Wall Street Journal (02/19/08) P. B1; Bounds, Gwendolyn
Business is booming among small mortgage-servicing companies as the lending crisis worsens. Driving the trend are two factors: a rise in U.S. foreclosure filings in 2007 and a jump in the national homeowner-vacancy rate to 2.8 percent in last year's fourth quarter. However, as the market sees further deterioration, lenders faced with ballooning housing inventories they need to sell are pressuring servicers to handle more houses and faster. Tim Doehner, executive director of National Association Mortgage Field Services Inc., laments, "Even the quality control of a good contractor who has been able to handle the volume in the past, he begins to slip and then it snowballs from there." Possibly making matters worse are the "newbies"--some qualified, some not--who are entering the mortgage field services industry in large numbers.
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