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?

Back to the Future of Mortgage Lending

This webinar will be a discussion on understanding 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 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.

CoronavirusMortgage

Nearly 10% of FHA and VA borrowers are in forbearance

Total forbearance nearing 7%

Thanks to the continued impact of COVID-19 on the economy, approximately 10% of borrowers whose mortgages are backed by the Federal Housing Administration or the Department of Veterans Affairs are in forbearance.

The data comes courtesy of a new report from the Mortgage Bankers Association, which polled more than 50 mortgage servicers that collect payments on nearly 77% of the mortgage market.

According to those servicers, nearly 7% of the 38.3 million loans they service were in forbearance as of April 19, 2020.

That’s an increase of more than one full percentage point from the previous week’s total of 5.95%.

But the largest segment of borrowers in forbearance have mortgages backed by the FHA or VA. According to the report, 9.73% of the loans in Ginnie Mae’s portfolio are in forbearance. That’s an increase of 1.47% from the previous week’s total of 8.26%.

Ginnie Mae is the government agency that issues mortgage bonds backed by FHA and VA loans.

According to the MBA report, the share of Fannie Mae and Freddie Mac loans in forbearance also increased, rising from 4.64% to 5.46%. The share of other loans (those included in private-label securities or held in portfolio) in forbearance rose from 6.43% to 7.52%.

Click to enlarge. Image courtesy of the MBA

It should be noted that this data is from the week ending April 19. Newer data from Black Knight shows that the share of GSE loans in forbearance is at 5.6%.

But the Black Knight data, which is pulled from a sample set of loans that represent the majority of the mortgage market and extrapolated across the entire mortgage landscape, shows that 8.9% of FHA/VA borrowers are in forbearance and about 5.7% of loans held either in portfolio or privately securitized are in forbearance.

Neither report is fully inclusive and representative of the entire mortgage market, but both sources of data show that there are still many borrowers who need forbearance.

“Forbearance requests fell relative to the prior week but remain roughly 100 times greater than the early March baseline,” said Mike Fratantoni, MBA’s senior vice president and chief economist. “While the pace of job losses have slowed from the astronomical heights of just a few weeks ago, millions of people continue to file for unemployment. We expect forbearance requests will pick up again as we approach May payment due dates.”

But Fratantoni said that there are some signs that forbearance requests could begin to decline.

“The combination of stimulus payments, expanded unemployment insurance benefits, further fiscal and monetary actions, and states reopening will hopefully begin to stabilize forbearance requests and the overall economy,” Fratantoni said.

Most Popular Articles

Better.com lays off LOs, secures $750M cash injection

Digital mortgage lender Better.com is laying off 9% of its workforce ahead of a $750 million cash injection from financial backer SoftBank Group.

Dec 01, 2021 By

Latest Articles

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.

Dec 06, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please