The Day – The share of deferred mortgages fell slightly to 4.16 percent

0
46

[ad_1]

The latest MBA Abstinence and Calls study found that the total number of loans held on hold fell 2 basis points from 4.18% of the previous week’s service portfolio to 4.16 % as of May 30, 2021. The MBA estimates 2.1 million homeowners are on abstinence plans.

The share of loans to Fannie Mae and Freddie Mac in deferral fell by 1 basis point to 2.18%. Ginnie Mae’s term loans declined 1 basis point to 5.54%, while the termination rate for portfolio loans and private label securities (PLS) declined 6 basis points to 8.31%. The share of deferred loans to servicing personnel of independent mortgage banks (IMB) decreased by 2 basis points to 4.34%, while the percentage of deferred loans to servicing persons of the depository decreased by 1 basis point to 4.33%.

“The proportion of loans eligible for deferral has been declining for the 14th straight week, with small cuts for most types of investors and all types of service personnel,” said Mike Fratantoni, MBA senior vice president and chief economist. “Abstinence waiver fell to 6 basis points, the lowest weekly level since mid-February, but new requests for abstinence fell by 4 basis points to a recent weekly low since early May.”

Fratantoni added: “While overall employment growth in May was lower than many expected, other data suggest a stronger labor market. This is good news for homeowners who have struggled and are looking for work as more families can recover their income and start paying mortgage payments again. ”

Key Findings from the MBA Study on Patience and Call Count – May 24-30, 2021

  • The total amount of loans subject to deferral decreased by 2 basis points compared to the previous week, from 4.18% to 4.16%.
    • By type of investor, the share of Ginnie Mae loans in deferral decreased compared to the previous week: from 5.55% to 5.54%.
    • The share of loans to Fannie Mae and Freddie Mac in deferral decreased compared to the previous week: from 2.19% to 2.18%.
    • The share of other loans (for example, portfolio and PLS) in the grace period decreased compared to the previous week: from 8.37% to 8.31%.
  • In stages, 11.1% of the total number of abstinence loans are at the initial stage of the abstinence plan, and 83.2% are in the renewal stage. The remaining 5.7% is due to re-entry by abstinence.
  • The total number of weekly abstinence requests as a percentage of the volume of the service portfolio (#) decreased compared to the previous week, from 0.05% to 0.04%.
  • Of the total abstinence outputs for the period from June 1, 2020 to May 30, 2021:
    • 27.4% led to a delay / partial repayment of the loan.
    • 24.6% represented borrowers who continued to make monthly payments during the abstinence period.
    • 15.0% represented borrowers who did not meet all of their monthly payments and exited the grace period until they developed a loss mitigation plan.
    • 14.0% resulted in a recovery in which overdue amounts are refunded upon exiting the deferred payment.
    • 10.0% resulted in a loan change or trial loan change
    • 7.5% resulted in loans being repaid either through refinancing or through the sale of the home.
    • The remaining 1.5% resulted in repayment plans, short sales, bequests, or other reasons.
  • The weekly volume of the call-center of the service personnel:
    • As a percentage of the volume of the service portfolio (#), the number of calls remained at the level of 6.5% compared to the previous week.
    • The average response rate dropped from 1.3 minutes to 1.2 minutes.
    • The bounce rate dropped from 4.1% to 3.8%.
    • The average call time increased from 7.7 minutes to 7.8 minutes.
  • The share of overdue loans in the volume of the service portfolio (#) as of May 30, 2021:
    • Total: 4.16% (previous week: 4.18%)
    • IMB: 4.34% (previous week: 4.36%)
    • Deposits: 4.33% (previous week: 4.34%)

Mortgage Bankers Association



[ad_2]

Source link