Special Servicers Receive Countrywide Mortgages En Masse

Housing Wire reports in its “Morning Cup of Coffee” Post:

Countrywide is transferring mortgages to special servicers on certain deals in line with the servicing part of a proposed $8.5 billion residential mortgage-backed securities settlement proposed by The Bank of New York Mellon ($16.80 0.07%) and Bank of America($7.28 -0.03%) last year.

As of June 26, Countrywide transferred 38,000 loans to Specialized Loan ServicingSelect Portfolio Servicing and Green Tree, according to Barclays. Of these, 73% were transferred to SLS, 21% to SPS and 6% to Green Tree.

The loans transferred so far span 91 different deals in the proposed settlement. Bank of America  will pay servicers incentive fees for loss-mitigation activities such as short sales and modifications. High-risk loans from a single deal will be transferred to one servicer, while loans that make payments for 12 consecutive months can be transferred back to Countrywide. As a result, Barclays expects more aggressive servicer loss-mitigation behavior on these deals.

The proposed settlement agreement sets the criteria to determine which loans are high risk and eligible for transfer: those that are at least 45 days delinquency with no response from borrower; at least 60 days delinquency with at least one missed payment in the past 12 months; at least 90 days delinquency but less than 90 days in foreclosure; foreclosed but no sale date; and any bankruptcy regardless of delinquency status

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s