The total volume of refusals from mortgage loans was the lowest since the pandemic in a week



According to Black Knight, the lowest number of mortgages started in late May in the week since the start of the pandemic.

After a sequential 16,000 weekly increase in loans in progress, outstanding deferred loans fell 71,000 to 2.124 million as of June 1 from 2.195 million a week earlier. These delinquent borrowers account for 4% of the 53 million active mortgages in the market, and the total outstanding principal is $ 417 billion, up from $ 431 billion a week.

“The limited number of abstinence plans launched this week was associated with both general overall economic improvement in general and improved mortgage performance in particular, but also a shorter holiday week, which resulted in plans being started one day less.” said Andy Walden, Black Knight’s director of market research, NMN said.

Some 65,000 plans that will expire in May remain unaccounted for, which could lead to another significant decline next week. Moreover, By the end of June, 700,000 plans will expire. when they reach their end 18 month abstinence period.

By type, loans secured by Fannie Mae and Freddie Mac declined by 26,000 in the week to 656,000. Government-backed mortgages, sponsored by FHA and VA, saw an overall decline from 28,000 down to 859,000 overall. Private label portfolio and securitized loans that do not qualify for CARES Act protection – dropped by 17,000 to 609,000.

Service technicians need to pay monthly advances according to Black Knight analysis, about $ 2.6 billion in principal and interest and $ 900 million in taxes and insurance per month. These breakdowns are estimated at $ 700 million and $ 300 million for government-sponsored corporate loans, $ 800 million and $ 300 million for government-backed loans, and $ 1 and $ 300 million for private labels.


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