Archive for July, 2013

By July 22, 2013 0 Comments Read More →

DOJ Files Temporary Administrative Rules for Oregon Foreclosure Avoidance Program

Today the Oregon Department of Justice filed the temporary administrative rules for the Oregon Foreclosure Avoidance Program (OFAP). OFAP was enacted in 2012 as the Foreclosure Avoidance Mediation Program (FAMP) to require lenders to meet face-to-face with homeowners to negotiate an alternative to foreclosure. FAMP applied only to non-judicial foreclosures commenced after July 11, 2012. […]

Posted in: News and Events
Servicing Transfers and Pending Loan Modifications: What To Do When Your Mod Gets Lost in the Shuffle
By July 22, 2013 3 Comments Read More →

Servicing Transfers and Pending Loan Modifications: What To Do When Your Mod Gets Lost in the Shuffle

In the past year, there has been a massive sell-off of mortgage servicing rights (MSRs), especially for nonperforming loans. In some cases, the transferor retains ownership of the MSRs and merely transfers subservicing to a new servicer. For example, in January 2013, Bank of America and Fannie Mae reached an agreement to transfer servicing for […]

Posted in: Features
Schlegel v. Wells Fargo: Servicer’s Oops Defense Fails, ECOA Claim Goes Forward
By July 21, 2013 0 Comments Read More →

Schlegel v. Wells Fargo: Servicer’s Oops Defense Fails, ECOA Claim Goes Forward

Does a recent Ninth Circuit opinion suggest a new line of attack for victims of predatory mortgage loan servicing? In Schlegel v. Wells Fargo Bank, the Ninth Circuit held that a servicer’s failure to give an adverse action notice after revoking a loan modification gives rise to a claim under the Equal Credit Opportunity Act […]

Posted in: Cases
By July 11, 2013 3 Comments Read More →

Did You Know? How the Terms of a HAMP Modification Are Determined

Have you ever wondered how the servicer decides what terms to offer when evaluating a borrower for HAMP? Despite appearances, the terms that are modified are not arrived at randomly. The servicer applies a “waterfall” that specifies which terms will be adjusted, to what extent, and in what order. The waterfalls—there are a few—are described […]

Posted in: Did You Know?
By July 8, 2013 0 Comments Read More →

Oregon Delinquencies Down, Foreclosure Rate Unchanged

According to the latest Mortgage Monitor Report, LPS finds that nationally delinquencies and foreclosures are down from a year ago. Oregon is faring well relative to other states with 3.8% of loans delinquent (but not in foreclosure) compared to a national average of 6.1%. Only 7 states had a lower reported delinquency rate than Oregon. […]

Posted in: News and Events
By July 8, 2013 4 Comments Read More →

Did You Know? The Difference Between Principal Forbearance and Principal Forgiveness

The goal in modifying mortgage loans is to bring the borrower current while reducing the total monthly housing cost (principal, interest, taxes, insurance and HOA dues) to a target percentage of gross monthly income (usually 31%). The servicer achieves this payment reduction by serially modifying specific loan terms, especially the interest rate and the length […]

No Doc Loan Modifications Are Here: What Do You Need to Know?
By July 7, 2013 0 Comments Read More →

No Doc Loan Modifications Are Here: What Do You Need to Know?

On July 1, Fannie Mae and Freddie Mac launched the Streamlined Modification Initiative (SMI) nationwide. Servicers of loans owned or guaranteed by Fannie or Freddie are required to evaluate most borrowers for a streamlined modification if the borrower is between 90 days and 2 years in default on a first-lien mortgage. The servicer will send […]

Posted in: Features
Mikityuk v. NW Trustee Services: Oregon Judge Holds That All Post-Foreclosure Sale Challenges Are Barred
By July 7, 2013 0 Comments Read More →

Mikityuk v. NW Trustee Services: Oregon Judge Holds That All Post-Foreclosure Sale Challenges Are Barred

Bad facts make bad law. And that about sums up the sorry case of Mikityuk v. Northwest Trustee Services, Inc., in which an Oregon District Court judge recently held that all post-sale challenges of nonjudicial foreclosures are barred. As always we will start with the facts, but be warned that before we reach a resolution, […]

Posted in: Cases
Getting To Know Niday: A Further Look at the Oregon Supreme Court’s Landmark Decisions on MERS
By July 4, 2013 2 Comments Read More →

Getting To Know Niday: A Further Look at the Oregon Supreme Court’s Landmark Decisions on MERS

THIS IS PART TWO OF A TWO-PART SERIES ON THE RECENT OREGON SUPREME COURT DECISIONS IN BRANDRUP V. RECONTRUST AND NIDAY V. GMAC. BOTH CASES INVOLVE LEGAL ISSUES ARISING OUT OF THE NONJUDICIAL FORECLOSURE OF MERS TRUST DEEDS. READ PART ONE: BREAKING DOWN BRANDRUP. Hurricane Niday touched ground nearly one year ago when the Oregon […]

Posted in: Features