The number of refusals to terminate mortgage lending is growing at the fastest pace in recent months

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According to the latest data from Black Knight, borrowers are pulling out of plans to abstain from the pandemic at the fastest pace since February.

Total abstinence fell for the second straight week by 61,000, or 2.7%, from a week earlier. Volume was down 105,000 last week. Just over 2.16 million borrowers remain on Covid abstinence plans, accounting for 4.1% of the total. The principal outstanding mortgage balances fell to $ 426 billion from $ 438 billion the previous week.

Tolerance rates declined for all types of loans. Rejection by Fannie Mae and Freddie Mac fell 13,000, up 1.9% from the previous week. The number of government-guaranteed FHA and VA plans fell 19,000, or 2.1%. Private label term loans and portfolio loans decreased by 29,000 or 4.6%.

Last month, 38% of mortgages pending for a possible extension of the abstinence period were able to abandon their plans, the highest percentage since mid-February. The start of the plans is also declining by 13% per month and continues to decline.

The current number of abstinence refusals is partly due to the sheer number of people who participated in the plans a year ago. In the same week in 2020, abstinence volumes were close to their highest level in an entire year – 4.7 million. These borrowers accounted for 8.8% of total mortgages and owed more than $ 1 trillion in outstanding principal.

At the end of May and June, more than a million plans have been scheduled for consideration.



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