Serious Delinquencies Lowest Since May 2020

Only 4.2% of all mortgages were in some stage of delinquency in July 2021, according to CoreLogic’s monthly Loan Performance Insights Report. This is a 2.3% drop from July 2020, when it was 6.5%, but higher than the pre-pandemic rate of 3.6%. The rate of early-stage delinquencies, ranging 20 to 59 days past due, dropped 0.4% year-over-year to 1.1%. Adverse delinquencies, 60 to 89 days past due, fell from 1% to 0.3% year-over-year. Delinquencies 90 or more days past due, or serious delinquencies, fell from 4.1% to 2.8%. It is the lowest serious delinquency rate since May 2020. The share of mortgages that transitioned from current to 30 days past due dropped from 0.8% to 0.6% year-over-year. The foreclosure inventory…

Black Knight: Equity Won’t Save Homeowners From Foreclosure

Huge equity increases for homeowners might not be enough to prevent foreclosures, according to Black Knight’s latest Mortgage Monitor Report. “An analysis of our McDash loan-level mortgage performance dataset back to 2007 shows that holding equity in one’s home might not be a blanket backstop to foreclosure activity,” said Black Knight Data & Analytics President Ben Graboske.  He explained that for homeowners who were 120 or more days late, having high equity did not significantly change the likelihood of being recommended for foreclosure. While borrowers are considerably less likely to have their homes involuntarily liquidated if they have high equity, it does happen. Thirty percent of borrowers recommended for foreclosure with 40% equity stakes lost their homes. “What the data…

CFPB Seeks To Avoid Foreclosure Glut

With 2.5 million Americans still in mortgage forbearance plans, the Consumer Financial Protection Bureau is proposing rule changes designed to prevent people from losing their homes when the foreclosure bans expire. The CFPB issued a proposal Monday that would: Prohibit lenders from starting foreclosure proceedings until after December 31 to give borrowers time to get caught up.Provide options to lenders to offer streamlined loan modification options to borrowers with Covid-19-related issues.Require lenders to communicate with borrowers in a timely way to ensure they are aware of their options. “The nation has endured more than a year of a deadly pandemic and a punishing economic crisis.  We must not lose sight of the dangers so many consumers still face,” CFPB Acting…

CFPB Says Millions Face Foreclosure, Evictions

Millions of Americans face foreclosure and eviction from their homes once housing pandemic protections come to an end, according to a report released Monday by the Consumer Financial Protection Bureau. The CFPB found that nearly 11 million families are behind on rent or mortgage payments, with 8.8 million behind on rent and 2.1 million behind on their mortgages. That accounts for nearly $90 billion in missed mortgage payments. The report also found: Black and Hispanic families are more than twice as likely to report being behind on housing payments than white families.While mortgage forbearance has dropped foreclosures to historic lows, 1 million homeowners are more than 90 days behind on payments and are likely to experience severe financial hardship when…

FHFA Extends Eviction, Foreclosure Bans

The Federal Housing Finance Agency on Thursday announced extensions on the bans on foreclosures and evictions, bringing Fannie Mae and Freddie Mac policies in line with others recently announced by the federal government. Enacted in response to the Covid-19 pandemic, the moratoriums on single-family foreclosures and real estate owned evictions will be in place until June 30, 2021, FHFA announced. The foreclosure moratorium applies to Fannie and Freddie-backed, single-family mortgages. The REO eviction moratorium applies to properties that have been acquired by a Fannie or Freddie through foreclosure or deed-in-lieu of foreclosure transactions. FHFA also announced that borrowers may be eligible for an additional three-month extension of Covid-19 forbearance, allowing borrowers to be in forbearance for up to 18 months.  …

HUD Extends Eviction, Foreclosure Bans

The Biden Administration announced Tuesday that it will extend the Federal Housing Administration’s foreclosure and eviction moratoriums into the summer, while also extending mortgage forbearance options. The ban on foreclosure and evictions will be in place through June 30, the Department of Housing and Urban Development announced. The Office of Public and Indian Housing also is planning to announce similar relief for Native American and Native Hawaiian homeowners. “As President Biden has made clear, it is urgent that we help homeowners throughout the nation who are struggling financially from this unprecedented national emergency,” Acting HUD Secretary Matthew Ammon said. “The steps we are taking today will provide both immediate relief to those in desperate need of assistance and help more…

FHFA Extends Foreclosure, Eviction Ban

The Federal Housing Finance Agency announced that Fannie Mae and Freddie Mac are extending the moratoriums on single-family foreclosures and real estate owned evictions until March 31. They had been set to expire February 28. Originally enacted last year to protect homeowners during the Covid pandemic, the moratorium applies to Fannie and Freddie-backed, single-family mortgages only. The REO eviction moratorium applies to properties that have been acquired by Fannie and Freddie through foreclosure or deed-in-lieu of foreclosure transactions. “To keep families in their home during the pandemic, FHFA is allowing borrowers to be in COVID-19 forbearance for up to 15 months and extending the Enterprises’ foreclosure and eviction extension,” said Director Mark Calabria. FHFA announced it projects expenses of $1.5…

Homeowners, Renters Fear Foreclosure, Eviction

Millions of Americans are feeling insecure about their housing situation, with 2.3 million renters fearing eviction and 1.2 million borrowers fearing foreclosure – or would be forced to move in the next 30 days. Those findings were included in the Mortgage Bankers Association’s report released Monday. The report, by MBA’s Research Institute for Housing America, also found that 5 million US households did not make their rent or mortgage payments in December. “A rapid rollout of vaccines will hopefully slow the virus and lead to a larger reopening of the economy later this year,” said Gary V. Engelhardt, Professor of Economics in the Maxwell School of Citizenship and Public Affairs at Syracuse University. “This would help the labor market and…

Foreclosure Ban Extended Through February

Another month, another extension. The Federal Housing Finance Agency announced that Fannie Mae and Freddie Mac are extending the moratoriums on single-family foreclosures and real estate owned evictions until February 28.  Originally enacted last year to protect homeowners during the Covid pandemic, the moratorium applies to Fannie and Freddie-backed, single-family mortgages only. The REO eviction moratorium applies to properties that have been acquired by Fannie and Freddie through foreclosure or deed-in-lieu of foreclosure transactions. “To keep our communities safe, and families in their homes during the COVID-19 pandemic, FHFA is extending Fannie Mae and Freddie Mac’s foreclosure and eviction moratorium,” Director Mark Calabria said. FHFA projects additional expenses of $1.4 to $2 billion will be borne by Fannie and Freddie…

FHA Extends Foreclosure, Eviction Ban

As the Covid-19 pandemic continues to hammer away in the United States, the Federal Housing Administration announced Monday that it is extending the foreclosure and eviction moratorium for FHA-insured mortgages through February 28. The FHA also is extending the deadline for single-family borrowers with FHA-insured mortgages to request forbearance from their lender. Forbearance allows homeowners to defer or reduce mortgage payments for up to six months, along with a possible six-month extension. “Today’s foreclosure moratorium and forbearance extensions for single family homeowners ensure American homeowners continue to have the critical relief and support they need to get back to financial stability,” HUD Secretary Ben Carson said.   This is the fourth extension of FHA’s eviction and foreclosure moratorium, which bars servicers…