Loss Mitigation

The First American Corporation has developed a new reverse mortgage score to help servicers identify senior homeowner candidates for a government-insured Home Equity Conversion Mortgage (HECM), who might otherwise face foreclosure.

Webster Bank N.A., a subsidiary of Webster Financial Corporation, announced today that it is halting foreclosures for 90 days, becoming the latest bank to expand its mortgage assistance program to keep more families in their homes.

Governor Martin O’Malley of Maryland and Ocwen Financial Corporation, a servicer of subprime mortgages, have signed a compact that is designed to reduce foreclosures and keep Maryland homeowners in their homes.

Following suit behind other national lenders such as Bank of America and JPMorgan Chase, Citigroup said on Monday that it is stopping foreclosures on borrowers who occupy their property as a principal residence and have enough income to keep up lower, renegotiated mortgage payments.

Government officials and mortgage industry leaders announced a major initiative Tuesday that is designed to stem the growing number of foreclosures on a national scale by streamlining loan modifications to put struggling homeowners into sustainable mortgages.

Cranbury, New Jersey-based Visionet announced today that it is offering an updated version of its VisiRetention solution to facilitate refinancing through the Department of Housing and Urban Development’s (HUDxs) Hope for Homeowners (H4H) program.

One third of all subprime loans modified in the third quarter of 2007 were delinquent again within 10 months, according to a Credit Suisse report. A study by Moody’s ratings agency showed similar results.

Chase, the U.S. consumer and commercial banking arm of JPMorgan Chase & Co., announced on Friday that it is xexpanding its already significant mortgage modification program by undertaking multiple initiatives designed to keep more families in their homes, including extending its modification programs to WaMu and EMC customers,x the bank said in a press statement.

Fannie Mae announced this week that it will reinstate a requirement for homeownership counseling and education for first-time home buyers obtaining one of its MyCommunityMortgage loans, which give lenders a conforming alternative for low- and moderate-income borrowers, or a loan that relies on nontraditional credit to qualify.

The U.S. Department of Housing and Urban Development (HUD) recently announced that 400,000 homeowners have refinanced their mortgages with HUD’s affordable mortgage insurance program. Since expanding its refinance program in September 2007, HUD’s Federal Housing Administration (FHA) has helped more distressed homeowners keep their homes by utilizing FHA’s safe and affordable mortgage financing.