The number of abstinence decreases, with a set duration of protection



According to the latest figures from the Mortgage Bankers’ Association, the number of mortgages in the COVID-19 abstinence plans fell slightly between August 9 and 15, but the numbers continued to continue in a series of weekly falls starting in March.

According to the MBA’s Weekly Tolerance and Calling Survey, COVID-related abstinence accounted for 3.25% of the total outstanding mortgage loans, which accounted for about 1.6 million borrowers. The share for the week decreased by one basis point from 3.26%. previous week… Among independent mortgage banks, or IMB, deferred payment was 3.48% of the volume, up two basis points over the week, while the percentage of outstanding mortgage loans at depository banks fell one basis point to 3.35%.

Both exits and records showed limited activity, according to the MBA. “The share of loans with deferred payments did not change significantly as new requests and exits were processed more slowly compared to the previous week. In fact, the exit was the slowest in over a year, ”said Mike Fratantoni, MBA senior vice president and chief economist, in a press statement.

Ginny Mae’s loans of mortgages from government-backed programs fell three basis points from 3.95% to 3.92% of the weekly share. Fannie Mae and Freddie Mac’s conventional mortgages also fell three basis points from 1.69% in the previous week to 1.66%.

While loans issued secured by Ginny Mae or GSE accounted for a lower percentage in their investor categories than a week earlier, the number of private label securities and deferred portfolio loans jumped 10 basis points to 7.15. % of the total compared to 7.05% a week earlier. CARES did not offer any COVID protections for PLS and portfolio loans.

“Portfolio and PLS loans now account for almost 50% of all deferred custody loans and almost 40% of IMB deferred loans, highlighting the importance of this category of investors,” Fratantoni said.

The number of deferred payments extended at the present time amounted to 82.3% of their total volume. Excess homeowners at the start of their plans were 10%, while abstinence re-entrances were 7.7%.

Many distressed homeowners who began abstinence in the early weeks of the 2020 pandemic closing will begin falling out of protection against COVID plans for the coming weeks. Borrowers were initially eligible for the six-month benefit with the option of two extensions for six months, for a total of 18 months, during which no payments were made on the loan. September this is the first month that a large number of COVID-related protections will end.

The share of requests for termination of the contract in the total volume of weekly services decreased slightly compared to the previous weekly reporting period – from 0.06% to 0.05%. The share of call centers in the service portfolio also decreased to 7.3% from 7.5% a week earlier.

Of the 36.9 million mortgages currently serviced, 25% are loans from Jeannie Mae, and 56.4% are collateralized by either Fannie Mae or Freddie Mac. The remaining 18.59% belongs to the PLS / portfolio segment.


Source link