Featured Story

REO asset managers are taking the initiative to invest a little extra time and money in staging at least one room so it is appealing to prospective buyers.

Technology Aims to Solve Home Valuation Uncertainty

By Anthony Garritano

Has the real estate market bottomed? Technologists at the Mortgage Bankers Association’s National Servicing Conference in San Diego talked about the importance of ascertaining a property’s true market value and how technology can play a role in getting that value.

“I have no doubt that Washington will again change the loan mod program to make it more effective, but I still think short sales and foreclosures will happen regardless. The problem is getting at the value of the property. Lenders are relying on broker price opinions here, but we at MDA DataQuick think that a way to objectively and quantifiably measure the value of the property to ensure the lender is making a good decision is needed,” said the company’s president John Walsh.

Read more

Additional Features

• Minor Repairs, Small Changes Make a Dramatic Difference
• Home Inspector Distinguishes Property Valuation Alternative

Video Newscast

Data Map

MBA Delinquency Survey: Beginning of the End?

According to the Mortgage Bankers Association's National Delinquency Survey, the non-seasonally adjusted delinquency rate increased 50 basis points from 9.94% in the third quarter of 2009 to 10.44% this quarter.

The percentage of loans in the foreclosure process at the end of the fourth quarter was 4.58%, an increase of 11 basis points from the third quarter of 2009 and 128 basis points from one year ago. The combined percentage of loans in foreclosure or at least one payment past due was 15.02% on a non-seasonally adjusted basis.

Free Newsletter

Sign up for our complimentary email newsletter

Enter your email here to sign up for Managing REO, our free biweekly email newsletter.

Editor's Note

Confusion Mounting Over PTFA

By Jennifer Harmon

Numerous lender liabilities have been created as a result of the Protecting Tenants at Foreclosure Act.

Confusion is being expressed over whether or not there is a bona fide tenant in the property and if the lender has an oral lease with the borrower. The statute provides no guidance over what to ask for in order to prove occupancy. Lenders can take an aggressive or conservative approach to have borrowers produce evidence of occupancy. They can hire third party vendors, attorneys or use general counsel to collect documentation.

Speakers at the default super session at the MBA’s National Mortgage Servicing Conference & Expo in San Diego contemplated the best business decision for the lender when it comes to collecting rent. If the tenant is in the property for only 90 days then some of the panelists said it might not be worth it.

“But if the borrower is in the property for two years, then it might be a good decision especially if you cannot get rid of that property or find an investor to take the property off of your hands,” said Cynthia Nierer, a partner with Rosicki, Rosicki & Associates.

Read more

Focus

Unique Device Safeguards Properties

With more real estate-owned assets coming on the market, ensuring the condition of those assets for eventual disposition is a big concern.

At the MBA Servicing Conference, REO Sentinel, Jacksonville, Fla., went live with a GSE and a top-five servicer to help these entities monitor their REO inventory.

“REO Sentinel has been and is in pilot,” said Dave Lawson, EVP and COO of REO Sentinel. “By the end of February we’ll be in 15 major cities in seven states. The product was designed to be a standalone unit that didn’t need electricity to operate. It has a motion detector and sensor that can detect any problems that may arise in the property. It also takes pictures of the inside of the home.”

REO Sentinel is a patent-pending product designed specifically to meet the harsh requirements of the REO and presale marketplaces.

Read more