovaStar Financial, to "strong" from "above average" as a residential mortgage subprime servicer. At the same time, S&P affirmed...

HomEq Affirmed at Top Rating.(Brief Article)
August 1, 2003... Fitch Ratings has affirmed its top rating designations for HomEq Servicing Corp. HomEq continues to receive a "RPS1" rating for servicing alt-A and subprime mortgage loans. It also receives an "RSS1" rating as a special servicer. ...

Option One Also Affirmed.(Brief Article)
August 1, 2003... Moody's Investors Service has reaffirmed Option One Mortgage Corp.'s top rating as a primary servicer of residential subprime mortgage loans. In addition to affirming the "SQ1" rating for subprime, Moody's also affirmed the company's...

Fitch Sees Wilshire Improving.(Brief Article)
August 1, 2003... Fitch Ratings has affirmed Wilshire Credit Corp.'s residential primary servicer ratings for subprime, home equity, and high loan-to-value products of "RPS2" and its residential special servicer rating of "RSS2-plus." Fitch said the...

Prepay Derivatives Offer Lenders Another Tool.
August 1, 2003... In the complex business of hedging portfolios of mortgage assets against interest rate risk, lenders and investors have long been searching for tools that provide a strong correlation to the unique prepayment characteristics of mortgage...

Second Lien Market Poised for Growth.(Brief Article)
August 1, 2003... While 2002 "by most measures" was "the strongest year for housing on record," according to a Harvard University report, going forward, second mortgages are expected to steal the show in mortgage finance. A Harvard University Joint Center...

Refinancing Likely to Top Previous Records.(Brief Article)
August 1, 2003... The recent decline in mortgage rates to 1958 lows is going to boost refinancings to nearly $2.6 trillion this year, closely matching last year's record for total originations, according to Fannie Mae chief economist David Berson. For all...

MBA Also Raises '03 Estimate.(Brief Article)
August 1, 2003... The Mortgage Bankers Association of America has announced that, thanks to falling interest rates, it is now forecasting that mortgage originations will total $3.3 trillion this year, far exceeding the record of $2.5 trillion set in 2002. ...

Regulators Mandate Counseling Notice.(Brief Article)
August 1, 2003... Federal regulators have updated their examination procedures for determining if lenders and servicers are properly notifying delinquent borrowers that homeownership counseling is available. The update notes a decision by Congress to repeal...

Subprime Servicers Ranked by Number of Loans Serviced at 3/31/03.
August 1, 2003... (Dollars in Millions) (part 1 of 2) Rank Organization Name Location 1 CitiFinancial Baltimore, MD 2 Household Financial Services (E) Prospect Heights, IL 3 ...

A GSE Critic Accuses Freddie Of Self-Insurance Charter Creep.
August 1, 2003... Long time GSE critic Rep. Richard Baker, R-La., is asking Freddie Mac's regulator to look into a possible charter violation by the government-sponsored enterprise involving self-insured risk. Recent disclosures by Freddie Mac revealed that...

Gregory Parseghian.(Brief Article)
August 1, 2003... Mr. Parseghian was named CEO and president of Freddie Mac following a board coup that culminated in long-time CEO Leland Brendsel's sudden retirement. Also gone are former President and Chief Operating Officer David Glenn and former chief...

Wells Denies that Its Loans Prepay Faster than Others.(Brief Article)
August 1, 2003... When the prepayment rate on Freddie Mac's mortgage securitizations became higher than Fannie Mae's in a more notable way than usual in April, Wall Street researchers in New York singled out loan concentrations from two large originators as...

E*Trade Offers Consumers a Mortgage That Moves with Them.
August 1, 2003... A new program introduced by E*Trade Group Inc.'s E*Trade Mortgage will enable consumers to lock-in an interest rate now and transfer it to the next home they purchase, instead of paying off the old loan and applying for a new loan at...

DPS To Offer MERS Docs.(Brief Article)
August 1, 2003... Document Processing Systems Inc., Novi, Mich., is the latest doc prep company to offer services to MERS 1-2-3 users. MERS 1-2-3 allows members and nonmembers alike to generate complete closing packages and to create valid assignments to...

Fidelity and REO.com Join Forces.(Brief Article)
August 1, 2003... Fidelity Information Services, formerly Alltel, has entered into a strategic alliance with REO.com to develop an interface that will pre-populate fields on REO.com's website with data from Fidelity's Mortgage Servicing Package to reduce costs...

Servicers Want Photos for Valuation Reassurance.
August 1, 2003... AMCO is adding digitally-attached photographs to its eValu appraisal product in a move that will make it more attractive to servicers, according to Ceil Cohen, company director of marketing and communications. The company planned to begin...

