Remaining Forborne Loans May Require Additional Relief

Remaining Forborne Loans May Require Additional Relief
Written by Publishing Team

The Mortgage Bankers Association (MBA) has started a new monthly edition loan control surveyto replace it Weekly endurance and call volume survey It publishes weekly from the beginning of the epidemic until December 1. The new report covers both defaults and defaults on loans for the month of December. At the end of the reporting period, the MBA estimated that 750,000 loans remained in place, 1.41 percent Mortgages in portfolios of services. This represents a decline of 26 basis points over the month.

By stage, it was 23.2 percent of the total loans taken in Egypt Initial Patience plan phase, while 63.1% They were in extension. The remaining 13.7 percent are re-entries for stamina, including re-entries with extensions.

Fannie Mae and Freddie Mac’s (GSE) Loans Share in Patience decreased 8 basis points to 0.68 percent on the month and Ginnie Mae loans (FHA and VA) fell 47 basis points to 1.63%. Among those served, the share of loans granted to bank and private securities (PLS) portfolios decreased 51 basis points to 3.43 percent.

“The share of loans in forbearance continued to decline in December 2021. This was particularly the case for government, private and portfolio loans, as these loans had higher levels of forbearance compared to loans backed by Fannie Mae and Freddie Mac,” Marina said. Walsh, CMB, MBA Vice President for Industry Analysis. “With the number of delinquent borrowers continuing to fall below 750,000, the pace of monthly exits is at its lowest since the MBA began tracking exits in June 2020.”

Walsh added, “It is possible that the remaining impatient borrowers have encountered any of the permanent Hardship that may require more compound Workout loan solutions, or they have had hardship recently and are now seeking help.”

Share of non-performing loans serviced Independent Mortgage Banks (IMBs) It decreased from 1.94 percent to 1.66 percent. Among the portfolios he serves depository banks The stock fell 28 basis points to 1.24 percent

The MBA summarized the performance of the patience program according to the status of borrowers/loans at the time of their exit from the program starting in June 2020.

  • 29.1 percent of the loan was exited with partial or deferred claim.
  • 19.5% are borrowers who kept paying their monthly installments during their bearing period.
  • It was 16.9 percent of borrowers who didn’t pay all their monthly payments and got impatient without a loss mitigation plan.
  • 14.6 percent obtained a loan modification or trial loan modification.
  • 11.7 percent are refunds, where past due amounts are repaid when out of patience.
  • 6.9 percent repaid the loans by refinancing or by selling the house.
  • The remaining 1.3 percent resulted in payment plans, short sales, alternative instruments, or other results

MBA says so 94.85% of mortgage loans in service portfolios were outstanding as of December 31, up from 94.58 per cent at the end of November. The five states with the highest share of current loans were Idaho, Washington, Colorado, Utah and Oregon. Those with the lowest share of non-due loans were Louisiana, Mississippi, New York, Illinois and Indiana. The numbers are not seasonally adjusted.

The share of loans with loan settlements from 2020 onwards (payment plans, deferred loans/partial claims, loan adjustments) and remained current and performing decreased to 83.50 percent last month from 83.69 percent in November.

Responses to the MBA’s monthly loan monitoring survey account for 73 percent of the first mortgage service market of about 36.5 million loans.

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