Tag Archives: Select Portfolio Servicing

The GSE has announced the sale, via auction, of more than 3,500 non-performing residential first lien loans (NPLs) from its mortgage-related investments portfolio as part of Freddie Mac’s Standard Pool Offerings.

"We believe that this combination of two highly rated and well-recognized brands will create a stronger company to better serve our customers, clients, regulators, and associates," said SPS CEO Randhir Gandhi.

Freddie Mac has announced the pricing of its second Seasoned Credit Risk Transfer Trust (SCRT) offering of 2022 —a securitization of approximately $536 million including both guaranteed senior and non-guaranteed subordinate securities backed by a pool of seasoned re-performing loans ...

The servicer assessment component of the Making Home Affordable (MHA) program has been enhanced with new compliance metrics and benchmarks to measure the impact of servicer performance on the borrower's experience. Individual servicer assessments are conducted quarterly to identify areas of non-compliance and drive improvements in servicers' execution of the federal program.

Based on a metric devised by Moody’s Analytics, GMAC, SLS, and American Home performed better compared to other subprime servicers in terms of cash collected relative to losses on delinquent loans. This was mainly due to shorter liquidation timelines that resulted in lower loss severities on liquidated or foreclosed properties, according to an article in Moody's ResiLandscape. GMAC's high metric is due primarily to shorter liquidation timelines and because the servicer maximizes cash flow on modified loans by keeping the re-default rates in line with the industry average even though it offers relatively low levels of relief in terms of principal and interest.

Treasury says servicers participating in the Home Affordable Modification Program (HAMP) are getting better at evaluating homeowners for eligibility. Its latest performance assessment found no company in need of ""substantial improvement."" OneWest Bank and Select Portfolio Servicing performed at the highest level, needing only minor improvement. As part of the $25 billion settlement announced last month, Treasury has agreed to release incentives previously withheld from Bank of America and JPMorgan Chase.

The U.S. Treasury said Wednesday that it will continue to withhold incentives from JPMorgan Chase and Bank of America for modifications, short sales, and deeds-in-lieu completed through government programs. JPMorgan is the only servicer participating in Treasury's Making Home Affordable program that was determined to need ""substantial improvement"" in complying with program guidelines during the third quarter. Bank of America moved up a notch on the assessment scorecard to needing only ""moderate improvement.""

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.""

Servicers completed 2,213 pre-foreclosure short sales and deeds-in-lieu (DIL) under the government's Home Affordable Foreclosure Alternatives (HAFA) program during the month of June. Treasury's latest report shows the program is beginning to pick up steam. The number of completed HAFA transactions climbed 55 percent compared to the 1,428 transactions completed in May. That follows a 70 percent jump in finalized HAFA deals between the months of March and April.

The U.S. Treasury has released its regular monthly report card on the Home Affordable Modification Program (HAMP). New this time is an assessment of how the 10 largest HAMP servicers are performing. Four servicers have been designated as needing ""substantial"" improvement: Bank of America, JPMorgan Chase, Ocwen Loan Servicing, and Wells Fargo. Treasury says it will withhold financial incentives from three of these companies until they make identified improvements.