News

Denver-based Allonhill, an independent third-party review firm specializing in mortgage due diligence and credit risk management, recently named veteran underwriter Ross Gammill as director of the firm's new commercial due diligence offering. Gammill comes to his new position with more than seven years' experience in the financial services industry, most recently serving as as underwriter for Bridger Commercial Funding.

Mortgage Pricing Systems (MPS), a developer of sophisticated pricing solution for mortgage lenders, recently announced that it has integrated its flagship mortgage product and pricing system - LEAP! - into Calyx Point, a loan origination application for mortgage brokers and bankers offered by Calyx Software, a provider of loan marketing, originating, and processing software. With this integration, MPS can now provide instantaneous loan pricing to Point users.

The number of loans pooled in commercial mortgage-backed securities (CMBS) that require a ""special"" touch as they edge dangerously close to default is rapidly increasing. Fitch Ratings reported Friday that the risk of default is spreading so quickly through the secondary commercial market that the volume of specially serviced CMBS loans grew to approximately 5,000, totaling $81.7 billion during the first quarter.

S&P Valuation and Risk Strategies and Fiserv, Inc. have joined forces to further industry implementation of the American Securitization Forum's (ASF) Loan Identification Number Code (LINC) initiative. Fiserv is the first technology provider to integrate ASF LINC in its loan servicing platform. By doing so, the company hopes to provide increased disclosure and transparency to the mortgage and asset-backed securities marketplace.

In a letter to New York Attorney General Andrew Cuomo, Edward J. DeMarco, acting director of the Federal Housing Finance Agency (FHFA), said Fannie Mae and Freddie Mac will deploy a complaint process for violations of the Home Valuation Code of Conduct. This process will be implemented in lieu of funding for the Independent Valuation Protection Institute, which was called to be established and funded by Fannie Mae and Freddie Mac under the cooperation agreements between Attorney General Cuomo's office, the Office of Federal Housing Enterprise Oversight (now FHFA), and the government-sponsored enterprises.

In just one quarter, homeowners have gone from being overly cynical about their own home's value to being overly confident. According to the Q1 Homeowner Confidence Survey conducted by Zillow, 50 percent of homeowners nationwide believe the value of their own home declined in the past year. But in reality, 65 percent of U.S. homes have dropped in value in the last 12 months. Zillow's chief economist says it is clear that there's a lag between market realities and public perceptions of home values.

Windermere Services of Northern California announced this week a partnership and merge of the Schubb Group, a three-office real estate brokerage specializing in REO properties. The Schubb Group operates out of Northern California offices in Pleasant Hill, Stockton, and Nice. Windermere also plans to launch a new default services division, which will be run out of the newly acquired business.

The Subcommittee on Economic Opportunity held a hearing Thursday in order to review the current status of the U.S. Department of Veterans Affairs (VA) Home Loan Guarantee Program. According to Stephanie Herseth Sandlin, chairwoman of the subcommittee, VA's loan guarantee program has been an important benefit for more than 65 years that has allowed thousands of veterans the opportunity to own a home. And although this program has proven to be successful, she said there are still ""several issues of concern"" that need to be addressed.

American Financial Resources, Inc. (AFR Mortgage), a nationwide mortgage banker headquartered in Parsippany, New Jersey, has announced the launch of a new Federal Housing Administration (FHA) correspondent residential mortgage lending division that will purchase closed loans from selected FHA direct endorsed lenders.

The Senate voted 59 to 39 Thursday evening to approve a far-reaching overhaul of the nation's financial system. The legislation aims to rein in bad lending practices and expand oversight of Wall Street in order to prevent a sequel of the recent housing crisis and the nationwide economic meltdown that followed. The House and Senate have now both passed reform bills intended to protect consumers, limit risk-taking by large institutions, and address the problem of ""too big to fail."" Congressional leaders and the Obama administration must now reconcile the two chambers' versions, a process which is expected to take several weeks.