Patience dropped dramatically in a month



According to the Mortgage Bankers Association, the number of mortgage loans due to the abandonment of the coronavirus fell by 14 basis points between August 2 and 8.

Loans in abstinence plans accounted for 3.26% of all outstanding mortgages, representing an estimated 1.6 million homeowners. This number fell from 3.4% a week earlier and reached its lowest level. from 2.66% at the end of March 2020. The share of bad loans from independent mortgage banks decreased by 17 basis points to 3.46%, and from depositories – by 13 basis points to 3.36%.

According to MBA Senior Vice President and Chief Economist Mike Fratantoni, the sharp increase in the number of borrowers facing maturity has led to the largest reduction in deferred payments in a month.

“The number of new refraining requests has increased slightly this week, especially for Ginny Mae loans, but the overall trend remains positive. Incoming data continues to support our forecast improving the labor market in the coming months, ”Fratantoni said in a press release.

The shares of issued mortgage loans decreased for each type of investor. Loans to government-funded organizations continued to have the lowest NPL rate, dropping to 1.69% from 1.74%. Jeannie Mae Credits – Consists of Federal Housing Authority, Department of Veterans Affairs and US Department of Agriculture, Rural Housing Service – fell to 3.95% from 4.18%. Private label securities and portfolio loans – products not authorized by CARES – fell to 7.05% from 7.37%.

The share of 9.7% of all mortgages with suspended payments due to difficulties associated with the pandemic was in the initial stage of abstinence, 82.8% switched to extended plans, and the remaining 7.5% re-entered into abstinence after the previous exit.

The share of requests for deferred payment in the service portfolio increased to 0.06% from 0.04% a week earlier. The share of call centers in the portfolio also increased from 6.8% to 7.5%.

Of the exits before August 8, 2021 from June 1, 2020, 28.2% ended with a deferral or partial claim, 22.7% continued to make their monthly payments, 16.1% left without a loss mitigation plan, 13.2% were repaired, 11% changed their loans, 7.4% are paid by refinancing or sale, and 1.4% are involved in a repayment plan, short sale or replacement.

The MBA sample for this week’s survey includes a total of 48 service providers, 25 independent mortgage bankers and 21 depositaries, as well as two ancillary services. In terms of the number of units, respondents accounted for about 74%, or 36.9 million outstanding mortgages with first collateral.


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