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» New Jersey raNk: 2 90+ Day Delinquency Rate Foreclosure Rate october 2013 3.6% Unemployment Rate 7.2% 8.4% year ago 4.0% 8.1% 9.6% year-over-year chaNge -8.4% -11.0% -12.5% Top County 90+ Day Delinquency Rate Salem couNty Foreclosure Rate october 2013 5.6% 11.8% year ago 6.8% 11.4% year-over-year chaNge -18.0% 3.4% Top Core-Based Statistical Area viNelaNd-millville-bridgetoN, NJ 90+ Day Foreclosure Delinquency Rate Rate october 2013 7.2% 10.4% year ago 8.0% 10.2% year-over-year chaNge -9.2% 1.9% note: The 90+ day delinquecy rate is the percentage of outstanding mortgage loans that are seriously delinquent. The foreclosure rate is the percentage of outstanding mortgage loans currently in foreclosure. State rank is based on the October 2013 foreclosure rate. All figures are rounded to the nearest decimal. The unemployment rate reflects preliminary October 2013 figures released by the Bureau of Labor Statistics. All other data courtesy of LPS Data & Analytics. 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 IN THE NEWS New Jersey Settles with PHH John J. Hoffman, New Jersey's acting attorney general, and Christopher S. Porrino, director of the state's division of law announced last month that New Jersey entered into a $6.25 million settlement with PHH Mortgage Corporation. The arrangement will resolve allegations the company misled financially struggling homeowners who sought loan modifications or other help to avoid mortgage delinquency or foreclosure. PHH is the nation's ninth-largest residential mortgage servicer, and the fourth-largest non-bank residential mortgage servicer. The company admits no wrongdoing under the terms of the New Jersey settlement. The settlement includes $3.61 million in restitution for approximately 2,000 borrowers nationwide whose loans are serviced by PHH. Forty-four borrowers whose homes were sold in sheriff's sales while loan modifications were pending will receive $10,000 each. The remaining $2.64 million will be paid to the state. PHH will also adopt nationwide servicing standards set forth in the Consent Judgment. Borrower complaints led the attorney general to begin its investigation into PHH in 2011. PHH cooperated with the state's inquiry. "This settlement provides relief to a large number of individual consumers who were subjected to unacceptable mortgage servicing practices. It also ensures appropriate reforms in PHH's mortgage-servicing operations," Hoffman said. "This settlement will provide relief not only to borrowers in New Jersey, but across the country," Porrino added. In its investigation, the attorney general raised a number of concerns about potential violations of the New Jersey Consumer Fraud Act including: inaccurate statements about the time it would take to process loan modification requests, inaccurate statements to consumers about foreclosure proceedings, and assessments of improper fees. As part of the settlement, PHH for two years will provide detailed information to the investigating committee on a quarterly basis about its activities related to mortgage modifications, foreclosure actions, and the resolution of borrower calls to PHH's loss mitigation department. GSE Purchases Insurance to Encourage Private Market Participation In an effort to mitigate potential losses incurred by a questionable pool of singlefamily loans, Freddie Mac announced it has obtained an insurance policy underwritten by Arch Reinsurance Ltd. The Bermuda-based insurance firm's U.S. operations are headquartered in Jersey City. Freddie Mac's policy will cover up to $77.4 million of credit losses for a portion of the credit risk associated with a pool of single- VISIT US ONLINE @ DSNEWS.COM family loans funded in the third quarter of 2012 and is in line with the GSE's goal of sharing credit risk with the private market. This new insurance coverage is intended to attract new sources of private capital from non-mortgage guaranty insurers and reinsurers interested in assuming a portion of the credit risk on specified portions of Freddie Mac's high-quality single-family mortgage loan portfolio. "This is part of our business strategy to expand risk-sharing with private firms, thus reducing taxpayers' exposure to losses from mortgage foreclosures," said David Lowman, EVP of single-family business for Freddie Mac. "We have brought to the market new sources of capital for transferring mortgage credit risk away from taxpayers. We've tapped into the global insurance community's appetite for U.S. mortgage credit exposure, and would like to do more of these policies in the future," Lowman continued. Edward DeMarco, acting director of the Federal Housing Finance Agency (FHFA), added, "The completion of this deal is unique in that it is with a diversified non-mortgage insurer and it demonstrates yet another approach to risk sharing with investors." Elizabeth Garcia COLDWELL BANKER GARDEN STATE HOMES Prestige Properties. Elite Agents. Elizabeth Garcia cbgardenstate@gmail.com 201-794-7050 office 201-794-7021 fax COUNTIES SERVED: Northern NJ, Bergen, Passaic, Essex, Union, Morris, Sussex Counties SERVICES: Asset Disposition, Property Management, BPO, CFK, Occupancy Check TM Mortgage Services 117

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