Delinquencies Improved In Q2, But The Future Looks Bleak

Mortgage delinquencies improved in the second quarter of 2023, but homeowners face increasing credit stress as the year drags on. The Mortgage Bankers Association reported that the delinquency rate for mortgage loans on one-to-four-unit residential properties fell to a seasonally adjusted rate of 3.37% of all loans outstanding at the end of Q2 2023, down 9 bps from Q1 and 27 bps YOY.  This is the lowest level on MBA’s record, which dates back to 1979.  “Buoyed by a resilient job market, homeowners are continuing to make their mortgage payments,” said Marina Walsh, CMB, MBA’s Vice President of Industry Analysis.  Foreclosure actions also dipped by 3 bps to 0.13%, and foreclosure inventory is down from last quarter. But Walsh pointed…

Lenders Struggling To Overcome Borrower Rate-Fixation Need To Focus On Communication

As the market corrects and mortgage demand sinks, lenders are struggling to market themselves to a shrinking pool of rate-focused borrowers, according to J.D. Power’s latest U.S. Mortgage Origination Satisfaction Study. The study found that as demand hits a 22-year low, mortgage brokers are finding it difficult to stand out from the crowd. Borrowers are choosing lenders based solely on who is offering the lowest rate that day. “The average mortgage customer experience has become increasingly commoditized, with few lenders finding the right formula to build long-term trust and loyalty that truly stands out from the competition,” the report reads. Rocket Mortgage ranked highest for origination satisfaction, followed by Chase, Citi, and Fairway Independent. Overall, lenders were on equal footing…