Servicing

Banco Popular de Puerto Rico, the principal banking subsidiary of Popular Inc., signed a letter of intent to sell approximately $500 million of construction and commercial real estate loans.

Jacksonville Bancorp Inc., the bank holding company for The Jacksonville Bank, is anticipating an operating loss of $12 million to $14 million for 2010.

Even though at yearend moratoria and process reviews kept the volume of loans moving into foreclosure at bay, the December Lender Processing Services, Inc. Mortgage Monitor report shows that at a non-current loan rate of 12.98% the total number of delinquent loans and inventory remains at historical levels.

Commercial mortgage-backed securities could make a relative comeback this year. But issuance will likely still be a far cry from what it was at the height of this market.

Despite recovery concerns at least one insider sees the glass as half full in the mortgage market.Real estate risk exposure factors affecting mortgage lenders, servicers and investors right now remain the same.

Regulatory changes such as the pending definition of what consists of a qualified residential mortgage have increased perceived and real mortgage investment risk.Meanwhile, the Dodd-Frank Act requirement—which could be described as a call to arms so the mortgage industry gets back to what used to be good old fashioned underwriting standards—is to some extent open for discussion.

One consequence of the prolonged financial crisis is the amelioration of its business structures and processing through new legislation and lessons learned on the ground. And investors are at the forefront of efforts trying to ensure that potential outcome becomes a reality.

Interactive Mortgage Advisors, Denver, is selling a $334 million package of mortgage servicing rights tied to Government National Mortgage Association loans. The identity of the seller was not disclosed.

Thanks to rising interest rates the value of mortgage servicing rights has increased roughly 15% since the end of the third quarter, according to Interactive Mortgage Advisors, Denver.

A Fitch Ratings’ update of U.S. RMBS Servicers’ Loss Mitigation and Modification Efforts report finds loan modifications are “on a steady decline” as only 36,500 modifications were completed in December 2010, raising concerns about how many distressed U.S. mortgage borrowers will get a final response and by when.