How to simplify the appraisal process for everyone in today’s hot market

The housing market isn't slowing down anytime soon, and appraisers need to make sure they have the right tools to manage the high demand.

Who’s afraid of the PSPA?

Stakeholders are divided over whether, in light of proposed changes to its capital rule, the FHFA should retool its agreement with the U.S. Treasury and remove policies some say never belonged there in the first place.

Back to the Future of Mortgage Lending

This webinar will discuss what’s to come in the future of mortgage lending by analyzing past trends in the industry, evolving consumer behaviors and demographics of the industry’s production capacity.

Logan Mohtashami on jobs data and the bond market

In this episode of HousingWire Daily, Logan Mohtashami discusses what the jobs data, changes in the bond market, and the Omicron variant could mean for housing.


More borrowers are getting forbearance modifications

The total number of loans in forbearance decreased to 2.06% as of Oct. 31, shows MBA

Forbearance predictably declined across the board last week as exits accelerated, but more borrowers are going into plan modifications because they are still struggling to recover their pre-pandemic income.

The total number of loans in forbearance decreased by nine basis points to 2.06% as of Oct. 31, according to the latest report from the Mortgage Bankers Association (MBA). In the previous week, the rate dropped six basis points to 2.15%.

Just over one million homeowners are still in forbearance plans. The survey included data on 36.6 million loans serviced as of Oct. 31, 73% of the first-mortgage servicing market. This is the last MBA’s weekly survey, as the trade group is moving to a monthly report.

Fannie Mae and Freddie Mac loans in forbearance declined five basis points to 0.92%. Meanwhile, Ginnie Mae loans decreased by 13 bps to 2.52%

The most notable decline was in the independent mortgage bank portfolio, which dipped 15 basis points to 2.28%. The share of private-label securities (PLS) loans in forbearance fell 13 basis points to 5%. For depository servicers, the percentage declined 5 bps to 2.02%.

How servicers can support the most vulnerable as moratoriums lift

Tune into this discussion about how servicers can create a transparent process for homeowners exiting forbearance.

Presented by: Xome

According to Mike Fratantoni, the MBA’s senior vice-president and chief economist, more borrowers exiting plans in the last week of October went into modification, “a sign that they have not yet regained their pre-pandemic level of income.”

“The strong job market report from October, with another drop in the unemployment rate and a pickup in wage growth, is a positive sign for homeowners still struggling to get back on their feet,” he added.

The survey shows that 15.8% of total loans in forbearance were in the initial stage last week, and 73.9% were in a forbearance extension. The remaining 10.3% were re-entries.

Weekly call volume for servicers was up, from 5.9% of the servicing portfolio volume the week prior to 6.5%.

During the last 15 months, MBA’s data revealed that 29.1% of exits resulted in a loan deferral or partial claim. Also, 20.4% represented borrowers who continued to pay during the forbearance period.

However, 16.7% were borrowers who did not make their monthly payments and did not have a loss mitigation plan. In addition, 13.4% resulted in a loan modification or a trial loan modification, compared to 13.1% in the previous week.

Total requests were at 0.04% of servicing portfolio volume, while exits represented 0.17% of the total – in the previous week, the share was 0.09%, the report said.

Leave a Reply

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

Most Popular Articles

Pending home sales shock 2021 housing crash bears

Pending home sales beat estimates and we can now say the 2021 housing crash bears are even worse forecasters than the 2020 housing crash bears.

Nov 29, 2021 By

Latest Articles

To advance mortgage lending, trust must take backseat to truth

The problem with the “trust, but verify” model, which is still used by many lending institutions today, is that it’s time-consuming and expensive.

Dec 07, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please