Foreclosure Bubble Expands as Loss Mitigation Efforts Lead to Rising Problem Loan Inventory
March 5, 2010
Loss mitigation is supposed to find cheaper alternatives to foreclosure, but industry experts are concerned that increasingly aggressive efforts by mortgage servicers are stretching out liquidation timelines and ultimately raising loss severities. Federal banking regulators reported an 80 percent increase in the number of foreclosures in process and a 125 percent jump in the number of loans 90 or more...