Wednesday, June 22nd, 2011, 10:20 am
Mortgage servicers are facing a billion-dollar crisis when it comes to advancing payments and interest to the secondary markets.
The problem, according to one panelist providing a mid-year outlook at the American Securitization Forum's annual meeting in Washington, D.C., is that mortgage servicers are growing weary of paying for property problems that aren't getting fixed.
Heavy foreclosure backlogs and other difficulties in liquidating distressed properties mean that mortgage servicers are dealing more and more with negative cash flows in their RMBS portfolios. Mortgage servicers are advancing payments into the secondary markets, even when the properties aren't paying.
The assumption is that the properties are going to be profitable again, one day. The concern is that more and more mortgage servicers doubt this scenario will actualize.http://www.housingwire.com/2011/06/22/mortgage-servicing-faces-billion-dollar-secondary-crisis
And borrowers are "growing weary" of sending payments into the black void of mortgage servicers that do not get credited or wind up in some weird "executive account" or other made up BS.
WHERE'S THE MONEY????