Service Providers
By Carrie Bay | 09/01/2010
Neighborhoods across the country are riddled with empty bank-owned homes and unoccupied foreclosures that erode neighboring property values and open the door for blight and criminal activity.
The nation's glut of vacant REOs took center stage in Washington Wednesday. HUD announced a new nationwide REO "First Look" program, in partnership with the nation's largest mortgage lenders, and it was the first of a two-day Federal Reserve summit to examine the community impacts of foreclosed and vacant properties.
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By Carrie Bay | 09/01/2010
The industry has completed 1.13 million permanent loan modifications for at-risk homeowners so far in 2010, according to data released Wednesday by HOPE NOW.
The organization also reports that since January of this year, mortgage delinquencies of 60 days or more past due have dropped 20 percent, but the data supports the assumption that the decline is simply the byproduct of an increase in foreclosures. July's foreclosure starts outpaced loan mods during the month by nearly 90 percent.
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By Heather Hill Cernoch | 09/01/2010
As an alternative to its registry of foreclosed properties and property preservation contacts for vacant properties, the city of Los Angeles is adopting the MERS System, an electronic loan registry that acts as a nominee in county land records on behalf of lenders and servicers. MERS members can use the system to track both residential and commercial properties. Users tout the benefits of the technology as saving code enforcement officials and municipalities both time and money to ensure vacant properties are maintained.
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By Carrie Bay | 09/01/2010
Mortgage interest rates have dropped to their lowest level in decades, and even with tight credit conditions, more borrowers are beginning to take advantage. The Mortgage Bankers Association (MBA) reported Wednesday that its index measuring mortgage loan application volume increased 2.7 percent for the week ending August 27, 2010, after interest rates dropped yet again. Refinance activity was up 2.8 percent, while home purchase applications rose 1.8 percent.
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By Carrie Bay | 08/31/2010
Texas Attorney General Greg Abbott says American Home Mortgage Servicing is using illegal debt collection practices and misleading struggling homeowners, resulting in foreclosure for some borrowers. Abbott brought formal charges against the company on Monday. State investigators allege that the mortgage servicer's agents used aggressive and unlawful tactics to collect payments and then in some cases, intentionally failed to properly credit homeowners.
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By Carrie Bay | 08/31/2010
The FDIC said Tuesday that the number of banks on the agency's so-called "Problem List" has risen to 829, up from 775 at the end of the first quarter of 2010.
The number of troubled institutions now under the FDIC's watchful eye is the highest it's been since March 1993, when the savings and loan crisis was in full swing. The 2010 failed-bank tally stands at 118.
More banks may be deemed as "problem," but the FDIC says the banking sector overall enjoyed its most profitable quarter since the start of the recession.
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By Carrie Bay | 08/31/2010
Home prices rose in June for the third consecutive month - a precipitate of the homebuyer tax credit that sparked a flurry of purchase activity in the spring. Buyer demand, though, has now dropped off substantially, and it's a trend that will likely rob the market of the recent rebound in home prices.
According to the S&P/Case-Shiller index released Tuesday, home prices rose 1.0 percent in June compared to May. While June itself was positive, growth rates have already decelerated in 14 of the 20 metros included in S&P's study.
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By Heather Hill Cernoch | 08/31/2010
The Dodd-Frank Financial Reform Act includes new appraisal management rules as well as stricter laws and firmer penalties for lenders. The bill's appraiser independence standards will give lenders new options on managing appraisers, and lenders are scrambling to evaluate options to decide what will benefit their businesses. An October deadline is looming for the issuance of new appraiser independence rules, which are expected to be more stringent than the Home Value Code of Conduct (HVCC).
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By Carrie Bay | 08/31/2010
U.S. consumers are less satisfied with their experience during the loan modification process than they are during loan origination, namely because mortgage servicers are missing the mark when it comes to delivering on best practices, according to J.D. Power and Associates. The company's survey found that mortgage servicers fail to adhere to a time frame for approval, don't provide the customer with status updates, and repeatedly ask borrowers for the same information. BB&T ranks highest in customer satisfaction among mortgage servicers.
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By Carrie Bay | 08/30/2010
Moody's Investors Service says it expects home price appreciation to be "soft" for the next couple of years.
The company says there were 1.8 million more vacant homes sitting on the market than what is considered the norm at the end of the second quarter, reflecting a rise in the number of homes that lenders are repossessing. According to Moody's, it will not be until 2012 that demand and supply conditions are balanced enough to drive price appreciation that matches the pace of inflation.
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