Foreclosure

Bank of America has opened the first of three outreach centers to serve Nevada mortgage customers who are seeking loan modifications or other foreclosure prevention assistance. The first outreach center is in Henderson. Openings of additional centers in Las Vegas and Reno are expected by the end of June. With the acquisition of Countrywide in 2008, Bank of America services about one in three mortgage loans in Nevada.

With the deterioration of the U.S. mortgage market, the credit rating agency DBRS has noticed a deep divergence in delinquency, foreclosure, and REO timelines from historical norms. As servicers have stepped up loss mitigation strategies to deal with the increase in delinquent borrowers, some loans have spent a longer-than-usual time in each delinquency bucket. The analysts at DBRS found that non-performing loans now remain in the 90 or more days delinquency column for an average of three to four months before moving to foreclosure.

Fannie Mae and Freddie Mac both issued new guidelines to servicers Tuesday, which allow homeowners with GSE loans to pursue a short sale or deed-in-lieu of foreclosure if they are unable to secure a modification under the government's foreclosure prevention program. GSE loans were oddly excluded from the Treasury's Home Affordable Foreclosure Alternatives (HAFA) program when it was rolled out in early April, but by August 1, 2010, all Fannie and Freddie servicers must begin offering HAFA solutions to eligible borrowers.

The number of unpaid mortgages in the United States declined again in April, but delinquency roll rates remain high, according to an industry report released Monday by Lender Processing Services (LPS). The Florida-based analytics firm says that while signs of stabilization in the nation's mortgage delinquency and foreclosure rates may be emerging, the progress is largely neutralized by the more than 7 million loans still in distress.

The Treasury's most recent Home Affordable Modification Program (HAMP) report shows ""extremely low conversion rates,"" with success just a 50/50 gamble, according to Moody's Investors Service. As of the end of April, servicers had converted almost 300,000 permanent modifications. However, they had also canceled 277,640 trial mods. Moody's says this represents approximately a 50 percent success rate. The report also shows 3,744 permanent modifications have been canceled.

NeighborWorks America reports that 58 percent of homeowners who've received assistance through its foreclosure counseling program say the primary reason they are facing foreclosure is reduced or lost income. The nonprofit says it's time for mortgage servicers and investors to make meaningful accommodations for borrowers facing foreclosure -- or prepare for even more empty homes and devastated neighborhoods.

The percentage of past due loans held by the nation's largest mortgage financier has fallen. In its monthly summary report just released, Fannie Mae said the serious delinquency rate on single-family mortgages in its portfolio dropped to 5.47 percent in March, down 12 basis points from 5.59 percent in February. It's the first time the GSE's serious delinquency rate has declined since March 2007, when it was a mere 0.62 percent.

Scottsdale, Arizona-based Loan Resolution Corporation, a pre-foreclosure asset management firm, announced this week that Michelle Carothers has been named VP of foreclosure alternatives. Carothers will be responsible for driving Loan Resolution Corporation's performance related to the Home Affordable Foreclosure Alternatives (HAFA) program.

The foreclosure crisis in California has taken a toll on not only homeowners, but a large number of tenants in the state. According to a new study from a statewide organization, at least 37 percent of residential units in foreclosure in the Golden State last year were rentals, directly affecting over 200,000 tenants - most of whom were displaced.

Mortgage insurer Genworth Financial reported Wednesday that it saved nearly $3.4 billion in mortgages from foreclosure in the 12 months ending March 31, 2010. Mortgage dollars saved were up more than 81 percent from the same period last year. Over the last year, Genworth's U.S. mortgage insurance division worked with its lender partners and servicers to complete more than 23,000 mortgage workouts nationwide through its Homeowner Assistance Program.