REO broker loses listings, as foreclosure problems mount
Southern California-based OneWest Bank -- formerly known as Indymac -- instructed one of the largest REO brokers in New York to suspend foreclosure sales as it reviews possible faulty documentation. Todd Yovino, broker and owner of Island Advantage Realty in Huntington, New York said that OneWest is hardly alone in its decision. He affirms to HousingWire that lenders altogether suspended 50 possible home sales through his brokerage in the last two weeks. OneWest did not immediately respond to requests for comment. OneWest Bank joins the quickly-building crowd of servicers suspending foreclosures. Ally Financial (GJM), JPMorgan Chase (JPM), Bank of America (BAC), Goldman Sachs' (GS) Litton Loan Servicing, and PNC Financial (PNC), halted its foreclosures in at least 23 states after employees allegedly signed affidavits without verifying documentation or without a notary present. BofA on Friday extended its suspension to the entire country. "It's affecting everyone, lenders, servicers, brokers," Yovino said. "But it's really hurting homeowners, many are families waiting to move into a home because of this." He did add that a nationwide moratorium on foreclosures would not be ineffective but detrimental to an already fragile housing market. OneWest Bank was the eighth largest mortgage servicer in 2009, with $161.7 billion worth of mortgages in its servicing portfolio. Write to Jon Prior.