Tuesday, January 25, 2011

Another Decline in California Foreclosure Activity - TheStreet

Another Decline in California Foreclosure Activity - TheStreet: "'The institutions that hold these loans in their portfolios will do whatever it takes to lessen their losses, including waiting. An additional factor is all the turbulence when it comes to the formalities of the foreclosure process,' he said.

While most of the loans that went into default last quarter were originated during the 2005-2007 period, the median origination quarter for defaulted loans remained third-quarter 2006. That has been the case for over a year, indicating that weak underwriting standards peaked then.

Most of the loans made in 2006 are owned and/or serviced by institutions other than those that made the loans.

The most active 'beneficiaries' in the formal foreclosure process last quarter were Bank of America(BAC_)(16,199), Wells Fargo(WFC_)(10,287), Mortgage Electronic Registration Systems, also called MERS (5,315) and JP Morgan Chase(JPM_)(5,258).

The 'servicers' (or the Trustees in the formal foreclosure process) that pursued the highest number of defaults last quarter were ReconTrust Co (mostly for Bank of America and MERS), Quality Loan Service Corp (Bank of America and JP Morgan Chase), Cal-Western Reconveyance (Wells Fargo) and NDEx West (Wells Fargo)."

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