News

Lender Processing Services, Inc. recently added a new property module to its McDash Loan Data suite of products. The suite is offered by LPS's Applied Analytics division. The new module supplements the McDash database with an updated view of borrower equity. It combines public records information related to second liens with the analytic capabilities of the LPS Home Price Index to provide an indication of current total loan-to-value (LTV) ratios for residential housing across the country.

Sun Law Group, PLC, a law firm based in Grand Rapids, Michigan that assists homeowners with negotiating and coordinating short sale transactions, and Lighthouse Title Group, a title insurance agency with 18 offices throughout Michigan, have formed an alliance to offer a joint short sale and closing service solution to homeowners in the state. The companies expect the number of short sales to continue to grow but note that these transactions present a unique set of issues that often require attorney oversight.

According to data released by S&P Indices and Experian, the default rate on second lien mortgages has increased for the first time in at least five months. The agencies' report shows second mortgage defaults rose from 1.42 percent in March to 1.51 percent in April. First mortgages, on the other hand, saw a decrease in default rates. These results are based on data extracted from Experian's consumer credit database, which covers approximately $11 trillion in outstanding loans sourced from 11,500 lenders.

The U.S. Treasury released updated guidance for the Home Affordable Modification Program (HAMP) this week requiring certain servicers to provide borrowers with a single point-of-contact through the entire default resolution process. The new directive applies only to the largest servicers, however Treasury says all servicers participating in HAMP are encouraged to adopt the new guidance. The rule also carries over to the government's short sale and unemployment programs.

The nonprofit counseling agency CredAbility released the results of its first-quarter Consumer Distress Index Thursday. While the average U.S. household is still in financial distress - and has been for 10 consecutive quarters - the agency says the index has hit its highest score in two and a half years. CredAbility attributed the positive movement to the fact that employment levels rose and consumers now have a better handle on managing household budgets. On the flip side, the score dropped in the housing category.

Fixed mortgage rates have dropped for the fifth consecutive week to put them at their lowest point of the year. The declines continue despite reports of mixed economic and housing data. Adjustable-rate mortgages (ARMs), on the other hand, increased for the first time in over a month. Freddie Mac reports that 30-year fixed mortgage rates are now averaging 4.61 percent, while the 15-year rate is at 3.80 percent.

Foreclosure filings and foreclosure sales at auction in Colorado's metropolitan counties declined during April, according to a report by the Colorado Division of Housing. It was the fifth consecutive month where both filings and sales were down in the state when compared to the same month a year earlier. Foreclosure filings hit a 31-month low in March of this year but have risen slightly since.

Industry data released Thursday shows a sharp drop in the percentage of home loans 90 or more days past due or in foreclosure. The Mortgage Bankers Association (MBA) reports 90-plus day delinquencies have dropped for five straight quarters, while the nation's foreclosure inventory recorded its largest decline since the trade group began tracking the market. At least one economist says the combination is a sign of ""genuine improvement."" Remaining troubles appear to be concentrated in a handful of states. Five account for over half of the loans in foreclosure in the country.

Veri-Tax, LLC, a provider of income and identity verification products for banks and mortgage lenders, successfully completed a SAS-70/SSAE-16 Type II audit. Veri-Tax calls the SAS-70/SSAE-16 audit the more rigorous Type II audit, which involves an assessment of its corporate-wide policies and procedures related to handling client data. Such an audit addresses how employees access borrower tax and identity orders as well as the security of Veri-Tax's financial billing systems, information technology, and disaster recovery plans.

Las Vegas residents facing foreclosure can receive help during a Home Rescue Fair this Friday and Saturday at the Palace Station Hotel Casino. Sponsored by the city of Las Vegas, the event was organized by Housing for Nevada and the Alliance for Stabilizing Communities, with the support of Bank of America.