As reported by Housing Wire on Wednesday, the Federal Housing Finance Agency began taking investor applications to participate in their new bulk REO program. The agency is finally deciding who has the financial wherewithal to manage these properties and rent them out.

So where exactly are they? The Wall Street Journal put together a very handy (and mildly surprising) chart on where the bulk of Fannie Mae, Freddie Mac and FHA REO are. FHFA Acting Director Edward DeMarco has long said these programs would be tailored to individual markets. Atlanta has the most of any metro and California leads all states.

Among the provisions stipulated in Florida’s newly revised House Bill 319 are enhanced specifications regarding banks’ obligations to homeowner associations (HOAs).

As a result of NAMFS continued partnership with other industry organizations, we have received an update related to the HUD ML 2010-18 FAQs. The most recent update occurred January 5, 2012, and sets forth expectations for both the continuing year round and upcoming grass cut seasons. This year's rates and timetables adhere to the guidelines set forth in ML 2008-31. For additional information or to read the FAQs in their entirety, click here to visit the NAMFS Mortgagee Letters & Servicing Guides page.

Standard and Poor’s (S&P) has released its third-quarter shadow inventory update, which shows both the volume of distressed assets and the amount of time it’d take to liquidate these properties is contracting.

On October 20, the Senate approved an amendment to restore the $729,750 maximum loan limit on government-backed mortgages. 

This approval rescinds the reductions that occurred on October 1, for Fannie Mae, Freddie Mac and FHA/VA loan limits in high cost areas for an additional two years.  It has also increased the FHA loan limit to 125% of the median house price for low cost areas, restoring from the 115% which went into effect on October 1.  The amendment  on the Department of Housing and Urban Development appropriations bill also addresses possible losses on higher balance FNMA and FMHLC mortgages which are covered by an annual 15 basis point fee on "jumbo GSE" loans.

The expiration of the higher loan limit has “made a weak housing market even weaker,” said Sen. Menendez during the Senate debate. “If we don’t get that weak housing market moving again, we won’t get the kind of robust economic recovery that Americans deserve.”

This measure now now moves to the House for their approval.

It will be a long road ahead for the 14 servicers who received consent orders from federal regulators earlier this year. Acting Comptroller of the Currency John Walsh says the servicers will spend the next year or more recompensing for past documentation errors related to foreclosure processing.

In an article released on September 14, DS News reported that Fannie Mae found several servicers to be performing below median standards.  While this report may not have a direct impact on the mortgage field service industry, servicers (and their field service providers) in underperforming peer groups may find themselves under increased pressure to perform with higher quality and tighter margins to offset potential losses.

During a webinar held last week, the Mortgage Bankers Association indicated that mortgage servicers should prepare themselves for several upcoming regulation changes and legal challenges.  These include regulatory impacts stemming from the Dodd-Frank Act include new credit risk retention requirements; ability to repay mandates; a new agency (the Consumer Financial Protection Bureau); and additional reforms under the Real Estate Settlement Procedures Act and the Truth-in-Lending Act.  Although not clear on the impact that this may have for the mortgage field service industry, this webinar continues to shed light on the need to remain vigilant in this constantly changing environment.  NAMFS remains committed to providing the most up-to-date information related to these changes to its membership.

DS News reported an increase in foreclosure filings occurred during the month of August foreshadowing the potential for additional bank repossessions in the coming months.  This report may indicate the opportunity for additional volumes of inspection, property preservation and REO service orders in the future.  The key item to keep in mind when reading this report is that this volume may not become tangible for our industry, especially for those providing preservation and REO services, for quite some time as the properties will have to move through what is often a delay ridden pipeline before being maintained and/or repaired.

This article released by American Banker early this week speaks to the increased costs servicers may be subject to in the very near future.  Although not directly aimed at the mortgage field service industry, this approach by the GSEs may result in increased pressure for the field service industry to peform services more efficiently and with a minimum of quality concerns. 

American Banker provides an eye opening view into the challenges faced by the government as they enter the rental property industry with their foreclosed properties.  Please take a moment to review this article if you are currently performing or hope to perform this service for your clients.