News

Lender Processing Services (LPS) has released a new product that combines the objective precision of AVMs with the detailed review of BPOs. Because AVMs do not often take property condition into account, many default servicers rely on BPOs. However, BPOs allow for a greater amount of subjectivity and can result in inconsistencies. LPS developed the Distressed Asset Review to combine the best characteristics of each method.

Americans continue to harbor a glum outlook for the housing industry and the economy at large. According to Fannie Mae's latest National Housing Survey, August was the third month in a row that more respondents expect housing prices to decrease than increase over the next 12 months. Twenty-seven percent of Americans say prices will likely head lower, while 20 percent hold out hope for appreciation. More than two-thirds say the economic recovery is on the wrong track.

The Hopp Law Firm, LLC, a national provider of commercial and creditor legal services, recently announced that Forrest R. Goodrum has joined its Idaho legal team as a partner. Goodrum joins the firm with over 40 years of litigation, appellate litigation, creditor bankruptcy, and real estate law experience. In his work, Goodrum has handled a wide range of regulatory and compliance matters related to creditor's rights, real estate, mortgage banking, mortgage servicing, foreclosures, and litigation.

The warm weather homebuying season has kept prices moving up, but Clear Capital says the rate of appreciation is already slowing and weak consumer confidence points to a stormy rest of the year. The company's latest report shows that home prices rose 4 percent over the four-month period ending in August when compared to the previous three months. But Clear Capital notes the recent gains have not been enough to recoup longer-term declines, with national home prices still more than 6 percent below last year's levels.

At a congressional hearing Wednesday, witnesses voiced concerns about the government's participation in the mortgage market as well as the lack of transparency between servicers and investors. One analyst described the U.S. housing finance system, where the GSEs account for over 90 percent of new mortgages, as ""problematic."" Others said government is crowding out the private market with programs that make below-market-rate loans available to nearly all borrowers, and they advocated for the expiration of increased conforming loan limits.

Commerce Velocity, a member of the Fidelity National Financial family of companies, has enhanced its Optimizer solution to help achieve the new requirements for the Quality Right Party Contact (QRPC) standard outlined by Fannie Mae and Freddie Mac as part of the GSEs' servicing alignment initiative. The new enhancements are designed to arm servicers with technology to document communication to the borrower regarding the resolution of their delinquent mortgage, as required by QRPC.

For the first time in over a year neither Fannie Mae nor Freddie Mac are showing any downward movement in their seriously delinquent mortgage rates. Fannie's percentage of single-family loans at least three payments past due remained unchanged between the months of June and July at 4.08 percent. Freddie's increased one basis point to 3.51 percent. The Federal Housing Finance Agency says foreclosure prevention actions completed on loans held by the two mortgage financiers have declined for four consecutive quarters.

Two economists from the Federal Reserve Bank of New York suggest states may be able to help stabilize the housing market by making bridge loans to temporarily unemployed homeowners who struggle to make their monthly mortgage payments. James Orr and Joseph Tracy base their recommendations on a successful Pennsylvania program started in 1982 -- the Homeowners' Emergency Mortgage Assistance Program (HEMAP). In fact, 80 percent of HEMAP borrowers have been able to retain their homes and have repaid their loans.

The REO For Non Profit Mastermind Group, a real estate collective of professional REO agents, and the National Association of Hispanic Real Estate Professionals (NAHREP) will co-host a V.I.P. charity event on Saturday, September 17th at the ICON Ultra Lounge in downtown Los Angeles to benefit two high-profile agencies working to assist struggling homeowners facing foreclosure.

Richard Cordray has been hand-picked by President Obama to lead the new Consumer Financial Protection Bureau (CFPB). On Wednesday, Cordray stood before the U.S. Senate to make a case for lawmakers' confirmation of his appointment. On the heels of major lawsuits announced by the government related to mortgage bonds, Cordray told senators that regulatory authority is his weapon of choice as opposed to litigation, which can be ""a very slow, wasteful, and needlessly acrimonious way to resolve a problem.""