Tag Archives: Foreclosure Prevention

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.

Two economists from the Federal Reserve Bank of New York suggest states may be able to help stabilize the housing market by making bridge loans to temporarily unemployed homeowners who struggle to make their monthly mortgage payments. James Orr and Joseph Tracy base their recommendations on a successful Pennsylvania program started in 1982 -- the Homeowners' Emergency Mortgage Assistance Program (HEMAP). In fact, 80 percent of HEMAP borrowers have been able to retain their homes and have repaid their loans.

The REO For Non Profit Mastermind Group, a real estate collective of professional REO agents, and the National Association of Hispanic Real Estate Professionals (NAHREP) will co-host a V.I.P. charity event on Saturday, September 17th at the ICON Ultra Lounge in downtown Los Angeles to benefit two high-profile agencies working to assist struggling homeowners facing foreclosure.

Richard Cordray has been hand-picked by President Obama to lead the new Consumer Financial Protection Bureau (CFPB). On Wednesday, Cordray stood before the U.S. Senate to make a case for lawmakers' confirmation of his appointment. On the heels of major lawsuits announced by the government related to mortgage bonds, Cordray told senators that regulatory authority is his weapon of choice as opposed to litigation, which can be ""a very slow, wasteful, and needlessly acrimonious way to resolve a problem.""

As state attorneys general and major U.S. banks continue to work toward a settlement, questions abound regarding the amount of legal liability the mortgage servicers should and will maintain after an agreement is signed. Media reports have surfaced claiming a draft proposal put forth by the attorneys general includes language that could prevent officials from bringing securitization claims in the future, but the negotiating committee for the states is adamant that servicers will not be released from all civil liability or any criminal liability.

Fannie Mae is bolstering the incentive fees paid to servicers modifying the GSE's loans through the Home Affordable Modification Program (HAMP). The new incentives apply to all HAMP mods with a trial period effective date of October 1, 2011 or later. In a servicing policy update, Fannie Mae explained that it will begin paying servicers based on a tiered incentive structure that coincides with the number of days the mortgage loan has been delinquent when the trial plan starts.

HUD has announced that it will distribute more than $10 million to housing counselors throughout the country. Grants have been awarded to 139 local counseling agencies and 23 housing counseling intermediaries. The funding is specifically earmarked to help distressed homeowners with mortgage modifications and other loss mitigation options, and to combat scams perpetrated by fraudulent foreclosure rescue companies. HUD says the grant money is unspent funding from its 2010 appropriation.

Treasury has released the results of its second-quarter assessment of servicers participating in the Making Home Affordable program. Officials say they will continue to withhold program incentives owed to Bank of America and JPMorgan Chase. The two were determined to need ""substantial improvement"" in key areas including borrower evaluations. BofA and JPMorgan received the same score last quarter, as did Wells Fargo, but Wells has now elevated its grade to needing ""moderate improvement.""

Nevada is asking to be cut loose from a multi-state settlement agreement reached in October 2008 with Bank of America following its acquisition of Countrywide just four months earlier. BofA struck a deal with Nevada and several other states agreeing to provide up to $8.4 billion in interest and principal reductions for Countrywide borrowers. Nevada's attorney general claims the bank has breached that agreement and is asking to be released from it. BofA says it will defend itself against the allegations.

HOPE LoanPort announced Wednesday that Camillo T. Melchiorre will assume the role of president and CEO, effective September 1st. He replaces Larry Gilmore, co-founder of HOPE LoanPort and president and CEO since 2009, who has stepped down to pursue other opportunities. Melchiorre led the HOPE NOW Alliance Technology Committee that resulted in the creation of HOPE LoanPort and has served as a member of the board of directors since its inception.