Servicing

David Tobin, principal of Mission Capital Advisors in New York, attended our recent Buying and Selling Distressed Mortgage Portfolios Conference and does not agree with those at the conference who said the gaps between bid and ask are too big in this sector.

Thirty-year conventional securitized mortgage prepayment speeds in June jumped by 16% from the previous month but they were close to 30% lower than year-ago levels, according to Credit Suisse.

A San Diego judge recently ruled that there is enough evidence for a former local police officer and his wife to stand trial on felony charges in connection with the trashing of their foreclosed French Valley home, which was financed by San Diego Metropolitan Credit Union.

Almost three years to the day of seizing IndyMac Bank, the Federal Deposit Insurance Corp. launched a civil action against its former CEO, saying he "negligently" allowed the thrift to keep making risky loans despite signs of market stress.

Unemployed borrowers with an FHA loan will not be required to make any full payments for at least 12 months – and possibly more – under a new HUD program unveiled Thursday morning.

Two separate MBS-related regulatory settlements involving hundreds of millions of dollars restitution to investors were seen late last month and the Securities and Exchange Commission indicated similar cases would remain a priority for it going forward.

Homeland Security Capital Corp., an Arlington, Va.-based publicly-traded company which buys homeland security-related businesses, has moved into the default/real estate owned sector with the purchase of Default Servicing LLC.

The securitized commercial mortgage delinquency rate tracked by Trepp has fallen for two months in a row for the first time since the credit crisis began in 2008, but it stems primarily from delinquent loans resolving with losses rather than curing.

As federal agencies work on creating a new servicing fee structure, the Mortgage Bankers Association is recommending they consider a reserve account that would be used to pay the higher costs of servicing delinquent loans.

In a few weeks the Consumer Financial Protection Bureau officially will open its doors, but it will be "months" before the agency promulgates any new servicing regulations, according to a top official there.