Servicing

Data show mortgage servicers are not meeting their customers’ expectations. And negative brand image perceptions may further deteriorate as disheartened borrowers cannot take advantage of historically low interest rates and see no clear housing and overall economic recovery in sight.

The historic downgrade of the U.S. government's credit rating is raising the question of whether similar actions may be in store for the country's largest banks, which also control a lion's share of the residential servicing business.

Fannie Mae, in a new quarterly filing, says it is receiving "higher amounts" from lenders on loan repurchase requests while its pipeline of buyback claims on defaulted mortgages continues to grow.

Freddie Mac posted a $2.1 billion loss in the second quarter after booking large credit and derivatives charges.

As the stock prices of the big banks cratered on Monday, particularly for Bank of America, pundits and industry observers began worrying that a second financial crisis was in the offing, including the possibility of the failure of a large financial institution.

When the stock market tanks – as it did Monday when the Dow dropped 635 points – it usually translates in the yield on the 10-year Treasury falling, which is exactly what happened. But this time around the decline resulted in the benchmark bond falling to a new all time low – 2.33%, which means mortgage bankers may be in for a boatload of refinancings.

Wells Fargo & Co., the nation's second largest servicer, has invited 13,000 customers to its two-day Chicago Home Preservation workshop scheduled for August 17-18 in the Windy City.

Mortgage servicers completed 31,600 HAMP modifications in June, including 2,000 restructurings that involved principal reductions, according to a new report from the Treasury Department.

The yield on the benchmark 10-year Treasury fell to 2.35% Monday morning, nearing its all-time low as stocks sold off in the wake of S&P's historic debt downgrade on the U.S.

CMBS delinquencies in the U.S. have reached a new record high as a result of a slew of new late-pays along with below-average loan resolutions last month, Fitch Ratings analysts said.