Tag Archives: Distressed

Bank, nonbank mortgage modification rates diverge: Fitch

Modifications have begun in earnest as forbearance has receded, and it looks like banks are having the most success qualifying borrowers for it, according to recent studies. When the bulk of forbearance exits got underway between the third and fourth quarters last year, banks had higher modification rates than non-depositories, starting with 40% in the […]

HUD issues proposal for 40-year modifications

The Department of Housing and Urban Development has formally proposed to amend regulations to accomodate 40-year modifications that Ginnie Mae has been preparing to securitize. The proposal, published Friday in the Federal Register, calls for the modifications of Federal Housing Administration-insured mortgages to be structured somewhat like those available for loans other agencies oversee. Forty-year […]

FHA issues guidance on property preservation expenses

The Department of Housing and Urban Development issued a mortgagee letter aimed at clarifying contingencies around property protection and preservation reimbursement for loans that have a first legal foreclosure action filed on or after March 31. Confirmed as excluded from reimbursable P&P costs in addition to those deemed “unreasonable” by Federal Housing Administration handbook definition […]

Many distressed loans that never got forbearance predate 2009

The share of mortgages 90-plus days past due and never in forbearance is high, but many of them had troubles predating the pandemic, the Federal Reserve Bank of Philadelphia’s latest report shows. Sixty-three percent of the 487,976 seriously delinquent mortgages not in loss mitigation never entered forbearance, but 60% of those loans were pre-2009 originations, […]

Mortgage loan modifications rose 40% in fourth quarter: OCC

Serious delinquencies improved in the fourth quarter of 2021 but modifications and foreclosure starts rose as borrowers exited forbearance in droves, according to the Office of the Comptroller of the Currency. Completed modifications and initiated foreclosures each increased by roughly 40% on a consecutive-quarter basis while the percentage of loans with payments 60 or more […]

More borrowers emerge from post-forbearance workouts current

New forbearance plans and extensions inched up in the past month as exits kept slowing, but on-time payments after workouts were improved, according to the Mortgage Bankers Association’s latest report. Overall, the share of loans with temporary, pandemic-related payments fell to 1.18% in February from 1.3% the previous month as the number of borrowers in […]

Forbearances up in latest week, but down from last month

Forbearance has risen from a low reached earlier in March due to new activity and a processing lull in the private market, according to mortgage technology and data provider Black Knight. Overall, pandemic-related payment suspensions rose 1% by a net 8,000 plans to 726,000 on a consecutive-week basis during the week ended March 15. The […]