Servicing

The House Financial Services Committee late this week voted to terminate a Federal Housing Administration principal reduction program designed to refinance underwater borrowers.

Redwood Trust’s second jumbo mortgage-backed securitization closed last week and it showed, according to Redwood, that loans can be financed in this market with rates just 0.5% above the government-sponsored enterprise market, which bodes well for the long-awaited private market’s possible return.

Federal regulators issued a tough opening salvo in settlement talks with the nation's largest residential servicers, presenting them with a 27-page term sheet that would force major changes to the industry and step up loss mitigation efforts.

Flagstar Bank ended the year with $1.87 billion of outstanding warehouse commitments, a 23% jump from the same period a year ago, according to survey figures.

Summit Bank, Prescott, Ariz., would be "an attractive acquisition" for a mortgage bank or Small Business Administration lender, the institution's president said.

Redwood Trust officials have been hearing plenty of talk about other firms entering the jumbo MBS space—but aren’t holding their breath about seeing new bonds issued anytime soon.

The January Lender Processing Services Monitor report shows frequent moves in and out of loan delinquency and foreclosure traffic is one of the reasons why apparent improvements in the nation’s distressed mortgage market are relative, if not meaningless, when seen as part of the overall picture.

Among those offering services aimed at helping market participants sell or buy distressed whole loans is Cantor Fitzgerald, New York.

Mortgage companies sharply cut their payrolls in January by 10,300 full-time positions, a reaction to both declining loan applications and a weaker outlook for originations.

The government's embattled Home Affordable Modification Program lost momentum in January as the number of newly approved loan restructurings fell below 30,000 for the first time since October.