Home / Tag Archives: Forbearance (page 14)

Tag Archives: Forbearance

After More Than a Month, $25B Settlement Filed in Court

The $25 billion mortgage servicing settlement agreement was filed in federal court Monday, according to an announcement from the Justice Department, HUD, and 49 state attorneys general. The court documents provide details of the servicers' financial obligations under the agreement, which include payments to foreclosed borrowers, more than $20 billion in consumer relief, and new servicing standards that will change foreclosure practices and policies for foreclosure prevention.

Read More »

When Excluding Distressed Sales, Home Prices Show Monthly Gain

While home prices declined on a year-over-year basis in January 2012, a month-over-month gain was seen when excluding distressed sales, according to CoreLogic's January Home Price Index (HPI). Prices declined 3.1 percent in January 2012 compared to a year ago in January 2011. But, when excluding distressed sales, year-over-year prices declined by 0.9 percent, and a month-over-month gain of 0.7 percent was seen for January. Distressed sales include short sales and REO transactions.

Read More »

DeMarco Stands Firm as Principal Reduction Debate Wages On

The principal reduction debate wages on with the Federal Housing Finance Agency (FHFA) standing firm in its resolve that the strategy is not the best option for the GSEs. ""Both companies have been reviewing principal forgiveness alternatives. Both advised me they do not believe that it is in the best interest of the companies to do so,"" FHFA Acting Director Edward DeMarco told the Senate Banking Committee. One senator asked why banks then are turning to principal forgiveness for 20 percent of modifications on their own loans.

Read More »

Fitch Expects Residential Loans to Continue Causing Losses for Banks

Despite recent reports of modest improvement in the health of the housing economy, Fitch expects the real estate sector to continue to depress the performance of banks, according to Fitch Ratings. Residential real estate is the largest exposure for banks since they make up $2.5 trillion, or roughly one-third of total loans, according to the agency. Home equity represents about 30 percent of this amount, with 1-4 family first lien mortgages making up the balance.

Read More »

Moody’s Analytics Outlines Settlement Impact for Banks and Borrowers

After more than a year of intense negotiations, 49 state attorneys general and the nation’s five largest mortgage servicers reached a $25 billion settlement on February 9. While the agreement allotted specific amounts to go towards certain areas of relief, many are wondering how the settlement will affect those represented. Moody's Analytics has released a report offering up an analysis of the settlement's expected impact on both banks and borrowers.

Read More »

Fannie Mae Extends Mortgage Relief for Unemployed Borrowers

Fannie Mae issued new guidelines to its servicers Wednesday, introducing an unemployment forbearance program which provides servicers the flexibility to assist borrowers who have a financial hardship due to job loss, including those facing imminent default. Servicers may offer up to six months of forbearance without obtaining Fannie Mae's prior approval. Another six months can be added with the GSE's okay. Fannie Mae's new directive mirrors the unemployed forbearance guidelines issued by Freddie Mac last week.

Read More »

HAMP Mods Pass 900,000 as Servicers Tackle Seconds, Negative Equity

Treasury released a new report Monday highlighting results from the Home Affordable Modification Program (HAMP). Nearly 910,000 homeowners have received a permanent HAMP modification, saving $9.9 billion in monthly mortgage payments. Officials say they will continue to press servicers to assist underwater borrowers and address second-lien issues. A total of 38,243 principal-reducing permanent HAMP mods have been granted, and 54,828 second-lien mods have been started under the federal program.

Read More »

Freddie Mac Extends Forbearance for Unemployed Homeowners

Freddie Mac has announced an extension of forbearance for unemployed borrowers of up to 12 months. According to Freddie Mac, almost 10 percent of delinquencies in the GSE's portfolio are linked to unemployment. Under the new directive, servicers may offer up to six months of forbearance to unemployed homeowners without prior approval, and with prior approval they may offer up to six months more, totaling a possible one year in some cases.

Read More »

GSEs Total 2 Million Foreclosure Prevention Actions

Servicers for Fannie Mae and Freddie Mac have completed almost 2 million foreclosure prevention actions for the two companies since they went into conservatorship in 2008, according to the Federal Housing Finance Agency's (FHFA) third-quarter report released Wednesday. More than half of these actions have been loan modifications, and of the remainder, about 676,500 have kept homeowners in their homes. About 269,700 were short sales or deeds-in-lieu of foreclosure.

Read More »

GSEs’ Long Run of Declining Delinquencies Comes to an End

For the first time in over a year neither Fannie Mae nor Freddie Mac are showing any downward movement in their seriously delinquent mortgage rates. Fannie's percentage of single-family loans at least three payments past due remained unchanged between the months of June and July at 4.08 percent. Freddie's increased one basis point to 3.51 percent. The Federal Housing Finance Agency says foreclosure prevention actions completed on loans held by the two mortgage financiers have declined for four consecutive quarters.

Read More »

Your Daily Dose of DS News

Get the news you need, when you need it. Subscribe to the Daily Dose of DS News to receive each day’s most important default servicing news and market information, absolutely free of charge.