Monday morning cup of coffee

A look at stories across HousingWire’s weekend desk…with more coverage to come on bigger issues: The senior adviser to President Obama, David Axelrod doubts the need for a national foreclosure moratorium. Speaking to CBS News’ Bob Schieffer on Sunday’s Face the Nation, Axelrod said recent robo-signer allegations throw “a lot of uncertainty into the housing market that is, you know…is already fragile,” he said. “I’m not sure about a national moratorium because there are, in fact, valid foreclosures that probably should go forward.” Axelrod said he hopes the issue gets resolved quickly, and mortgage servicers correct any mistakes in their paperwork. The Obama administration will support those efforts, Axelrod added. Litton Loan Servicing, the mortgage servicing arm of Goldman Sachs (GS) is suspending foreclosures in certain cases, according Bloomberg. The business joins other, larger servicers that are doing the same. Recently, Bank of America said it was suspending all foreclosures, in order to review its case work. George Roddy, president of Foreclosures Listing Service, told the firm’s subscribers in a letter Friday he does not believe any government attempt to implement a foreclosure moratorium in Texas will affect the foreclosure rate. Texas Attorney General Greg Abbott last week called for a statewide halt to foreclosures. Abbott said the volume of early foreclosure postings filed for the next sale date of Nov. 2 is consistent with the previous month. He said past moratoriums had little effect on the foreclosure market. Roddy said Abbott’s letter was sent to 30 banks and servicers last week, and isn’t so much an enforcement of the law as it is a general warning. “The reality is that fine tuning a lender’s game plan is not going to make someone’s delinquent mortgage payment,” Roddy said. “In Texas, if a home is posted for foreclosure, the loan payments are already significantly delinquent. At this time, we are on track to have another big month of foreclosure postings.” When Ally Financial (formally known as GMAC) (GMA), JPMorgan Chase (JPM) and Bank of America (BAC) halted foreclosures in 23 states in late September, Texas wasn’t one of them because its foreclosure process is non-judicial. While there is still a lot of paperwork involved in a non-judicial foreclosure, the volume of paperwork is substantially less. The non-judicial foreclosure process is also substantially shorter – 21 days vs. up to 400 days in judicial states. Abbott’s letter to servicers outlined eight steps for reviewing affidavits. Roddy said a response from servicers is due to the AG by Friday. Texas title insurer Stewart Title Guaranty tightened its business standards over the weekend. According the Associated Press, Stewart Title sent an internal memo to agents issuing guidelines that make it more difficult to write policies on properties foreclosed by JPMorgan Chase, Bank of America, OneWest Bank and GMAC Mortgage. “Stewart stands ready to insure these transactions in accordance with these guidelines,” the company told the AP. The Houston-based firm said it is still issuing titles in states where foreclosure moratoriums have not been issued. Stewart Title’s announcement comes just a week after Old Republic, a nationwide title insurer, said it would not insure any titles on properties foreclosed by GMAC Mortgage or JPMorgan Chase. Lenders endorsed 5,966 HECM reserve mortgages in September, down 10% from August, according to a report released Friday by Reverse Mortgage Insight. That brings the 2010 total to 54,356 HECM modified reverse mortgages, down 38% from 2009. The data analytics firm found the active number of lenders in the reverse-mortgage space dropped 30% from the prior month to 2,067 lenders. According to the report, Wells Fargo (WFC) leads the industry with 11,572 reverse mortgages this year, followed by Bank of America (5,317), MetLife Bank (MET) (2,356), One Reverse Mortgage (2,236) and Urban Financial Group (1,101). Because an increasing number of lenders are exiting the marketplace, the top 10 lenders increased their collective market share of reverse mortgages to 49.7% from 42.5% a year ago, Reverse Mortgage Insight reported. For the first time in four weeks, no banks were closed on Friday. The 2010 total count of failed banks is 130. Write to Christine Ricciardi.

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