Executive Summary

In February 2008, the State Foreclosure Prevention Working Group published its first data report on performance of subprime mortgage servicing, based on data from October 2007 provided by 13 of the 20 largest subprime mortgage servicers. The State Foreclosure Prevention Working Group, composed of state attorneys general and state banking regulators, published this data to provide the public with information to shed light on how servicers are managing the unprecedented level of homeowners struggling to make their mortgage payments. 

The first report found that, while servicers had increased their use of loan modifications, a large percentage of seriously delinquent loans (7 out of 10) were not in any sort of work-out process. The first report also revealed that a significant proportion of adjustable rate subprime loans were entering into delinquency prior to the first reset date, reflecting the extent of weak underwriting and mortgage origination fraud present in subprime loans in recent years. 

This second report provides information on servicing performance from October 2007 through and including January 2008. The additional data allow us to assess performance trends, in addition to providing a static snapshot of recent performance. 

Based on our analysis, the collective efforts of servicers and government officials to date have not translated into meaningful improvement in foreclosure prevention outcomes. In major respects, the subprime servicing data for January 2008 is nearly unchanged  from October 2007. In normal times, one would not expect a significant change in a four-month period; however, this time period involved a dramatic increase in public attention to the subprime mortgage crisis, a ramping up of efforts by the HOPE NOW Alliance, and the initiation of new creative outreach efforts by servicers and government officials. 

The Foreclosure Fraud Alert Website http://www.foreclosurefraudalert.com/

The Foreclosure Fraud Alert Blog  http://www.foreclosurefraudalert.com/fraudblog

<< Previous    [1]  2  3  4  5  ...7    Next >>