Loss mitigation

Bank of America has paid more than $2.1 billion in consumer relief in the second quarter, making strides in paying the mortgage crisis-related penalties imposed by the Justice Department, an independent monitor announced Tuesday.

Investor expectations for preparing real estate owned properties for conveyance vary wildly and demand a tailored approach from servicers.

Fannie Mae and Freddie Mac have put billions of dollars' worth of distressed mortgage assets up for sale this year, but small buyers acquiring carve-outs of these offerings are driving activity in this niche market.

Communication between homeowners and their servicers remains the most frequently reported challenge for housing counselors, the National Foreclosure Mitigation Counseling program said.

While banks have significantly decreased their problem assets from their 2010 peak, sour credits remain much higher than in 2006. A number of banks have been reluctant to sell these assets because of low interest rates and a struggle to find better investments.

A Fair Housing Act lawsuit allowed to stand against a lender degrees removed from the alleged injury is one example of how broadly defined discrimination laws will open an abyss of litigation.

Freddie Mac has agreed to sell $1.1 billion of seriously delinquent nonperforming loans that had been serviced by Ocwen Financial.

Loan performance has improved since the housing crisis. But credit challenges persist, while higher housing costs combined with a plateau in wages have put increased strain on some borrowers' finances.

The rising costs to service mortgages reflects a market where there are not only downsides to being too small, but hurdles to being too large — raising the question of whether there's a middle ground where servicers are not too big, not too small, but just right.

If you have a modified mortgage made around the time of the U.S. housing market’s peak, Cerberus Capital Management probably wants to buy it.

Real estate owned managers can differentiate themselves and earn more business by bringing focus back to distressed property rehabilitation.

Banks have ramped up foreclosure activity in the past five months, with default notices, scheduled auctions and bank repossessions at their highest levels in two years. It's a positive sign that banks are finally clearing out all the distressed loans still lingering from the housing crisis. Meanwhile, banks remain cautious about new lending, partly because of regulatory actions.

A nascent corner of the market for Fannie Mae and Freddie Mac bonds is on a roller coaster ride despite what Morgan Stanley calls the "pristine performance" of the mortgages linked to the debt.

Ocwen Financial's internal review group is "independent," and the Atlanta servicer is in compliance with the national mortgage settlement, settlement monitor Joseph A. Smith said Tuesday.

Bank of America is offering $1.2 billion of mostly delinquent home loans, extending a series of sales by lenders seeking to pare holdings and meet demand by investment firms for soured mortgages.

Years after the crisis, fundamental problems in default servicing still exist and in order to move forward, servicers must reimagine their processes to better manage overall volume and spikes in demand.

Bank of America has received approval for additional credit during the first quarter of 2015 from the independent monitor overseeing its compliance with the requirements of its mortgage settlement agreement.

Ocwen Financial Corp. reported lower income year-over-year as servicing revenue fell steeply, despite the gains from the sale of nonperforming loans.

Home Affordable Modification Program denial rates are still high, but the Treasury Department and top mortgage servicers contend that the numbers have improved.

The Special Inspector General for the Troubled Asset Relief Program is renewing calls for further investigation of servicers it claims may be denying too many Home Affordable Modification Program applications.