Servicing

Three housing finance organizations asked for an interactive process similar to that used previously for originations and said they preferred less reliance on life-of-loan indemnification as a remedy.

While the significant drop in suspended payments overall from the pandemic’s peak suggests many have recovered from related hardships, the uptick points to some new distress.

The borrower sent bogus documents to a settlement company claiming a $111K lien was satisfied to complete a sale.

The rule addresses concerns related to what has previously been a lack of coverage for funds used to cover delinquent borrowers’ principal and interest payments, and clarifies guidance for specific situations.

Due to the rollback in stimulus and uncertainties related to other mortgage policy measures and rates, servicers are moving into uncharted waters, according to a Fannie Mae economist.

Eleven other defendants participated in the elaborate scam, which led to approval of unqualified buyers and numerous defaults of FHA-backed mortgages.

The change aims to streamline the processing of certain pandemic-related loan options that accommodate lower monthly payment amounts for borrowers with long-term economic hardships.

The number of loans with payments 90-plus days late but not in foreclosure has fallen below 1 million, but the total is still double pre-pandemic levels, according to Black Knight’s measure.

The residential market is generally healthy, but distress is growing in areas where foreclosures are more common, homes are less affordable, and more properties are underwater, Attom finds.

The remaining 705,000 borrowers with pandemic-related payment suspensions may have complex or recent hardships to sort out, but the majority who had plans have exited them.