Mortgage defaults

Firstsource Group USA has agreed to buy the business process outsourcing subsidiary of ISGN Corp.

American International Group's Donna DeMaio, who has management duties for several different segments of insurance, was designated to stick with the mortgage-guaranty subsidiary that the company plans to exit, CEO Peter Hancock said.

A New Jersey man has been sentenced to six years in prison for running a scam that victimized distressed homeowners and private investors.

American International Group's plan to spin off a portion of its mortgage insurance unit is "almost pointless" given the challenges that CEO Peter Hancock faces to fix the much larger property-casualty business, an analyst at Keefe, Bruyette & Woods said.

American International Group Inc., the insurer being pressured by activist investor Carl Icahn to shrink the company, plans to pursue a partial spinoff of its mortgage guaranty unit.

Mortgage loan delinquencies dropped in December, according to Black Knight Financial Services' First Look report.

Default rates on various types of consumer loans were down 14 basis points in December on a year-over-year basis but were unchanged from November, according to Standard & Poor's and Experian.

Bank of America's mortgage banking income was down 26% from a year ago due to a decrease in core loan production revenue and higher intercompany charges during the fourth quarter.

Credit Plus in Salisbury, Md., has introduced loan repurchase insurance for mortgage lenders and servicers that use its verification products.

Home Equity Conversion Mortgage servicers have received an additional three months to explore loss mitigation options when borrowers or their spouses have difficulty paying their property taxes and insurance.