Lenders and servicers alike must focus on streamlining processes through automated technology and data-enabled solutions to sustain a more profitable business model and manage the shifts and demands of the marketplace.
Category: News and Trends
Share of Mortgage Loans in Forbearance Decreases to 3.76%
The Mortgage Bankers Association’s latest Forbearance and Call Volume Survey reported loans now in forbearance decreased by 11 basis points to 3.76% of servicers’ portfolio volume as of July 4 from 3.87% the week before,–the 19th consecutive weekly decline. MBA estimates 1.9 million homeowners are in forbearance plans.
MBA Chart of the Week, July 13, 2021: Commercial/Multifamily Delinquencies
When looking at commercial and multifamily mortgage delinquency rates, we tend to exclude loans that have been delinquent for less than 30 days, as many may be experiencing a temporary “hiccup” that will be quickly remedied before the next payment is due. But examining these rates can provide key insights into commercial and multifamily mortgage performance through the pandemic and into today.
Jennifer Henry: The Role Third-Party Data Plays for Mortgage Originators and Servicers
Lenders and servicers alike must focus on streamlining processes through automated technology and data-enabled solutions to sustain a more profitable business model and manage the shifts and demands of the marketplace.
MBA Letter Urges Support of HUD Priorities in Fiscal 2022 Appropriations Bill
Ahead of a scheduled vote this week, the Mortgage Bankers Association asked the House Appropriations Committee to support key fiscal year 2022 appropriations proposed to HUD, FHA and Ginnie Mae.
Paradatec’s Neil Fraser: For Servicers, Pandemic-Related Challenges Are Just Beginning
Neil Fraser is Director of U.S. Operations for Paradatec, Cincinnati, Ohio, a provider of AI-based document classification and data extraction technology for mortgage loan processing. He manages all of Paradatec’s operations and has grown the company every year since its incorporation in 2002.
MBA Asks FHFA for Clarity on GSE Short-Term Rental Policies
The Mortgage Bankers Association, in a July 6 letter to the Federal Housing Finance Agency, asked FHFA for more definitive guidance on the government-sponsored enterprises’ policies on mortgages for properties that include short-term rental units.
June Commercial, Multifamily Mortgage Delinquencies Hold Steady
Delinquency rates for mortgages backed by commercial and multifamily properties held steady in June, the Mortgage Bankers Association’s latest monthly CREF Loan Performance Survey said.
Quote
“Forbearance exits increased in the week of the July 4 holiday to the fastest pace since early April. New requests stayed very low, resulting in a large drop in the share of loans in forbearance, particularly for Ginnie Mae loans, which also continue to be impacted by buyouts of delinquent loans. These loans are tracked as portfolio loans after a buyout.”
–Mike Fratantoni, MBA Senior Vice President and Chief Economist.
MBA Urges Federal Agencies to Clarify How AI Technologies Apply to Regs
The Mortgage Bankers Association last week asked federal regulatory agencies to clarify how existing fair lending and the Equal Credit Opportunity Act adverse action notification requirements apply to Artificial Intelligence technologies.