News

The rate at which distressed loans held in U.S. commercial mortgage-backed securities (CMBS) are being transferred to special servicers continues to decline, according to Fitch Ratings. The agency reports that approximately $85.7 billion in loans were being worked out by special servicers as of the first quarter of 2011. Specially serviced CMBS loans reached a peak in the second quarter of 2010 at $91.2 billion. But Fitch has noticed a declining trend ever since and the agency expects it to continue.

Radar Logic says strong job gains will not bolster housing despite opinions from economic experts. The firm predicts a recovery in housing values will precede a recovery in the economy, spending, and jobs. Economists say the sliding job market, along with falling consumer confidence and other weak indicators mean the economic recovery has hit a ""soft patch."" There is a strong correlation, Radar Logic explains, between Americans' perceptions of their own wealth as expressed in the value of their homes and their willingness to recycle some of that wealth into the economy.

Green River Capital recently partnered with Mountain America Credit Union to provide commercial and residential REO management services. The company's technology platform allows Mountain America to identify the status of its properties at any time and provides real-time reporting, valuation, offer acceptance, and expense tracking online.

The national unemployment rate edged up to 9.1 percent in May from 9.0 percent in April, according to figures released Friday morning by the U.S. Department of Labor. The economy added just 54,000 jobs in May, the weakest showing in eight months. Employment increases averaged 220,000 over the prior three months. Freddie Mac's chief economist Frank Nothaft says the economy needs to add over 250,000 new jobs per month, on a sustained basis, to reabsorb all the jobs lost since the recession.

Prosecutors with the Manhattan District Attorney's office have issued a subpoena to Goldman Sachs for information related to the company's trading of mortgage bonds backed by subprime loans. The action against the Wall Street institution stems from a congressional report issued in April by a Senate subcommittee on the key causes of the financial crisis. The U.S. Justice Department, SEC, and New York's attorney general have reportedly launched their own investigations into Goldman's dealings during the run-up to the mortgage meltdown.

While a number of closely-watched home price indices show national readings have slipped into a double-dip, Altos Research says it's come and gone. The firm notes that the latest Case-Shiller findings declaring a new post-recession low are based on data through the end of March. Since that time, Altos has recorded a steady uptick in prices for both major metros and mid-city markets across the country. The firm expects to see a rising and falling pattern for several years and believes the double-dip is really just the start of the next housing cycle.

The cost of borrowing for a fixed-rate home loan has slipped to its lowest level of the year yet again. Fixed mortgage rates dropped this week amid weak economic and housing reports, marking the seventh consecutive week they've headed lower. Market data released Thursday by Freddie Mac puts the 30-year fixed-rate at 4.55 percent and the 15-year at 3.74 percent.

Lender Processing Services, Inc. (LPS) has launched a new reporting and analytics solution. The company says mortgage servicers can use the new LPS Business Intelligence (BI) product to measure and analyze performance indicators to help make more informed decisions about loans in their portfolios. With customizable views of loan data, users can identify and predict changes over time and quickly resolve issues that may arise.

The delinquency rate on loans held in commercial mortgage-backed securities (CMBS) fell slightly in May from the new record high set the month before, according to Trepp LLC. The research firm says the percentage of CMBS loans 30 or more days delinquent, in foreclosure, or REO has fallen back 5 basis points to 9.60 percent. Trepp says while it seems small, May's decline is actually the biggest rate drop in about two years. The value of delinquent loans within commercial mortgage bonds now stands at $61.5 billion.

NeighborWorks America has appointed Eileen M. Fitzgerald as the organization's new CEO, effective June 1. Fitzgerald has served as acting CEO of the nonprofit community development and housing counseling network since January 2011 when Kenneth Wade stepped down from the position.