Servicing

Newly initiated foreclosures by the Federal Housing Administration jumped 247% in April from a year earlier, while the overall number of foreclosure starts fell 3.1% in the same period.

Deloitte says that assets controlled by the shadow banking system—including asset- and mortgage-backed securities—have declined by more than 50% in the last four years, to $9.53 trillion at Dec. 31.

Foreclosure-related sales made up 26% of all home sales through the first three months of 2012, up from 22% in the last quarter of 2011 and 25% seen a year ago.

The 30-year dropped three basis points to 3.75% with an average of 0.8 of a point while the 15-year slid seven basis points to 2.97% with an average of 0.7 of a point.

The 10-year Treasury yield continued to set new record lows Thursday morning due to a mix of negative economic indicators both overseas and in the domestic market.

The national mortgage fraud risk index decreased 4.3% in 1Q 2012 from the previous quarter and 3.1% from a year ago.

Servicing is rapidly deconsolidating as the top five no longer control more than half the market, while originations, which were consolidating after the crunch as tens of thousands left the mortgage broker business, have at least ceased consolidating.

The housing crisis is one of the longest lasting effects of the economic recession, with home foreclosures continuing to stain our economy. As more homes enter and remain in foreclosure, the servicer (whether on its own or on behalf of the investor) is responsible for maintaining these properties per local and state regulations. And mobile apps have added a new tool servicers can use in the field.

Three separate businesses each had a series of nonperforming loans that are classified as specially serviced assets recently downgraded by Fitch Ratings because future losses are expected on these loans.

Wilshire State Bank has been released from an enforcement order that required it to boost its capital ratios and reduce its level of problem loans.