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Critics of HUD’s Distressed Asset Stabilization Program claim that HUD should sell more distressed or nonperforming loans to nonprofits rather than profit-seeking investors. However, researchers from the Urban Institute concluded that all parties—HUD, the borrowers, and investors—stand to benefit when distressed loans are sold through DASP in a paper titled Selling HUD’s Nonperforming Loans: A Win-Win for Borrowers, Investors, and HUD released Wednesday.
The loans sold through DASP are seriously delinquent and are likely to be foreclosed on without DASP's intervention, since servicers of loans in DASP pools are required to exhaust all loss mitigation possibilities. The goal of DASP is to maximize recoveries for the Federal Housing Administration, HUD’s parent agency, and help borrowers avoid foreclosure whenever possible. The authors of the paper state that to properly evaluate DASP loan sales, one must keep in mind that DASP encourages investors to pursue foreclosure alternatives and that investors are able to better help borrowers than non-profits are.
Peter Muriungi has been chosen as JPMorgan Chase’s new head of Mortgage Servicing to replace Mike Weinbach, who was named CEO of Chase’s Mortgage Banking division in December, the bank confirmed on Wednesday. Muriungi joined Chase in 2013. Prior to being named head of Mortgage Servicing with Chase, he worked for the last year as the head of Shared Services with the Mortgage Banking Leadership team.
