News

Over the life of the government's Home Affordable Modification Program (HAMP), 1.25 million homeowners have received permanent HAMP modifications, and 27 percent of those have later redefaulted on their loans, according to a quarterly report to Congress from the TARP special inspector general. The inspector general expressed concern as far back as April that HAMP redefaults were ""increasing at an alarming rate.""

LRC Asset Management, a majority-owned company of Loan Resolution Corporation, announced the appointment of two VPs--Jason Dow as VP of REO operations and Natalie Drosi as assistant VP of closing oversight. Both are based in the company's Scottsdale, Arizona, headquarters and between them, have more than 27 years' industry experience.

Seventy-one percent of single-family homes in the United States were built before 1990, according to a new industry report. So far this year, 60 percent of residential transactions involved homes built prior to 1990. This older housing stock comes with less competition from other buyers and lower price points, and the Federal Housing Administration's 203(k) program allows owner-occupants to roll the cost of minor and major renovations into the financing for a home purchase or a mortgage refinancing.

Wingspan Portfolio Advisors, a diversified mortgage services company operating in Dallas, was named for the second straight year in Inc. Magazine's Hire Power Awards, a list of the top 100 businesses in America for job creation. Having earned the No. 65 spot in the 2012 inaugural list, Wingspan's ranking moved up to No. 5, making it the highest ranking company in the financial services sector this year.

Ally Financial is the fifth bank to reach a settlement with the federal government over soured mortgage bonds sold to Fannie Mae and Freddie Mac prior to the housing and foreclosure crisis. The bank announced Tuesday that it settled the 2011 lawsuit brought by the Federal Housing Finance Agency over toxic mortgages. Ally also reached a separate settlement with the FDIC to resolve pending litigation related to the company's legacy mortgage dealings.

JPMorgan Chase's $4 billion settlement with the Federal Housing Finance Agency (FHFA) reached late last week ""sets a relatively high bar"" for the 13 other banks still facing litigation from the federal agency, according to Fitch Ratings, which suggested Tuesday that some of the banks may need to increase their litigation reserves before settling. The $4 billion is about 12 percent of the original face value of the private-label mortgage-backed securities for which FHFA sought damages.

Mortgage Connect has appointed its VP of sales to the newly created role of chief strategy officer. Cristy Ward has worked in the mortgage industry for 17 years and in that time has earned a reputation as a problem solver who develops innovative, tailored solutions for complex problems.

Mortgage delinquencies are on the decline, according to a report from Equifax. Home finance write-offs so far this year total $96.3 billion, down 22 percent from last year. The balance of mortgages in severe delinquency--those 90 or more days past due--is less than $300 million for the first time in five years, and Equifax's Amy Crews Cutts says current trends suggest we'll be at pre-recession levels of severe delinquencies by the end of 2014.

DocuTech Corp., a compliance and documentation technology company headquartered in Idaho, has partnered with Veri-Tax to automate the 4506-T IRS verification process in its flagship software ConformX. The company says this technology enhancement will help lenders to simplify the disclosure process while ensuring compliance with consumer protection regulations.

Dr. Amy E. Alving has been elected to Fannie Mae's board of directors, the GSE announced. Alving is a seasoned technology leader who has worked as chief technology officer of Science Applications International Corporation, director of the Special Projects Office at the Defense Advanced Research Projects Agency, and a White House fellow.