Servicing

President Obama's decision to create a new task force to investigate risky lending and securitization practices leading up to the financial crisis could complicate and delay a potential $25 billion settlement involving foreclosure and servicing abuses.

To help "stabilize housing markets" over the next five years Wells Fargo will invest $10.5 billion in Los Angeles and $1.3 billion in Atlanta through an initiative that aims to expedite bank-owned property sales and foreclosure prevention options.

Mountain Real Estate Capital ended fiscal year 2011 by closing on two bank note acquisitions of approximately 150 performing and nonperforming loans that totaled over $100 million.

Radian Group Inc., Philadelphia, has entered into a series of transactions with Assured Guaranty Ltd., Hamilton, Bermuda, which will eventually add $100 million to its mortgage insurance subsidiary's statutory capital.

Flagstar Bancorp Inc., Troy, Mich., lost $45 million for the fourth quarter, which represents a vast improvement over the $192 million loss for the same period in 2010, attributing the results in part to "near-record revenues from our mortgage banking business."

Many fondly recall their kindergarten years. The teachers had a supernatural power to transform children into students while also starting the learning process of basic life skills. Interestingly, many of these kindergarten lessons are just as important for financial services executives today, even more so for mortgage bankers going through tough times.

With online listing, vacancies, a flush of foreclosed properties and a sour economy, REO assets have become a hotbed for criminal activity. Everything from prostitution to copper stripping has been reported in areas with high foreclosure rates. Once a property becomes vacant, it can easily fall prey to criminal infiltration and become a real liability for an entire community.

Dealing with residential servicing issues is nothing new for Richard Cordray, the first director of the Consumer Financial Protection Bureau. The former Ohio attorney general says he has been "wrestling with servicing problems" for many years.

President Obama announced Tuesday night a plan to collect fees from large banks to help fund greater loan refinancings for underwater mortgagors.

The Federal Reserve’s 26-page white paper has generated a lot of commentary, both pro and con, since being released on Jan. 4. While others spend time and energy debating whether or not it’s the role of the Fed to comment on or recommend policy, I find the content itself far more interesting.