Loss mitigation

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.