Mortgage Servicing News articles from December 2007

Mortgage Servicing News archives from December 2007

Paulson Pushes Rate Freeze Plan.
December 1, 2007... Washington -- The authors of a plan to streamline loan modifications and refinancings for 1.2 million subprime borrows are hoping it will be adopted as a market standard and protect servicers from being sued by disgruntled investors. We...

$62B on the Market.
December 1, 2007... New York -- H&R Block is actively marketing the subprime servicing operation of its wholly owned mortgage subsidiary, Option One Mortgage Corp., Irvine, Calif., the nations fourth largest servicer of A- to D loans. Up for grabs is OOMCs...

Top Residential Servicers at Sept. 30, 2007.
December 1, 2007... (dollars in millions) Servicing Volume % Market Mkt Shr Rank Organization Name Location 9/30/07 9/30/06 Change Share % pt. +/- 1 Countrywide Financial Corp. Calabasas, CA $1,459,136 $1,244,311 17% 16.01% +1.82%...

Option One's Servicing Portfolio -- Statistics at a Glance.(Brief article)
December 1, 2007... (Dollars in millions) Subprime servicing at 9/30/07 $62,300 Number of loans serviced 348,696 % change in serv. over 12 mos. (16 %) Subservicing contracts $2,916 FRM/ARM servicing ratio ...

Foreclosures Hit New High Point.
December 1, 2007... Washington -- The news isnt getting any better for people who work in default management departments. The percentage of loans in the foreclosure process and the number of loans entering foreclosure both reached record highs in the third...

B&C Is in Freefall.
December 1, 2007... Washington -- The subprime foreclosure rate topped 5.75% in the third quarter, a startling 140% rise from the same period last year, according to exclusive survey figures compiled by Mortgage Servicing News. Nationwide, at least 158,494 A-...

Goldman Eyes Litton.
December 1, 2007... New York -- Goldman Sachs & Co. is close to signing a deal to buy Litton Loan Servicing, Houston, the nations ninth largest servicer of subprime mortgages, according to industry sources. At press time, Goldman was not commenting on the matter,...

Securitized B&C Loans Deteriorate.
December 1, 2007... New York -- Goldman Sachs & Co. is close to signing a deal to buy Litton Loan Servicing, Houston, the nations ninth largest servicer of subprime mortgages, according to industry sources. At press time, Goldman was not commenting on the matter,...

Workout Firm Does Construction Loans.
December 1, 2007... Mobile, AL -- Vadium Group here is a new firm founded by mortgage industry veteran Joel Pate that dares to go where many fear to tread: single-family construction loans gone bad. But Mr. Pate and his team bring more than curiosity to the...

Litton Warns of Potential Pitfalls in Mortgage Recovery.
December 1, 2007... New York -- Larry Litton, CEO of nonprime servicing specialist Litton Loan Services, knows a thing or two about scratch and dent loans. Mr. Litton has been a strong advocate of loan modifications and forbearance to keep as many borrowers in...

Triad Among MIs To Get Downgraded.
December 1, 2007... New York -- The president and chief executive of Triad Guaranty Inc., Winston-Salem, N.C., Mark Tonnesen, said it is unfortunate that concerns regarding the mortgage and housing industries and their effect on near-term performance has prompted...

Editorial: The Cramdown Question.(Editorial)
December 1, 2007... Several years ago, creditors won an important legislative victory when Congress tightened bankruptcy laws, restricting the ability of consumers to discharge debt and protecting mortgage lenders from cramdowns. The mortgage lenders secured...

Point of View: FICO Test a Flaw in Plan.(Fico Score Credit Rating)
December 1, 2007... The viewpoint is an excerpt from Congressman Franks opening remarks at a recent committee hearing on the subprime lending crisis. During the hearing, Congressman Frank commented on the administrations plan to aid troubled nonprime borrowers who...

Only One Thing Can Fix the Subprime Mortgage Mess: Time.
December 1, 2007... By now youve read all about the Bush administrations plan to help one million or so consumers by freezing, for five years, their adjustable-rate mortgage at the start rate. The idea is to help credit-impaired borrowers avoid foreclosure when...

Prepayment Activity Is Starting to Heat Up Again.
December 1, 2007... Prepayment rates for 30-year mortgages in Fannie Mae and Freddie Mac mortgage-backed securities reversed course in October, rising 14%. The reversal was attributable to three extra business days and a decline in mortgage rates, according to...

Zillow: Price Fall Leaves Many Under Water.
December 1, 2007... New York -- Home values nationwide declined for the fourth consecutive quarter, down 5.7% year-over-year, the largest year-over-year decline in more than a decade, according to Zillows 3Q07 Home Value Report. Launched in early 2006,...

