Team Thayer Property Servicing

Freddie Mac   announced on Wednesday  its largest sale ever of deeply delinquent, non-performing loans from its mortgage investment portfolio, consisting of 5,208 loans serviced by  Ocwen Financial  with an unpaid principal balance (UPB) of approximately $1.1 billion. The sale was completed five days before the announcement (on September 11) and the transaction is expected to settle in October 2015. The sale is part of Freddie Mac's Standard Pool Offerings (SPOs). The loans offered were delinquent by an average of three and a half years, meaning that the borrowers were likely previously evaluated for loss mitigation options or in some stage of loss mitigation or foreclosure, according to Freddie Mac. Approximately 33 percent of the aggregate pool balance consisted of loans that were modified and later became delinquent. The aggregate pool has a loan-to-value ratio of approximately 91.1 based on broker price opinion and is geographically diverse, according to ...

While not as substantial as  June's increase , Freddie Mac's total mortgage portfolio still expanded in July, this time at a compound annualized rate of 0.8 percent, according to  Freddie Mac's July 2015 Monthly Volume Summary  released on Wednesday. July marked the sixth consecutive month and the 11th time in the last 13 months Freddie Mac's mortgage portfolio has expanded. The 0.8 percent rate of increase calculated to a month-over-month improvement of $1.29 billion, up to approximately $1.925 trillion. This is following June's annualized rate of increase of 2.8 percent, which caused the portfolio's value to rise by $4.5 billion. At the beginning of that 13-month period (July 2014) which saw 11 months of expansion for Freddie Mac's total mortgage portfolio, the portfolio's value was $1.895 trillion. Though the portfolio has seen expansion in 11 of the last 13 months, July was only the 18th time in the last 67 months that the portfolio has grown...

Freddie Mac  has announced that as part of the periodic review, state foreclosure timelines have been extended in 34 of 55 jurisdictions including Oregon  for all foreclosure sales completed on or after Aug 1, 2015. The temporary suspension of state foreclosure timeline compensatory fee assessments in the District of Columbia, New York (including New York City), and New Jersey has been extended from June 30, 2015, to December 31, 2015, according to Freddie Mac. The Enterprise originally announced the temporary suspension in the  Single-Family Seller/Servicer Guide Bulletin 2014-19.  The temporary suspension and the extended foreclosure timelines recently announced will be discussed in Freddie Mac's October 2015 Guide Bulletin. Freddie Mac extended state foreclosure timelines as follows as part of the periodic review. The length of time is measured in calendar days, and the number of days here refers to the maximum number of allowable days between the due da...

Freddie Mac 's net income soared for the second quarter of 2015, totaling $4.2 billion—nearly nine times the GSE's Q1 net income of $524 million, according to an  announcement from Freddie Mac  on Tuesday. Also for Q2, Freddie Mac reported $3.9 billion in comprehensive income, a five-fold increase from Q1's total of $746 million. With the inclusion of September 2015's Dividend Obligation of $3.9 billion, Freddie Mac will have returned $96.5 billion to taxpayers, about $25.2 billion more than the $71.3 billion Freddie Mac received in a bailout from Treasury in 2008. Q2 was the 15th consecutive quarter of profitability for Freddie Mac, which became profitable again in Q4 2011, a little more than three years after the bailout. "Our very solid financial results show that Freddie Mac, while in conservatorship, is building a strong operating business model that represents taxpayers well and is efficiently serving U.S. homebuyers and renters. We continue to inve...

The  J.D. Power   2015 U.S. Primary Mortgage Servicer Satisfaction study  released Thursday found that servicers are spending too much time and resources focusing on at-risk customers, negatively impacting satisfaction for the majority of their customers. "While servicers must be prepared to work within the confines of industry regulations, they must also effectively satisfy customers whose expectations regarding technology and personal service are rapidly changing," the survey said. "To meet these challenges and remain competitive, mortgage servicers need to understand and implement key best practices that have the greatest potential to reduce or prevent problems, contain costs, and create positive customer experiences that improve brand perceptions and minimize oversight risk." At-risk customers, those that J.D. Power defines currently behind in their mortgage payments or concerned about keeping current during the next year, represent only 15 percent o...

Add caption Fannie Mae  is now providing an enhanced single-family loan performance dataset in order to offer greater transparency in advance of the Enterprise moving to an actual loss framework for the Connecticut Avenue Series (CAS) risk sharing transactions,  according to an announcement  from Fannie Mae on Wednesday. Features of the enhanced dataset include information on credit performance up to, and including, property disposition. The credit information the new dataset provides includes event dates, the costs incurred by the credit event, and recovery proceeds that Fannie Mae receives. Fannie Mae estimates it could move to the actual loss framework  for the CAS transactions as soon as the fourth quarter this year. "Proactively providing this research data is an important step to prepare the market for our move to an actual loss structure for CAS deals later this year and supports market participants in further modeling the credit risk of Fannie Mae...

