Tag Archives: Loan Modification

Fannie Mae laid out new standards for mortgage servicers Monday related to the management of delinquent loans. The move is part of the Servicing Alignment Initiative announced by the company's regulator in late April to bring both Fannie Mae's and Freddie Mac's procedures for handling past-due mortgages in line with one another. The new rules are intended to address identified servicing issues such as the commencement of foreclosure actions while loss mitigation talks are ongoing and breakdowns in borrower communication.

HOPE LoanPort (HLP), a Web-based tool that streamlines home retention applications on behalf of borrowers at risk of foreclosure, recently welcomed nonprofit counseling agencies in Alaska and Kansas to its system. Used by housing counselors, housing finance agencies, investors, and major mortgage servicers, HLP now assists struggling homeowners in 49 states and the District of Columbia.

The rate at which distressed loans held in U.S. commercial mortgage-backed securities (CMBS) are being transferred to special servicers continues to decline, according to Fitch Ratings. The agency reports that approximately $85.7 billion in loans were being worked out by special servicers as of the first quarter of 2011. Specially serviced CMBS loans reached a peak in the second quarter of 2010 at $91.2 billion. But Fitch has noticed a declining trend ever since and the agency expects it to continue.

Wells Fargo will host a free workshop Thursday for Wells Fargo Home Mortgage, Wells Fargo Financial, Wachovia Mortgage, and Wells Fargo Home Equity customers facing financial hardships. Hundreds of South Carolina homeowners are invited to the event in Columbia, South Carolina. About 50 home retention team members will be on hand to work one-on-one with customers to explore options such as workouts and loan modifications.

Both new foreclosure actions and completed foreclosure sales took a dive in April after rising sharply the month before, according to industry data released Wednesday. Foreclosure starts nationwide totaled approximately 163,000 in April, while foreclosure sales dropped to 73,000, reports the industry alliance HOPE NOW. At the same time, though, proprietary loan modifications also declined. HOPE NOW says the performance of these loan mods has remained ""steady,"" with a re-default rate of 20 percent.

CitiMortgage and Neighborhood Housing Services of South Florida will host a free homeowner outreach event in Miami for distressed homeowners on Wednesday. Part of the Citi Road to Recovery Homeowner Assistance Series, the event is open to all homeowners who are struggling with mortgage payments.

Modified mortgages held by Fannie Mae and Freddie Mac could go up for sale at some point, according to the companies' regulator. Since the GSEs were seized by the government, they have completed modifications on 849,000 mortgages. The sale of these assets is one option being discussed as part of a strategy to shrink their portfolios. The head of the Federal Housing Finance Agency told lawmakers that they are looking at a range of possible structures for disposing of certain assets, which could include non-performing and modified loans.

The Ohio Attorney General's office and Ohio Department of Commerce have announced an assurance of voluntary compliance (AVC) with Carrington Mortgage Services, LLC to resolve a 2009 lawsuit. The AVC will also provide relief to Ohio homeowners facing foreclosure. The three parties agreed to several mortgage servicing standards that will apply to all Ohio loans serviced by Carrington Mortgage Services, including providing borrowers who complete a modification application with a single point of contact.

Urban Lending Solutions has hired Dennis Postlewait and Darlene Burnham to serve as senior vice presidents of business development for the company's appraisal subsidiary. Urban Lending Solutions provides loan modification services, underwriting, valuations, and other real estate information solutions for the mortgage industry. Postlewait and Burnham are both responsible for development and growth of strategic accounts.

MMREM, a national asset management firm for federal agencies and private sector servicers, investors, and insurers, launched its partial subsidiary Sperlonga Data and Analytics last week. Sperlonga provides servicers, title agents, real estate brokers, appraisers, and originators with a centralized repository of homeowner association (HOA) information and payment demands.