Servicing

Bank of America Corp. and GMAC Mortgage may be restarting some foreclosures, but this does not mean their legal problems with bad documents are over.

Mortgage bankers relied on MERS to be responsible for all of the documentation used in the home buying process, and as a result few in the industry looked at the paper work after the fact, said Becky Walzak, president and CEO at RJB Walzak Consulting Inc.

The myriad of local rules and practices associated with sheriff’s sales and real estate tax sales often lead to errors in the sales, according to one Allentown, Pa., attorney who wants to help Realtors and other real estate professionals get a better handle on the complexities of these transactions.

A handful of state attorneys general are taking a hard line with mortgage servicers by demanding loan modifications and principal reductions for those borrowers whose rights may have been violated by robo-signing.

An investment banking firm is warning federal regulators that a congressional mandate to stop relying on the credit ratings of Standard & Poor's and other agencies could be disruptive to the MBS market and increase capital requirements for depository institutions.

Even if the GOP gains a chamber in the upcoming federal elections, chances are the Dodd-Frank legislation will not be changed in any substantive way, according to the top lobbyist for the Mortgage Bankers Association.

It's unlikely the government will release its grip on the housing market any time soon, the head of Freddie Mac told residential finance executives and vendors.

Mortgage vendor Default Resource has launched a new asset surveillance report that allows servicers to inspect and oversee the work performed by REO and short sale listing agents.

Mortgage servicers signed off on 27,840 new permanent HAMP modifications in September, down nearly 17% from the previous month, and a sign that the White House's signature foreclosure prevention program is losing steam.

Some large banks sold fewer mortgages to Fannie Mae and Freddie Mac during the third quarter, using them to manage interest rate risk and to slow the contraction of loans.