Servicing

Federal Reserve Board chairman Ben Bernanke said he is dismayed by the persistence of high foreclosure rates, declining home values, and the futility of government efforts to engineer a recovery in the housing market.

Massachusetts' highest court on Friday voided foreclosures on two homes because the servicers that tried to take title to the properties failed to show they held the mortgages at the time of foreclosure.

The California Association of Realtors, whose members are frustrated by a dearth of short sales, has created a task force to examine the shortcomings of the government's Home Affordable Foreclosure Alternatives program.

PHH Corp., Mt. Laurel, N.J., could write up the value of its mortgage servicing rights by between $125 million and $175 million for the fourth quarter 2010, an earnings preview report from FBR Capital Markets predicts.

Citigroup Inc. is soliciting potential buyers for its subprime lending unit CitiFinancial, the Financial Times reported Friday, citing sources it did not identify.

Conventional mortgage-backed securities prepayment speeds in December slowed, marking what Barclays Capital called “the end of the 2010 refinancing ‘wavelet.’”

Bidders are starting to show an interest in the $59 billion servicing portfolio being shopped around by HSBC Bank, according to advisors familiar with the deal.

CUNA Mutual Group has hired Wisconsin Insurance Commissioner Sean Dilweg -- the man responsible for restructuring troubled bond insurer Ambac Securities – to head its mortgage insurance business.

Gerding Edlen Development of Portland, Ore., has handed over the keys to its $500 million Seattle condo project, Bellevue Towers, to lenders headed by Morgan Stanley Mortgage Capital.

While Bank of America's settlement with Freddie Mac and Fannie Mae provides greater clarity for its ultimate exposure regarding representations and warranty losses, there is still uncertainty for the bank holding company regarding losses in the areas the deal does not cover, a report from Fitch Ratings said.