News

The Federal Housing Finance Agency (FHFA) has issued a 28-page document that presents several alternatives it plans to consider for how Fannie Mae and Freddie Mac compensate mortgage servicers. The agency says today's model does not provide the flexibility needed for the servicing of nonperforming loans during times of high defaults. Alternatives being considered include a fee-for-service compensation structure for nonperforming loans and reducing or eliminating the minimum servicing fee for performing loans.

Mortgage Contracting Services LLC (MCS), a nationwide provider of property preservation, inspections, and REO property maintenance, reached a key company milestone Monday, celebrating 25 years in business. The company says it is particularly excited to achieve this mark of longevity because of the challenges it has overcome, weathering varying market cycles over the last quarter-century and adapting to extreme volume fluctuations and regulatory requirements.

Two community-based lenders in California and two in Georgia were shut down over the weekend by banking regulators. These latest closings bring the number of names on the FDIC's failed bank list to 22 for the 2011 calendar year to date. The FDIC has said it expects the number of bank closures in 2011 to be less than the 157 that failed in 2010. But if the pace of 20-plus every two months continues, institutional failures will remain extremely elevated by historical standards.

After several months in which the nation's volume of non-current home loans declined, the contraction has come to an end. Lender Processing Services (LPS) says there were 6.92 million residential mortgages past due or in foreclosure as of the end of January. That's up from 6.87 million reported by the analytics firm for December. LPS provided the media with a sneak peek at its January month-end mortgage performance data, and the numbers show that both the delinquency rate and foreclosure inventory rate edged up last month.

A new study by analytics firm Interthinx says mortgage fraud risk has been spreading from ZIP code to ZIP code. The company's quarterly Mortgage Fraud Risk Report covers data collected from the fourth quarter of 2010 and tracks overall and type-specific mortgage fraud risk. It provides an in-depth analysis of fraud risk from specific ZIP codes. The report shows that previously localized risks in one or more ZIP codes are in danger of spreading throughout a metropolitan area.

A rise in stock prices has helped to grow consumers' net worth, but financial duress related to housing and a weak job market are weighing heavy on U.S. households and overshadowing any assurances that an economic recovery is underway. The nonprofit credit counseling agency CredAbility has released its Consumer Distress Index results for the fourth quarter of 2010. The organization found that the health of household budgets has fallen to its lowest level since the first quarter of 2009, causing many homeowners to miss mortgage payments.

Rep. Darrell Issa, on Wednesday asked that a subpoena be issued to Bank of America, requesting the company hand over any documents related to the ""Friends of Angelo"" program formerly offered by Countrywide Financial. The VIP program was dubbed Friends of Angelo because it was headed by former Countrywide CEO Angelo Mozilo. The program is said to have offered preferential loan terms and conditions to its participants but did not offer them to the public.

Equator launched a new Web site Friday along with three new modules: Loan Segmentation, REO Segmentation, and Invoice Management. The company says these new modules will seamlessly interface with existing modules to offer an end-to-end default suite to assist servicers with upcoming inventories.

When evidence surfaced last fall of flawed foreclosure documentation and robo-signers within some of the nation's largest servicing shops, federal regulators launched an investigation into the foreclosure and servicing practices of 14 companies. Officials say they've uncovered ""critical deficiencies and shortcomings"" and will be enforcing sanctions and penalties against servicers and developing a set of national mortgage servicing standards for the industry.

The delinquency rate for mortgage loans on single-family residential properties dropped to 8.22 percent at the end of 2010, the Mortgage Bankers Association said Thursday. That's down about 10 percent from the rate reported by the trade group three months earlier and is its lowest mortgage delinquency reading since the fourth quarter of 2008. While all delinquency buckets posted declines in Q4, loans in foreclosure tied the all-time record high in MBA's survey as resolutions were delayed due to robo-signing issues and case reviews.