- This topic has 55 replies, 8 voices, and was last updated 15 years, 2 months ago by
temeculaguy.
-
AuthorPosts
-
August 31, 2009 at 2:28 PM #451300August 31, 2009 at 2:48 PM #451649
davelj
Participant[quote=werewolf34]
Who wins if the REOs process quickly?[/quote]The servicers. It gets one more headache off the work schedule. And maybe saves them a little money.
[quote=werewolf34]Who loses if the REOs process quickly?[/quote]
Maybe We the People… as we’re underwriting the Fannie/Freddie losses. It does NOT help the MBS investors very much because the prices of these MBS already trade deep down in the murky toilet waters.
It’s clear that the government is pulling out all the stops to halt the decline in housing prices, but I don’t think there’s a lot of intentional private sector activity that’s keeping properties off the market. Perhaps a little… but not much.
Where the banks are dragging their feet – and where some games will be played over the next couple of years – will be in COMMERCIAL real estate. The problems in residential real estate are a bit of a red herring at this point where banks are concerned.
August 31, 2009 at 2:48 PM #451912Participant[quote=werewolf34]
Who wins if the REOs process quickly?[/quote]The servicers. It gets one more headache off the work schedule. And maybe saves them a little money.
[quote=werewolf34]Who loses if the REOs process quickly?[/quote]
Maybe We the People… as we’re underwriting the Fannie/Freddie losses. It does NOT help the MBS investors very much because the prices of these MBS already trade deep down in the murky toilet waters.
It’s clear that the government is pulling out all the stops to halt the decline in housing prices, but I don’t think there’s a lot of intentional private sector activity that’s keeping properties off the market. Perhaps a little… but not much.
Where the banks are dragging their feet – and where some games will be played over the next couple of years – will be in COMMERCIAL real estate. The problems in residential real estate are a bit of a red herring at this point where banks are concerned.
August 31, 2009 at 2:48 PM #451112Participant[quote=werewolf34]
Who wins if the REOs process quickly?[/quote]The servicers. It gets one more headache off the work schedule. And maybe saves them a little money.
[quote=werewolf34]Who loses if the REOs process quickly?[/quote]
Maybe We the People… as we’re underwriting the Fannie/Freddie losses. It does NOT help the MBS investors very much because the prices of these MBS already trade deep down in the murky toilet waters.
It’s clear that the government is pulling out all the stops to halt the decline in housing prices, but I don’t think there’s a lot of intentional private sector activity that’s keeping properties off the market. Perhaps a little… but not much.
Where the banks are dragging their feet – and where some games will be played over the next couple of years – will be in COMMERCIAL real estate. The problems in residential real estate are a bit of a red herring at this point where banks are concerned.
August 31, 2009 at 2:48 PM #451723Participant[quote=werewolf34]
Who wins if the REOs process quickly?[/quote]The servicers. It gets one more headache off the work schedule. And maybe saves them a little money.
[quote=werewolf34]Who loses if the REOs process quickly?[/quote]
Maybe We the People… as we’re underwriting the Fannie/Freddie losses. It does NOT help the MBS investors very much because the prices of these MBS already trade deep down in the murky toilet waters.
It’s clear that the government is pulling out all the stops to halt the decline in housing prices, but I don’t think there’s a lot of intentional private sector activity that’s keeping properties off the market. Perhaps a little… but not much.
Where the banks are dragging their feet – and where some games will be played over the next couple of years – will be in COMMERCIAL real estate. The problems in residential real estate are a bit of a red herring at this point where banks are concerned.
August 31, 2009 at 2:48 PM #451305Participant[quote=werewolf34]
Who wins if the REOs process quickly?[/quote]The servicers. It gets one more headache off the work schedule. And maybe saves them a little money.
[quote=werewolf34]Who loses if the REOs process quickly?[/quote]
Maybe We the People… as we’re underwriting the Fannie/Freddie losses. It does NOT help the MBS investors very much because the prices of these MBS already trade deep down in the murky toilet waters.
It’s clear that the government is pulling out all the stops to halt the decline in housing prices, but I don’t think there’s a lot of intentional private sector activity that’s keeping properties off the market. Perhaps a little… but not much.
Where the banks are dragging their feet – and where some games will be played over the next couple of years – will be in COMMERCIAL real estate. The problems in residential real estate are a bit of a red herring at this point where banks are concerned.
August 31, 2009 at 4:41 PM #451353BGinRB
Participant[quote=davelj][quote=werewolf34]
Who wins if the REOs process quickly?[/quote]The servicers. It gets one more headache off the work schedule. And maybe saves them a little money.
