Servicing

The Federal Housing Administration needs to provide guidance to servicers to address an increasing number of seniors who are defaulting on their federally insured reverse mortgages, according to the Department of Housing and Urban Development's Office of Inspector General.

The Federal Housing Administration is working on a new reverse mortgage product for seniors who need to tap the equity in their homes to cover daily living and health care costs.

Fannie Mae issued $42.7 billion in mortgage-backed securities in July, up 6.4% from June, and the highest level of MBS issuance since February for the government sponsored enterprise.

The number of "underwater" loans fell slightly to 11 million units in the second quarter, representing 23% of all outstanding mortgages in the U.S., according to new figures compiled by CoreLogic, Santa Ana, Calif.

Despite the surge in refinancing activity, Freddie Mac said its purchases of refinanced loans declined slightly in July.

Although origination profit margins continue to be strong, the nation's largest servicers posted weak gains on their housing balances in the second quarter.

Walter Investment Management Corp., Tampa, has agreed to buy Marix Servicing of Arizona for what the companies call a "nominal" sum, according to a new public filing.

Mortgage rates fell to the lowest level in decades for the ninth time in 10 weeks with the average rate for a 30-year fixed-rate loan bottoming out at 4.36% for the period ending August 26, according to Freddie Mac.

Mortgage servicers often are "not delivering" key best practices such as providing transparency around fees during the loan modification process compared to when they originate loans, according to a new study from J.D. Power and Associates.

Residential delinquencies and foreclosures on all mortgages fell in the second quarter on a sequential basis for the period ending June 30, but the elevated level of late payments has the industry grappling with $963 billion worth of troubled loans.