Home Values Are Slow to Rebound
Falling house prices and a slowing economy will continue to affect default rates as well as the recession-like situation in the fourth quarter of 2007 when the market saw a further increase in defaults and foreclosures, especially in the Rust Belt states, according to panelists at SourceMedia's Mortgage Servicing Conference.
In today's market the biggest challenge faced by servicers is finding effective ways to maximize performance and investment returns, said Gene Ross, president of LoanCare Servicing Center Inc., one of the country's largest subservicers. (LoanCare Servicing Center is a subsidiary of LandAmerica.)
He observed that a plausible investment structure is one based on default analytics and a distressed loan management firm that buys distressed loans using capital provided by one or several investor partners and taking advantage of a lender/servicer's servicing and default expertise. (c) 2008 Mortgage Servicing News and SourceMedia, Inc. All Rights Reserved. http://www.mortgageservicingnews.com/ http://www.sourcemedia.com/