Along Calculated risk of 2/08/2021 04:00:00 PM
Note: This is as of January 31st.
According to the latest Forbearance and Call Volume Survey of the Mortgage Bankers Association (MBA), the total number of loans currently in grace has increased from 5.38% of the servicer’s portfolio volume last week to 5.35% as of January 31, 2021. The points have decreased. According to MBA estimates 2.7 million homeowners are planning tolerate..
“At the end of January, the share of tolerant loans declined in all investor categories. MBA Senior Vice President and Chief Economist Mike Fratantoni said that about 14% of homeowners at the end of last month are now. The share has declined almost every month from 28% in May. “While there was a slight increase in new tolerance demands at the end of January, the exit rate rose somewhat. But it has remained much lower than in the last few months. We anticipate a surge in exits in March and April as borrowers have reached the expiration of their 12-month grace plan.“
“Although the employment market in January recovered slightly following the decline in December, employment in the U.S. economy is still 6.5% lower than in February 2020, and the proportion of long-term unemployed remains high,” Fratantoni added. Troublesome, 4 million people are actively looking for jobs for more than 27 weeks. These are still tolerant and likely to need additional help until the job market recovers significantly. I’m the owner. ”
This graph shows the percentage of portfolio tolerance by investor type over time. Most of the increase was in late March and early April, then it has been on a downward trend and has recently been almost flat.
The MBA states: “Weekly total tolerance requirements as a percentage of service portfolio volume increased compared to the previous week: 0.06% to 0.07%.”
“The share of mortgages in tolerance drops to 5.35%.”
http://feedproxy.google.com/~r/CalculatedRisk/~3/cnUB85Z-CI0/mba-survey-share-of-mortgage-loans-in_8.html “The share of mortgages in tolerance drops to 5.35%.”