Servicing

Dear members of the United States House of Representatives,You are currently considering legislation that would raise the lending limits in designated "high cost areas" of the U.S. for loans guaranteed by Fannie Mae, Freddie Mac and FHA back to levels originally established on a temporary basis in 2008. For the reasons discussed below, I encourage you to go beyond this minimal restoration of higher lending limits, and temporarily raise the lending limits not just in "high cost areas," but nationwide.

Despite falling house prices and rising claims, the Federal Housing Administration's mortgage insurance fund clung to a slim capital ratio of 0.24% on its book-of-business for the year ending Sept. 30, compared to 0.5% a year ago, according to independent actuarial reports released Tuesday morning.

TransUnion data show a trend of progressive, six-quarter improvement in the performance of borrowers 60 days or more past due reversed in the third quarter, increasing the national mortgage delinquency rate from 5.82% in the previous quarter to 5.88%.

The acting director of the Federal Housing Finance Agency told a Senate panel this morning that the agency is moving ahead with "private" risk sharing opportunities between Fannie Mae/Freddie Mac and firms outside of the government's control.

Mortgage servicers seem to be caught between a rock and hard place when it comes to foreclosures: their legal practices are being scrutinized by state attorneys general for sloppy paperwork while the GSEs pile on fees for delays in loss mitigation work.

Military personnel whose homes were improperly foreclosed upon will each receive at least $116,875 from BAC Home Loans Servicing, a subsidiary of Bank of America, for the bank's alleged violation of the Servicemember Civil Relief Act.

AG Mortgage Investment Trust Inc., New York, generated $13.2 million in GAAP net income, or $1.41 per share, during the third quarter -- its first reporting period after its initial public offering and private placement in July.

Home prices, on average, ended August at $205,000, an almost 4% drop from last year, according to new figures compiled by Lender Processing Services, Jacksonville, Fla.

Lawyers have opened a new front in mortgage securities litigation by suing BNY Mellon and U.S. Bank over an alleged failure to properly handle the storage and recordkeeping of mortgage documents. But observers and participants in more established mortgage repurchase litigation question whether suing over trust and document custody errors is a promising fight.

Federal Reserve Board Vice Chairman Janet Yellen said Friday the central bank will soon issue a long-awaited package of proposed rules implementing the Dodd-Frank Act.