News

The delinquency rate for loans held in U.S. commercial mortgage-backed securities (CMBS) fell 26 basis points to 9.51 percent in November, according to Trepp, LLC. That's the second biggest decline recorded by the firm this year, surpassed only by August's 36 point drop. The rate has now fallen in four of the 11 months of 2011. Recent declines, however, likely aren't the makings of a trend, Trepp says. The company is expecting increases in coming months as 2007 vintage loans start to reach their five-year balloon maturity dates.

Attorneys General Kamala Harris of California and Catherine Cortez Masto of Nevada have entered into a joint investigation alliance targeting mortgage servicers and perpetrators of mortgage fraud. The alliance will link their offices' civil and criminal enforcement teams in order to speed up investigations and prosecutions. The partnership forged between Harris and Masto illustrates the deep rifts that have developed within the attorney general camp over robo-signing settlement negotiations.

Home price predictions have traditionally been fairly straightforward, relying heavily on employment and income levels, according to Michael Sklarz of Collateral Analytics. However, the last cycle has posed challenges for analysts, Sklarz noted during a panel at the Five Star MPact Conference held in Dallas this week. Industry experts participating in the discussion stressed that national predictors - even if accurate - may not be relevant on a local basis.

We are five years through a 10-year adjustment process, Fannie Mae's chief economist Doug Duncan told attendees at the Five Star MPact Mortgage Banking Conference and Expo Tuesday morning. Dodd-Frank has 300 rules that must be implemented in the market. Regulators are only halfway through that list so far; the second half will be enacted over the next couple of years. While the market will recover, Duncan stressed that it will take time to adjust to new regulations.

Foreclosures are going to go up before they go down, according to Craig Nickerson, president of the National Community Stabilization Trust. Nickerson says estimates put foreclosure tallies at 850,000 this year, as high as 1.5 million in 2013, and then back to the levels we're at today by 2015. With all these distressed properties potentially making their way to an already stressed marketplace, Nickerson, along with a panel of industry professionals at the inaugural MPact Conference advocated for bulk short sales to investors and nonprofits.

While the government has recently enhanced its efforts to fight mortgage modification scams, mortgage fraud remains a prevalent issue throughout the industry. According to Jenny Brawley, associate director of mortgage fraud investigations for Freddie Mac, three elements drive mortgage fraud schemes: pressure, opportunity, and rationalization. The FBI characterizes mortgage fraud schemes as ""particularly resilient"" and credits them with being able to adapt to economic changes and modifications in lending practices.

With about 800,000 REOs and about 1 million properties in some stage of default, it is difficult to see the light at the end of the tunnel. However, that is just what a group of four analysts tried to do at a panel session Monday during the Five Star MPact Mortgage Banking Conference and Expo. Rick Sharga of Carrington Mortgage Holdings noted that in every previous recession, housing has brought us out, but in this recession, it dragged us in. As a result, he says, recovery this time will be a bit different.

The foreclosure crisis has had a long and destructive run - five years and counting, with millions put out of their homes. According to the Center for Responsible Lending (CRL), we're not even halfway through the devastation. The organization's analysis of 27 million mortgage loans originated over a five-year period found that 6.4 percent of mortgages made between 2004 and 2008 have ended in foreclosure, and an additional 8.3 percent are at immediate, serious risk.

Michael L. Zevitz, shareholder at South & Associates, P.C. has been selected by his peers for inclusion in the 2012 edition of The Best Lawyers in Kansas City in the area of mortgage banking foreclosure law. Selection is based on more than 2.8 million confidential peer-review evaluations. In addition, shareholder Nancy M. Wilson has been selected for the inaugural edition of the Martindale-Hubbell Bar Register of Preeminent Women Lawyers - exclusively for women attorneys who have achieved the highest possible rating in both legal ability and ethical standards from their peers.

For the second consecutive year, Safeguard Properties was recognized as the fastest growing large company in Northeast Ohio at the annual Weatherhead 100 awards ceremony held on December 1. Safeguard, which is headquartered in Valley View, Ohio, led in the Centurion category that includes companies with annual net sales in excess of $100 million. Safeguard, which is headquartered in Valley View, Ohio, led in the Centurion category that includes companies with annual net sales in excess of $100 million.