Automated Valuations Remain Rare in CRE World.
August 1, 2003... The use of Automated Valuation Models in home appraisals has taken off, but they are at a preliminary stage of use when it comes to commercial property valuations. Essentially, this is technology that assesses the value of a property...

Experts See Realty Markets Remaining Weak in Near Term.
August 1, 2003... Findings from two studies indicate that the weakness in the commercial real estate sector is likely to continue for some time to come. The Federal Deposit Insurance Corp. reports that bank commercial real estate portfolios are performing...

Lenders Advocate for Document Integrity.
August 1, 2003... The Mortgage Bankers Association is undertaking an effort to see if the Uniform Single Attestation Program can be split into two, creating a separate program for commercial servicers, geared to their specific needs. Russell Richardson,...

Roundup: MBA Urges Standards for Terror Reporting.
August 1, 2003... The MBA is working with ACORD to standardize ACORD's insurance reporting form for terrorism insurance coverage. ACORD is a "nonprofit organization that deals with insurance providers," according to Deborah McKinnon, a vice president with...

DebtX Adds CRE Valuation Tool.(commercial real estate)(Brief Article)
August 1, 2003... DebtX, a company that helps banks trade their commercial real estate loan portfolios, has taken its product a step forward. The company, which functions as an online loan trading center (www.debtx.com) and also conducts online loan...

Cooperative Bank Gets Rating.(Brief Article)
August 1, 2003... Fitch Ratings has assigned a primary servicer rating of "CPS1-" to National Cooperative Bank FSB, a commercial mortgage-backed securities servicer. As well, the rating agency has rated the servicer a "CMS2-" as a master servicer. The...

KeyCorp Rating is Upgraded.(Brief Article)
August 1, 2003... Fitch Ratings has upgraded KeyCorp Real Estate Capital Markets' primary servicer rating to "CPS1-" from "CPS2+" and the servicer's master servicer rating to "CMS2+" from "CMS2." The rating agency has also affirmed Key's special servicer...

Midland Wins Contracts.(Brief Article)
August 1, 2003... Overland Park, KS-Midland Loan Services has been selected as special servicer for five commercial mortgage- backed securities transactions totaling approximately $4 billion, the servicer has reported. Midland was selected by either the...

Bundled Services.(Brief Article)
August 1, 2003... The game is changing. And with the Department of Housing and Urban Development pursuing changes to RESPA that will facilitate bundled services, the game may change even more quickly. While most vendors are bundling different settlement...

Bundled Services 'Becoming the Norm'.(Brief Article)
August 1, 2003... Steven Hunt, vice president for specialized sales at First American Real Estate Information Services, says that potential RESPA changes are generating buzz around the concept of bundled services. The trend has gone online, with "numerous...

First American Adds Vendor Platform for Default Services.
August 1, 2003... First American Default Technologies has debuted its next-generation, case-management platform, VendorScape/CMS. First American said its new VendorScape/CMS improves productivity for attorneys and mortgage servicers by streamlining case...

Harland Acquires Premier Systems.(Brief Article)
August 1, 2003... Harland Financial Solutions said it has extended its core systems offering with the acquisition of Iowa-based Premier Systems, Inc. The deal gives Harland service bureau delivery technology, the company said. PSI is a provider of...

HUD Expected to Move Forward with Bundled Services.
August 1, 2003... Expectations are growing that the Department of Housing and Urban Development is going to issue a rule that would revamp the mortgage application and settlement process later this summer. And a Washington lobbyist recently reported that...

Roundup: NCS Sells Post-Close Division to Law Firm.(Brief Article)
August 1, 2003... National Closing Solutions here is selling its post-close servicing division to Robertson & Anschutz, a Houston-based law firm that focuses on serving the mortgage industry. David Tandy, CEO of NCS, said the company has decided to focus on...

Advantage Selects CreditXpert.(Brief Article)
August 1, 2003... Advantage Credit will use tools from CreditXpert here to help their customers close loans. CreditXpert tools are designed to help loan officers and mortgage brokers explain applicants' credit profiles to them and identify actions they can...

NFR Joins BridgeLink.(National Flood Research)(Brief Article)
August 1, 2003... National Flood Research has joined London Bridge's eCommerce network, BridgeLink. National Flood Research is a flood certification provider based in Boulder, Colo. It will use the eCommerce network to provide its flood certification...

Servicing People.(appointments in the industry)
August 1, 2003... CALIFORNIA Calabasas-Countrywide Financial Corp. announced the promotion of seven executives to enhanced roles within the managing directorate. Dave Sambol was named executive managing director, loan originations and capital. Mr....