Loss Mitigation

In light of the economic crisis, consumers are taking financial matters into their own hands by implementing proactive spending habits and mortgage management strategies, according to the findings of a national survey conducted by Western Union. The company said consumers' improved spending behaviors, coupled with the respondents' proactive approach to mortgage payments, paint a picture of positive money management behavior and demonstrate Americans' determination to take hold of their finances.

The Treasury Department released April data for the administration's Home Affordable Modification Program (HAMP) Monday, showing that permanent modifications have been initiated for 299,092 struggling homeowners. That's an increase of 68,000 or almost 13 percent over March. Government officials stressed that HAMP servicers must be held accountable for their individual performance. New in this month's statistics is information about servicer-specific conversion rates.

Analysts at Barclays Capital say the industry's ominous shadow inventory is close to topping out. New research published by the firm says the supply of homes nearing REO status, defined as 90 or more days delinquent or in the process of foreclosure, will peak this summer and then begin falling gradually as the market becomes stable enough to absorb 130,000 distressed properties a month. Barclays puts the shadow supply at 4.5 million properties, but forecasts at least 4.7 million distressed sales over the next three years.

Default servicing software provider Equator will announce Monday the launch of a new short sale certification program for real agents using its EQ Marketplace online platform. Since January of this year, Equator says it has seen short sale volumes nearly double those of REO properties on its platform, and the new certification program will ensure agents are equipped to handle the growing number of short sale transactions already coming in.

Mesa Law Group, a California-based law firm with specialty financial services, recently announced that it has partnered with Investors Finance Inc. to provide homeowners an alternative to loan modifications through the firm's Home Owner Mortgage Restructuring (HOMR) program. A strong alternative to loan modification, the HOMR program reduces the principal balance and helps those at risk of losing their home, Mesa Law Group said.

NeighborWorks America and the Ad Council have announced the launch of new national public service announcements (PSA) as part of an ongoing foreclosure prevention campaign. The PSAs are designed to educate homeowners about where they can turn for help if they are at risk of foreclosure.

HUD Secretary Shaun Donovan unveiled a new strategic plan for the federal agency in an address to all HUD staff nationwide on Wednesday. Donovan says the plan will serve as the agency's roadmap toward accomplishing its mission of creating strong, sustainable communities and affordable homes for all. At the top of Donovan's goal list is strengthening the housing market by reducing foreclosures.

Senators unanimously approved an amendment to the financial reform package that would exempt qualified mortgages from the 5 percent risk retention requirement on loans bundled and sold to investors. The amendment requires regulators to establish a category of well-underwritten loans called ""Qualified Residential Mortgages"" using back-to-basics standards proven to reduce consumer defaults, such as income documentation and established payment-to-income ratios.

Bank of America announced Thursday that it has completed a total of 56,400 permanent mortgage modifications under the administration’s Home Affordable Modification Program (HAMP), including nearly 24,000 in April alone. ""We were able to convert close to 24,000 Bank of America customers from trial to permanent modifications in the past month, completing the process for more homeowners than in any previous month,"" said Jack Schakett, credit loss mitigation strategies executive for Calabasas, California-based Bank of America Home Loans.

Titanium Holdings, Inc., the parent company of Titanium Solutions, Inc. and Excellen REO, has expanded its presence into Puerto Rico with the launch of Titanium Loan Servicing of Puerto Rico. Titanium Loan Servicing PR is a full service loss mitigation, home retention, short sale services, and REO provider servicing the island's mortgage market.