The Burial of Saxon Mortgage Services

March 22, 2010 - PRLog -- A recent analysis on April Credit Suisse Group analysis made on the foreclosure indicates that Saxon Mortgage Services which is a division of Goldman Sachs Group Inc. unit is the worst performer.

These foreclosure services are being targeted by the Obama Administration because of the slow rollout of the HAMP since its inception. The process of foreclosure is seemed to be on the rise on a record pace. It is estimated that about 3.5 million foreclosure cases are seemed to be viable for the second quarter of the year. The cases exceeded by about 300,000 for every month of the quarter. It is due to this reason; the high ranked officers are summoned to have a meeting with the officials such as Tim Geithner and Shaun Donovan, Secretary of HUD of the Treasury Department. .


The Center for Responsible Lending did a research and came out with the facts that are estimated to be 2.4 million foreclosures for the year and the resulting events would lead to a price decrease which stood at 69.5 million. A loss of about $7200 has to be incurred for every house in the country and this will ultimately lead to a loss of about half a trillion dollar for the country.

The government initiatives on all these programs are highly depended on the services of the foreclosure companies. One can understand that companies have got a long way to go while looking at the Saxon’s operations. All these problems started after the HAMP was announced. The internal audit reports that the officials and equipments are flooded with work loads as home owners overwhelmingly pour in giving their modification applications. This further lead to the complexity of loosing some of the applicant details, scanned sheets and other vital data.

The unit was bought by Morgan Stanley in the year 2006 which was approximately having a 165,000 loan applicants. The parent company had doubled the numbers by 2008 and the new loans were found to be subprimes.

The same unit was caught flat-footed on recruiting higher number of staff to overcome the rushing applicants and to speed up the process. This company had a direct set of actions such as acting as the direct interface with the loan borrowers servicing the insurance companies, Wall Street lending institutions, pension funds and many more. Some of their process includes maintaining impound accounts, collecting the various delinquent payments and processing payments.

Most of the other institutions started concentrating hard on loan modifications procedures and however, the unit of Saxon was still busy forecasting the growth portfolio. They had a blowing up subprime portfolio in the first half of the year 2007. It really took a period of another 18 months to take the corrective measures when it came to loan modification. The unit was neck dipped with the loan modification applications immediately when HAMP was announced by the Treasury and Administration departments.

The 1st Foreclosure Prevention Company is one of California’s pioneers when it comes to loan modification companies. They negotiate hard with the creditors to get the best help for you.

Visit us at: http://www.1stforeclosureprevention.com