A new monthly loan monitoring study released by the Mortgage Bankers Association (MBA) this week revealed that the total number of foreclosed loans has now fallen by 26 basis points from 1.67% of providers’ portfolio size in the previous month to 1.41% as of December 31, 2021. According to For MBA estimates, there are 705,000 homeowners in patience plans.
The share of Fannie Mae and Freddie Mac loans fell 8 basis points to 0.68%. Ginnie Mae’s deductible loan fell 47 basis points to 1.63%, and the Portfolio Loan and Private Securities (PLS) share of deductible fell 51 basis points to 3.43%.
- Total loans granted decreased by 26 basis points in December 2021 compared to November 2021: from 1.67% to 1.41%.
- By type of investor, the share of Ginnie Mae loans in deductibles decreased from the previous month: from 2.10% to 1.63%.
- Fannie Mae and Freddie Mac’s share of impatient loans decreased from the previous month: from 0.76% to 0.68%.
- The share of other loans (for example, portfolio loans and PLS loans) in deductibles decreased compared to the previous month: from 3.94% to 3.43%.
- Total serviced loans that were on-going (not past due or under foreclosure) as a percentage of service portfolio size (#) increased to 94.85% in December 2021 from 94.58% in November 2021 (on a seasonally unadjusted basis).
- The five states with the highest share of loans currently had as a percentage of the services portfolio: Idaho, Washington, Colorado, Utah, and Oregon.
- The five states with the lowest share of loans were current as a percentage of the services portfolio: Louisiana, Mississippi, New York, Illinois, and Indiana.
- Total loan drills completed from 2020 onwards (payment plans, loan deferrals/partial claims, loan modifications) that were current as a percentage of total completed drills decreased to 83.50% last month from 3.69% in November.
“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 borrowers have either experienced permanent hardship that may require more complex loan experimentation solutions, or have recently faced hardship and are now seeking relief.”
To see the full report, go to www.mba.org/loanmonitoring. For additional information, visit the MBA website: www.mba.org.