Servicing

The much-heralded echo-boom generation—better known as Generation Y—has inherited their parents’ dream of homeownership, according to the early readings of a survey to be published late this year by the Urban Land Institute. But they might not want to live where you think.

The nation’s foreclosure crisis has resulted in loan closings being scuttled in some regions of the nation and fears are mounting that if the situation isn’t rectified soon it will damage the one area where lenders are posting stellar profits: new originations.

Mortgage application volume fell 10.5% last week on a seasonally adjusted basis, as interest rates for fixed-rate loans increased for the first time in six weeks, according to new figures released by the Mortgage Bankers Association.

One REO asset management firm has a dramatically different take than most on the foreclosure moratorium issue.

Wells Fargo & Co. — which is experiencing near-record mortgage application volume — said the "potential is very high" for the current refinancing boom to last well into next year.

Bank of America late Tuesday said it is "not responsible" for the "poor" performance of mortgages "as a result of a bad economy," and defended its role as a servicer on billions of dollars in outstanding home loans.

Political pressure makes it difficult for anyone to make the case for servicers or come to a consensus about moratoriums as insiders worry that both the public and some within the industry are missing the point.As of now the national focus on document process reviews has obscured the fact that “a substantial percentage” of foreclosure proceedings are uncontested by borrowers who have insufficient income or no desire to stay in their home.

Along with the foreclosure gate the Dodd-Frank Act also is in everybody's mind, according to mortgage veterans Steve Horne and Greg Hebner who expect it to be a hot topic at the upcoming industry conventions. And for a very good reason.If as of now these attorneys say it is a testament to “good intention” governance, the new legislation’s success or failure will largely depend not only on how it will be implemented but also on how its specific requirements will be defined.

Freddie Mac plans to issue a two-year Reference Notes security and price it on Wednesday, Oct. 20.

U.S. commercial real estate prices fell 3.3% in August, according to Moody’s commercial price indices, to a low not seen since October 2009.