News

A judge in Rhode Island ruled in favor of Mortgage Electronic Registration Systems, Inc. (MERS) and co-defendants and dismissed arguments of wrongful foreclosure from the plaintiff.

Even as prices continued to rise in last year's fourth quarter, American homeowners found themselves paying less in monthly mortgage payments compared to pre-bubble norms, according to Zillow. At the end of Q4 2012, with mortgage rates in the 3 percent to 4 percent range, homeowners paid just 12.6 percent of their monthly income on mortgage payments, down 36.9 percent from pre-bubble norms, Zillow reported. Though low rates have driven affordability up, homes themselves have become more expensive in many areas, even as wages dropped or stagnated.

Specialized Business Software, a provider of custom software solutions for insurance, mortgage and financial services companies, announced the release of its web-based X12 EDI Translator. The solution allows mortgage servicers and insurance tracking companies to translate insurance policies from the X12 format into a more readable form, the Ohio-based company stated in a release.

Lender Processing Services (LPS) reported a spike in cure rates in February. About 500,000 loans were cured, or went from being delinquent to current, in February, with most of the cures reported on loans that were just one or two months past due, according to LPS' February Mortgage Monitor report. LPS also found an increase in modifications over the last two quarters after two years of decreases.

In order to further assist homeowners with its Making Home Affordable programs, the Obama administration announced the launch of three new housing initiatives designed to direct struggling homeowners to programs aimed at foreclosure prevention. In the first of the three initiatives, Treasury will work with NeighborWorks America to raise awareness about Making Home Affordable and assist homeowners in applying for assistance through its programs.

A Montana court rejected claims from plaintiffs of wrongful foreclosure and ruled in favor of Mortgage Electronic Registration Systems, Inc. (MERS) and other defendants.

In January, Fannie Mae and Freddie Mac refinanced about 97,600 loans through the Home Affordable Refinance Program (HARP), of which nearly half represented underwater borrowers, the Federal Housing Finance Agency (FHFA) reported Tuesday. The agency's report revealed 47 percent of loans refinanced through HARP in January had loan-to-value (LTV) ratios greater than 105 percent. In addition, a quarter of the borrowers were deeply underwater, with 25 percent of loans refinanced through HARP having LTVs greater than 125 percent.

According to a FICO survey, 71 percent of bankers polled believe home prices are ""rising at a sustainable pace"" in the context of mortgage lending risk. On the credit health side, 39 percent of respondents expect mortgage delinquencies to fall over the next six months, while another 45 percent expect delinquencies to remain flat. Sixteen percent anticipate an increase in delinquencies, making this first-quarter survey the most optimistic since the surveys started.

Five Fannie Mae servicers received record-breaking marks for their improvements in servicing loans. For the first time in the history of the Servicer Total Achievement and Rewards (STAR) Program, Fannie Mae assigned the four STAR designation to servicers. The program began in 2011 and assesses overall servicer performance by considering factors such as the delivery of foreclosure prevention solutions, customer service, and operational assessments. ""It is a sign of great progress to award four STAR designations for the first time,"" said Leslie Peeler, SVP of Fannie Mae's national servicing organization.

Fiserv, Inc., a Wisconsin-based global provider of financial services technology solutions, announced that its Common Origination Platform and LoanServ solutions have been integrated to provide real-time, full-circle loan boarding processes for all mortgage, lines of credit, and installment loans.