Loss Mitigation

Lender Processing Services, Inc. (LPS) has launched a new reporting and analytics solution. The company says mortgage servicers can use the new LPS Business Intelligence (BI) product to measure and analyze performance indicators to help make more informed decisions about loans in their portfolios. With customizable views of loan data, users can identify and predict changes over time and quickly resolve issues that may arise.

NeighborWorks America has appointed Eileen M. Fitzgerald as the organization's new CEO, effective June 1. Fitzgerald has served as acting CEO of the nonprofit community development and housing counseling network since January 2011 when Kenneth Wade stepped down from the position.

Nearly one-quarter of calls from homeowners who believe they are victims of a foreclosure rescue scam originate in California, according to statistics released by the Homeownership Preservation Foundation (HPF), which operates a national hotline to direct homeowners to accredited counseling services. While California's reported fraudulent activity was significantly higher than other states, only Los Angeles ranked in the top five cities, indicating that purported scam activity isn't concentrated in any one area of the state.

Rep. Elijah Cummings has requested to see copies of the engagement letters between 14 mortgage servicers and the private consultants they've hired for foreclosure reviews. As part of the consent agreements with federal regulators to settle robo-signing allegations, the servicers are required to retain independent, third parties to review all 2009 and 2010 foreclosures. Consumer advocates have criticized the decision to allow the servicers to do the hiring, and Cummings says he wants to ensure regulators are holding them accountable.

Interthinx has released its quarterly Mortgage Fraud Risk Report covering data collected during the first three months of this year. The company found that the geographic distribution of fraud risk has ""evened out"" since its last study as faltering market conditions across the country have enticed fraudsters to try their hand. Despite a decline in its index reading, Nevada remains the state most at-risk for mortgage fraud. Wyoming, South Dakota, Connecticut, and Hawaii were reported to have the largest increases in fraud risk.

Wells Fargo will host a free workshop Thursday for Wells Fargo Home Mortgage, Wells Fargo Financial, Wachovia Mortgage, and Wells Fargo Home Equity customers facing financial hardships. Hundreds of South Carolina homeowners are invited to the event in Columbia, South Carolina. About 50 home retention team members will be on hand to work one-on-one with customers to explore options such as workouts and loan modifications.

Both new foreclosure actions and completed foreclosure sales took a dive in April after rising sharply the month before, according to industry data released Wednesday. Foreclosure starts nationwide totaled approximately 163,000 in April, while foreclosure sales dropped to 73,000, reports the industry alliance HOPE NOW. At the same time, though, proprietary loan modifications also declined. HOPE NOW says the performance of these loan mods has remained ""steady,"" with a re-default rate of 20 percent.

Freddie Mac borrowers whose homes were damaged or destroyed by the recent storms in the Midwest can now take advantage of the GSE's full menu of relief policies. Homeowners residing in counties declared major disaster areas by President Obama are eligible for assistance. Freddie Mac's disaster relief policies allow servicers the discretion to reduce or suspend mortgage payments for up to 12 months.

The Justice Department announced a settlement with Bank of America and Saxon Mortgage to resolve allegations that the companies wrongfully foreclosed on active duty service members without obtaining court orders, a violation of the Servicemembers Civil Relief Act (SCRA). The combined settlements represent more than $22 million in monetary victim relief. Both companies have also agreed to repair negative credit reporting related to the foreclosures and will not pursue remaining amounts owed under the mortgages.

Fannie Mae and Freddie Mac have both reported another drop in the share of single-family home mortgages they hold that are 90 or more days delinquent. Fannie's serious delinquency rate declined 17 basis points to 4.27 percent. Freddie's fell 6 basis points to 3.57 percent. Except for one blip of an increase last September for Freddie, the GSEs have seen their serious delinquencies fall for 12 months. The servicing alignment initiative announced by the two companies is expected to speed the resolution process for past-due loans.