Monday Morning Cup of Coffee
A look at stories across HousingWire's weekend desk, with more coverage to come on bigger issues:
President Obama announced his intention to officially nominate Christy Romero to serve as special inspector general for the Troubled Asset Relief Program. Romero is currently the deputy special inspector general for SIGTARP, a position she has held since Neal Barofsky vacated the top TARP post last year.
Between 2009 and 2011, Romero served as chief of staff for SIGTARP under Barofsky. In 2010, she served as acting deputy of SIGTARP. Prior to joining SIGTARP, Romero served the U.S. Securities and Exchange Commission as counsel to SEC Chairman Mary Schapiro and Chairman Christopher Cox.
The Idaho Supreme Court ruled in favor of Mortgage Electronic Registration Systems late last week, saying the mortgage registry's appointed trustee does not have to prove note-holder status to foreclose on a deed of trust through the non-judicial process, MERS said. The case, Trotter v. Bank of New York-MERS held a trustee assigned by MERS has the right under the Idaho Deed of Trust Act to foreclose on the deed, MERS said.
Loan Value Group considers its incentive-based Responsible Homeowner Reward program a success after the program reduced delinquency rates on first-lien mortgages by 54%.
The Rumson, New Jersey-based company, which provides mortgage solutions, launched the reward program a few years ago. The program provides cash to eligible homeowners who remain current on their loans. Meanwhile, delinquency rates on second-lien mortgages were cut by nearly 24% over the same period. The program was launched in January 2010 with the objective of helping lenders, servicers, insurers and mortgage investors.
Enrolled homeowners get an initial reward amount, and if they make timely payments, the reward account will grow at a predetermined rate. Once the property is sold, refinanced or paid off, the homeowners receive the entire award amount.
Southlake, Texas-based Orion Financial Group is stepping into the secondary market with plans to provide investors with an assortment of document retrieval services. Orion is known for providing mortgage assignment information, as well as documentation on lien releases.
The move into the secondary market is designed to provide investors and lenders who run their own portfolios with document management services. To help with the expansion, the firm named Heather Hendrix as marketing and sales manager. Hendrix most recently served Nationstar mortgage as regional vice president.
This past week, Patriot Bank Minnesota in Forest Lake, Minn., was closed by Minnesota commerce officials, with the FDIC appointed as receiver. FDIC signed a purchase and assumption agreement with First Resource Bank of Savage, Minn., to assume all of the deposits of the bank.
BankEast of Knoxville, Tenn., also was closed this past week. U.S. Bank National Association of Cincinnati assumed all of the deposits.
Tennessee Commerce Bank in Franklin, Tenn., was shut down last week, with the FDIC brokering an agreement for Republic Bank & Trust Co. to assume all of its deposits. The closing is estimated to cost the federal Deposit Insurance Fund $416.8 million. In addition, First Guaranty Bank and Trust Co. of Jacksonville, Fla. was closed.
CenterState Bank of Florida in Winter Haven, Fla., will assume all of the deposits. The loss to the federal deposit insurance fund will be roughly $82 million in that case.
Write to Kerri Panchuk.
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