A client note from Moody’s Investors Service says that foreclosure timelines for private-label residential mortgage-backed securities loans backed by properties in California and Nevada, two non-judicial foreclosure states, will remain lengthy over the next year until gradually starting to decline in early 2016, HousingWire.com reported yesterday. Analysts with Moody’s cited procedural scrutiny on foreclosures as a result of Homeowner Bill of Rights laws are extending the amount of time that properties are in foreclosure and that repeat foreclosure filings are keeping servicers occupied with legacy foreclosure issues. Analysts say that the lengthy timelines are credit negative for private-label RMBS because more than 21 percent of all properties backing seriously delinquent loans are in the two states — 19 percent in California and 2 percent in Nevada.
