Top markets for affordable renovated housing inventory

Despite the rapidly deteriorating affordability, there is some hope for homebuyers in the form of renovated homes: properties that have been rehabbed into move-in ready condition after being purchased at auction.

HousingWire Magazine: December 2021/ January 2022

AS WE ENTER A NEW YEAR, let’s look at some of the events that we can look forward to in 2022. But what about what’s next for the housing industry?

Mortgage Tech Virtual Demo Day

Tune in to our live Virtual Demo Day on December 1st at 10am CT to experience demos from the most innovative tech companies in the Servicing, Audit and Post-Close space.

Logan Mohtashami on Omicron and pending home sales

In this episode of HousingWire Daily, Logan Mohtashami discusses how the new COVID variant, Omicron, will impact inflation and whether or not it will send mortgage rates lower.

Mortgage

Forbearance numbers dip slightly as exits slow

The total number of loans in forbearance declined by 1 basis point to 3.25%, according to the MBA.

The total number of loans in forbearance remained relatively unchanged, declining by one basis point to 3.25% as of Aug. 15, according to the Mortgage Bankers Association’s latest tally. Though the drop is more subdued than in previous weeks, the decline continues a downward trend across most categories.

Fannie Mae and Freddie Mac loans decreased by three bps from 1.69% to 1.66%, while Ginnie Mae loans dropped three bps to 3.92%, the MBA said.

However, the portfolio loans and private-label securities (PLS) share remained elevated, increasing 10 bps to 7.15%.  

Mike Fratantoni, senior vice president and chief economist at the MBA, noted that “Portfolio and PLS loans now account for almost 50% of all depository servicer loans in forbearance…which highlights the importance of the investor category.”

Fratantoni also said that the muted results of the survey are in part due to a slower pace of new requests and exits compared to a year prior.


How proactive communication can reduce the risk of foreclosure

As borrowers impacted by COVID-19 continue to exit mortgage forbearance, now is the time for lenders and servicers to be proactive in their borrower outreach to reduce foreclosure volume.

Presented by: Computershare Loan Services

“In fact, exits were at their slowest pace in over a year,” he added. (The volume of weekly forbearance requests decreased from 0.06% to 0.05%.)

The trade group estimates that currently 1.6 million borrowers are in forbearance.

Meanwhile, the survey shows that 10% of total loans are in the initial forbearance stage and that 82.3% are in a forbearance extension. The remaining 7.7% are forbearance re-entries, the MBA said.

Out of the borrowers who exited forbearance from June 1, 2020 through Aug. 15, 2021, 28.3% opted for a loan deferral/partial claim and 22.6% continued making their monthly payments during their forbearance period.

Despite numerous loss mitigation options offered by the FHA and the FHFA, 16.1% of borrowers who exited forbearance during this time period did not make their monthly payments while in forbearance and exited forbearance without a loss mitigation option in place, the survey said.

Weekly servicer call center volume was also muted relative to the prior week, with the percent of calls decreasing from 7.5% to 7.3%, the MBA concluded.

Leave a Reply

Your email address will not be published. Required fields are marked *

Most Popular Articles

FHFA: Government to back mortgages up to $970,800 in 2022

The FHFA today announced the baseline conforming loan limit for 2022 will be $647,200, an increase of 18%. In high-cost areas, the new ceiling loan limit will be $970,800.

Nov 30, 2021 By

Latest Articles

Zillow: Over half of our iBuying inventory is on the move

Zillow said Thursday that more than 50% of its remaining iBuying inventory “has sold, is under contract to sell or has reached agreement on disposition terms.”

Dec 02, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please