Servicing

Roughly one in four houses sold nationally in the third quarter were distressed properties. But according to research firm Housing Intelligence, more than half the properties that changed hands in eight metro areas were foreclosures.

That the recession has been over officially for more than a year is of little solace to downtrodden mortgage brokers. But a Fannie Mae economist said that if loan jockeys are patient, things will get better.

The next chairman of the House Oversight and Government Operations Committee wants to redirect nearly $30 billion committed to the Home Affordable Modification Program, using the money to help borrowers that failed at getting a loan modification.

Fannie Mae is contemplating selling nonperforming mortgages out of its portfolio, offering the notes to the highest bidder, according to vendors and investors who play in the NPL space.

The prolonged economic downturn and sustained high unemployment, coupled with the collapse of the U.S. housing market, have led to challenges that are more profound and complex than anyone anticipated. For a borrower, the prospect of falling behind on mortgage payments due to loss of income would be a wrenching personal situation in normal times. But these are not normal times.

The Georgia Department of Banking and Finance late this week issued a cease and desist order against PennyMac Loan Services, Calabasas, Calif., the servicing arm of the publicly traded mortgage firm.

Counterintuitive as it might seem, there's a group of consumers lenders should consider carefully for their profit potential: first-time defaulters.

Federal regulators took another beating on Capitol Hill this week for not getting ahead of problems in the mortgage servicing industry and not taking greater steps to stem foreclosures.

Phoenix Capital is offering an $816 million package of Fannie Mae servicing rights owned by a West Coast mortgage company called Just Mortgage Inc.

Foreclosure property sales sold at much deeper discounts than ever and continue to represent a significant portion of total sales, yet persistent erosion of buyer demand elevates concerns about future sales and inventory growth.