Adam Constantine on MLK Jr.’s impact on housing equality

During the interview, Constantine explains why the industry needs to focus on evoking intentional change rather than launching lackluster initiatives.

Navigating capacity concerns amidst record-high volumes

High loan volumes continues to loom large in the new year, making the “one-stop-shop” approach to the servicing and lending process even more appealing.

Amid record-high origination volumes, mortgage fraud risk is down

CoreLogic's recently released Mortgage Fraud Report is the industry standard for nationwide fraud monitoring and analysis. Read the findings here.

How student loan debt impact homeownership

Student loan expert Catalina Kaiyoorawongs shares her practical and tangible advice for people who feel overwhelmed by their student loan debt.

Mortgage

400,000 mortgage borrowers are “needlessly delinquent”

The loans are spread across servicers, Urban Institute says

There are about 400,000 mortgage borrowers “needlessly delinquent” as a result of the COVID-19 pandemic who did not use available forbearance options, according to a report from the Urban Institute.

These are borrowers with mortgages backed by the federal government who could have gotten help by getting a forbearance agreement, a right given to them by the CARES Act passed by Congress at the end of March, according to the report by Laurie Goodman and Michael Neal.

“These borrowers may not know they are eligible for forbearance or do know but wrongly fear having to make ‘double payments’ when the forbearance period ends,” the report said.

There is little difference in the creditworthiness of the borrowers, compared with borrowers who are in forbearance, the report said. The loans are spread across servicers, and “are almost equally likely to be serviced by banks and nonbanks,” it said.

The age of the loan was not a factor, per the report. The share of “needlessly delinquent” loans remained constant at about 2% regardless of the year of origination, the report said. Looking just at loans in forbearance, the share increases with more recent mortgages, the report said.

“Although some government messaging around forbearance options as an alternative has occurred, broader outreach may be in order,” the report said. “Servicers are an important part of this outreach, but outreach efforts must also include assistance from consumer groups.”


What subservicing looks like during a pandemic

As the world continues to navigate the impacts of COVID-19, HousingWire sat down with TMS to learn more about their customer service philosophy and why proactively educating borrowers on forbearance is essential.

Presented by: TMS

The U.S. forbearance rate measuring the share of mortgages with suspended payments fell to 6.81% in the last week of September, the lowest since mid-April, the Mortgage Banker Association said in a report on Monday.

The forbearance rate for Fannie Mae and Freddie Mac loans dropped seven basis points to 4.39%, while the rate for Ginnie Mae loans that include loans backed by the Federal Housing Administration increased one basis points to 9.16%.

Leave a comment

Most Popular Articles

Prepare for the rise in mortgage rates

Economists offer their takes on how high mortgage rates will climb, how lenders will respond and what impact this will have on the housing market. HW+ Premium Content

Jan 18, 2021 By

Latest Articles

2020 ends with 3.4 million loans in delinquency

The final delinquency tally for December is in, with data revealing that by end of 2020, 1.54 million more mortgages were reported delinquent.

Jan 22, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please