Mortgage Servicing News articles from September 2008

Mortgage Servicing News archives from September 2008

Changes in Law Add to Need for Counseling.(Credit Counselor)
September 1, 2008... Byline: Amilda Dymi Financial rescuing and foreclosure prevention are overwhelming conversations within the industry and at the kitchen table. Most lenders have to deal with those clients. Most of us know someone desperately trying to save...

HomeSaver a Success.(Federal National Mortgage Association)
September 1, 2008... Byline: Brian Collins Washington-Fannie Mae servicers made 17,900 HomeSaver advances to seriously delinquent borrowers in the second quarter and substantially reduced the company's purchases of bad loans out of its securitized mortgage...

Hope Now Servicing Picks Up.(Financial report)
September 1, 2008... Byline: Brian Collins Washington-Hope Now servicers picked up the pace in the second quarter and completed 220,100 loan modifications, up 30% from the first quarter. Loan modifications for subprime loans jumped from 122,100 in the...

NC Servicing Law: Unprecedented Requirements.
September 1, 2008... Byline: Amilda Dymi Raleigh, NC-North Carolina House Bill 2463, designed "to regulate mortgage servicing, to require mortgage servicer licensure under the Mortgage Lending Act, and to make technical and clarifying changes to the Mortgage...

Genworth: Most Foreclosure Prevention Succeeds.(Managing REO)
September 1, 2008... Byline: Amilda Dymi Richmond, VA-Genworth Financial reported that 90% of the almost 10,000 Americans who did not go to foreclosure due to assistance from company loan servicer partners in the last 12 months were able to keep their homes....

CBO: At Least 50% Chance GSEs Won't Need Treasury Rescue.(Managing REO)(Congressional budget office)(government sponsored enterprises)(Brief article)
September 1, 2008... Washington-The Congressional Budget Office estimates there is a greater than 50% chance the Treasury Department will not need to invest in Fannie Mae or Freddie Mac. Then again, CBO notes that if Treasury needs to prop up the two GSEs it...

WaMu's Credit Losses, Default Estimates Rise.(Managing REO)(Financial report)
September 1, 2008... Byline: Ted Cornwell Seattle-Washington Mutual lost $3.3 billion in the second quarter as credit losses continued to pile up, forcing the company to boost its loan loss reserves by $3.7 billion. That brings WaMu's total loss provision...

Metro Area Prices Off by Record 15.8%.(Managing REO)
September 1, 2008... Byline: Amilda Dymi New York-Reports on decreasing home prices continue to pile up adding to uncertainty about the future. Last in cue, Standard & Poor's S&P/Case-Shiller Composite Home Price Index for May 2008 show a record 15.8% decrease...

MGIC Sees More Credit Losses.(Managing REO)(MGIC Investment Corp.)(Financial report)(Brief article)
September 1, 2008... Milwaukee-MGIC Investment Corp. here saw a net loss of $97.9 million ($0.79 per share) for the second quarter, compared with net income of $76.7 million ($0.93 per share) a year earlier. Curt S. Culver, MGIC's chairman and chief executive,...

Edina Offers Foreclosed, REO Property Search Tool.(Managing REO)
September 1, 2008... Byline: Amilda Dymi Edina, MN-Edina Realty has introduced an online search tool that allows users to screen foreclosed and lender-owned properties on its website. Users can click on the home page link, "Search Foreclosures" and then...

Radian Adds Web Features.(Managing REO)
September 1, 2008... Philadelphia-Radian Guaranty, the primary mortgage insurance subsidiary of Radian Group Inc., has enhanced the functionality of its MI online Web-based system for mortgage insurance ordering, servicing and claims submissions. Designed to...

Technology Combats Valuation Fraud.(Managing REO)
September 1, 2008... Byline: Joe Williams The current state of the real estate industry, not to mention the subprime meltdown, can be attributed to a number of factors, not the least of which is fraud in the valuation process. Being on the appraisal side...

Loss Mitigation for Good Loans Goes Up.(Managing REO)
September 1, 2008... Byline: Amilda Dymi New York-Adventity Inc. finds the newest market trend, beyond the unprecedented loan volume that has made outsourcing the best way to approach loss mitigation, is that foreclosure risk no longer involves subprime loans...

Counting on Technology.(Managing REO)(Real estate owned)
September 1, 2008... Byline: Jennifer Harmon Technology is certainly leading the way in the REO industry, according to Derrick Logan, director of REO Services, REO Allegiance, Inc., a property preservation service company in Bayonne, NJ. In order to...

