Tag Archives: Foreclosure Prevention

Mortgage delinquencies declined 27 percent in the first half of 2011 compared to the first half of 2010, according to data from HOPE NOW. For the first half of 2011, the number of 60-day plus delinquencies was 2.7 million, down 1 million from the first half of 2010. Foreclosure sales also declined year-over-year for the period - down 25 percent. At the same time, the total number of foreclosure starts during the first six months of 2011 was 1.13 million, a decrease of 9 percent from the first six months of 2010.

The administration has released a new report on its flagship Home Affordable Modification Program (HAMP). Officials say more borrowers are qualifying for permanent modifications, and in less time. The rate of modifications moving from trial to permanent status under the HAMP umbrella is up to 74 percent, according to Treasury. At the same time, conversions from a trial to permanent modification are down to 3.5 months on average, compared to an average of 5.2 months a year ago.

Fannie Mae's second-quarter loss narrowed from the previous quarter, but still in the red, the GSE says it needs to draw another $5 billion from Treasury, bringing its tally of taxpayer-funded support to $104.8 billion since the company was placed into conservatorship. The company reported a net loss of $2.9 billion for the April-to-June period, compared to a net loss of $6.5 billion in the first quarter of the year. Fannie Mae acquired 53,697 REO homes through foreclosure over the three months ending in June.

Bank of America and the Department of Housing and Urban Development (HUD) have reached a settlement regarding 57,000 delinquent government-issued mortgages serviced by the bank. Under the agreement, BofA must pursue loan modifications with the 57,000 borrowers that it previously did not offer foreclosure alternatives. However, the servicer will not be held liable for foregoing such efforts in the past, though the actions are required by HUD.

Studies have shown that minorities have been disproportionately impacted by the nation's housing crisis. The National Association of Real Estate Brokers, Inc. (NAREB) is taking steps to ease that impact. NAREB is partnering with Wall Street investors to launch an $800 million Homeowner's Assurance Program (HAP) to bring foreclosure mitigation to minority families and clean up neighborhood blight in their communities.

Varolii Corporation announced a new product to alleviate costs and streamline new processes servicers will have to adopt under the Single Point of Contact regulation requirements for all HAMP modifications. Varolii estimates its product will reduce servicer staffing requirements by 15 percent, while increasing borrower contact by 17 percent. The Varolii SPOC Mortgage Servicing Solution routes calls to the appropriate agents and incorporates borrowers' communication preferences.

An independent study conducted by Promontory Financial Group concludes that significantly more insured mortgages have survived the housing crisis than loans with ""piggyback"" second mortgages, which has been the most prevalent alternative to the use of mortgage insurance for the past decade. The study examined almost 5.7 million mortgages originated between 2003 and 2007. Compared with insured, low downpayment mortgages, loans with piggyback second mortgages were almost 21 percent more likely to go into default.

The Five Star Institute has announced a partnership with Fannie Mae to educate real estate agents on Fannie Mae's Short Sale Assistance Desk (SSAD). Fannie Mae's SSAD helps expedite the process by allowing real estate agents to reach out to the GSE directly for short sale approval of first-lien, Fannie Mae-backed loans. Agents can access the appropriate forms through multiple listing services. With 107,953 short sales in 2010, such transactions continue in significant numbers this year - 35,406 as of April, according to a federal report.

In its own private negotiations with state attorneys general and officials at HUD and the U.S. Justice Department, Bank of America is reportedly bringing principal reductions to the bargaining table. BofA and four other mortgage servicers have been in discussions with state and federal officials to settle investigations into foreclosure practices involving faulty paperwork and illegal affidavits, but talks have stalled. To move things along, BofA has put forth its own proposal for principal write-downs in exchange for liability protections.

A Sacramento, California citizen has proposed an amendment to the California Constitution that would outlaw foreclosures. On claims that lending institutions have failed to provide a simple method of foreclosure prevention, David A. Benson's Foreclosure Modification Act would require lenders to provide principal reductions and interest rate reductions to help borrowers keep their homes. His proposal has already been cleared by the Secretary of State and now requires 807,615 signatures to make it onto the ballot.