Posted on 10 January 2012. Tags: abs, appraisal, Cisneros, Clinton, down payment, DTI, FHA, fico, foreclosure, gse, Homeownership strategy, housing, HUD, Joshua Rosner, Loan to value, Loss Mitigation, LTV, mbs, modification, mortgage backed securities, national partners in homeownership, rmbs, securitization, subprime
Housing in the New Millennium: A Home Without Equity is Just a Rental with Debt
Joshua RosnerGraham Fisher & Co.
June 29, 2001
Abstract:
This report assesses the prospects of the U.S. housing/mortgage sector over the next several years. Based on our analysis, we believe there are elements in place for the housing sector to continue to experience growth well above GDP. However, we believe there are risks that can materially distort the growth prospects of the sector. Specifically, it appears that a large portion of the housing sector’s growth in the 1990’s came from the easing of the credit underwriting process. Such easing includes:
* The drastic reduction of minimum down payment levels from 20% to 0%
* A focused effort to target the “low income” borrower
* The reduction in private mortgage insurance requirements on high loan to value mortgages
* The increasing use of software to streamline the origination process and modify/recast delinquent loans in order to keep them classified as “current”
* Changes in the appraisal process which has led to widespread overappraisal/over-valuation problems
If these trends remain in place, it is likely that the home purchase boom of the past decade will continue unabated. Despite the increasingly more difficult economic environment, it may be possible for lenders to further ease credit standards and more fully exploit less penetrated markets. Recently targeted populations that have historically been denied homeownership opportunities have offered the mortgage industry novel hurdles to overcome. Industry participants in combination with eased regulatory standards and the support of the GSEs (Government Sponsored Enterprises) have overcome many of them.
If there is an economic disruption that causes a marked rise in unemployment, the negative impact on the housing market could be quite large. These impacts come in several forms. They include a reduction in the demand for homeownership, a decline in real estate prices and increased foreclosure expenses.
These impacts would be exacerbated by the increasing debt burden of the U.S. consumer and the reduction of home equity available in the home. Although we have yet to see any materially negative consequences of the relaxation of credit standards, we believe the risk of credit relaxation and leverage can’t be ignored. Importantly, a relatively new method of loan forgiveness can temporarily alter the perception of credit health in the housing sector. In an effort to keep homeowners in the home and reduce foreclosure expenses, holders of mortgage assets are currently recasting or modifying troubled loans. Such policy initiatives may for a time distort the relevancy of delinquency and foreclosure statistics. However, a protracted housing slowdown could eventually cause modifications to become uneconomic and, thus, credit quality statistics would likely become relevant once again. The virtuous circle of increasing homeownership due to greater leverage has the potential to become a vicious cycle of lower home prices due to an accelerating rate of foreclosures.
Presented: 2002 Mid-Year Meeting American Real Estate and Urban Economics Association National Association of Home Builders Washington, DC May 28-29, 2002.
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Posted in STOP FORECLOSURE FRAUD
Posted on 03 November 2011. Tags: appraisal, breach of contract, fdic, federal deposit insurance corporation, lawsuit, Lender Processing Services Inc., LPS, LSI appraisal LLC, Uniform Standard of Professional Appraisal Practice, USPAP, wamu, washington mutual
Lender Processing Services, Inc. just filed a Regulation FD Disclosure alerting investors that
On May 9, 2011 in the U.S. District Court for the Central District of California to recover alleged losses of approximately $154,529,000. The FDIC’s complaint alleged that these losses were the direct and proximate result of the defendants’ breach of contract with WAMU and alleged gross negligence of the defendants with respect to the provision of certain appraisal services.On November 2, 2011, the court issued an order limiting the FDIC’s claims to breach of the contract and granting the Company’s Motion to Dismiss the FDIC’s claims of gross negligence, alter ego, single business enterprise and joint venture claims. With respect to the limited remaining breach of contract claim, the Company maintains that the Appraisal Outsourcing Services Agreement between LSI and WAMU clearly specifies a $10,000 per claim limitation of liability. The Company is confident that it will ultimately prevail on any remaining breach of contract claim.
© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.
Posted in STOP FORECLOSURE FRAUD
Posted on 12 May 2011. Tags: alter ego, appraisal, breach of contract, fdic, federal deposit insurance corporation, lawsuit, Lender Processing Services Inc., LPS, LSI appraisal LLC, Uniform Standard of Professional Appraisal Practice, USPAP, wamu, washington mutual
FEDERAL DEPOSIT INSURANCE
CORPORATION, as Receiver of
Washington Mutual Bank,
v.
LSI APPRAISAL, LLC; FIDELITY
NATIONAL INFORMATION
SERVICES, INC.; LENDER
PROCESSING SERVICES, INC.;
LEENDER PROCESSING SERVICES, LLC; LPS PROPERTY TAX
SOLUTIONS, INC., f/k/a FIDELITY
NATIONAL TAX SERVICE, INC.; LSI
TITLE COMPANY;
and LSI TITLE AGENCY, INC.
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© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.
Posted in STOP FORECLOSURE FRAUD
Posted on 10 May 2011. Tags: appraisal, breach of contract, fdic, federal deposit insurance corporation, lawsuit, Lender Processing Services Inc., LPS, LSI appraisal LLC, Uniform Standard of Professional Appraisal Practice, USPAP, wamu, washington mutual
According to an 8k form filed on May 10, 2011,
The Federal Deposit Insurance Corporation (“FDIC”), in its capacity as Receiver for Washington Mutual Bank (“WAMU”), filed a complaint on May 9, 2011 in the U.S. District Court for the Central District of California to recover alleged losses of approximately $154,519,000. The FDIC contends these losses were a direct and proximate result of the defendants’ alleged breach of contract with WAMU and alleged gross negligence of the defendants with respect to the provision of certain services by LPS’s subsidiary LSI Appraisal LLC, an appraisal management company. In particular, the FDIC claims that the services provided failed to conform with federal and state law, regulatory guidelines and other industry standards, including specifically the provisions of the Uniform Standards of Professional Appraisal Practice (“USPAP”). LPS previously described the possibility of this suit in its Form 10-Q filed May 5, 2011.
In its complaint, the FDIC cites, as the cause of the damages claimed, 220 appraisals performed between June 2006 and May 2008. However, for more than 75 percent of the appraisals identified by the FDIC, LSI was contracted only to provide reviews of appraisals, not to conduct the initial, full appraisals. For these properties, the full appraisals were provided by other entities, unrelated to LSI. For all appraisals subject to this complaint, LPS believes there is no basis for a claim that LSI engaged in “gross negligence” or breach of contract related to these appraisal services.
LPS stands firmly behind the integrity of the services it provides to the mortgage industry and intends to vigorously defend itself against these allegations.
Source: Edgar Online
H/t Social Apocalypse
© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.
Posted in STOP FORECLOSURE FRAUD
Posted on 04 May 2010. Tags: appraisal, AVM, Defendants, dinsfla, din_sfla, fidelity, First American CoreLogic Inc, FIS, FISERV, fnis, inc., INC. LENDER PROCESSING SERVICES, INTELLIREAL, INTERTHINX, lawsuit, lender processing services, LLC, LPS, PRECISION APPRAISAL SERVICES, REAL DATA, REALEC TECHNOLOGIES, zillow
Things that make you go Hmmm…
Patent infringement lawsuit seeks damages from Zillow, LPS, others
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[ipaper docId=30915340 access_key=key-2nyz50q3xi9omwffgdky height=600 width=600 /]
© 2010-19 FORECLOSURE FRAUD | by DinSFLA. All rights reserved.
Posted in FIS, Former Fidelity National Information Services, Lender Processing Services Inc., LPS
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