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Loss Mitigation

GSEs’ Foreclosure Prevention Actions Double in One Year’s Time

The nation's two largest mortgage companies saw the number of actions carried out to prevent foreclosures on their loans more than double in 2010 when compared to 2009. Servicers of Fannie Mae and Freddie Mac loans completed 946,305 foreclosure prevention workouts in 2010, according to data from the GSEs' regulator, the Federal Housing Finance Agency (FHFA). In 2009, they completed 431,098. FHFA also stressed that the performance of recently modified loans has improved relative to loans modified in earlier periods.

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Banks Receive Proposal That Could Make Write-Downs Mandatory

On Thursday banks received the much awaited proposal that many speculated would detail the potential ramifications for their part in the foreclosure and robo-signing mess. According to various reports, the proposal could force banks to reduce principal loan balances for borrowers who are delinquent or underwater, or pay a multi-billion dollar fine. Reports have surfaced that banks are pushing back against proposed mandatory write-downs, claiming that such a practice could invite fraud.

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Specialty Servicer Looking to Fill Short Sale Positions

With the national unemployment rate still staggering, there's good news for job seekers in Depew, New York. AMS Servicing, LLC, a national specialty servicer for residential and small balance commercial mortgages headquartered in Buffalo, announced this week it has immediate openings for full- and part-time positions to provide support to internal and external customers regarding the short sale of residential properties.

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FHA Commissioner Says Short Refi Program Necessary for Recovery

As the House prepares to debate on the future of the Federal Housing Administration's Short Refinance option, FHA Commissioner David Stevens implored House subcommittee members to give the program a chance. The program is a voluntary option for lenders to agree to offer principal write downs and restructure loans for underwater borrowers. Stevens said as of February 11, 23 FHA-approved lenders are participating in the program and 245 FHA case numbers have been requested, of which 44 loans have been endorsed.

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Committee Votes to Kill Two Housing Programs, Delays Decision on Two

The House Financial Services Committee voted Thursday to scrap two foreclosure relief programs - one that gives underwater homeowners a federal refinancing option through FHA's Short Refi Program, and a second that provides temporary assistance to unemployed homeowners through the Emergency Mortgage Relief Fund. The two bills now move to the full House for debate. The committee was also planning to consider two separate bills to end the Home Affordable Modification Program (HAMP) and HUD's Neighborhood Stabilization Program, but votes on these have been pushed to next week.

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BofA Initiates Hardest Hit Fund Principal Reduction Offers in Arizona

Bank of America is the first major mortgage servicer to leverage the federal government's Hardest Hit Fund to begin pilot programs of principal reductions for Arizona customers who owe more on their mortgages than their properties are worth. Through the Arizona pilot, BofA customers experiencing financial hardship may be eligible to have the amount owed on their mortgages reduced through matching contributions from the state and participating mortgage investors.

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House to Determine Fate of Four Foreclosure Mitigation Programs

On Wednesday, a hearing was held by the Insurance, Housing and Community Opportunity Subcommittee to determine the fate of four federal foreclosure mitigation programs. The Home Affordable Modification Program (HAMP), HUD's Neighborhood Stabilization Program, the Federal Housing Administration (FHA) Refinance Program, and the Emergency Mortgage Relief Fund all have bills in play advocating for their termination. Witness testimony was mixed on whether the programs should continue or come to an end.

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Officials Tout HAMP Positives, with Nearly 540K in Permanent Mods

Treasury released its new numbers for the Home Affordable Modification Program (HAMP) Wednesday, just hours before a House subcommittee convened a hearing to terminate the government's flagship foreclosure prevention program and three other federal housing programs. As of the end of January, active permanent HAMP mods totaled 539,493, but critics say the numbers aren't high enough and the House subcommittee's looming ""kill-bill"" hearing was a sensitive subject for officials.

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Florida Center to Expand Foreclosure Mediation Program

The Mediation Center Southeast announced on Wednesday the expansion of the Foreclosure Meditation Program, a woman owned nonprofit that is a court approved alternative to the Residential Mortgage Foreclosure Mediation (RMFM) program in Florida. According to a press release, through the Foreclosure Mediation Program, The Mediation Center Southeast strives to provide an effective mediation program - not just a program that is compliant with the Florida Supreme Court Administrative Order.

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DRI Unveils New Modules, New Name for Default Management Platform

DRI Management Systems, Inc., a provider of default process management software, added new functionality with several new modules to version 1.4 of its flagship technology. Officially relabeled DRI Office, the platform was previously known by its development code name, Rincon. According to DRI, the new version was created to relieve mortgage servicers' workloads and improve results with capacity planning, workflow tracking, services ordering, and enhanced communication capabilities.

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