News

The commercial real estate (CRE) sector faces $362 billion in maturing debt this year, according to the latest estimates from Trepp LLC. For the five-year period of 2012 to 2016, the company's research team estimates $1.73 trillion of CRE maturities, with the largest one-year sum of $371.1 billion dropping in 2013. They also reported that nearly two-thirds of the maturities through 2016 are underwater or close to sinking underwater, which could reduce borrowers' chances for extending the loan term upon reaching the balloon date.

Wingspan Portfolio Advisors, a Dallas-based servicing company, announced Monday that Ed Delgado will join the company as COO, effective April 2, 2012. Formerly CEO of the Five Star Institute, Delgado has more than 20 years' experience in mortgage banking, including tenures at Wells Fargo and Freddie Mac in senior executive roles. In conjunction with being named COO of Wingspan, Delgado will remain affiliated with Five Star as chairman of the National Servicing Association (NSA), a newly formed nonprofit trade association representing more than 90 percent of mortgage banks in the United States.

John Walsh, acting Comptroller of the Currency, offered an update and clarification Monday on the foreclosure reviews taking place at 14 servicers as part of the consent orders established last year. Independent foreclosure reviews are being instigated in two ways: Consultants are identifying borrowers they believe may have incurred financial harm as a result of improper processing, and borrowers themselves may request a review if they believe they were wronged by their servicers. So far, about 121,000 borrowers have requested reviews.

The FHA released two notices to mortgagees and servicers on Friday regarding new policies in effect. Safeguard Properties aslo posted the announcement on their website. The first reminder is on escrow funds/payoff statements and states that escrow funds should not be used for outside purposes.

Investors are making it a practice to endure through obstacles that come with the discounted price of short sales and pursued them at a greater pace in February compared to previous months, according to the latest results of the Campbell/Inside Mortgage Finance HousingPulse Tracking Survey. The percentage of investors buying homes climbed from 20.9 percent of all transactions in September 2011 to 24.2 percent in February 2012, according to the survey. The investor share of short sales also rose, going from 25.9 percent to 30.6 percent during the same six-month period.

Two banks closed over the weekend, raising the national tally of failed FDIC-insured banks to 15 so far this year. Regulators closed Covenant Bank and Trust of Rock Spring, Georgia and Premier Bank of Wilmette, Illinois.

The Pending Home Sales Index (PHSI) edged down February to 96.5 from January’s 97.0 which had been the highest level since April 2010, the National Association of Realtors reported Monday. The index slipped for just the second time in the last five months, but was 9.2 percent ahead of the level in February 2011. It remains down 26 percent from the April 2005 level.

The Securities and Exchange Commission (SEC) says it has filed a subpoena enforcement action with a California federal court against Wells Fargo & Company because the bank has failed to produce documents requested by the SEC. According to the filing, the SEC is investigating possible fraud in connection with Wells Fargo's sale of nearly $60 billion in residential mortgage-backed securities (RMBS) to investors between September 2006 and early 2008.

NPR reported Friday that Fannie Mae and Freddie Mac might consider principal reduction as a means to help underwater homeowners. Edward DeMarco, acting director of the FHFA, has stood firm in his decision to not allow for principal reduction, despite mounting criticism from Democrats and petitioning from organizations to have DeMarco fired. ""NPR and ProPublica have learned that both firms have concluded that giving homeowners a big break on their mortgages would make good financial sense in many cases,"" NPR stated in its story.

Dallas-based mortgage lender AmericaHomeKey (AHK) can no longer do business with the FHA due to repeat violations of FHA requirements, HUD's Mortgagee Review Board (MRB) announced its Friday. AHK can no longer originate and underwrite new mortgages insured by the FHA, and the MRB is imposing $268,000 in penalties.