Tag Archives: Foreclosure Prevention

Wipro Gallagher Solutions (WGS), a provider of end-to-end lending solutions for financial institutions, has redefined its fulfillment offerings to better meet the demands of middle- and top-tier lenders and their servicers. WGS has revised its business process outsourcing (BPO) packages depending on the lender's volume of originations and service offerings, with solutions tailored to fulfill clients' specific needs.

First-lien mortgage performance among large national banks' servicing portfolios is stabilizing, with 88 percent current over the third quarter of this year, according to the Office of the Comptroller of the Currency (OCC). Delinquencies - both early stage and serious delinquencies - remained unchanged, with 3 percent of loans 30 days to 59 days delinquent and 4.9 percent 60 or more days delinquent. However, new foreclosures rose 21.1 percent. The OCC says nearly half of the loans modified since 2008 have since redefaulted.

Florida's mandatory foreclosure mediation program has come to an end. State Supreme Court Chief Justice Charles Canady issued an order this week stating that no new cases may be referred to mediators as part of the court-run initiative and citing the program's lack of success in resolving foreclosure disputes between lenders and borrowers. Data released earlier this year showed that only 4 percent of eligible mediation cases ended in a settlement.

Homeowners who receive foreclosure prevention counseling are at least 67 percent more likely to be current on their loans nine months after a loan modification than those who do not, according to NeighborWorks America. Additionally, among homeowners who receive mortgage modifications, those who participate in counseling decrease their monthly payments by $176 more than those who do not. However, NeighborWorks says the reduced redefault rate is more a result of the counseling than the lower monthly payment.

Bank of America organized 45 dedicated outreach events this year in local markets across the country where the lender is seeing high levels of mortgage delinquencies among its customer base. Ron Sturzenegger, BofA's legacy asset servicing executive, says the goal is to get in front of the consumer. The company undertakes an aggressive marketing campaign ahead of each event and provides a loss mitigation decision on-site to 60 percent of those who come with all the necessary paperwork. BofA expects to host the same number of outreach events in 2012.

Stewart Lender Services is hosting a job fair on Monday, December 19 in Houston, Texas, in order to hire approximately 200 to 300 associates to fill mortgage servicing and loss mitigation positions. The company says it is growing in all areas, including call center services, home retention services, loan servicing, loan processing services, and REO. The event offers job seekers on-the-spot interviews and gives them a chance to meet face-to-face with hiring managers and recruiters.

Fannie Mae has released the third-quarter results of its Servicer Total Achievement Rewards (STAR) Program, which grades servicers on foreclosure prevention performance. The GSE says three companies - JPMorgan Chase, PHH Mortgage, and U.S. Bank - demonstrated improvements in scorecard metrics measuring the volume of foreclosure alternatives provided to borrowers. All three raised their scores to a 3-STAR rating, which means they are at or above the median performance level.

Freddie Mac has notified servicers that they are required to take part in mortgage assistance programs offered by state Housing Finance Agencies (HFAs) in connection with the federal government's Hardest Hit Fund initiative. The GSE says collaboration with state HFAs will provide additional support for servicers' efforts and ""our mutual commitment"" to help at-risk borrowers avoid foreclosure. HFA programs provide funds to servicers which may be applied to such criteria as loan-to-value ratios in order to help borrowers qualify for a modification.

NuView Financial Services provides services related to borrower outreach, loss mitigation, and short sale liquidation to mortgage servicers, insurers, and investors across the country. The company announced last week that it has retained Gilmore Consulting Group, LLC to manage partnership initiatives that include community and government relations. The collaboration aims to expand the role of counseling agencies, real estate professionals, and other critical stakeholders devoted to preserving communities.

State attorneys general and the nation's five largest mortgage servicers have been supposedly close to a settlement for quite some time. The latest estimate is that they are likely to reach an agreement before Christmas. A local Iowa media outlet attributes this information to Iowa Attorney General Tom Miller, head of the states' negotiating committee. Miller says the settlement would release the banks from legal claims on past servicing and foreclosure practices but would not provide any release on securitizations.