The latest economic and policy trends facing mortgage servicers

Join this webinar for an in-depth roundtable discussion on economic and policy trends impacting servicers as well as a look ahead at strategies servicers should employ in the next year.

2021 RealTrends Brokerage Compensation Report

For the study, RealTrends surveyed all the firms on the 2021 RealTrends 500 and Nation’s Best rankings, asking for annual compensation data for the 2020 calendar year.

Steve Murray on the importance of protecting property rights

In this episode, Steve Murray, RealTrends advisor and industry stalwart, discusses some of the issues facing private property rights, including how a case in Germany could potentially affect U.S. legislation.

Lenders, it’s time to consider offering non-QM products

The non-QM market is making a comeback following a pause in 2020. As lenders rush to implement, Angel Oak is helping them adopt these new lending products.

Politics & Money

Bond yields foretold housing market and economic recovery

Forbearance continues to fall thanks to responsible lending after 2010

HW-money-mask- stimulus check

The recent action in the 10-year bond yield has puzzled many people, but it looks wonderful to me as it shows that the U.S. economy and housing market are leading the world out of the recession. When I wrote the America Is Back economic model on April 7, 2020, the bond market was already signaling that the economy and housing would be ok.

In addition to the bond market yield action, responsible lending post-2010 gave me confidence that forbearance was not going to be the negative issue that many had hoped for. I coined the term forbearance crash bros last year to show that people who screamed that the housing market would crash in 2020 simply weren’t equipped to talk about housing economics in 2020 and 2021. While lending standards were never tight in American in the 21st century, they were very responsible post-2010.

On Friday, Black Knight reported that the number of loans in forbearance are on the verge of falling below 2 million. Roughly one year from the onset of the COVID-19 crisis in the U.S., the number of loans in forbearance programs has fallen by more than half, going from near 5 million to 2 million loans. The number of loans in forbearance peaked early in the crisis and has fallen steadily since late June of 2020, as Americans regained jobs lost due to the pandemic.

The continual decline in the number of loans in these programs may have surprised some people who have been predicting a flood of foreclosures coming onto the housing market and a subsequent massive decline in home prices once the forbearance programs end. More on the convoluted thinking by the so-called “forbearance crash bros” can be found here.

Loans in forbearance keep falling

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