ARMs Create a Challenge for Downey Financial.
December 1, 2007... Newport Beach, CA -- Mortgage lender Downey Financial saw its nonperforming assets increase to $388 million at the end of October, a 50% jump in just three months time. The California-based thrift a big player in the ARM market reported...

Investcorp Seeks Debt.
December 1, 2007... New York -- Investcorp, a private equity firm that owns this newspapers publisher, SourceMedia, has teamed up with Washington Corner Capital Management to form a strategic partnership that will give Investcorp clients access to the distressed...

$32 Billion and Counting.
December 1, 2007... New York -- Over the past few months, Wall Street firms, banks and other players in the mortgage market have written off more than $32 billion in collateralized debt obligations tied to subprime-related securities, according to a tally done by...

Subprime Meltdown Takes Toll on Home Values.
December 1, 2007... Washington -- Nearly one-third of all households could see the value of their homes decline by an average of $5,000 due to a nearby subprime foreclosure, according to a new study by the Center of Responsible Lending. Over 44 million...

FICS Enhances Its Database Software.
December 1, 2007... Dallas -- Financial Industry Computer Systems, a mortgage technology specialist that provides in-house residential origination and servicing technology and commercial servicing, has enhanced its client server based-solutions to be compatible...

Experts Anticipate Weaker Commercial Credit.
December 1, 2007... After a few years of good performance on the commercial mortgage delinquency front, it looks as though delinquencies have hit a bottom and will start going up again in 2008. For one, it looks as though the subprime mortgage market-generated...

Rate Cuts, Teaser Freeze and Underwriting Reform.
December 1, 2007... You can forgive the mortgage industry for feeling a little less merry than usual this holiday season. Just about everyone, from brokers to lenders to secondary market conduits to investors and servicers, is feeling some of the industrys pain....

Servicing Crimps ResCap's Results.(Brief article)
December 1, 2007... New York -- ResCap, the mortgage lending division of GMAC Financial services, suffered a $2.3 billion loss in the third quarter mostly related to asset writedowns and loss on the sale of loans. But servicing was also a factor in the...

Credit Index Slips.
December 1, 2007... Columbia, MD -- The seasonally adjusted credit managers index published by the National Association of Credit Managers fell in November, a trend that adds to concern about the economy slipping into recession. The NACM said the index...

Market Data Analysis Maximizes Value.
December 1, 2007... The quality of a given real estate market whether appreciating, stable, or declining has a direct impact on the variance between fair market value and REO or institutional value for properties in that market. With defaults and foreclosures on...

NYC Opens Nation's Largest Foreclosure Center.
December 1, 2007... New York -- The Center for NYC Neighborhoods, a new not-for-profit organization created to assist homeowners at risk of mortgage foreclosure throughout the five boroughs, has been launched here. It is expected to assist 18,000 New Yorkers...

Report Links Defaults and Foreclosures to Borrower Fraud.
December 1, 2007... Fort Worth, TX -- The ongoing search for foreclosure culprits recently found blame in an unlikely place. An FBI mortgage fraud report linked up to 70% of early payment defaults to borrower misrepresentations on mortgage loan applications. ...

Consulting Group Launches Business.
December 1, 2007... New York -- In times when most of the industry is under pressure to find the best ways how to assist homeowners risking foreclosure, mortgage industry executives Erin Forbes and Cynthia Hamilton have established Lenders Credit Consulting Group,...

Williams & Williams Starts New REO Hedge Fund.
December 1, 2007... Tulsa, OK -- The best course of action in todays mortgage market remains a matter of perspective. Many are selling, private investors are buying and expanded REO management operations are hoping for long-term profit. Instead, auctioneer...

HOPE Alliance Beefs Up Foreclosure Prevention Efforts.
December 1, 2007... Washington -- Federal and private entities alike are intensifying their preventive efforts in helping homeowners across the country avoid foreclosure. The House Financial Services Committee recently examined progress in the coordinated...

Servicers Expect REO to Flood Market in 2008.(Conference notes)
December 1, 2007... Hollywood, FL -- Lots of new real estate-owned inventory will be coming into the market during the remainder of 2007 and into 2008, and it will be tough to unload, economist Christopher Thornburg told attendees at the REOMAC Fall Conference...

Proactive B&C Loan Workouts Seen as Efficient.
December 1, 2007... New York -- Today, there is a lot of talk about using Federal Housing Administration loans to refinance troubled B&C borrowers out of risky loan products. But one company thats built its business around Veterans Affairs lending believes its...

Finding Alternative Solutions to High Foreclosure Rates.
December 1, 2007... With a record number of foreclosures and costs ranging from $50,000 to $100,000 or more per foreclosed loan, lenders are taking a beating on their REOs. The industry is in crisis, yet many are busy pointing the finger rather than getting into...

