Tag Archives: Foreclosure Prevention

JPMorgan Chase used its third-quarter earnings call with investors Thursday to rein in expectations about when a mortgage servicing settlement might be reached with state officials. CEO Jamie Dimon described the settlement talks as ""getting bogged down"" because of the many varying demands of each of the state attorneys general. Dimon said he thinks it'd be good for everyone involved to come to an agreement and move on, but he was quick to add, only if the settlement is ""reasonable.""

In preparation for policing the nation's largest lenders, the Consumer Financial Protection Bureau (CFPB) Thursday released its examination procedures for mortgage servicers. The bureau will begin its review of more than 100 large banks, thrifts, and credit unions with extensive examinations of their mortgage servicing practices, including complaint resolution, loss mitigation procedures, and foreclosures. The agency stressed that mortgage servicing has a huge impact on consumers and therefore is a top priority for the CFPB.

Market watchers have their eyes peeled for word from Washington that officials will relax the rules of a government refinancing program to allow underwater homeowners with GSE-backed loans to take out new mortgages with lower interest rates. President Obama promised just over a month ago that a new and improved Home Affordable Refinance Program (HARP) would soon be unveiled, but lawmakers are growing impatient. A bipartisan group of senators has sent letters to the heads of four federal agencies calling for ""immediate"" action.

The number of loans held in commercial mortgage backed securities (CMBS) resolved by special servicers in 2010 was more than four times the amount in 2009, according to Fitch's CMBS loss study released Wednesday. The company says special servicers have been increasingly successful selling properties and working with borrowers for discounted loan payoffs. However, despite this positive movement, Fitch remains uncertain what next year will bring amid current economic uncertainty.

Florida-based eMASON, Inc., developer of the Clarifire business process automation software for the financial services industry, has unveiled the Clarifire Community. The Clarifire Community portal allows borrowers, servicers, investors, title agents, real estate agents, regulators, and other mortgage industry players to come together via a single platform to synchronize activities relating to mortgage loans, while ensuring compliance with federal regulations such as single point of contact and borrower communications.

Bank of America has begun a pilot program in Florida offering extra incentive payouts to distressed homeowners who agree to and successfully close on a short sale. Incentive payments for relocation assistance range between $5,000 and $20,000. The program is being offered on a limited basis for investor-approved, pre-offer short sales. Bank of America is calling it a pilot ""test-and-learn"" program, and if successful in Florida, it could be expanded to other states.

Integrated Mortgage Solutions (IMS) now offers a cost-effective, long-term solution to defective drywall, a problem that has plagued thousands of homes, particularly along the Gulf Coast. The term defective drywall refers to a type of drywall that releases sulfur compounds, especially in warm, moist climates. Salvaging a home with defective drywall required major reconstruction to replace all the drywall in the structure, but IMS now offers an on-location solution that requires about one-third of the time and about one-half of the cost of traditional methods.

Stewart Lender Services, a wholly owned subsidiary of Stewart Title Company, now provides nationwide foreclosure file processing reviews for mortgage servicers to ensure their compliance with standard foreclosure practices. The company says these services can also prove beneficial to servicers in preparation for the continued scrutiny and subsequent response to federal and state law enforcement agencies investigating mortgage loan servicing and foreclosure processing practices.

Mortgage servicing took center stage at a mortgage banking conference in Chicago on Monday, with industry experts making a case for reform. Panelists at a session on the future of mortgage servicing assured attendees that in five years, the servicing business ""will look nothing"" like it does today. Executives from such organizations as Freddie Mac, Amherst Securities, and the University of North Carolina advocated for national servicing standards, greater transparency, and new compensation structures.

Two Georgia congressmen are proposing a bill they believe will help some homeowners keep up with their mortgage payments and avoid foreclosure. Sen. Johnny Isakson and Rep. Tom Graves have introduced the Hardship Outlays to protect Mortgagee Equity (HOME) Act, which would amend the Internal Revenue Code of 1986 to provide penalty free distributions from certain retirement plans, which a homeowner could use to cover mortgage payments on a principal residence.