Some believe that DTC (Direct to Consumer) lending will eventually pass retail channels. For now, the MBA says internet-lending still accounts for less than 10% of mortgage lending. Until this number changes, here’s National Mortgage News’ list of the top traditional retail lenders: Wells Fargo, Chase, Bank of America, PHH Mortgage, CitiMortgage, Quicken Loans, U.S. Bank Home Mortgage, SunTrust, USAA Federal Savings Bank, MetLife Home Loans, PNC Mortgage/National City, Fifth Third Mortgage, PrimeLending, Branch Banking & Trust Co., Ally/ResCap (GMAC), Regions Mortgage, Mortgage Investors Corporation, DHI Mortgage, Navy FCU, and TD Banknorth Mortgage.
Do foreclosure numbers tell us anything? The press sure makes a big deal out of them, especially the recent slowdown. Barclays Capital quantified the lengthening of timelines, and discussed recent trends. First, liquidation timelines have risen across all sectors, especially in the subprime and negative amortization sector, where timelines have increased by approximately 10 and 12 months, respectively, since 2008. Here’s more from Barclays:
Liquidation timelines understate the true severity of foreclosure delays because they provide information only on loans that have advanced to liquidation. Once we include loans that have been frozen in the delinquency or foreclosure stage, the actual amount of time required to process a delinquent loan is much longer. Judicial states always had longer timelines, and they also experienced a much greater increase in processing times than loans in non-judicial states after the robo-signing issue came to light. Among judicial foreclosure states, New York and Florida have experienced some of the longest foreclosure delays. As a side effect of longer timelines, stop advance rates have risen and servicers have offered more loan modifications to distressed borrowers in longer timeline states.
Our expectations of a prolonged slowdown from last year have materialized. Now we believe the situation is close to a point where improvements in trends should start to emerge. There has already been some improvement in 60+ to foreclosure roll rates, and we expect an improvement in foreclosure to REO roll rates once the composition of loans in foreclosure shifts to loans without documentation or filing issues. In particular, Countrywide- and Citi-serviced loans have recently experienced a pickup in 60+ to foreclosure roll rates. Although there may be a lag in the timing of when different servicers and states start to see improvements in timeline rolls, we expect further improvements in coming months. That said, improvement in rolls should not automatically result in lower timelines on future defaults right away. The average number of months delinquent for the 60+ and foreclosure pipelines is very high and unless most of them are liquidated over the next 12-18 months, timelines on defaulting loans will not show signs of improvement.