Business & Investment

“The share of mortgages in tolerance will drop to 2.28%.”

NS Calculated risk of 10/18/2021 04:00:00 PM

Note: This is as of October 10th.

From MBA: Mortgage share in tolerance drops to 2.28%

The latest Mortgage Bankers Association (MBA) Forbearance and Call Volume Survey reveals that the total number of currently deferred loans has decreased by 34 basis points from 2.62% of the servicer’s portfolio volume last week. 2.28% as of October 10, 2021. MBA estimates that 1.1 million homeowners are in a tolerance plan..

Fannie Mae and Freddie Mac’s tolerant loan share fell 16 basis points to 1.05%. Mortgage Genie May loans fell 17 basis points to 2.77%, and portfolio loans and own-brand securities (PLS) mortgages fell 108 basis points to 5.34%. The percentage of delinquent loans for independent mortgage bank (IMB) services decreased by 25 basis points to 2.57% compared to the previous week, and the percentage of delinquent loans for deposit servicers decreased by 53 basis points to 2.16%. rice field.

“”The exit of tolerance continued at an even stronger paceAs a result, the overall tolerance is reduced by 34 basis points. Mike Fratantoni, Senior Vice President and Chief Economist, MBA, said: “Portfolio and PLS loan delinquency rates have dropped significantly, including loans held for investment purposes, loans for individual investors, and government loans purchased from Genie Maypur. After making the change, we will re-securie to Genie Maypur. “

Added Fratantoni.From its peak of 4.3 million homeowners in June 2020, it is now tolerant of 1.1 million homeowners... Positive prospects for employment and wages, continued rise in home prices, and the availability of multiple loan training options are factors that facilitate the transition from tolerance for many homeowners. ”

Emphasis added

Click the graph to see the enlarged image.

This graph shows the percentage of portfolio tolerance by investor type over time. Most of the increase was from late March to early April 2020, and has been on a downward trend since then.

The MBA states: “Weekly total tolerance requirements as a percentage of service portfolio volume decreased compared to the previous week: from 0.05% to 0.04%.”

“The share of mortgages in tolerance will drop to 2.28%.” “The share of mortgages in tolerance will drop to 2.28%.”

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