Servicing

The next chairman of the House Oversight and Government Operations Committee wants to redirect nearly $30 billion committed to the Home Affordable Modification Program, using the money to help borrowers that failed at getting a loan modification.

Fannie Mae is contemplating selling nonperforming mortgages out of its portfolio, offering the notes to the highest bidder, according to vendors and investors who play in the NPL space.

The prolonged economic downturn and sustained high unemployment, coupled with the collapse of the U.S. housing market, have led to challenges that are more profound and complex than anyone anticipated. For a borrower, the prospect of falling behind on mortgage payments due to loss of income would be a wrenching personal situation in normal times. But these are not normal times.

The Georgia Department of Banking and Finance late this week issued a cease and desist order against PennyMac Loan Services, Calabasas, Calif., the servicing arm of the publicly traded mortgage firm.

Counterintuitive as it might seem, there's a group of consumers lenders should consider carefully for their profit potential: first-time defaulters.

Federal regulators took another beating on Capitol Hill this week for not getting ahead of problems in the mortgage servicing industry and not taking greater steps to stem foreclosures.

Phoenix Capital is offering an $816 million package of Fannie Mae servicing rights owned by a West Coast mortgage company called Just Mortgage Inc.

Foreclosure property sales sold at much deeper discounts than ever and continue to represent a significant portion of total sales, yet persistent erosion of buyer demand elevates concerns about future sales and inventory growth.

Small businesses seeking financing are in for a bit of good luck these days. Special Small Business Administration incentives, such as the waiver of certain fees, are still available until the end of the year, so now is the time to apply for financing. There are, however, a few caveats. While SBA loans are available, it may take a bit more work to obtain one and banks are requiring more information than they have in the past.

Thomas F. O'Neill, a founding principal of Sandler O'Neill Partners, unveiled plans to retire from the New York banking firm — but join a financial services company controlled by MBS co-inventor Lew Ranieri.