The Right Tools Significantly Improve Productivity.(Managing REO)(Real estate owned)
September 1, 2008... Byline: Jennifer Harmon The right technology can strengthen data access and workflow as well as improve communication between REO managers and service providers. Web-based solutions are available that enable REO managers to...

AllRegs 'Hotline' Delivers FHA Support Service.(Special Report)(Federal Housing Administration)
September 1, 2008... Eagan, MN-In response to recent legislative and regulatory changes affecting Federal Housing Administration loans, AllRegs has created a service to support the increased use of FHA loan programs. Known as the AllRegs FHA Hotline, this service...

LSSI's Servicer 3D Gains Recognition.
September 1, 2008... Poway, CA-Lender Support Systems Inc., a provider of e-mortgage lending and loan servicing software, was ranked among the top three vendors for loan servicing software by NeighborWorks America in a recent comparison study. "We invested a...

LenderLive Teaming Up with PMI.(Special Report)
September 1, 2008... Denver-LenderLive Network, a business process outsourcing and technology firm, and PMI Mortgage Insurance have formed a joint initiative to provide workout solutions to avert mortgage delinquencies and foreclosures. "This relationship will...

ModCo Helps Lenders Reach Out to Borrowers.(Special Report)
September 1, 2008... Aliso Viejo, CA-ModCo, a California-based company seeking improved communications between servicers and borrowers, has launched ModCo Solutions, a new division created to help mortgage servicers cope with increasing foreclosures and changes in...

First American Using RAI's Optimization Technology Tools.(Special Report)
September 1, 2008... Scottsdale, AZ-Response Analytics Inc., a provider of optimization technology for the financial services industry, has reached a deal to provide First American Subordinate Lien Outsourcing with distressed portfolio management services. ...

Special Report: Technology.(Special Report)(Brief article)
September 1, 2008... When it comes to technology, many servicers must feel overwhelmed by the choices confronting them. From loan boarding to escrow analysis to cash management to investor reporting to default management and payoff administration, servicers rely on...

IBM to Buy ILOG Assets.(Special Report)
September 1, 2008... Armonk, NY-IBM and ILOG have signed an agreement regarding a proposed acquisition of ILOG by IBM. The deal will be implemented by way of concurrent cash public tender offers in both France and the United States. Through the proposed...

Lydian Seeking to Leverage New FHA Expertise.(Special Report)(Federal Housing Administration)(Lydian Data Services)
September 1, 2008... Boca Raton, FL-Realizing that more and more lenders are looking to get into FHA but have little real experience on how to process these loans, Lydian Data Services here has established Lydian Data Government Services, a new subsidiary providing...

Prepay Speeds Decelerate in June.(Speed Watch)
September 1, 2008... Byline: Terry Peters Prepayment rates for mortgage-backed securities fell 9.5% overall in June from a constant prepayment rate of 13.1 CPR to 11.9 CPR, according to Credit Suisse. Writing in the "June 2008 Fixed Rate Prepayment...

Bringing Order During Times of Chaos.(Viewpoint essay)
September 1, 2008... Byline: Lynn Hatfield Ms. Hatfield is senior vice president, Professional Services, at LPS (Lender Processing Services), which was formerly Fidelity National Information Services. The chaotic environment in the mortgage industry...

WaMu: REO Costs $1B.
September 1, 2008... Seattle-Washington Mutual disclosed in its second-quarter financial report that the level of its foreclosed asset expenses for real estate-owned will increase to "approximately $1 billion for the year." In prepared remarks explaining the...

Freddie's Future Hinges on Recovery of Reserves.(Mortgage Scene)(Federal Home Loan Mortgage Corp.)
September 1, 2008... Byline: Paul Muolo Facing future losses of between $16 billion and $42 billion - most of which are tied to subprime and alt-A loans - Freddie Mac is betting its survival on its ability to recapture loan loss reserves and related charges....

Servicers Remain Under Fire.
September 1, 2008... Byline: Ted Cornwell Washington-Congress has just passed legislation to increase refinancing and workout options for troubled borrowers, but some leaders on Capitol Hill think greater relief is needed. And they are pushing additional...

New Law is Net Benefit.(Editorial)
September 1, 2008... The housing bill recently enacted into law is the most sweeping overhaul of the regulatory environment affecting mortgage lenders in many decades. Fortunately, the bill should help stabilize a beleaguered housing finance sector. But like all...

U.S. Bancorp KeepsCredit Costs in Check.
September 1, 2008... Minneapolis-U.S. Bancorp saw net income slide 18% in the second quarter from the year-earlier period, but analysts and investors praised the firm for navigating through a difficult credit environment. The company earned $950 million in the...

