True Stories: Hybrid, eNote and RON Implementation

Join expert panelists that will discuss the status of federal legislation, trends in digital adoption and how best to prepare your organization for the next generation of lending processes.

Spruce’s Patrick Burns on innovation in title technology

In the season finale of Housing News season 5, Spruce CEO discusses heightened investor interest in title tech, innovation and fintech adoption.

Top CFPB official “hates” QM rules, jeopardizing safe harbor

A top CFPB official in charge of the rule-making process has heavily criticized the agency's own qualifying mortgage rule, jeopardizing safe harbor.

Fraud risk factors at closing increased almost 90% last quarter

A variety of risk factors could be contributing to the drastic increase in wire and title fraud risk factors in mortgage and real estate closings – for example, compliance issues and an increase in transaction data errors.


In a bid for stability, FHFA and FHA extend forbearance policies

The extension means some borrowers may not exit forbearance until Dec. 31, 2021.

Major forbearance policy changes have been set into motion.

The Department of Housing and Urban Development announced on Tuesday an extension allowing single-family homeowners with Federal Housing Administration-insured mortgages to request an initial forbearance through Dec 31, 2020.

Homeowners with FHA-insured mortgages that needed assistance due to financial hardship from the pandemic initially had through Oct. 30 to request forbearance. However, a news release from HUD said that the effects of COVID-19, coupled with its impact on borrowers across the country, led them to extend the period.

The FHA requires mortgage servicers to provide up to six months of COVID-19 forbearance when a homeowner requests this assistance, and up to an additional six months of forbearance for homeowners who request an extension of the initial forbearance. In effect, this means some borrowers may not exit this forbearance until the end of 2021.

“By providing this important extension, FHA seeks to assist those struggling with the continued financial effects of the COVID-19 pandemic,” said HUD assistant secretary for housing and federal housing commissioner Dana Wade. “Our goal is to make sure that no homeowner loses their home unnecessarily as a result of this pandemic.”

How 2020 continues to impact mortgage closings

We sat down with Altisource Vice President of Product Ben Hall to discuss the increased adoption of remote online notarizations.

Presented by: Altisource

The FHA’s forbearance announcement now aligns with its extended foreclosure moratorium, also set to expire Dec. 31. In a bid to keep homeowners in place, the FHA also expanded its menu of loss mitigation options in July that employed a “waterfall method” to help servicers assess homeowners at or before the end of their forbearance period.

The Federal Housing Finance Agency also embarked on forbearance assistance this week after announcing on Wednesday that Fannie Mae and Freddie Mac would continue to buy qualified loans in forbearance through Nov. 30.

In a release, the FHFA said it will continue to share aggregated data with the Consumer Financial Protection Bureau on loans that enter forbearance before delivery to the Enterprises – an action it says “will allow the FHFA to fulfill it obligation under the so-called ‘Qualified Mortgage Patch’ to ensure that loans sold to the Enterprises are complying with the intent of Dodd-Frank’s ability to repay provisions.”

Beginning the second week of October, forbearances fell below 3 million for the first time since April, and as of Oct.16 the number of all mortgages in active forbearance hovered at 5.6%. An August report from Black Knight revealed two and half million homeowners have exited forbearance already – with 1.8 million performing.

Ginnie Mae securities, primarily mortgages backed by the FHA and Veterans Administration, still lead the way in terms of share of loans in forbearance with 9.5% as of Friday. GSE loans, however, settled at 4%.

Leave a comment

Most Popular Articles

Mortgage forbearance drops to 4.36%, exits pick up steam

The downward trend of borrowers in forbearance picked up speed in the last week of April, falling 11 basis points to 4.36% of servicers’ portfolio volume.

May 10, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please