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The share of residential mortgages with past-due payments tumbled more than 40 basis points last month. While the foreclosure rate was lower, it was newly delinquent home loans that had the biggest impact on the overall performance.
February’s rate of 30-day delinquency, including foreclosures, was down 42 BPS from January. That amounted to 5,846,000 loans.
Delinquency tumbled 125 BPS from February of last year.
The balance of past-due outstanding loans included in commercial mortgage-backed securities fell for the fourth month in a row, while the rate of delinquency sits at the lowest level since 2010. But concerns about market conditions could push the rate up 100 basis points. Industrial property loans were the worst performers.
There were $ 57.47 billion in securitized commercial real estate loans that were delinquent during February, lower than $ 59.12 billion in past-due mortgages during January.
It was the fourth consecutive month that the balance of delinquent loans declined.
New data indicate that the price of commercial mortgage trades rose in January. Recent secondary transactions in the commercial mortgage sector include a government portfolio, performing loans and non-performing assets.
DebtX reported that it priced 51,399 commercial real estate loans with an aggregate principal balance of $ 616.1 billion during January. The loans collateralized 651 commercial mortgage-backed securities.
Volume slipped from 51,895 loans for $ 621.5 billion a month earlier and was also lower than 55,253 loans for $ 658.3 billion a year earlier.
Lost notes have created problems for several mortgage firms that have been trying to foreclose. Courts around the country have been ruling in favor of mortgage lenders in cases involving the Mortgage Electronic Registration Systems Inc. — especially in Oregon. Other lawsuits involving disputed title have emerged from criminal actions tied to mortgage fraud and fraudulent or botched lien releases.
Connecticut real estate developer Andrew Kissel was indicted in July 2005 for $ 6.4 billion in mortgage fraud. Kissel whose brother Robert was allegedly murdered by his wife in 2003, was himself found murdered in April 2006.
Among Kissel’s alleged crimes was the fraudulent release of a lien on a $ 1,620,800 mortgage made in July 2004 by Washington Mutual Bank in order to obtain a new $ 4.5 million first mortgage on his Greenwich, Conn., home from Hudson Valley Bank in March 2005.
Reports released by the Department of Housing and Urban Development’s inspector general in conjunction with the servicer settlement paint an ugly picture of mortgage servicers’ actions before and during the investigation. The reports detail accounts of turbo-charged robo-signing, hindering of the investigation and complacent executives.
Bank of America Corp. and Wells Fargo & Co. hindered the inspector general’s investigation by being reluctant to make employees available for interviews, the reports say. BofA also didn’t fully comply with subpoenas and had attorneys present during interviews of employees — who were directed not to answer certain questions.
One Wells Fargo employee was reportedly hired as vice president of loan documentation after working at a pizza restaurant and as a bank teller.
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