Flagstar Benefits from Mortgage Servicing Gains.
September 1, 2008... Byline: Ted Cornwell Troy, MI-Flagstar earned $0.22 per share in the second quarter, benefiting from gains on its mortgage servicing portfolio. Flagstar's $15.7 million in second-quarter earnings was a turnaround from the company's...

Freddie & Fannie Up Workout Incentives.(Federal Home Loan Mortgage Corp.)(Federal National Mortgage Association)
September 1, 2008... Byline: Ted Cornwell Washington-Freddie Mac and Fannie Mae are raising the incentives they pay for mortgage workouts to ensure hurried servicers are focused on helping their troubled borrowers get back on track and avoid foreclosure. ...

ASF Seeks to Rebuild Investors' Confidence.
September 1, 2008... Byline: Jennifer Harmon New York-The American Securitization Forum has launched ASF Project RESTART, an industry-developed initiative to help rebuild investor confidence in mortgage- and asset-backed securities, restore capital flows to...

Bank of America Leapfrogs to Top Spot.(Company overview)
September 1, 2008... Byline: Ted Cornwell Charlotte, NC-Bank of America's controversial acquisition of Countrywide Financial Corp. has created the nation's largest mortgage servicer, once again breaking barriers that seemed unlikely to be broken just a few...

FirstAm Delays Split of Business Divisions.(First American Corp.)(Financial report)(Brief article)
September 1, 2008... Byline: Brad Finkelstein New York-The First American Corp., Santa Ana, Calif., is delaying the split of its financial services and information solutions businesses. The company had planned to spin off the financial services business into a...

Housing Bill Expands FHA's Subprime Relief.
September 1, 2008... Washington-Now that President George Bush has signed the housing bill, the hard work of implementing its provisions begins in the midst of a weak market and tight credit conditions. Treasury secretary Henry Paulson said last week that he...

Covered Bonds Seen as Ripe For U.S. Role.
September 1, 2008... Byline: Paul Muolo Washington-Hoping to revive the private label MBS market, the Treasury Department last week issued a best practices guide aimed at underwriters that are interested in issuing "covered bonds" backed by nonconforming...

More Tough Sledding on Rate Risk.(Hedging)
September 1, 2008... Byline: Ted Cornwell You can't fault Washington Mutual for keeping investors and analysts in the dark. These may be trying times for the company, with its heavy exposure to home loan and consumer credit weakness, but the company continues...

VA Wants More Power to Refinance Subprime Loans.
September 1, 2008... Byline: Brian Collins Washington-More military veterans are turning to the Department of Veterans Affairs for purchase mortgage loans, but VA is limited in its ability to help vets refinance out of unaffordable subprime loans. Congress...

FASB Delays Rule That Affects Trillions in Bonds.
September 1, 2008... Byline: Paul Muolo Washington-The Financial Accounting Standards Board has delayed implementation of a rule (FAS 140) that could force issuers of securitized assets - including mortgages - to post more capital on bonds guaranteed and held...

Fitch: CMBS Servicers More Effective.
September 1, 2008... Chicago-Commercial mortgage-backed securities loan servicers are cutting down loan assumption processing times without compromising underwriting quality, according to Fitch Ratings. At the same time, Fitch said there still are opportunities for...

MBS Transactions Nearly 80% Down.
September 1, 2008... New York-The volume of mortgage-backed security transactions totaled $70.77 billion in the second quarter, down nearly 80% from $348.17 billion in the second quarter of 2007, according to Thomson Reuters. The figures are preliminary...

Citi Nets Loss Of $6.7 Billion Due to Mortgages.(Financial report)
September 1, 2008... Byline: Terry Peters New York-Citigroup Inc. in its second quarter took $6.67 billion in writedowns that were largely mortgage-related and a net loss of $2.5 billion that it said marked a relative improvement given that it was half the...

Wachovia's Servicer Ranking Raised.
September 1, 2008... New York-Standard & Poor's Ratings Services raised its ranking on Wachovia Mortgage FSB, a wholly owned, indirect subsidiary of Wachovia Corp., to "strong" from "above average" as a residential mortgage loan servicer. The outlook is stable. ...

Servicing People.
September 1, 2008... CALIFORNIA Irvine-Thompson National Properties said that Theresa Hutton has joined the company as senior vice president, due diligence. Previously, Ms. Hutton was vice president, due diligence at Grubb & Ellis Realty Investors,...