Freddie Mac 's total mortgage portfolio expanded at an annualized rate of 2.8 percent in June, marking the fifth consecutive month and the 10th time in the last 12 months the portfolio has grown, according to  Freddie Mac's June 2015 Monthly Volume Summary  released on Wednesday. The serious delinquency rate on Freddie Mac-backed single-family residential mortgage loans fell by another 5 basis points from May to June, down to 1.53 percent–virtually the same as the 1.52 percent serious delinquency rate reported for Freddie Mac-guaranteed loans in November 2008 at the start of the financial crisis. Freddie Mac's serious delinquency rate was less than half of the nationwide rate reported by CoreLogic for May, which was 3.5 percent. The number of homeowners who received permanent loan modifications totaled 4,895 for June, a slight increase from 5,490 in May. With 30,312 modifications for the first half of 2015, Freddie Mac is averaging 5,052 modifications per month. Thi...

The  House Financial Services Committee  has announced that proposed legislation to cap the salaries of CEOs at  Fannie Mae  and  Freddie Mac has advanced to the markup phase, which will take place in the Committee on Tuesday, July 28. H.R. 2243, also known as the  Equity in Government Compensation Act of 2015 , was introduced by U.S. Rep. Ed Royce (R-California) in May shortly after Federal Housing Finance Agency ( FHFA ) director Mel Watt  directed  the GSEs to submit a proposed executive compensation for the CEO position that could be as high as  $7.26 million a year , the 25th percentile of the market. Early in July, Fannie Mae and Freddie Mac announced that their respective CEOs, Timothy Mayopoulos and Donald Layton, would receive a raise from their current annual salaries of $600,000 (the cap set by Watt's predecessor, Edward DeMarco) up to $4 million. The announcement of the substantial raise for the GSE's top ex...

Mortgages by first-time homebuyers tend to perform worse than those of established buyers, but that doesn’t mean first-timers are an inherently riskier group, according to a new working paper authored by Saty Patrabansh of the  Federal Housing Finance Agency's  Office of Policy Analysis and Research. The  working paper ,  released Thursday, analyzed mortgages backed by  Fannie Mae  and  Freddie Mac between 1996 and 2013. The author found that while first-time mortgages performed worse than repeat homebuyer mortgages, the comparison is actually an apples-to-oranges mismatch. Patrabansh called first-time homebuyers “inherently different from repeat homebuyers. They are younger and have lower credit scores, lower home equity, and less income and, therefore, are less likely to withstand financial stress or take advantage of financial innovations available in the market than repeat homebuyers.” However, with these “distribution...

Freddie Mac  is offering $624.1 million worth of non-performing loans (NPLs) for sale in four pools in an auction of deeply delinquent loans from its mortgage investment portfolio, according to an announcement from the GSE  on Wednesday. Three of the pools of loans are Standard Pool Offerings (SPOs), which total about $600.2 million. One of the pools is an Extended Timeline Pool Offering (EXPO) that includes NPLs 100 percent concentrated in Cook County, Illinois, and serviced by CitiMortgage Inc. The total in unpaid principal balance of the EXPO is $23.9 million. Potential bidders must be approved by Freddie Mac to access the secure data room that contains information on the NPLs and allows them to bid on the NPLs. Winning bidders and their servicers must meet the Federal Housing Finance Agency ( FHFA )'s NPL sale guidelines announced on March 2, which include approval by and good standing with government housing agencies (Freddie Mac, Fannie Mae, Ginnie Mae, and t...

according to  Freddie Mac's May 2015 Monthly Volume Summary . May's expansion marked the eighth time in the last nine months the portfolio has expanded. The only month in that time frame the portfolio did not grow was in January, when it contracted at an annualized rate of 0.8 percent. Year-to-date for the first five months of 2015, the portfolio has expanded at an average annualized rate of 1.2 percent. The balance of Freddie Mac's total mortgage portfolio has grown from $1.898 trillion up to $1.919 trillion since August 2014. Though the portfolio has seen expansion in eight of the last nine months, May was only the 16th time in the last 65 months that the portfolio has expanded dating back to January 2010. The number of homeowners who received permanent loan modifications totaled 5,490 for May, a slight increase from 5,306 in April. With 25,417 modifications to date in 2015, Freddie Mac is averaging 5,083 modifications per month. An average of 5,596 permanent lo...

Freddie Mac  is now offering distressed homeowners a complete guide to foreclosure and how to avoid it, from assessing your situation to what to do when your home has been foreclosed on, as part of a new website  launched this week as a one-stop resource for homeowners. The " MyHome by Freddie Mac " site offers homeowners a number of options under the "Foreclosure and Alternatives" tab that tell a borrower who to contact for help as well as non-foreclosure solutions that include both home retention and home forfeiture options. Freddie Mac first discusses the importance of taking stock of your financial situation and determining what a borrower can and cannot pay for as far as home-related expenses, such as major and minor repairs. If a borrower cannot pay for these things, or is incurring another major expense that will keep them from paying the mortgage, Freddie Mac recommends reaching out to the lender as soon as possible. "Your lender wants to help...