Quantcast
"When so many loans get transferred, a lot of loans fall through the cracks," one observer notes.
It can be difficult to have enough staff to handle an exchange of mortgage servicing rights, though companies are exploring different solutions
Twitter
Facebook
LinkedIn
FALLING SHORT: "The fact that borrowers are redefaulting at such a high rate shows that many people are still struggling and cannot afford their modified HAMP payment," said Christy Romero, the special inspector general for the Troubled Asset Relief Program.
One in three struggling homeowners who received a loan modification through the Home Affordable Modification Program ultimately redefaulted on those loan.Meanwhile, the program that was supposed to help some 4 million families avoid foreclosure has helped only a fraction of that amount, according to a report presented to Congress.
NEW METRICS:
The heightened regulatory environment for servicers has also prompted a wave of process improvements.
The Mortgage Bankers Association's annual servicing conference opened with a plea from Quicken Loans CEO Bill Emerson for executives to remember their duty beyond collecting loan payments from borrowers.
SYSTEMICALLY IMPORTANT?
It's not quite too big to fail, but Ocwen is the country's largest servicer of subprime mortgages. So if it were forced to sell itself, or even failed, the transfer of some $410 billion in servicing rights could create havoc in the mortgage market, industry experts said.
NMN is previewing the upcoming MBA Servicing Conference with a special package of preconvention content. Check out a roundup of links to the coverage.
Already a subscriber? Log in here
Please note you must now log in with your email address and password.