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78 New Jersey Lisa G Lopez Broker of Record Home Alliance Realty 142 E. Bay Ave Manahawkin, NJ 08050 609-978-9009 (o) 609-384-5109 (c) lglopez@verizon.net www.HomeAllianceRealty.com www.LisaLopezProperties.com Connecticut Planet Realty, LLC Sales@CTREOTEAM.com 203-982-4985 cell www.CTREOTEAM.com Security • Preservation • Disposition Steve Rivkin PENNSYLVANIA Judicial Foreclosure vs. Lender Behavior To understand how judicial foreclosures affect lender behavior, Brian D. Feinstein, Professor at the Wharton University of the University of Pennsylvania, authored a brief titled "State Foreclosure Law: A Neglected Element of the Housing Finance Debate." Feinstein explores the impact that judicial foreclosures have on borrowers, lenders, and policymakers. e research indicates that judicial foreclo- sures alter lender behavior in a way that is ben- eficial to borrowers, keeping regulatory goals intact. Feinstein states that lenders are cautious about loan-approval decisions and offer fewer sub-prime loans in states with judicial fore- closures. Furthermore, the borrowers are not charged with higher rates as a result of costs imposed on lenders by judicial foreclosures. Benefits to Borrowers Mandatory judicial foreclosures are beneficial to borrowers as judicial supervision compels lenders to meet all requirements to foreclosure. e extra time consumed in court proceedings helps bor- rowers stay in their homes for a longer period. e costs of mandatory judicial foreclosures to borrowers are debatable, Feinstein said. Judicial foreclosures also provide a legal forum for borrowers to contest predatory loans and it also serves as a transfer payment. Disadvantages of Judicial Foreclosures By one estimate, foreclosures cost an average of $3,112 in judicial foreclosure states but only $2,269 in other states, it indicated. It further notes that only 21 percent of borrowers were represented by counsel at any point during the foreclosure process, and only 24 percent of bor- rowers even filed an answer. e brief points out that judicial foreclosures take substantially longer to complete compared to nonjudicial ones, leading to vacant properties. Rick Sharga, EVP, Carrington Mortgage Holdings, told DS News, " Zombie proper- ties tend to proliferate in states that feature a judicial foreclosure process, wherein the foreclosure proceedings have to make their way through the court system. Regulations in these states have sometimes extended the foreclosure process beyond 1,000 days." At the peak of the crisis, these foreclosures could sometimes drag on for as long as 1,300 days in states such as New York and New Jersey. e metropolitan areas with the most zombie foreclosures include New York-Newark-Jersey City, Philadelphia, Chicago, Miami, and Tampa-St. Petersburg. Lender Behavior Feinstein also examined lender behavior in 14 pairs of neighboring states where one state mandated judicial foreclosures and the other did not. e analysis revealed that lenders are less likely to approve mortgage applicants in judicial-foreclosure states than they are applicants in non-judicial states. Approved applicants were found less likely to be offered subprime products in states that mandate judicial foreclosure. e analysis also noted that approved applicants with lower socioeconomic status are even less likely to be offered subprime products in judicial fore- closure states. Overall, judicial foreclosure requirements are associated with an approxi- mate 2.1–2.8 percent reduction in the likeli- hood of loan approval and, conditional on loan approval, a 0.2–1.0 percent reduction in the likelihood of being offered a subprime loan, it revealed. Mortgage Cadence Announces Collaboration Mortgage Cadence, an Accenture (NYSE: ACN) company, has integrated Radian's mort- gage insurance (MI) service into its Enterprise Lending Center solution, further expanding on-platform access to top-tier services. Enterprise Lending Center (ELC) facilitates lending in all forward and reverse mortgage channels and across all mortgage products, including home equity. rough the Radian integration, Mortgage Cadence clients In December 2018, New York's default rate rose 13 basis points to 0.96 percent from the previous month, according to the latest S&P/Experian Consumer Credit Default Indices report. KNOW THIS was the increase in Pennsylvania home values in 2018. Source: Zillow's Home Price and Values STAT INSIGHT 5.7%