The new MBA delinquency numbers are out and the news is both good and bad. Late payments rose slightly but foreclosures fell. But why are foreclosures falling, really? Therein lies a story, perhaps. Some mortgage bankers have been telling me that in certain states servicers aren’t even bothering to file notice-of-defaults (NODs) anymore because they fear that foreclosure attorneys will just threaten legal action and they might wind up on the radar of state attorneys general. Maybe this fear is overblown. Then again, maybe not. We know this: according to calculations done by National Mortgage News and the Quarterly Data Report some $800 billion of mortgages are still in some form of arrears. That’s a pretty big wood pile, for sure…
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