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Servicing

Massachusetts AG Coakley Urges Congress to Extend Tax Relief for Struggling Homeowners

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In order to continue to help distressed homeowners in Massachusetts and prevent disruption to an improving housing market, Massachusetts Attorney General Martha Coakley and a coalition of states are urging Congress to extend soon-to-be expired tax relief for distressed homeowners into next year.Click to continue

GSEs Prevent Three Million-Plus Foreclosures Since September 2008

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The Federal Housing Finance Agency (FHFA) has announced that Fannie Mae and Freddie Mac have reached a significant milestone, completing more than three million foreclosure prevention actions since the start of conservatorship in September 2008. FHFA noted this milestone in its third quarter Foreclosure Prevention Report (also known as the Federal Property Manager’s Report), which details results of foreclosure prevention programs.Click to continue

Total U.S. Delinquency Rate Hits 6.45 Percent in November

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Lender Processing Services Inc. (LPS) has reported the following “first look” at November 2013 month-end mortgage performance statistics derived from its loan-level database representing approximately 70 percent of the overall market. In November, total U.S. loan delinquency rate (loans 30 or more days past due, but not in foreclosure) stood at 6.45 percent. The month-over-month change in delinquency rate was 2.63 percent, while the year-over-year change in delinquency rate stood at -9.41 percent.Click to continue

CFPB Scores $2.1 Billion Servicing Settlement Against Ocwen

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The Consumer Financial Protection Bureau (CFPB), authorities in 49 states, and the District of Columbia filed a proposed court order requiring the country’s largest non-bank mortgage loan servicer, Ocwen Financial Corporation, and its subsidiary, Ocwen Loan Servicing, to provide $2 billion in principal reduction to underwater borrowers. The consent order addresses Ocwen’s systemic misconduct at every stage of the mortgage servicing process.Click to continue

Total Loan Mods for the Year Exceed 680,000 in October

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HOPE NOW has released its October 2013 loan modification data which finds that an estimated 50,000 homeowners received permanent, affordable loan modifications from mortgage servicers during the month of October. This total includes modifications completed under both proprietary programs and the government’s Home Affordable Modification Program (HAMP). The total number of loan modifications for 2013 currently stands at approximately 680,000. This compares to approximately 545,000 foreclosure sales reported for the year to date.Click to continue

Flagstar to Sell Off $40.7 Billion in MSRs

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Flagstar Bancorp Inc. has announced that the bank has entered into a definitive agreement to sell a substantial portion of its mortgage servicing rights (MSRs) portfolio to Matrix Financial Services Corporation, a wholly-owned subsidiary of Two Harbors Investment Corporation. The agreement provides for the sale of $40.7 billion in aggregate unpaid principal balance of residential MSRs, which represented 55 percent of Flagstar's mortgage loans serviced-for-others portfolio as of September 30, 2013.Click to continue

Walter Investment Purchases Large Pool of Fannie Mae-Backed MSRs

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Walter Investment Management Corporation has announced that it has entered into a definitive agreement with a large national depository to acquire a pool of mortgage servicing rights (MSRs) backed by Fannie Mae with an aggregate unpaid principal balance of approximately $30 billion.Click to continue

U.S. Negative Equity Population Down to 11.6 Percent

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Lender Processing Services Inc. (LPS) has released its October Mortgage Monitor which shows that 48 percent of outstanding second lien home equity lines of credit (HELOCs) were originated between 2004 and 2006. Given that the vast majority of HELOCs originated during this time have draw periods of 10 years, they are set to begin amortizing over the next several years. As the payments on these HELOCs become fully amortizing, many borrowers may see monthly payments increase.Click to continue

Payment Shock Notices

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Question: As a servicer, we issue a payment shock notice. I have always thought that this notice was a requirement. But I am being told that issuing a payment shock notice is optional and not a requirement. Are we required to issue a payment shock notice?Click to continue

Servicers Still Not Living Up to Monitor's Mandates

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Joseph A. Smith Jr., Monitor of the National Mortgage Settlement (NMS), has released a summary of five compliance reports he filed with the U.S. District Court for the District of Columbia.Click to continue