Loss Mitigation

HOPE LoanPort announced Wednesday that Citi has committed to use its proprietary technology to assist troubled homeowners. HOPE LoanPort is a new web-based housing counselor tool developed by the HOPE NOW Alliance that streamlines the submission of completed loan modification applications.

Global Financial Review, Inc. has been approved by Standard & Poor's Ratings Services as a third-party due diligence provider for U.S. residential mortgage-backed securities (RMBS). The company says its expertise in the review of non-performing mortgage loan pools contributed greatly to its continued success during this historic downturn of the residential mortgage market.

Treasury has issued a new servicer document outlining its payment relief program for homeowners who have lost their jobs. The program, initially announced by the administration in March, becomes effective July 1, 2010, and offers eligible unemployed borrowers a forbearance plan to temporarily reduce or suspend their mortgage payments for at least three months. Interestingly enough, the government program does not apply to government-backed loans, such as those guaranteed by the GSEs.

With delinquency rates at sky-high levels, servicers and counselors continue to be inundated with requests from homeowners for loan modifications. As a result of these high demands, industry leaders have realized that new tools are needed to collect complete information from homeowners more efficiently and to develop better communication between servicers and counseling professionals. Freddie Mac recently released a report highlighting two Web-based communication tools that are doing just that.

Underperforming properties in states with weak economies led to another increase in U.S. commercial mortgage-backed securities (CMBS) delinquencies in April. Both Fitch and Moody's put the CMBS delinquency rate above 7 percent, but interestingly enough, they have different takes on the pace of the increase. Fitch says April's climb represents a slowdown thanks to special servicers stepping up loan resolutions. Moody's says the April increase in the second biggest jump it has ever recorded.

Stewart Lender Services (SLS), a wholly owned subsidiary of Houston-based Stewart Title Company, announced Tuesday that during the past year it has processed more than 725,000 distressed mortgage loans and generated more than 1 million lines of outreach to delinquent borrowers. This, the company said, proves that SLS is a strong, stable, and large-scale provider of loss mitigation services for mortgage lenders and servicers.

In order to bring high-tech loan modification solutions direct to consumers, HOPE LoanPort has launched a new, consumer-based Web site--HopeLoanPortal.org. According to a statement by the organization, this site will complement HOPE LoanPort's web-based housing counselor tool that is designed to streamline submission of completed loan modification applications.

HOPE NOW says its first quarter data shows a surge in solutions for troubled homeowners. In all, the organization says the mortgage industry completed almost half a million loan modifications for homeowners during the first three months of 2010 - 476,192 to be exact. That includes both proprietary and government mod programs, and represents a 29 percent increase from the same period last year. HOPE NOW also reported that foreclosure starts are down 5 percent compared to a year ago.

Clayton Holdings, which provides risk analysis and loss mitigation to the mortgage industry, announced Tuesday that it has incorporated Fannie Mae's newly announced quality control standards into its underwriting offerings. The GSE's new Loan Quality Initiative specifies the policies and process and technology enhancements that it will require from sellers in order to mitigate loan repurchase risk. Clayton says it can help lenders meet these new requirements through its outsourcing and consulting businesses.

Lenders One Mortgage Cooperative has selected risk management and compliance firm ComplianceEase as its newest preferred vendor. With state restrictions getting tighter and enforcement increasing, smaller mortgage bankers need to draw upon the right resources to remain proactive when it comes to regulatory compliance. Lenders One says it can provide these resources through its partnership with ComplianceEase.