The number of plans in active forbearance fell by 11,000 this week, according to Black Knight’s blog, Vision. That leaves 1.58 million homeowners in forbearances due to Covid-19. The total number of mortgages in forbearances is now down 192,000 month-over-month, an 11% difference. This is the fastest rate of decline reported by Black Knight since July. As early forbearance entrants reach their final expirations, even larger exit rates are expected. The blog notes that “the largest declines in forbearance volumes typically come during the first week of the month, as plans which expired in the prior month are deactivated in servicing systems of records.” Forbearance exits are being closely watched by industry analysts as expiration dates for forbearance plans loom.…
Good Morning! Today is Tuesday, September 28. Rocket Mortgage will continue to sponsor the PGA’s Rocket Mortgage Classic through 2027. The presidents of Boston and Dallas’s Federal Reserve banks are resigning following reports of investment trading. Federal Reserve Chairman Jerome Powell will tell Congress today that inflation will stay high for a few months before moderating. Senate Republicans blocked a bill that would prevent a government shutdown. And in mortgage and housing news… Forbearances Keep Falling: The share of loans in forbearance fell yet again, dropping to 2.96%. It’s the first time they’ve dipped below 3% since March 2020. Natural Disasters Cause Concern: More than half of respondents to a Realtor.com survey said they considered natural disasters when choosing where…
Forbearances fell again last week, continuing to trend down as relief plans expire, according to the Mortgage Bankers Association’s (MBA) latest survey. Forbearances made up just 2.96% of servicers’ portfolio volume, down from 3.00%. It’s the first time they’ve fallen below 3% since March 2020. The estimated number of homeowners in forbearance plans is around 1.5 million. For Fannie Mae and Freddie Mac loans, the August 2021 number was down three basis points to 1.44%. Ginnie Mae loans rose three basis points to 3.42%. Portfolio loans and private-label securities shares fell four basis points, from 6.95% to 6.91%. Independent mortgage bank servicers saw a drop of one basis point to 3.24%, and the share for depository servicers declined four points…
Good Morning! Today is Monday, September 27. Government funding is set to expire this week as Democrats push two sweeping legislative packages. States are beginning to roll out booster shots to at-risk Americans. China traded two detained Canadian citizens to bring home a Huawei executive accused of stealing trade secrets. And in mortgage and housing news… What Does Debt-Limit Mean For Mortgage Rates?: Mortgage rates could be impacted by Washington D.C.’s debate over raising the debt ceiling. “LIFT”: Legislation aimed at first-time homebuyers proposes creating a 20-year-fixed-rate mortgage program through Ginnie Mae. FHFA Loan Mods:Fannie Mae and Freddie Mac completed 217,020 foreclosure prevention actions in the second quarter, with 47% of loan modifications lowering monthly payments by more than 20%.…
Freddie Mac and Fannie Mae completed 217,020 foreclosure prevention actions in Q2, bringing the number of homeowners the GSEs have helped during conservatorship to 6.030 million, according to the Federal Housing Finance Authority’s Foreclosure Prevention and Refinance Report. 57% of loan modifications reduced monthly payments by more than 20%, though the number of refinances began to fall in Q2. Forbearance starts dropped 32% to 6,233 in the second quarter, while third-party and foreclosure sales fell 9% to 2,281. The GSEs’ serious delinquency rate dropped from 2.48% to 1.99% by the end of Q2. The total number of loans in forbearance continues to drop from its latest peak in May 2021, though new forbearance plans fell but stayed high through Q2…
Good Morning! Today is Friday, September 24. The Congressional Committee investigating the January 6 riot issued four subpoenas, all for former advisers to Donald Trump. China is cracking down on cryptocurrencies, saying it will root out “illegal” activity and ban crypto mining. The House approved $1 billion for an Israeli missile defense system. And in mortgage and housing news… Fed Correction: FHFA and HUD released a joint statement clarifying Freddie Mac’s policy on buying mortgages secured by group homes. Homeowner Equity Up In Q2: Homeowners with mortgages gained $2.9 trillion in equity in the second quarter of 2021, up 29.3% year-over-year, according to a CoreLogic report. Housing Boom May Not Be Over: Early homebuyer demand reached its highest point in at…
Forbearances fell again this week, continuing to trend down as relief plans expire, according to the Mortgage Bankers Association’s (MBA) latest survey. Forbearances made up 3.00% of servicers’ portfolio volume, down from 3.08%. That puts the estimated number of homeowners in forbearance plans at around 1.5 million. That’s a significant change from last year. In May 2020, the use of the forbearance provision peaked at about 3.4 million mortgages, representing about 7% of all single-family housing loans. For Fannie Mae and Freddie Mac loans, the August 2021 number was down five basis points to 1.47%. Ginnie Mae loans held at 3.39%. Portfolio loans and private-label securities shares fell 32 basis points, from 7.27% to 6.95%. Independent mortgage bank servicers saw…
Fitch Ratings’ Q2 RMBS Servicer Metric Report found late-stage non-prime delinquencies down year-over-year (YOY) for both bank and non-bank mortgage servicers. Bank servicers reported a drop in 90+ day delinquencies, from 13% to 10% YOY, down 12% last quarter. Non-bank servicers saw a drop from 8% to 4% YOY, with a 2% fall from Q1. The numbers suggest that holders with loans in forbearance might be financially recovering and exiting policies before many expire. “Bank servicers showed the most significant loss mitigation results over the past year with forbearance plans now down to 38% from 93% of all loan workout plans while repayment plans and loan modifications have seen significant increases as borrowers exit forbearance plans,” said Director Richard Koch. “Non-bank servicers are…
Good Morning! Today is Wednesday, September 15. Californians voted not to recall Gov. Gavin Newsom. Senate Democrats proposed a compromise voting rights bill that includes voter ID requirements. Facebook documents reportedly show Instagram is harmful to teenage girls. North Korea violated U.N. resolutions by testing two ballistic missiles. And in mortgage and housing news… Purchase Applications Up: MBA’s weekly survey showed mortgage applications bouncing back from last week’s low, driven by purchase applications. Debt Burdens: More than half of non-homeowners say their student debt delayed them from buying a home, a NAR poll found. PSPA Provisions Suspended: FHFA and the Department of the Treasury suspended certain provisions from the Preferred Stock Purchase Agreements, FHFA announced in a press release. Delinquencies…
Good Morning! Today is Tuesday, September 14. Californians vote on whether to recall Governor Gavin Newsom today. Chevron pledged to spend $10 billion in its new low-carbon unit, focusing on biofuels and hydrogen production. A Wall Street Journal investigation found that Facebook exempts high-profile users from its content rules. And in mortgage and housing news… Good News For Struggling Borrowers: The total number of loans in forbearance took a nosedive this week, with numbers down in every category. Cash-Outs Soar: Black Knight’s latest Originations Market Monitor report showed cash-out refinancing rose 41% in the last three months, while overall rate locks for mortgage originations increased in August. MHCs: Freddie Mac rolled out new tenant protections for manufactured home owners who rent the land they live on. Breathing Room: Ginnie Mae is…
