Servicing

As cities and towns across the country struggle to pay bills and prevent troubled properties from giving rise to blighted neighborhoods, they're turning by the hundreds to a new tactic.

Farmer Mac earned $13.3 million for the fourth quarter and $13.8 million for the full year 2011, as the company saw increased net interest income and it was able to release funds from its allowances for loan losses.

It's known as the 'Oops' loan market - where Fannie Mae/Freddie Mac lenders get jammed on a buyback request not because the loan is delinquent, but because one of the GSEs finds an underwriting flaw and demands a repurchase or damages. The seller/servicer then takes that loan and resells it to another buyer.

The $25 billion national mortgage settlement essentially allows the five largest servicers to police themselves - which has made many consumer advocates surprisingly happy.

With the overseers of Fannie Mae and Freddie Mac digging in their heels against the use of principal write-downs for troubled homeowners, Senate Democrats pressed their case for a course change on Thursday.

Auctioneer Steve Rawlings said this property would be a “lovely” family home or an “excellent” investment opportunity. Rawlings said the home is going to be sold for at least $50,000.

The loan portfolio is secured by 11 properties based in Manhattan and 14 located in Brooklyn. It is comprised of 245 residential units and 12 commercial spaces.

It's undeniable that small business is the growth engine of the economy that also helps stimulate the housing market recovery. Many of the third-party service providers, such as special servicers and foreclosure counseling agencies are small size business companies.

Management at Ally Financial Corp. is considering throwing part of its mortgage division into bankruptcy and then executing a sale of most of its "good" assets, investment banking sources said late Thursday.

The Lawyers' Committee and counsel Davis Polk & Wardwell filed a lawsuit this week in New York Supreme Court in Nassau County on behalf of 18 homeowners claiming that a network of for-profit loan modification companies conducted a scam on them.