Loss Mitigation

Mark Oman, senior EVP and head of the Home and Consumer Finance Group at Wells Fargo & Company, plans to retire at the end of this year. Oman previously announced his intention to retire in 2008 but stayed on to help the bank with its acquisition of Wachovia. Oman joined Wells Fargo in 1979 and helped to grow the company into the largest originator of home mortgages in the nation and the second largest servicer of mortgages.

Incidents of fraud reported by mortgage professionals during the 2010 calendar year were down 41 percent compared to the previous 12 months, according to data released Monday by the LexisNexis Mortgage Asset Research Institute. The company says misrepresentation on loan applications and verifications of deposit, along with appraisal and valuation issues, were the most blatant fraud problems last year. However, multiple industry reports indicate that identity, bankruptcy, and income-related frauds are on the rise.

Fannie Mae reported a net loss of $8.7 billion for the first three months of this year, which company executives say was primarily driven by a decline in home prices during the quarter. Fannie's first-quarter shortfall actually narrowed compared to a year earlier, when the company reported a loss of $13 billion. The GSE has requested another $8.5 billion in taxpayer funds from Treasury, bringing its total draws to nearly $100 billion. Fannie Mae acquired 53,549 single-family REO properties through foreclosure in the first quarter.

Sixteen percent of homeowners receiving permanent assistance through the government's Home Affordable Modification Program (HAMP) have been disqualified from the program for missing three consecutive payments, according to Treasury. Federal officials say HAMP's permanent mods are performing well over time, with a better track record of sustainability than the industry's private modifications. There are currently 587,000 borrowers in a permanent HAMP modification.

California's Code 3 Realty & Mortgage Inc. will begin foreclosure prevention conference calls this month to provide information to homeowners facing foreclosure, as well as owners and renters occupying homes after they have been foreclosed. While many real estate companies host foreclosure prevention workshops for distressed homeowners, Code 3 contends that attendance at these events is usually low because foreclosure is such a sensitive topic and can be embarrassing for many. The company believes telephone conferences offer a discrete alternative.

Kansas-headquartered South & Associates, P.C. announced this week the opening of its full-service law office in West Des Moines, Iowa. This is the firm's fifth law office. South & Associates specializes in foreclosure, eviction, bankruptcy, litigation, title resolution, and loss mitigation, as well as commercial and special assets.

In the wake of the industry's robo-signing issues, the Government Accountability Office (GAO) has released a report urging the new Consumer Financial Protection Bureau to make mortgage servicing standards a priority. After examining applicable laws and interviewing mortgage investors and other industry participants, the agency concluded that federal laws do not specifically address the foreclosure process, and as a result, oversight of servicers has been ""limited and fragmented.""

Bank of America said Thursday that the company plans to more than triple its number of customer assistance centers to help borrowers who are having trouble making their mortgage payments. The expansion will bring the number of BofA mortgage help centers to 40 in 22 states by early summer. The bank is already operating 12 fulltime customer assistance centers, where counselors have met with more than 17,000 homeowners. Beginning this month and into July, it plans to open 28 new centers.

In an effort to help mortgage servicers respond to the consent orders issued by regulators last month, Lender Processing Services (LPS) has announced enhancements to its mortgage loan servicing platform (MSP). The consent orders require servicers to provide borrowers with a dedicated single point-of-contact for specific loss mitigation and servicing functions. Via LPS's MSP, clients can assign, view, and obtain detailed information on the single point-of-contact assigned to each specific loan throughout the life of the loan.

First American Data Tree, LLC, the nation's largest provider of digital land records, released its newest portal, ParcelIQ.com, this week. The new browser-based platform allows lenders to order and receive data elements used in the loan decision-making process, including documentation to validate ownership, determine a property's current equity status, and evaluate risk.