Servicing

The risk retention proposal will give the "too big to fail" banks a competitive advantage over smaller banks in the mortgage securitization market, according to a new report from the Amherst Securities Group.

The modification of the Farallon portfolio, which has a $1.6 billion whole loan balance, is part of a wave of large-loan servicing activity noted in recent commercial mortgage-related securities reports.

Nearly 95% of all the refinancings funded by Freddie Mac in the first quarter were into a fixed-rate loan product, according to the company's Quarterly Product Transition Report. The study only covers loans where Freddie Mac funded the original mortgage.

With seven out of 10 delinquent borrowers nationwide not enrolled in or actively seeking any type of work-out program if they are facing foreclosure, the Short Sale Specialist Network has started a program to try to reduce this statistic.

Foreign investors’ net agency MBS purchases, not taking into account paydowns, increased in March, according to a Credit Suisse report released Monday morning.

Why do some mortgage servicers appear to be modifying a great many more loans than others? How many loans are getting principal reduced, rather than interest rate reductions? How many loans in a given neighborhood are more than 30 days late?

Fifteen industry and consumer groups are urging federal regulators to extend the June 10 comment period on the contentious risk retention proposal, which they say will have an “enormous impact on the availability and cost” of obtaining a mortgage.

The House Financial Services Committee has approved a five-year extension of the National Flood Insurance Program by unanimous vote.

Consumers pulled $6 billion of equity out of their homes through cash-out refinancings in the first quarter, the lowest reading in 15 years, according to figures compiled by Freddie Mac.

The Prestwick Group is offering investors an opportunity to purchase up to $40 million a month in GNMA-related servicing rights through a “flow” offering.