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Mortgage forbearance rates improve despite higher delinquencies

March 21,2023 | By ERICKSON J OCASIO

"The results on mortgage performance are welcome news" Mortgage forbearances were down across the board in February, with the total number of loans currently in forbearance plans declining four basis points from January, according to the Mortgage Bankers Association. MBA reported Monday that 300,000 homeowners are in forbearance plans, representing 0.60% of servicers’ portfolio volume as of February 28. The improvement comes as the national delinquency rate jumped 51 basis points to 3.69% in the fourth quarter of 2022. “The February results on mortgage performance is welcome news, given recent increases in delinquencies for other credit types such as credit cards and auto loans,” said Marina Walsh, MBA’s vice president of industry analysis. “However, with the possibility of a recession this year, we may see some deterioration in perform

Delinquency rate for mortgage loans on the rise – MBA

February 18,2023 | By ERICKSON J OCASIO

However, foreclosure starts were down despite ongoing economic challenges. The delinquency rates for loans on residential properties increased at the end of 2022 amid economic headwinds and inflationary pressures, the Mortgage Bankers Association reported Thursday. Mortgage delinquency rates rose to a seasonally adjusted rate of 3.96% in the fourth quarter, up 51 basis points from the third quarter but still down 69 basis points from a year ago. The share of loans on which foreclosure actions were started in Q4 dropped by one basis point to 0.14%. “As expected, the overall national mortgage delinquency rate increased in the fourth quarter of 2022 from its previous quarterly survey low,” said Marina Walsh, vice president o

Prepayment activity hits rock bottom as delinquency rate climbs

November 24,2022 | By ERICKSON J OCASIO

Black Knight provides a sneak peek into the latest data. Prepayments across the US dropped to the lowest rate recorded since at least 2000, new data has revealed, while the mortgage delinquency rate continued its upward climb by another 4.5% in October. Data analytics company Black Knight has provided a sneak peek into October’s mortgage performance statistics before its in-depth report becomes available online later this year. The preview shows the lowest recorded prepayment activity since Black Knight began tracking the metric in 2000, a single-month mortality rate of 0.48% in October. This prepayment rate was 16.5% lower than the 0.55% recorded from the previous month. At the same time, Black Knight’s numbers showed the first signs of the aftermath from Hurricane Ian, with the national delinquency rate shooting up from September to 2.91% in October and Florida topping th

Mortgage forbearances remain flat as pace of exits slow

July 23,2022 | By ERICKSON J OCASIO

"It is worth monitoring post-forbearance workouts," MBA says. An estimated 405,000 homeowners remain in forbearance plans as of June 30, according to data from the Mortgage Bankers Association’s latest loan monitoring survey. The total number of loans in forbearance stayed relatively flat with just a -four-basis-point drop, down to 0.81% from 0.85% of servicers’ portfolio volume in May. About 30% of total loans in forbearance were in the initial stage, while 57.6% were in a forbearance extension. The remaining 12.6% were forbearance re-entries, including re-entries with extensions. “Borrowers continue to exit forbearance, but at a much slower pace than six or nine months ago,” said Marina Walsh, MBA’s vice president of industry analysis. “New forbearance requests are still trickling in, as permitted under the CARES Act, resulting in very li

Mortgage delinquencies hit new low, but challenges loom

April 13,2022 | By ERICKSON J OCASIO

"Some owners struggle to remain current after forbearance and loan modification" The overall mortgage delinquency rate in the US fell to a new record low in January, according to a report released by CoreLogic. The share of mortgages in some stage of delinquency (30 days or more past due, including those in foreclosure) dropped 2.3% year over year to 3.3% in January. According to CoreLogic, this marks the lowest recorded overall delinquency rate since at least January 1999. “The drop in the nation’s overall mortgage delinquency rate in January marked the 10th consecutive month of year-over-year declines. This trend can be attributed to two familiar factors: escalating home prices and a strong job market,” CoreLogic said in its release. By stages, early-stage delinquencies (30 to 59 days past due) dipped one basis point from the same period a y

Mortgage default risk remained stable in Q4 2020

May 5,2021 | By Erickson Ocasio

The estimated lifetime default risk of government-backed home loans remained flat in the fourth quarter of 2020, results of the Milliman Mortgage Default Index (MMDI) revealed. As interest rates fell to record lows, mortgage default risk rate for GSE loans dropped from 1.28% in Q3 to 1.27% in Q4. Meanwhile, the MMDI rate for Ginnie Mae loans edged up from 7.39% to 7.64% quarter over quarter. Buoyed by solid borrower demand and low rates, mortgage volume for government-backed loans soared by more than 132% year-over-year. Refinance loans made up roughly 71% of GSE mortgage volume for the quarter, while approximately 56% of Ginnie Mae loans originated in Q4 were the result of refinancing. Cash-out refinance volume, which is typically seen as riskier loan products relative to rate/term refinance mortgages, increased significantly. GSE cash-out refinance mortgages averaged approximately $5 billion per month from 2014

Why Hawaii and Nevada had the largest delinquency spike in December

March 10,2021 | By Erickson Ocasio

Hawaii and Nevada experienced the largest annual increase in overall delinquency rates in 2020, exacerbated by millions of Americans losing their jobs during the pandemic. Black Knight’s December Loan Performance Insights Report revealed that overall delinquency rates rose 2.1% year over year, with 5.8% of mortgages in some stage of delinquency (30 days or more past due, including those in foreclosure). Hawaii and Nevada posted the biggest gains (both up 4.1%), followed by New York (up 3%), Louisiana and New Jersey (both up 2.8%), Maryland (2.6%), and Mississippi (1.5%). “Places with large job losses during the last year also experienced big jumps in mortgage delinquencies,” said CoreLogic Chief Economist Frank Nothaft. “By state, Hawaii and Nevada had the largest 12-month spike in delinquency rates, both up