News

Almost half of the 111 economists and real estate experts polled this month by MacroMarkets are forecasting a double-dip in home prices to happen this year, and not a single panelist expects property values to recover to the pre-bubble trend for at least the next five years. MacroMarkets was founded by Robert Shiller, namesake of the closely-watched Case-Shiller Home Price Index. He says the deteriorating outlook among panel members has been influenced by the unabated foreclosure crisis and persistently weak market fundamentals.

A push for servicers to implement principal write-downs and provide screening for as many modification options as possible before proceeding to foreclosure has been met with stiff resistance from servicers and some lawmakers. Meanwhile, the number of loan modifications pales in comparison to the number of foreclosures. But new data suggests that modifications and even write-downs in certain cases might actually be more beneficial to investors as well as struggling borrowers.

Ohioans undergoing foreclosure mediation who can't afford to hire an attorney now have another option. Capital University Law School recently developed a program to connect law students with people going through foreclosure. Upperclass law students volunteer their time for the pro bono program to help homeowners understand the mediation process.

Freddie Mac issued new policy guidelines to its servicers this week that prohibit foreclosures in the name of Mortgage Electronic Registration Systems Inc. (MERS). The electronic registry has come under fire lately, despite the fact that several state courts have recently upheld MERS' right to foreclose. It became a focus of last fall's robo-signing scandal when the MERS name appeared within defective affidavits. Fannie Mae told its servicers last spring they were no longer allowed to foreclose in MERS' name, and now Freddie Mac is following suit.

Opposition to the proposed servicer settlement developed a stronger stance this week as four attorneys general released a letter to Iowa's Tom Miller, who is leading the states' investigation. Attorneys general from Virginia, Texas, Florida, and South Carolina said while they support actions to correct problems unearthed by the robo-signing scandal, the proposal includes mandates and suggestions that are out of the scope of their enforcement role. They expressed particular uneasiness over the provisions surrounding principal write-downs.

CoreLogic introduced its newest technology solution, IntelliMods, to the market Thursday. The company says the new Web-based application will allow users to put more distressed homeowners into modified loans by automating decisions and fulfillment for both government and private investor programs. The system automatically runs the necessary calculations to determine borrowers' loan modification eligibility and provides an audit trail of all decisions.

Mortgage interest rates this week came in slightly higher, as macroeconomic data showing inflation rising higher than expected and investors' concerns over political strife around the globe led to an uptick in Treasury bond yields. The yields on these long-term government bonds are closely tied to mortgage rates. Freddie Mac says the 30-year fixed-rate mortgage is now averaging 4.81 percent, while the 15-year rate came in at 3.97 percent. Adjustable-rate mortgages also headed higher.

Wells Fargo & Company will host a workshop in Phoenix for Wells Fargo Home Mortgage, Wells Fargo Financial, Wachovia Mortgage, and Wells Fargo Home Equity customers facing financial hardships. The two-day workshop is March 30 and 31 from 9 a.m. to 7 p.m. at the Phoenix Convention Center. Nearly 200 home retention team members will be on hand to ensure borrowers receive a decision on a loan modification or other option on site or shortly following the workshop.

Michigan-based NDeX, a provider of technology and processing services for default servicing law firms nationwide, appointed Margaret S. Feskorn as its new SVP of Michigan foreclosure operations. Feskorn will work directly with EVP Richard Geary, who is responsible for the management of all Michigan non-legal foreclosure staff and their processes.

Fitch Ratings has reviewed all U.S. subprime mortgage securitizations rated by the agency and found little change in expected losses for the bond investors as default risk improved slightly. However, the agency says loss severities have increased due to longer foreclosure timelines and still-declining home prices. Fitch says the average time to liquidate a distressed loan has increased by roughly six months from a year ago and now exceeds 20 months. Timelines are expected to increase further in 2011 as foreclosures continue to face procedural challenges.