Mortgage News
Mortgage news is updated daily.
Best HELOC Servicers
J.D. Power and Associates announced its 2007 Home Equity Line of Credit/Loan Servicer Study. The ranking was based on product features and functionality, billing and payment, funds access and contact. SunTrust had the highest score -- 770 -- out of a possible high score of 1,000.
The Foreclosure Plan
The U.S. treasury secretary announced a new alliance of mortgage market participants has been formed to put together an aggressive plan to reach more borrowers facing foreclosure and help them find solutions. The HOPE NOW partnership currently consists of mortgage servicers, mortgage counselors, investors, and large trade organizations. Countrywide Financial Corp. announced it is among the participating organizations. Meanwhile, two congressmen from Wisconsin proposed a bill that aims to prohibit foreclosure scams and equity stripping, according to an announcement.
Fraud a Factor in Faulty RMBS Performance
Lousy underwriting guidelines and home price declines are often cited as the culprit for the poor performance of recent vintage subprime loans backing residential mortgage-backed securities. But a new report from Standard & Poor's said mortgage fraud at origination has also emerged as a significant factor. The findings were based on a survey of the 25 biggest RMBS servicers.
States Legislate Lenders
California lawmakers, Gov. Arnold Schwarzenegger and state regulators have taken action to try and stem the torrent of foreclosures that have rocked the state's housing market. Texas' Gov. Rick Perry has also signed new legislation into law regarding that state's mortgage market. Maine is drafting new rules that address property flipping and a borrower's ability to pay. In Nevada, legislation went into effect on Oct. 1 that adds new definitions and penalties for mortgage fraud, according to a statement issued by the legislature.
Mortgage Profits Tumble
Average pre-tax profit was $6.4 million per mortgage firm for all of last year, according to a study announced by the Mortgage Bankers Association. Profits sank from 2005. While servicing profits partially offset production losses, they were hurt by mortgage servicing hedge losses. Each mortgage closed last year cost $3,416 to originate, according to the report.