[quote=werewolf34]Who loses if the REOs process quickly?[/quote]
Maybe We the People… as we’re underwriting the Fannie/Freddie losses. It does NOT help the MBS investors very much because the prices of these MBS already trade deep down in the murky toilet waters.
It’s clear that the government is pulling out all the stops to halt the decline in housing prices, but I don’t think there’s a lot of intentional private sector activity that’s keeping properties off the market. Perhaps a little… but not much.
Where the banks are dragging their feet – and where some games will be played over the next couple of years – will be in COMMERCIAL real estate. The problems in residential real estate are a bit of a red herring at this point where banks are concerned.[/quote]
The servicers advance the monthly payments to the investors. They recoup those payments *and* the late fees when the place gets sold. In that scenario it makes sense for the servicer to keep the current owner in the house for a while, let the fees grow and foreclose when the market value of the property comes close to what the servicer will get after trustee sale.
August 31, 2009 at 4:41 PM #451771Participant[quote=davelj][quote=werewolf34]
Who wins if the REOs process quickly?[/quote]The servicers. It gets one more headache off the work schedule. And maybe saves them a little money.
[quote=werewolf34]Who loses if the REOs process quickly?[/quote]
Maybe We the People… as we’re underwriting the Fannie/Freddie losses. It does NOT help the MBS investors very much because the prices of these MBS already trade deep down in the murky toilet waters.
It’s clear that the government is pulling out all the stops to halt the decline in housing prices, but I don’t think there’s a lot of intentional private sector activity that’s keeping properties off the market. Perhaps a little… but not much.
Where the banks are dragging their feet – and where some games will be played over the next couple of years – will be in COMMERCIAL real estate. The problems in residential real estate are a bit of a red herring at this point where banks are concerned.[/quote]
The servicers advance the monthly payments to the investors. They recoup those payments *and* the late fees when the place gets sold. In that scenario it makes sense for the servicer to keep the current owner in the house for a while, let the fees grow and foreclose when the market value of the property comes close to what the servicer will get after trustee sale.
August 31, 2009 at 4:41 PM #451961Participant[quote=davelj][quote=werewolf34]
Who wins if the REOs process quickly?[/quote]The servicers. It gets one more headache off the work schedule. And maybe saves them a little money.
[quote=werewolf34]Who loses if the REOs process quickly?[/quote]
Maybe We the People… as we’re underwriting the Fannie/Freddie losses. It does NOT help the MBS investors very much because the prices of these MBS already trade deep down in the murky toilet waters.
It’s clear that the government is pulling out all the stops to halt the decline in housing prices, but I don’t think there’s a lot of intentional private sector activity that’s keeping properties off the market. Perhaps a little… but not much.
Where the banks are dragging their feet – and where some games will be played over the next couple of years – will be in COMMERCIAL real estate. The problems in residential real estate are a bit of a red herring at this point where banks are concerned.[/quote]
The servicers advance the monthly payments to the investors. They recoup those payments *and* the late fees when the place gets sold. In that scenario it makes sense for the servicer to keep the current owner in the house for a while, let the fees grow and foreclose when the market value of the property comes close to what the servicer will get after trustee sale.
August 31, 2009 at 4:41 PM #451159Participant[quote=davelj][quote=werewolf34]
Who wins if the REOs process quickly?[/quote]The servicers. It gets one more headache off the work schedule. And maybe saves them a little money.
[quote=werewolf34]Who loses if the REOs process quickly?[/quote]
Maybe We the People… as we’re underwriting the Fannie/Freddie losses. It does NOT help the MBS investors very much because the prices of these MBS already trade deep down in the murky toilet waters.
It’s clear that the government is pulling out all the stops to halt the decline in housing prices, but I don’t think there’s a lot of intentional private sector activity that’s keeping properties off the market. Perhaps a little… but not much.
Where the banks are dragging their feet – and where some games will be played over the next couple of years – will be in COMMERCIAL real estate. The problems in residential real estate are a bit of a red herring at this point where banks are concerned.[/quote]
The servicers advance the monthly payments to the investors. They recoup those payments *and* the late fees when the place gets sold. In that scenario it makes sense for the servicer to keep the current owner in the house for a while, let the fees grow and foreclose when the market value of the property comes close to what the servicer will get after trustee sale.
August 31, 2009 at 4:41 PM #451695Participant[quote=davelj][quote=werewolf34]
Who wins if the REOs process quickly?[/quote]The servicers. It gets one more headache off the work schedule. And maybe saves them a little money.
