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I N D U S T R Y I N S I G H T / J E F F J O N A S
Since the beginning of the mortgage crisis, the non-
perfoming loan (NPL) market has been hard to predict.
Originally, many industry insiders thought this would be
a large market with a steady pipeline of loans. However,
the National Mortgage Settlement, continuing regulatory oversight
and accounting rules significantly changed the way banks and servicers
dealt with NPLs: encouraging them to modify NPLs, rather than
trade them.
But recent developments have created new
interest in these assets, and, with it, a need for
better technology and infrastructure to support
the valuation, trading, servicing and surveillance
of NPLs.
WHAT IS CHANGING?
Several factors are creating the demand for
NPLs. First, there is still significant inventory.
According to a recent industry report, 1.3
million mortgages remain seriously delinquent
(defined as 90 days or more past due, including
STRUCTURE
WANTED
