Servicing

Regulators have identified how borrowers may have been harmed by a multitude of foreclosure errors, but they are largely leaving it to the servicers and their consultants to figure out how to fix it.

Ocwen Financial Corp. this morning said it would raise $375 million of new equity and use some of the proceeds to buy $15 billion of mortgage servicing rights from JPMorgan Chase & Co.

The bonuses paid to Fannie Mae and Freddie Mac executives are structured to retain managers who have the skills to run the giant mortgage companies, according to a letter Federal Housing Finance Agency acting director Edward DeMarco sent to several senators on Thursday.

Radian Guaranty's efforts to build market share seem to be paying off in a big way. The company had nearly $2.1 billion of primary mortgage insurance written during October, up from $1.2 billion written for the same month one year prior.

The residential mortgage-backed securities and related collateralized debt obligation sectors lead the pack in both realized and expected future credit losses from U.S. structured finance issuances, according to Fitch Ratings. But it added commercial MBS are expected to experience losses at a lower level than many may have anticipated.

A bipartisan group of senators, including Bob Corker (R-Tenn.), Mike Crapo (R-Idaho), Kay Hagan (D-N.C.), and Charles Schumer (D-N.Y.), Wednesday sponsored new legislation that would set up a covered bond framework in the U.S.

Home prices, which have fallen nearly 6% over the past four quarters (ending June 30), could fall another 3.6% by the second quarter of next year, according to analysts at Fiserv, which owns and generates the Case/Shiller house price indexes.

Foreclosure filings increased 7% in October from the prior month with servicers and banks recording default notices, scheduled auctions, and lender repossessions on 230,678 U.S. properties, according to new figures compiled by RealtyTrac.

Sen. Bob Corker, R-Tenn., Wednesday introduced legislation that would reduce Fannie Mae and Freddie Mac's share of the mortgage market by "at least 10%" per year.

The House Financial Services Committee is slated to vote next Tuesday (Nov. 15) on a bill that would suspend the compensation packages of top Fannie Mae and Freddie Mac executives.