Monday, June 22, 2009

California’s 90-Day Foreclosure Moratorium to Have Little Effect

When this law came into effect on June 15th, we said that:

Most banks have already been doing this, in preparation for this new law…don’t expect this to have much of an impact in slowing down the avalanche of foreclosures that is heading this way.

All this really does is give people in foreclosure a little more time to live in their homes for free.

Now, for an update…

Sean O’Toole of ForeclosureRadar writes Expect little change from new moratorium

Bottom line - if we see any impact at all it likely won't be until August or September. But these payment based loan mods are largely better for servicers than homeowners, so I can't imagine that servicers won't at least put a program in place. We will of course keep an eye on it.

Lenders are doing just that…

Jim Wasserman reports at Home Front: Lenders winning exemptions from new Calif. foreclosure law

Seven lenders have already received immunity this week from the state's new foreclosure prevention law that went into effect Monday. Another 35 received temporary immunity while their applications are processed.

Lenders Approved this week: (as of Friday)
Bank of America
BAC Home Loans Servicing
Carrington Mortgage Services
EMC Mortgage
Kondaur Capital
Select Portfolio Servicing
Applied and received temporary 30-day approval:
American Home Mortgage Servicing
Beneficial California
Beneficial Financial
Capital Financial Services
Champion Mortgage
Chase Home Financing
Christian Community Credit Union
Clifford Douglas Property Assets
Fay Servicing
First California Mortgage
First Entertainment Credit Union
First Federal Bank of California
Fresno County Federal Credit Union
GMAC Mortgage
Homecomings Financial
Household Finance
HSBC Credit Center
HSBC Mortgage
HSBC Mortgage Services
HSBC Mortgage Services
JPMorgan Chase
Kinecta Federal Credit Union
Litton Loan Servicing
OneWest Bank
PennyMac Loan Services
Provident Credit Union
Residential Credit Solutions
Saxon Mortgage Services
Selene Finance
U.S. Bank National Association
Vericrest Financial
Walter Mortgage
Wells Fargo Bank

This law will have virtually no impact.