Servicing

The leading trade group for title insurers on Monday declared that despite "possible flaws" in the foreclosure process, the growing scandal will actually have little adverse impact on the new owners of REO properties, or on title insurance claims.

LoanMarket.net, Irvine, Calif., has hired Jeff Haar, a former executive in charge of correspondent lending at Saxon Mortgage, a nonprime lender based in Virginia.

Based on an underwriting-related portion of Dodd-Frank alone it sounds like loans on the secondary market are probably going to continue to be underwritten within relatively narrow parameters for some time.

Freddie Mac said it will provide instructions to its servicers late Monday, directing them to "ensure that their foreclosure processes" are in compliance with state laws.

Bank of America Corp. has joined GMAC Mortgage and JPMorgan Chase & Co. in delaying some foreclosures while it investigates potential problems in the processing of court documents.

Ally Financial Inc. has completed the sales of its European mortgage assets and operations to Fortress Investment Group LLC, effectively exiting the European market.

Fannie Mae and Freddie Mac are urging their servicers to review foreclosure processing procedures to ensure they are in compliance with applicable state laws and regulations.

Recent revelations that Ally Financial and Chase Home Mortgage may have been cutting corners on their foreclosure paperwork have sent the servicing industry into a panic, with new concerns being raised about massive delays in foreclosure times and a reduction in company ratings.

Anworth Mortgage Asset Corp., which buys MBS in the secondary market, reported a third quarter common dividend of $0.23 a share, an 8% reduction from the dividend declared in 2Q.

Rep. Maxine Waters, D-Calif., has introduced legislation that prohibits covenants on residential mortgages entitling investors to receive transfer fees every time a certain property is sold.