By KIMBERLEY HAAS
The president of Cornerstone Servicing says they are prepared for both ups and downs in 2024.
Toby Wells said in a recent interview with The Mortgage Note that although industry leaders hope for improvements after a tough year in 2023, people are worried about how much financial pressure American homeowners are under.
Inflation, the rising costs associated with ownership, as well as increases in taxes and insurance are at play.
“All of that kind of resonates in the potential for higher delinquencies and defaults leading into the latter part of ‘24. There’s concern about how to manage that,” Wells said.
Although there has been historically low foreclosure activity in recent years, lenders started the process on 22,575…
By KIMBERLEY HAAS
Distressed homeowners who get behind on their mortgage bills are avoiding foreclosure.
The Mortgage Bankers Association’s National Delinquency Survey was released last week and it showed that delinquencies increased in the third quarter to a rate of 3.62%, up 25 basis points from the second quarter and 17 basis points from a year ago.
Marina Walsh, MBA’s vice president of industry analysis, said that despite the increase, later-stage delinquencies – those 90 days or more past due – declined to the lowest level since the first quarter of 2020.
“The decline in later-stage delinquencies, along with a foreclosure starts rate of 0.14% – which is well below the historical quarterly average of 0.40% – suggest that distressed…
Despite the market correction, housing ended 2022 on a strong note, CoreLogic reports.
Delinquencies and foreclosures were historically low throughout 2022 and remained that way at year-end, with both seeing only minor upticks in December compared to the previous six months. Both hit their bottoms in early 2022 and have barely moved since.
Only 3% of all mortgages in the U.S. were in some stage of delinquency, including in foreclosure, with a 0.4% decrease YOY and less than a 0.1% increase month-over-month.
Serious delinquencies fell 0.7% YOY, accounting for 1.2% of mortgages compared to 1.9% in December 2021 and a high of 4.3% in August 2020. Adverse delinquencies also dropped, down 0.1% YOY to 0.3%.
Homeowners are beginning to feel…
Mortgage loan delinquencies dropped to 3.45% of all loans outstanding in Q3 2022, once again breaking the record for the lowest point since 1979. According to MBA’s National Delinquency Survey, delinquencies were down 19 BPS from Q2 and 143 BPS from a year earlier. Foreclosure starts and loans in the process of foreclosure also fell further, and remain below historical averages. “The relatively small number of seriously delinquent homeowners are working with their mortgage servicers to find foreclosure alternatives, including loan workouts that allow for home retention,” said Marina Walsh, CMB, MBA’s Vice President of Industry Analysis. Alternatives can include reinstatement, loan modification, deed-in-lieu of foreclosure, or short sale. Booming home equity is one of the reasons foreclosures have remained…
The historically low delinquency rate dropped further in August, closing in on May 2022’s record low, but rising foreclosure starts may cause it to increase, according to Black Knight’s First Look at August 2022 mortgage data. Nationally, delinquencies dropped 3.6% in August to 2.79%. This is just four basis points above May’s record. Improvements were seen across the spectrum of borrowers, with the number of those owing only a single late payment down 4%. Those 90 or more days delinquent fell by 4.5%. Cure activity also increased, with 62,000 seriously delinquent loans curing to current status. Cure rates refer to loans that were delinquent in the prior month but are now current. Start activity rose 15% from July, though it…
Mortgage delinquencies and foreclosure starts increased in June but ultimately stayed below pre-pandemic levels, according to Black Knight’s First Look at June 2022 data. The national delinquency rate rose by nine basis points month-over-month to 2.84%. But the three months prior saw consecutive record lows in delinquencies, meaning the boost has little bite. The increases were distributed across all categories. The number of borrowers late by a single day jumped 5%. Those late by 90 or more days increase by a mere 1%, and that comes on the heels of a 21-month streak of improvement. Foreclosure starts rose by 27% but remained down 40% from pre-pandemic levels. However, it does constitute a 441% YOY increase, which Black Knight notes is…
Delinquencies fell for the thirteen consecutive month in April, down 1.8% YOY and unchanged from the month prior, according to CoreLogic’s latest Loan Performance Insights Report. Only 2.9% of mortgages across the nation were in some stage of delinquency in April. Serious delinquencies, those which are 90 days or more past due, have seen the most change in the last year. They account for 1.4% of all mortgages, down from 3.3% at the same time last year, and have fallen from a high of 4.3% in August 2020. All states saw annual declines in their overall delinquency rate in April. The states with the largest declines were Nevada (-3.2%), Hawaii (-3%), and New Jersey (-2.7%). Early-stage delinquencies are up 1%…
Delinquencies dropped to another record low in March, with only 2.7% of all mortgages in the U.S. experiencing some stage of delinquency, according to CoreLogic’s monthly Loan Performance Insights Report. Delinquencies were down 2.2 percentage points from March 2021, when they were at 4.9%. The share of early-stage delinquencies, or loans 30 to 59 days past due, was 1%, unchanged YOY, while the share of adverse delinquencies (60 to 89 days past due) was down 0.1% YOY to 0.3%. Serious delinquencies accounted for only 1.4% of U.S. mortgages, down from 3.5% the year prior and a high of 4.3% in August 2020. The share of mortgages in some stage of the foreclosure process, known as the Foreclosure Inventory Rate, decreased…
Commercial and multifamily delinquencies fell in Q1 2022, according to the Mortgage Bankers Association’s (MBA) Commercial/Multifamily Delinquency Report. MBA looked at commercial/multifamily delinquency rates for five of the largest investor groups: commercial banks and thrifts, commercial mortgage-backed securities (CMBS), life insurance companies, and Fannie Mae and Freddie Mac. These groups hold more than 80% of outstanding debt in these categories. The number of banks and thrifts overdue by 90 or more days fell to 0.56% from Q4 2021. The number of life company portfolios 60 or more days late rose slightly to 0.05%, while Fannie Mae fell to 0.38%. Freddie Mac remained unchanged at 0.08%. CMBS that were 30 or more days delinquent or in REO dropped to 3.36%. “Commercial…
The delinquency rate nationwide dropped to 2.80% in April, as overall delinquencies fell almost 40% YOY, according to Black Knight’s “first look” at its April 2022 month-end mortgage performance stats. The numbers reflect the mortgage market’s continued recovery from pandemic impacts. Prepayment activity dropped 19.1% from March and is down 61.8% YOY due to rapidly increasing interest rates. Rates averaged 5.25% last week. The number of borrowers who are a single payment overdue rose 7.9% month-over-month, which Black Knight says is typical of the season. That increase was offset by improvements among more seriously delinquent borrowers. The volume of borrowers three or more months past due fell by 8% from the month prior. Serious delinquencies are down between 6% and…
