Foreclosure

Michigan-based NDeX, a provider of technology and processing services for default servicing law firms nationwide, appointed Margaret S. Feskorn as its new SVP of Michigan foreclosure operations. Feskorn will work directly with EVP Richard Geary, who is responsible for the management of all Michigan non-legal foreclosure staff and their processes.

Fitch Ratings has reviewed all U.S. subprime mortgage securitizations rated by the agency and found little change in expected losses for the bond investors as default risk improved slightly. However, the agency says loss severities have increased due to longer foreclosure timelines and still-declining home prices. Fitch says the average time to liquidate a distressed loan has increased by roughly six months from a year ago and now exceeds 20 months. Timelines are expected to increase further in 2011 as foreclosures continue to face procedural challenges.

Short Sale Association of America (SSAA) has officially launched its short sale platform to real estate agents and brokers. With over 12 million U.S. homeowners upside-down on their mortgage, Jonathan Bowman, founder of SSAA, notes that the industry certainly has its worked cut out, but he says the resources provided his organization will empower agents at all levels of expertise to reach and effectively assist as many distressed homeowners as possible.

A recent report by the National Association of Realtors (NAR) reveals interesting information regarding the foreclosure inventory of the hardest hit states. It is pretty well known that Arizona, Nevada, California, and Florida have been most affected by the foreclosure crisis. Together the four states make up 42 percent of the foreclosure volume in the United States. Despite this, NAR estimates it could take as little as seven months to clear the shadow inventory in some of the hardest hit states.

The nation's second largest mortgage company says early workouts are central to its game plan for 2011. This ""nip it in the bud"" mindset can be key to getting in front of delinquencies before they turn into lost-cause foreclosures, and Freddie Mac says it's making changes to the way it evaluates the performance of mortgage servicers in order to ensure problem loans are tackled early on and increase the odds of getting borrowers back to performing status. Namely, the GSE is pushing servicers to make contact with homeowners by the third day of delinquency.

After the House passed measures to terminate several federal foreclosure prevention programs, Rep. Steve Cohen of Tennessee stepped in with a measure of his own - a bill that establishes a grant program to fund efforts by state and local governments to provide mediation between homeowners and lenders in order to pursue alternatives to foreclosure. The mediation would postpone sheriff sales of owner-occupied residences until viable options to avert foreclosure have been explored.

For many homebuyers, mortgage financing is hard to come by these days. Lenders have tightened up credit requirements in an about-face from the lax lending of pre-crisis days that's fueled record-high delinquencies. According to two separate industry surveys, cash transactions set a new record in February, accounting for 33 percent of home purchases. One report notes that the increase in cash purchases paralleled a rise in activity among investors who have their sights set on distressed properties that can be scooped up at a discount.

State attorneys general say they are willing to work with mortgage servicers to reach a settlement deal that would resolve the joint investigation of industry practices that led to last fall's robo-signing scandal and widespread foreclosure moratoriums. But no slap on the wrist will do. The group wants to see ""fundamental changes"" to the way servicers run their business when it comes to handling delinquent borrowers or they'll turn to the courts for resolution.

Mortgage servicers were plagued with lawsuits in the last quarter of 2010, according to an industry data source. The percentage of legal actions against servicers rose 42 percent in the last three months of 2010, and actions associated with loan modifications tripled. The report said that 151 mortgage-related lawsuits were reported in the fourth quarter, jumping from 106 in the quarter before. Secondary marketing litigation nearly doubled, and criminal cases also rose.

Lender Processing Services, Inc. (LPS) gave the media an advance look Monday at the company's February mortgage performance report to be released later this week. In what can be viewed as an anomaly of the current housing crisis, LPS' data show that both the national mortgage delinquency rate and the share of homes that are in the process of foreclosure drifted lower last month. Altogether, LPS says there are 6,856,000 properties in the United States with mortgages that are at least 30 days past due or in foreclosure.