Servicing

More than half the nation's estimated 310,000 community associations are struggling with financial issues associated with the foreclosure crisis, according to the Community Associations Institute. About 62 million people reside in properties that have an owner association of one type or another.

Fannie Mae, which has temporarily suspended certain REO sales because of the foreclosure-gate scandal, plans to hold its servicers responsible for increased carrying costs on these properties, industry sources told National Mortgage News.

The 12 Federal Home Loan Banks reported combined earnings of $732 million in the third quarter, an impressive 343% jump from the same period a year ago.

Moody’s Investors Service has separately placed some servicer ratings of Wells Fargo Bank N.A. and IndyMac Mortgage Servicers on review for possible downgrade, citing actions related to foreclosure affidavits.

Private mortgage insurers had their best month of the year in September in terms of new business. Meanwhile new defaults outpaced cures for the fourth month in a row, but the ratio is much higher than the levels of 12 months ago, according to the Mortgage Insurance Cos. of America.

The Government National Mortgage Association has finalized plans to increase the minimum net worth requirement on its MBS issuers to $2.5 million, from $1 million.

Mega-servicers like Bank of America and Ally Financial are kidding themselves if they think they can declare the foreclosure mess behind them after short self-investigations and blithely resume operations as before.

The National Credit Union Administration will continue the liquidation of U.S. Central Federal Credit Union and WesCorp Federal Credit Union next week with the sale of $2.82 billion worth of ten-year guaranteed notes comprised of cash-flows from commercial mortgage-backed securities held by the two now-defunct corporate CUs.

Consumers have stopped using their homes as personal piggy banks with cash-out refinancings falling to their lowest level ever in the third quarter, according to figures compiled by Freddie Mac.

The PMI Group Inc., Walnut Creek, Calif., took the worst hit of the four mortgage and title insurance companies that reported third quarter earnings today, with a loss of $281 million.