[quote=werewolf34]Who loses if the REOs process quickly?[/quote]
Maybe We the People… as we’re underwriting the Fannie/Freddie losses. It does NOT help the MBS investors very much because the prices of these MBS already trade deep down in the murky toilet waters.
It’s clear that the government is pulling out all the stops to halt the decline in housing prices, but I don’t think there’s a lot of intentional private sector activity that’s keeping properties off the market. Perhaps a little… but not much.
Where the banks are dragging their feet – and where some games will be played over the next couple of years – will be in COMMERCIAL real estate. The problems in residential real estate are a bit of a red herring at this point where banks are concerned.[/quote]
The servicers advance the monthly payments to the investors. They recoup those payments *and* the late fees when the place gets sold. In that scenario it makes sense for the servicer to keep the current owner in the house for a while, let the fees grow and foreclose when the market value of the property comes close to what the servicer will get after trustee sale.
August 31, 2009 at 4:58 PM #451706Participant[quote=BGinRB]
The servicers advance the monthly payments to the investors. They recoup those payments *and* the late fees when the place gets sold. In that scenario it makes sense for the servicer to keep the current owner in the house for a while, let the fees grow and foreclose when the market value of the property comes close to what the servicer will get after trustee sale.[/quote]The problem is that this is expensive for the servicer. When servicers price a contract for a particular securitization they assume a certain level of NODs, etc. because servicing defaulted mortgages is more expensive than servicing non-delinquent borrowers. Now, as you point out, the servicer receives late fees in these situations, but… the late fees merely compensate the servicer for the extra time and expense associated with dealing with delinquent borrowers. In the current environment, the late fees are not covering the additional cost of servicing the delinquent borrowers in aggregate. Which is why servicers are losing money left and right. Trust me, in most cases servicers want to get rid of these properties as soon as it’s practical.
August 31, 2009 at 4:58 PM #451364Participant[quote=BGinRB]
The servicers advance the monthly payments to the investors. They recoup those payments *and* the late fees when the place gets sold. In that scenario it makes sense for the servicer to keep the current owner in the house for a while, let the fees grow and foreclose when the market value of the property comes close to what the servicer will get after trustee sale.[/quote]The problem is that this is expensive for the servicer. When servicers price a contract for a particular securitization they assume a certain level of NODs, etc. because servicing defaulted mortgages is more expensive than servicing non-delinquent borrowers. Now, as you point out, the servicer receives late fees in these situations, but… the late fees merely compensate the servicer for the extra time and expense associated with dealing with delinquent borrowers. In the current environment, the late fees are not covering the additional cost of servicing the delinquent borrowers in aggregate. Which is why servicers are losing money left and right. Trust me, in most cases servicers want to get rid of these properties as soon as it’s practical.
August 31, 2009 at 4:58 PM #451780Participant[quote=BGinRB]
The servicers advance the monthly payments to the investors. They recoup those payments *and* the late fees when the place gets sold. In that scenario it makes sense for the servicer to keep the current owner in the house for a while, let the fees grow and foreclose when the market value of the property comes close to what the servicer will get after trustee sale.[/quote]The problem is that this is expensive for the servicer. When servicers price a contract for a particular securitization they assume a certain level of NODs, etc. because servicing defaulted mortgages is more expensive than servicing non-delinquent borrowers. Now, as you point out, the servicer receives late fees in these situations, but… the late fees merely compensate the servicer for the extra time and expense associated with dealing with delinquent borrowers. In the current environment, the late fees are not covering the additional cost of servicing the delinquent borrowers in aggregate. Which is why servicers are losing money left and right. Trust me, in most cases servicers want to get rid of these properties as soon as it’s practical.
August 31, 2009 at 4:58 PM #451971Participant[quote=BGinRB]
The servicers advance the monthly payments to the investors. They recoup those payments *and* the late fees when the place gets sold. In that scenario it makes sense for the servicer to keep the current owner in the house for a while, let the fees grow and foreclose when the market value of the property comes close to what the servicer will get after trustee sale.[/quote]The problem is that this is expensive for the servicer. When servicers price a contract for a particular securitization they assume a certain level of NODs, etc. because servicing defaulted mortgages is more expensive than servicing non-delinquent borrowers. Now, as you point out, the servicer receives late fees in these situations, but… the late fees merely compensate the servicer for the extra time and expense associated with dealing with delinquent borrowers. In the current environment, the late fees are not covering the additional cost of servicing the delinquent borrowers in aggregate. Which is why servicers are losing money left and right. Trust me, in most cases servicers want to get rid of these properties as soon as it’s practical.
-
AuthorPosts
- You must be logged in to reply to this topic.