Servicing

Existing home sales fell 6.4% in September from the previous month, but October could turn out to be a good month, according to RE/MAX, the national realty company.

Bank of America said its mortgage banking income jumped 95% in the third quarter to $1.75 billion, as production margins widened and expenses on representations and warranties declined.

Bank of America said it has reviewed its foreclosure procedures in 23 judicial states, resubmitted affidavits that were in dispute, and anticipates cranking up REO sales in a few weeks.

Traders are anxiously awaiting the first offering, expected soon, of NCUA Guaranteed Notes, the bonds derived from cash flows on toxic assets — including mortgages — held by corporate credit unions that carry a full federal guarantee.

The California Association of Realtors plans to renew its fight next year for a mortgage bill that was recently vetoed by Gov. Arnold Schwarzenegger, CA-NAR officials said.

The Rural Housing Service has updated its automated underwriting system to process purchase money loans and will do the same for refinancings.

MetLife Inc. late last week joined other mortgage servicers in postponing foreclosure sales in certain states.

The residential lending arm of Citicorp funded $18.6 billion of one- to four-family mortgages in the third quarter, an impressive 66% gain from the prior period, according to figures released Monday morning.

The use of short sales will get a boost now that many servicers cannot move ahead with foreclosure sales, according to Travis Olsen, a short sale vendor.

The American Bankers Association is warning congressional leaders that a nationwide moratorium on foreclosures would "further depress home prices and disrupt an already fragile economy."