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.

Don’t sleep on non-QM products

Now is the perfect time for originators to consider expanding to non-QM products – to grow business, diversify their offerings and to ensure an opportunity to better serve their customers.

Mortgage

Mortgage forbearances rise after three weeks of decline

8.8% of U.S. mortgages have suspended payments, up from 8.7% last week, Black Knight says

Mortgage forbearances rose this week after three consecutive declines, Black Knight said in a report on Friday.

There were 4.68 million homeowners with forbearance plans this week, meaning their mortgage payments are temporarily suspended, up 79,000 from the prior week, Black Knight said. The total represents 8.8% of all active mortgages, up from 8.7%, the report said.

Broken out by investor types, 6.9% of mortgages backed by Fannie Mae and Freddie Mac are in forbearance, up from 6.8% last week. That’s a total of 1.93 million mortgages with $405 billion in unpaid principal, the report said.

The forbearance share for home loans backed the Federal Housing Administration was 14.7%, up from 14.3%, and the share for mortgages backed by the Veterans Administration was 7.5%, up from 7.3%, according to Black Knight.

Together, the FHA and VA loans represent $258 billion of unpaid principal, the mortgage data firm said.

In addition, there are 1.5 million private-market mortgages in forbearance, representing a 9.6% share, up from 9.5% last week, Black Knight said.

Private-market mortgages aren’t backed by a government agency or a GSE. They could be jumbo mortgages held by banks or home loans packaged into private-label bonds. The unpaid principal balance for those mortgages is $361 billion.

At this week’s level for all types of mortgages in forbearance, servicers need to advance a combined $5.7 billion a month in principal and interest payments to holders of government-backed mortgage securities on COVID-19-related forbearances, the report said.

In April, the Federal Housing Finance Agency said servicers handling GSE-backed mortgages were only required to advance four months of missed payments for loans in forbearance. After that, the servicer is under “no further obligation to advance scheduled payments,” the agency said.

Leave a comment

Most Popular Articles

Volume-hungry mortgage lenders loosen credit standards

Mortgage credit availability loosened up in April by 2.2%, per the MBA. The drivers were in conventional mortgages and GSE programs for ARMs and high-balance loans.

May 11, 2021 By

Latest Articles

New home sales battled scorching prices in April

Mortgage applications for new homes dropped 9% in April from March, however, overall applications are still up a whopping 30.8% year over year.

May 13, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please