Servicing

The massive growth of nonbank mortgage servicers poses risks to Fannie Mae and Freddie Mac, according to a report from the Federal Housing Finance Agency's inspector general.

Fay Servicing, a special servicer based in Chicago, has created a division to manage foreclosed properties.

U.S. Bancorp previously disclosed potential claims tied to the probe and “cooperated fully with the DOJ,” the company said.

As home prices rise and municipalities scrounge for revenue, rising property taxes make it harder for loan applicants to meet regulatory debt-to-income ratio limits and increase default risk on existing mortgages.

Private mortgage insurers will be required to have master policies that meet new guidelines in place by Oct. 1, according to announcements this week from Fannie Mae and Freddie Mac.

New York State has launched Mortgage Assistance Program, a loan modification alternative for borrowers at the brink of foreclosure.

Treasury Secretary Lew said he would direct senior staff to bring together MBS investors and issuers to develop guidelines to reassure both sides they won’t be saddled with unfair losses.

The number of home retention actions taken by the largest banks in the first quarter was more than three times the amount of completed foreclosures, short sales and deed-in-lieu-of-foreclosure, according to a regulatory report released Thursday.

Workers in the legacy asset servicing division were informed of the latest cuts Wednesday.

The Senate Banking Committee approved Julian Castro, the mayor of San Antonio, on Wednesday to head the Department of Housing and Urban Development.