Servicing

Starting January 1, FDIC-insured institutions will have to retain 5% of the credit risk on newly issued securitizations until the federal banking agencies approve new risk retention standards next year as mandated by the Dodd-Frank Act.

It was no small irony that moments after voting to bar corporate credit unions from investing in risky collateralized debt obligations, the NCUA Board gave its approval to a plan to shed as much as $50 billion in toxic mortgage-backed securities held by the corporate system by repackaging them for sale to the public as CDOs.

Re-default rates on HAMP modified loans are half the rate of other permanent modifications, according to second quarter servicing figures complied by the Office the Comptroller of the Currency and Office of Thrift Supervision.

The LPS Auction Solutions division of Lender Processing Services will conduct an online auction of 26 bank-foreclosed homes located nationwide with a bid deadline of Oct. 18.

California Attorney General Jerry Brown late Friday ordered the government-owned Ally Financial Inc. to stop foreclosing on homes in the state if it cannot prove immediately that it is complying with state law.

Moody's Investors Service on Friday placed GMAC's primary and special servicer quality ratings on review for possible downgrade, citing what it calls "irregularities" in the company's foreclosure process.

Charlotte, N.C.-based Mountain Real Estate Capital has closed its second REO/nonperforming loan acquisition from Bank of America in the last three months.

Freddie Mac reported a 17% jump in refinancing volume from July to August and another monthly decline in single-family delinquencies.

Foreclosure starts continue to accelerate with the GSEs displaying more aggressive timelines on early stage delinquencies.

The National Credit Union Administration is seeking bids on about $800 million of commercial mortgage-backed bonds collected from U.S. Central FCU and WesCorp FCU, the opening efforts on its bid to securitize as much as $50 billion in troubled mortgage securities held by failed corporate credit unions.