MortgageDaily.com - Mortgage News Headlines


    More Multifamily Lenders Closing Less Loans
    Multifamily originations during 2008 was down 41 percent from the previous year, the Mortgage Bankers Association reported. At the same time, the number of multifamily lenders rose 5 percent. Still, MBA commercial executive Jamie Woodwell called mortgage lending to apartment building owners "broad and diverse."

    Mod Policy Update
    In Announcement 09-31, Fannie Mae reviewed updates to the Home Affordable Mortgage Program. Among the updates were new standard HAMP documents that must be implemented by March 1, 2010. The Office of the Comptroller of the Currency, Department of the Treasury; Board of Governors of the Federal Reserve System, Federal Deposit Insurance Corporation and Office of Thrift Supervision adopted a final rule that allows banks, savings associations and bank-holding companies to risk weight -- for purposes of the agencies capital guidelines -- mortgages modified under the HAMP using the same risk weight assigned to the loan prior to the modification.

    Legal Actions Continue Against Mod Firms
    The Nevada Division of Mortgage Lending announced on Nov. 2 that it shut down 30 loan modification firms who failed to obtain a required $75,000 surety bond. The State Bar of California announced that action has been taken against five lawyers for loan modification misconduct. A cease-and-desist order was announced by the California Department of Real Estate on Nov. 17 against United States Homeowners Relief and Greenleaf Legal Services LLC. HOPE NOW issued a statement this month indicating it supports the crackdown by the U.S. Department of Justice on "fraudulent activities of unscrupulous actors posing as legitimate professionals or companies that have taken advantage of desperate homeowners."

    2 Firms Report Strong Mod Results
    First Federal Bank of California reported its re-default rate is low, with just 28 percent becoming 30 days past due within 12 months of modification. The bank said the average for bank and thrift re-defaults is 66 percent. In a recent interview with MortgageDaily.com, Wingspan Portfolio Advisors' chief executive officer said that only around 20 percent of its modifications re-default.

    Modification Services
    AnswerMine Group said in a statement that its mortgage analytics service helps prevent foreclosures by identifying loans that are likely to default for modifications. Recordation, filing and settlement services are available from CT Lien Solutions for loan modifications, according to a news release. US Loan Modification Laws is marketing its Web site for borrowers as a source for accurate information about loan modification laws.