DRI Tech Facilitates REO Sales Communication.
December 1, 2007... REO asset managers are looking for a more sophisticated listing analysis to make sure properties are valued appropriately. DRI Management Systems in Newport Beach, Calif., has worked diligently to figure out ways to analyze properties...

Credit Piggybacks Boost Customer Credit Scores.
December 1, 2007... San Diego -- Individuals with adjustable mortgages whose payments have escalated beyond their means and whose credit scores are too low to refinance are now finding a creative way to keep from losing their homes to foreclosure. Commonly...

Delinquency Rates -- Based on Total Past Dues at 9/30/07.
December 1, 2007... (Based on Number of Loans Serviced) Number of % loans % Rank Organization Name Location Loans Serviced past due 90+days Foreclosures 1 America First CU Riverdale, UT...

California Takes Lead in Pressure to Modify Loans.
December 1, 2007... Sacramento, CA -- California Gov. Arnold Schwarzenegger has enlisted four major subprime servicers to streamline their loan modification procedures for adjustable-rate subprime mortgages to stem rising foreclosures in his state. ...

Wells Fargo Nicked by Home Equity Loan Defaults.
December 1, 2007... San Francisco -- Wells Fargo, which has evaded the subprime mess better than other large banks so far, last week said it will set aside a $1.4 billion loss reserve related to home-equity lending. Wells Fargo already had tightened...

Banks, Thrifts Raise Credit Loss Reserves.
December 1, 2007... Washington -- Banks and thrifts took a beating in the third quarter but thrifts experienced an 80% drop in earnings despite maintaining a high level of originations. Higher loss reserves contributed to the earnings decline for both banks and...

Outsourcing.
December 1, 2007... Its no secret that with delinquency and default rates rising, servicing costs are going up as well. Some lenders are reporting that their cost per loan to service is up as much as 30% year-over-year. That rising workload highlights the need...

New Tool Helps Servicers Manage Problem Portfolios.
December 1, 2007... New York -- Default management service provider LandAmerica Financial Group Inc. has released a new tool designed to assist lenders and servicers manage problem loan portfolios, improve overall profitability and better mitigate risk, the...

LOGS Network Chooses CSC's Default Technology.
December 1, 2007... El Seguindo, CA -- Computer Sciences Corp. here has been selected by LOGS Network to provide a mortgage default-related software package. LOGS will use CSCs EarlyResolution mortgage default Software as a Service for its recently launched home...

Xerox Brings Wealth of Research to Advectis Unit.
December 1, 2007... Alpharetta, GA -- When Advectis become Xerox Mortgage Service in October, the company joined an outfit that has some heft in the technology space. As part of Xerox Global Services, the firm benefits from Xeroxs three well-respected...

Guardian Sees Servicing Arena as a Growth Opportunity.(Brief article)
December 1, 2007... Lakewood, CO -- Guardian Mortgage Services, a division of Guardian Mortgage Documents, hopes to play an expanding role in helping clients manage loan servicing issues in todays market. While the companys primary focus has been on helping...

Partners Expanding Compliance Program.
December 1, 2007... San Francisco -- In a time when mortgage lenders are looking at every aspect of their business for possible improvements and cost savings, ComplianceEase here and Guardian Mortgage Documents have expanded their three-year strategic alliance to...

FNC Helps Lenders Identify Loans Affected by Disaster.
December 1, 2007... New York -- In times of widespread destruction, such as the California wildfires and 2005s Hurricane Katrina, property values can plummet quickly. Specific information regarding the property backing a home loan becomes crucial to mortgage...

Lloyds Eyes 2nd Homes.(Brief article)
December 1, 2007... Stamford, CT -- Lloyds TSB Offshore Ltd. is interested in potentially working with U.S.-based second-home loan brokers who can help it originate novel, floating-rate, currency-based cross-border loans it is offering to mid- to high-net-worth...

People.
December 1, 2007... CALIFORNIA Santa AnaFirst American Title Insurance Co. said that Kenneth Manqueros has been named president of the companys national agency services division. In his new role, he will plan and execute the divisions strategies, as well...

Fannie & Freddie Are Feeling the Credit Crunch.
December 1, 2007... Washington -- Even though Fannie Mae and Freddie Mac invest mostly in conventional A credit mortgages, they, too, are beginning to feel the heat of the subprime crisis, a fact not lost on their regulator. In a recent interview, Office of...

CMBS Market Facing Possible Correction.
December 1, 2007... New York -- The commercial mortgage securitization market finds itself in a market correction, facing a situation of excess supply of inventory that needs to be sold. Also borrowers are wary of todays rates considering that spreads have widened...