IMGCAP(1)]
Robert Smiley, executive vice president of loan administration at U.S. Bank Home Mortgage, says he believes his company has fared much better than many counterparts during the recession but he does not expect much improvement in the nation's mortgage delinquencies until late 2010. Smiley made the remarks this afternoon during a session at the Financial Services Collections & Credit Risk Conference in Las Vegas.
"But we [U.S. Bank] are seeing some [positive signs] in the past few months. Most recently, in July and August reports, we're seeing a bit of a slowdown in new delinquencies and the severity of problems in many markets is decreasing," said Smiley, who did not provide raw numbers. "In fact, some valuations are coming back that are higher than they were six months ago."
The mortgage crisis and the growing trend toward loan modifications has prompted U.S. Bank Home Mortgage to review its internal structure and what Smiley calls "an increase in the disconnect between our collectors and loan modification people."
More consumers, he says, are seeking loan modifications, knowing it could be an option whereas the collectors are seeking repayment. Achieving the correct mix is an ongoing challenge, especially because of unemployment and under-employment, not only for U.S. Bank Home Mortgage but certainly all lenders.
