Loss Mitigation

The Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) is vigilantly targeting mortgage and foreclosure rescue scammers that advertise online. SIGTARP announced Wednesday that it recently halted 85 online scams that promised to help homeowners pursue mortgage loan modifications. Google has cooperated with SIGTARP in its investigation and since the discovery of the 85 mortgage fraud schemes, has suspended 500 advertisers.

WFG National Title Insurance Company has named Ravi Bapodra VP and managing director of its TitleNet division. TitleNet provides title, closing, and settlement services for both residential and commercial transactions, as well as loss mitigation, default, and REO transactions. It is comprised of a national network of independent providers using a centralized technology platform.

Fannie Mae and Freddie Mac have released highly anticipated guidelines for the revised Home Affordable Refinance Program (HARP). Among the key program revisions, the GSEs have eliminated or raised the loan-to-value cap, and relaxed representation and warranty stipulations. Both government officials and market analysts have said rep and warranty waivers could spark heated competition among lenders to refinance borrowers through HARP. With the new guidelines, the GSEs laid out exactly what will be waived.

HOPE NOW announced a major milestone Tuesday -- the completion of 5 million loan modifications since the group began tracking such loss mitigation efforts in 2007. More than 80 percent of these modifications were completed through servicers' own proprietary programs, with the rest coming from the government's Home Affordable Modification Program. Officials called the 5 million mark a halfway point, adding that much more work needs to be done to help distressed homeowners.

An annual audit of the Federal Housing Administration's (FHA) books has concluded there is a 50-50 chance the government mortgage insurer will need a bailout from taxpayers within the next 12 months. The agency's cash reserves have been cut almost in half over the past year and its capital reserve ratio has plunged to 0.24 percent. The minimum legal limit mandated by Congress is 2 percent. News of the agency's deteriorating bottom line comes just as lawmakers are advancing a bill that would likely increase FHA's market share.

NeighborWorks America announced Tuesday that Sarah McGraw Greenberg has been appointed director of its development division. Greenberg is NeighborWorks' front-line official for fundraising to support the nonprofit organization's work to prevent foreclosure and foster long-term homeownership. As director, Greenberg provides strategic leadership to the corporation's partnership and resource development efforts.

California is relaxing some of its eligibility restrictions and increasing the amount of assistance it provides struggling homeowners through its mortgage assistance program. Keep Your Home California is a $2 billion initiative funded by the federal government through the California Housing Finance Agency. Changes to the various sub-programs include an extension of the time period during which unemployed homeowners receive assistance and expanding eligibility to those who own more than one property.

Ocwen Financial continues to make moves to expand its portfolio. The special servicer disclosed in a filing with the Securities and Exchange Commission that it has agreed to purchase $15 billion in mortgage servicing rights from JPMorgan Chase. It's the latest in a string of transactions bolstering Ocwen's portfolio, and the company's not stopping there. Ocwen says a new venture will allow it to compete for the servicing rights of newly originated FHA loans. It is also looking to expand into reverse mortgages and home equity lines of credit.

More than 445 nonprofit housing counseling agencies nationwide have one simple message for Congress: Restore housing counseling funds. Mandated federal budget cuts earlier this year stripped away $88 million in HUD funding that had been designated to support mortgage and foreclosure counseling programs. Those working on the front lines of the housing crisis everyday say counseling is critical to assisting distressed homeowners, and they're calling on lawmakers to restore funding at the level of $60 million.

Three mortgage servicers have voluntarily entered into an agreement with the New York State Department of Financial Services in which they pledge to abide by upgraded mortgage servicing standards that ensure fairness for all borrowers. The agreement was forged between Benjamin M. Lawsky, superintendent of the state regulatory agency, and Morgan Stanley and its Texas-based servicer Saxon; American Home Mortgage Servicing, also based in Texas; and Vericrest Financial, based in Oklahoma.